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A DDP PU BLICATION
Pages: 40 (Excluding cover)
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Vol. XXV No. 13; July 1 st fortnight issue 2013
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TRAVTALK
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JULY 1 ST FORTNIGHT ISSUE 2013
15 states support MOT MICE dream A total of fifteen states have already come forward under the aegis of MOT with land-banks to avail the opportunity for building infrastructure and gain from the MICE momentum all over the world… VIVEK SETHI
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ndia has been taking rapid strides forward in promotion and development of niche tourist segments, including MICE. The recently-concluded UNWTO conference on Sustainable Development; UNWTO Regional Commissions’ meet; International Buddhist Conclave; and PATA Travel Mart, to name a few, had been important events from tourism perspective that showcased a modern India to the world. “It’s our
Minister’s vision to develop India as the best MICE destination in the world.
It’s our ministry’s endeavour to focus, develop and inform the world about the state-of-the-art MICE facilities available across India. Today, we have adopted promotional strategies and synergised campaigns in association with the travel trade
India has been attracting increasing number of MICE events all the year and improving its international rankings as a host of everincreasing MICE activities backed by world-class facilities in Delhi, Hyderabad, Mumbai, etc.
K Chiranjeevi
Anand Kumar
Minister for Tourism
Joint Secretary, Ministry of Tourism
and state governments to increase India’s share in the global MICE market,” said
Anand Kumar, Joint Secretary, Ministry of Tourism, Government of India.
“In addition to growing our presence in meetings, incentives and events segment; India is well poised to attract large conventions. One needs to acknowledge that India is one of the fastest-growing economies Contd. on page 6
Market Brand India aggressively recently conducted a poll on “How can we counteract the impact of the falling rupee on Indian tourism?”
EMI deals
8% 58%
25%
Creating innovative packages
9%
Forward booking
Overseas offices marketing brand India
The responses to this came out very strong with a clear majority (58 per cent) of the industry members wanting the India Tourism Overseas Offices to market Brand India aggressively for inbound tourism.Other suggestions included innovative packages by hotels and travel companies, forward bookings and EMI deals to help promote holidays. Opinions voiced inbound tourism’s urgent need for compensating the falling rupee through more foreign currency coming into India.
News Bulletin One voice in times of distress See full story on page 4
Impact of ` on inbound & outbound tourism See full story on page 14-15
India is a strategic growth market See full story on page 24
It’s airlines vs travel agents See full story on page 36
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BULLETIN
Adventure gets safety tag in J&K Ghulam Ahmad Mir, Minister of Tourism, J&K, released a brochure on water sports brought out by the J&K Ski & Mountaineering Association (JKSMA) on the closing function of Kashmir Festival. T T B U R E AU
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&K Tourism Minister has released a brochure on water sports. The 25 page brochure contains informa-
Ghulam Ahmad Mir Minister of Tourism, J&K
tion on different water sports like rafting, kayaking, canoeing, canoe polo, water skiing,
water walking ball, aqua parasailing, etc. In an interview with , Shabir Bhat, Deputy Director Tourism Kashmir said,
“The number of adventure tourists visiting Kashmir has increased this year. The flow of tourists both domestic as well as international has shown a steep increase this year.” The figures will be released after the season is over. Safety, however, is still a concern for adventure
Going Adventurous Kashmir has skiing, rafting, mountaineering and water sports equipment of international standard There are trained personnel who closely supervise all adventure sports activities Kashmir Festival will now be an annual event which will focus mainly on adverture sports
sports enthusiasts in India. According to a recent survey conducted by TripAdvisor, over 50% of Indians said they didn’t want to involve Indian companies or instructors in adventure sports activities. In fact, Kashmir Rafting Operators Association recently issued a statement saying, “In J&K, there are no regulations for operating Contd. on page 33
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INDUSTRY TALK
One voice in times of distress
VIEWPOINT
UTTARAKHAND CRISES As the country races to rescue the tourists
Have our souls taken wing?
stuck in Uttarakhand,
T
he vision of the National Disaster Management Authority (NDMA) headed by the Prime Minister of India is to build a safer and disaster resilient India by developing a holistic, pro-active, multi-disaster and technology-driven strategy for disaster management through collective efforts of all government agencies and non-governmental organisations. Then, why this lack of sensitivity from the government on the Uttarakhand disaster? The rhetoric for elections however continues without any tangible reaction for people who have lost their loved ones or suffered, or for the local people who will face absolute devastation. ’s second issue of April carried an Editorial on… In India, in the name of sustainable tourism we are blindly going into rapid growth mode - building hotels all along river banks, forests, sea shores, deserts… bringing about a widespread commercial adoption of ‘sustainable development’. We must have the foresight to boost our tourism potential but in a genuinely sustainable manner, protecting our natural and cultural assets... With failing agriculture in Uttarakhand due to soil erosion and faulty irrigation and an average land holding of fragmented 1-2 ha, people are turning to tourism. The state has a total population of 1 crore but 2.5 crore tourists visit the state, and that too mostly in the summer months. To accommodate these tourists and service them, hotels, restaurants, shops and even malls are being built on crumbling roadsides and riverbeds while authorities turn a blind eye. Are we, as an industry, finally going to put a disaster management plan in place, which is owned by a team that visits and upgrades it regularly? We have had the tsunami catastrophe in the South of India (what did we learn from it?), and now this tragedy in the North. Domestic and Pilgrimage Tourism (in the North) will be hit hard for 2-3 years. Natural calamities occur everywhere… Let us be prepared - not just for ourselves but also to give back to the society we earn our living from!
Vikramajit Chairman SanJeet Publisher & Editor Deepa Sethi Editor-in-Chief
Editorial Ratan Kr Paul Vivek Sethi Megha Paul Devika Jeet Anita Jain Teena Baruah News-Editor Peden Doma Bhutia Desk-Editor Archana Sharma Sr. Sub-Editor Hritvick Sen
Advertising Gunjan Sabikhi Asst. Vice President Karishma Khanna Sr. Manager Marketing Udit Pandey Sr. Manager Marketing Geetika Pathak Manager Advertising Amit Sarkar Asst. Manager Marketing Photographers Simran Kaur-Delhi Bharat Dangiya-Mumbai
K Chiranjeevi Ministry of Tourism, Government of India
Vikram Sen Principal SecretaryTourism, West Bengal
team talks to the who’s who of the trade.
The government is continuously monitoring rescue operations and welfare of the victims. The state government has deputed ministers and officials to look after the victims from the state and also to bring them back from the affected areas. I will contribute 1 crore from my Member of Parliament Local Area Development Scheme (MPLADS) fund for the victims and also one month’s salary to the PM Relief Fund.
A 14-member team, headed by the Principal Resident Commissioner Bhaskar Khulbe, is working round-the-clock in Uttarakhand to coordinate the efforts to provide succour to the pilgrims and their relatives. Two camps have been set up at Haridwar bus stand and Rishikesh bus Terminus. Special coaches are being attached to regular trains heading to West Bengal.
ADTOI has sanctioned ` 1 lakh for the CM Relief Fund in Uttarakhand. This is the biggest tragedy that could have affected domestic tourism. As tourism is hit in the region, people will now flock to other areas of Himachal Pradesh. There is an urgent need for the government to see to the carrying Subhash Verma capacity of the region. President, ADTOI
This tragedy will obviously affect religious travel. In the 12th Five Year Plan, we requested the govt. for taking a research study in the carrying capacity of the regions. Pilgrims still fall under the unorganised sector. They go in big groups, usually with no assistance from the tour operators. For adventure tours, there is an adventure tour guideline. On similar lines, the govt should create a checklist for the pilgrimage sector.
Going forward in this region, the infrastructure should be developed in such a manner that there are fences that can hold the rubble that fall on the roads due to cloudbursts or landslides. Moreover, innovative designs should be used at the exit points. Having donated to the CM funds of Uttarakhand, we are in the process of collecting further help from our members.
Vibhas Prasad Director, Leisure Hotels
Advertising (Mumbai) Suchita Saran Branch Manager Harshal Ashar Deputy Genral Manager Priyanshu Wankhade Asst. Manager Advertising Rishika Karra Sales Coordinator Advertisement Designers Vikas Mandotia / Nitin Kumar Aarushi Agrawal Design: Nityanand Misra Sudhir Mudgal Production: Anil Kharbanda Circulation: Ashok Rana
Mandip Singh Soin President, Ecotourism Society of India
President, IATO
Controlled movement in these areas can help manage the situation. There is no control on the number of people in these areas, we need to keep the carrying capacities of these destinations in mind. Also, we need to be more prepared for such calamities. ATOAI has been working relentlessly to allow the use of satellite phones in such areas. A lot of time was wasted in trying Akshay Kumar, President, ATOAI to establish communications.
Vijai Pande Honorary Secretary, FHRAI
It will take a decade to get back to the level that Uttarakhand had attained in tourism. Keeping safety and security in mind during the CWG in Delhi in 2010, hotel industry had to spend crores for each property, following safety rules and regulations. But, in the same light, governments have failed in their approach to offer safety to tourists in meeting natural challenges and prepare calamity-prone areas in advance.
Air India offers discount
PP Khanna Vice President ADTOI
Out of 21 properties that we run, 19 are based out of Uttarakhand. We have nine properties on the Ganges banks. We have tented accommodation in GupkashiKedarnath and Joshi Math in Badrinath. We were able to successfully evacuate the pilgrims from both these camps just in time. Our tents have not suffered much destruction. We have always chosen our sites judiciously and I think this was what ultimately helped us combat this calamity.
TRAVTALK is a publication of DDP Publications Private Limited. All information in TRAVTALK is derived from sources, which we consider reliable and a sincere effort is made to report accurate information. It is passed on to our readers without any responsibility on our part. The publisher regret that he cannot accept liability for errors and omissions contained in this publication, however caused. Similarly, opinions/views expressed by third parties in abstract and/or in interviews are not necessarily shared by TRAVTALK. However, we wish to advice our readers that one or more recognised authorities may hold different views than those reported. Material used in this publication is intended for information purpose only. Readers are advised to seek specific
Subhash Goyal
Cloudbursts and landslides have left a trail of destruction in Uttarakhand. We at IATO have appealed on behalf of the industry to help the government for rehabilitation work for the local people and also the pilgrims.
advice before acting on information contained in this publication which is provided for general use, and may not be appropriate for the readers’ particular circumstances. Contents of this publication are copyright. No part of TRAVTALK or any part of the contents thereof may be reproduced, stored in retrieval system or transmitted in any form without the permission of the publication in writing. The same rule applies when there is a copyright or the article is taken from another publication. An exemption is hereby granted for the extracts used for the purpose of fair review, provided two copies of the same publication are sent to us for our records. Publications reproducing material either in part or in whole, without permission could face legal action.
Air India is offering a 50% discount on the basic fare from Dehradun to Delhi and onward stations, for those affected by the recent calamity. Air India will monitor the situation and will be on stand by to operate special flights to/from Dehradun. Meanwhile Rohit Nandan, CMD, and Syed Nasir Ali, JMD, Air India, who have contributed their one day’s salary to the Prime Minister’s Relief Fund for the affected, have appealed to all the employees of the airlines to volunteer to help. Why do we wait for the disaster to happen? Why can’t we be proactive in our Disaster Management Programme, especially in ecologically sensitive Himalayan states. I’d blame urbanisation, industrialisation, and unscrupulous development plans for such disasters. We know the Himalayas are a sensitive zone, full of water Santoshh Kumar Sharmma bodies, forests and glaciers. But the forest cover Director & Vice President, has been allowed to be depleted, leaving the Foresee Aviation Himalayas more vulnerable to disasters. States like Uttarakhand do not have a clear integrated, inclusive developmental approach. Unfortunately, the economy is considered more important than ecology. In the long run, the entire country would suffer if we do not take actions today. The larger question that arises is, are we prepared for to cater to the increasing demand in pilgrimage? The answer is no. Since most of these pilgrimage destinations are located in small towns and villages, it is crucial for authorities that we have some mechanism like removal of illegal constructions. The government should also keep tents and few transportation modes like helicopters on stand-by to meet any emergencies.
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AVIATION
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Dreamliner to open up new markets for AI Air India plans to start services between Delhi-Birmingham and DelhiSydney/Melbourne next month, followed by Delhi-Rome/Milan in October. TT B UREAU
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t a recent press conference in New Delhi, Civil Aviation Minister Ajit Singh said that, out of six Dreamliners, two aircraft have already been modified for commercial operations and all six planes will be ready for operation by the end of this month. Air India would get another eight Dreamliners by December, he added. This will make the total availability of 14 B-787 Dreamliner aircraft with Air India by this year.
Ajit Singh Minister Civil Aviation
Out of six Dreamliners, two have already been modified and all six planes will be ready by the end of this month Dreamliners offer roomier cabins, larger electronically dimmable windows, state-of-the-art inflight entertainment system powered by the most sophisticated GEnxt engines. These have remained grounded since January 17 after a fire in the lithium-ion batteries of a parked plane in Boston and a case of forced landing of another B787 for the same reason in Japan. The aircraft is now operating on domestic services between DelhiChennai, Delhi-Bengaluru and Delhi-Kolkata routes besides international operations to London, Frankfurt and Paris. The Minister clarified that before restarting its operation on May 15, 2013, all operational regulatory requirements have been complied with and all pilots have been subjected to the required checks before release for flight duties. Speaking to TravTalk, Rohit Nandan, Air India’s CMD said, “I have personally gone into these
aircraft to supervise engineers as they worked on the batteries.” “The airline is working on evolving a functional hybrid model by adopting the best practices of lowcost carriers, while retaining the core services of a fullservice carrier. The on-
going restructuring at Air India has cut loss-making routes to 25 per cent of its network in the fiscal year ending March 2013,” he added. The minister also said that the government has accepted the recommendations of Prof. Dholakia Committee Report on cost cutting in Air
India and has sent it to Air India for immediate implementation. The committee has made a total of 47 recommendations. “Air India expects a saving of about ` 500 crore in the next six months by implementing the committee’s recommendations,” said Singh.
Report’s recommendations: O Charging for food in the domestic sector and rationalising it in the international sector O Unbundling of services to passengers and advertisement space O 0% commission and ticket booking through website
O Enforcement of excess baggage charges
O Dynamic pricing and passenger upgrade
O Flights not meeting costs need to be restructured/withdrawn O Idle aircrafts to be used on most profitable sectors or surrendered
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MOT
TRAVTALK JULY 1 ST FORTNIGHT ISSUE 2013
India: MICE destination Contd. from page 1
with immense business opportunities. Hence, all the large-format international conventions with rotational policy are now keen to conduct their convention in India,” said Anand. There is no denying that, in many states, the MICE facilities are still not developed to match international standards. The Ministry of Tourism has mobilised all such states to
fairs and exhibitions; and organising seminars, workshops, and road-shows to promote MICE in the country. We have also been inviting the media and mice operators to showcase India. The 25 year celebration of our ICPB under the aegis of the Ministry in August 2013 will highlight all said initiatives,” said Kumar. Earlier in March, K Chiranjeevi, Minister for Tourism, Government of India had met with the Finance Minister to request
I have met with the Finance Minister for additional allocation for Tourism Ministry to set up 10 convention-cum-exhibition centres K Chiranjeevi, Minister for Tourism come forward with availability of land, where either large integrated convention centres, or medium to small convention amenities could be build under PPP mode. “Fifteen states have already come forward to avail the opportunity to build MICE infrastructure. Further, we are participating in all MICE
for additional convention facilities in India. “We are keen to develop India as the numero uno MICE destination. I have met with the Finance Minister for additional allocation for Tourism Ministry to set up 10 convention-cum-exhibition centres across the country for the promotion of MICE Tourism,” Chiranjeevi had said.
New campaign for Indian Himalayas ‘777 days of the Indian Himalayas’ initiative will promote Himalayan states and the gateway cities which will serve them with their airports and railway stations. T T B U R E AU
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he Ministry of Tourism announced a special campaign ‘777 days of the Indian Himalayas’ on World Tourism Day. As per K Chiranjeevi, Minister for Tourism the new campaign will publicise the tourism potential of the Indian Himalayas and promote this incredible tourist product internationally. “It is the time to change the image of India from the one entirely in the plains to one having major attractions in the Himalayas. This is also the time to change the image from a winter destination to a summer destination as well. The campaign has been called ‘777 days of the Indian Himalayas’ and will have a two-fold objective, one, to attract more international tourists to India during the lean summer season, and second, to remind the world that 73 per cent of the Himalayan region is in India,” said Chiranjeevi.
K Chiranjeevi Minister for Tourism
The campaign will attract more international tourists and promote the country “The aim of this campaign is to promote not only the Himalayan states but also the gateway cities which will serve them with their interna-
tional and domestic airports and railway stations. At the time of arrival or departure, the gateway cities will offer an opportunity to the visitors to see the tourism attractions available there. The Ministry plans to launch the campaign on September 27 this year on the occasion of the World Tourism Day. The first major event after the launch will be the Himalayan Run & Trek Event in October 2013,” he added. This decision was taken after a meeting with the office bearers of the Adventure Tour Operators Association of India (ATOAI). In fact, the ATOAI members agreed to offer attractive discounts to the tourists during the period of the campaign. Here, Akshay Kumar, President, ATOAI, said, “We are working on 100 new programmes along with new itineraries that will directly benefit six states, namely HP, Arunachal Pradesh, Sikkim, WB, Uttarakhand and J&K. In fact, all other states in India will also ben-
efit. In my opinion, it will give the next major push to grow international and
Akshay Kumar President, ATOAI
We are working on 100 new programmes that will benefit six states directly domestic tourists in India post the recent two campaigns launched by MOT in November 2012.”
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TECHNOLOGY
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Technology key to access new markets A home-stay in Kerala can now market itself just like one of the big hotel chains to its target audience even in London, or Sydney. reports how technology helps entrepreneurs to widen their reach. T T B U R E AU
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t the recently held International Conference on Travel Technology (ICTT) in Kerala, Oommen Chandy, Chief Minister, Kerala highlighted the important role technology plays in enabling all entrepreneurs in accessing new markets in the travel and hospitality business. “India has made a significant progress in the global tourism arena. However, it still has a long way to go to realise its true tourism potential. Here, it requires a surge of entrepreneurship to develop the various travel attractions and make them great tourism products. In fact, all that is needed to fuel this surge of entrepreneurship are various platforms and channels for marketing the various travel attractions,” said Chandy. “In this case,
technology revolution becomes an enabler that helps thousands of entrepreneurs in the travel business reach out to markets that were inaccessible earlier. Entering into these markets required massive investments. Technology has become a great enabler for new businesses in the tourism sector to partner with stakeholders across multiple geographies,” he added. ICTT had been organised by the Kerala-based Association of Travel Trade Organisations, India (ATTOI) and was recently held in Kovalam, Kerala. The objective of this conference was to prepare the travel and tourism industrialists in India and neighbouring countries to understand the importance of web marketing, techniques for using the resources avail-
Who’s Who THE ORGANISERS: ICTT had been organised by the Keralabased Association of Travel Trade Organisations, India (ATTOI) and was recently held in Kovalam, Kerala THE OBJECTIVES: The objective of this conference was to prepare the travel and tourism industrialists in India and neighbouring countries to understand the importance of web marketing
able online to drive business, get inputs in adapting to the changing technology and acquiring skills to beat the competition.
Here Chandy insists that technology has enabled micro enterprises and individuals to reach out to their markets across the seas. “A home stay in Kerala can now market itself just like one of the big hotel chains to its tar-
get audience even in London, or Sydney. In Kerala, we have lot of entrepreneurs in the tourism sector and I am sure that technology will give them Oomen Chandy, Chief Minister of Kerala along with other dignitaries, at the lamp lighting ceremony wings,” he added.
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HOTELS
More Fairmonts in India As the Canada-based hotel chain explores options to expand its footprint to other Indian cities, Jennifer Fox, President, Fairmont Hotels & Resorts talks about the group’s game plan in India. of the India market, Fox says, “We see significant opportunity for outbound travel from India to key Fairmont markets, including Dubai, Abu Dhabi, Singapore, Shanghai, Beijing, in addition to locations in Canada, US, Europe
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he hotel industry is going through an interesting phase in India. International hotel chains are influenced by the growing economic setting and demand for more hotel rooms across categories. Fairmont Hotel and Resorts remains optimistic on the long-term growth story of the Indian hospitality industry. This is further reinforced by the India-centric growth strategy of several global hotel players, feels Fox. With the sector allowing 100 per cent FDI, India is fully poised to seize the opportunity. Canadian luxury hospitality chain Fairmont entered the Indian market last year with a 255-room hotel
in Jaipur. According to Fox, the group is looking at developing city centre hotels in urban areas such as Bengaluru, Delhi and Mumbai, while destinations such as Goa will serve as attractive locations to grow the resorts portfolio. “We
Highlights Jennifer Fox President Fairmont Hotels & Resorts
would like to be in the key cities of India such as Delhi, Mumbai and Bengaluru, and also resort locations. We have signed a letter of intent for a resort in Goa, and also for a property in Mumbai. Both should start construction in the next few months. We want to have 12
hotels in the next five to 10 years,” she points out. With the launch of a hotel in Jaipur, the Indian market has also become an important arm in the chain’s global growth strategy. Talking about the importance
STRATEGY: With the launch of a hotel in Jaipur, the Indian market has also become an important arm in the chain’s global growth strategy. HISTORY: Canadian luxury hospitality chain Fairmont entered the Indian market last year with a 255-room hotel in Jaipur
and Africa. With the launch of the Fairmont Jaipur, it will definitely assist us in introducing Indian travellers to our brand.” The hotel has received a positive response since their launch in August 2012. “Jaipur is part of the famous Golden Triangle (Delhi-AgraJaipur) which is an advantage for us. Most of the international tourists usually make a point to visit it. Moreover, the city offers great connectivity. We had a good response from both wedding and MICE segments; the former being the driving element in the months of August and September last year. Additionally, the Fairmont loyal customer’s online booking has fairly been strong,” she adds.
Weekend traffic for Binsar hotel Set in the midst of the Binsar Wildlife Sanctuary, the Grand Oak Manor is high in the Himalayas of the Kumaon region of Uttarakhand. Throwing light
on the rich history of the place, Gita Chaudhry, Founder, Globe1 Tourism & Marketing says, “The former residence of British India’s Lieutenant General Sir Henry Ramsay, the
imperial home echoes the stately life till date in its fine dining, cosy fires, reading parlour and antiques.” Talking about the amenities available at the property,
she adds, “There are nine centrally-heated rooms. Each room has its private balcony. A multi-cuisine restaurant The Acorn offers sumptuous dining experience.” According to
Chaudhry, Binsar has evolved as a weekend getaway destination.
“Domestic travellers are beginning to appreciate unconventional places such as Binsar. While a ‘hill holiday’ earlier meant a mall road, shopping and boating, it’s great to see new developments wherein people are focussing more on nature walks and trails. The trend is moving towards experiential holidays where travellers appreciate ecofriendly elements at our place such as the absence of electricity, or the lack of television,” she says.
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HOTELS
Luxury within US$ 100 Targetting affordable luxury, the Treehouse Group claims that it will never charge an ARR beyond US$100 as it is aiming at the mid-segment. reports more... T T B U R E AU
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ost its successful stint in the management of Treehouse Hotel Club and Spa at Bhiwadi, serviced apartments in Goa and Treehouse Queens Pearl in Gurgaon, Treehouse Group is now set to unveil its fourth property in October. “Anuraga-A Treehouse Resort at Ranthambore in Sawai Madhopur, Rajasthan is another landmark for us as it takes the group to one of the most popular destinations in the country for travellers, on business or leisure,” says Richa K Singh, EVP, Treehouse Group. Giving more details about the new venture, she adds, “AnuragaA Treehouse Resort is a fullservice hotel, which restores one of Ranthambore’s oldest hotels, the Anuraga Resort into a modern complex with a traditional inheritance. The hotel, which renders authentic Rajasthani architecture and construction styles, will have 40 rooms, four suites, a banquet hall, swimming pool, gardens, two conference facility spaces, spa and gym as well as restaurant and bar.” Currently, the group draws around 25 per cent of its revenues from the B2B segment. Going forward, it is looking at strengthening this alliance. “We see an increase of around 10-15 per cent through travel agents/tour
operators in the next one year,” the EVP articulates. The company that started operations six years back with the flagship property in Bhiwadi has come a long way. Reminiscing about its growth
Richa K Singh EVP Treehouse Group
Currently, the group draws around 25 per cent of its revenues from the B2B segment trajectory, Singh points out, “We started with 50 rooms, but we added another 50 rooms by the end of that year seeing the demand. At an ARR of around ` 3,700-4000, we currently have occupancy of 70 per cent, out of which 60 per cent consists of the Japanese corporate clientele.” During weekdays, this is
primarily a corporate and conferencing hotel. During the weekends, the hotel gets transformed into a weekend getaway. “When we started, we got booking of one room per day and now it has risen to 10 rooms a day. The mid-segment is our target and this is the maximum we will charge as ARR would never exceed US$ 100,” Singh confirms. Talking about the other model of serviced apartments -- The Treehouse Blue -- in South Goa at Majorda, Singh comments, “Finding a piece of land in Goa is itself a challenge. Thus, managing the inventory and then opening a restaurant becomes difficult as the fixed costs soar. Thus, we decided to have serviced apartments in Goa. We are doing 60 per cent occupancy in the off-season now. This model has worked extremely well for the group. On similar lines, we will open two more properties in North Goa—in Candolim and Calangute. These will be managed properties and would be operational by the end of next year.”
Double Role WEEKDAYS: During weekdays, this is primarily a corporate and conferencing hotel WEEKENDS: During the weekends, the hotel gets transformed into a short holiday getaway
Lords Eco Inn in Kathgodam The 30-key hotel with two banquets and two restaurants is aiming to tap the MICE and wedding segment. According to R Puri, Associate Vice President (Operations), Lords Hotels and Resorts; the hospitality industry has been facing a dip for quite some time now. “The ARRs have taken a substantial downfall. Although in the next quarter, it may stabilise due to usage of aiding tools such as TripAdvisor, OTAs, etc, which have become popular among hoteliers and guests. Many hotels have gone into unconventional marketing. One of the most predominant tools used by any organisation is the social networking site. Lords has also established its Facebook page, for promoting various deals and being in touch with its guests,” he says. The group is charting a slow, but steady expansion
plan. Starting with two properties at Surat and Vadodara in 2008 (owned by directors of the company), the group
R Puri Associate Vice President (Operations) Lords Hotels and Resorts
now has 17 operational properties. “We are looking for a minimum period of 10 years for management contracts with a management fee of six-eight per cent on total turnover, which excludes technical fees and upfront charges as applicable. We will continue to focus on commer-
cial properties that are viable projects to be operated as within 100-room hotels,” he adds. The group has recently unveiled its new Kathgodam property -- Lords Eco Inn Kathgodam. The 30-keys hotel with two banquets and two restaurants is aiming to tap the MICE and wedding segment and will be reaching out to markets such as Delhi, Uttar Pradesh, Madhya Pradesh and the nearby industrial belt, Puri informs. The focus of the company has always been the mid-market budget segment in the Tier-II or III cities. “We already have nine more hotels in various stages of development and these should be launched soon. Three hotels would be added in next three months at Porbandar and Sasan-Gir by September.”
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ASSOCIATIONS
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IATO sets the stage for Kochi convention A team comprising of the convention chairman, two co-convention chairpersons and a few EC members visited Kochi from 21-24 June 2013 to work out the convention details. T T B U R E AU
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he Indian Tour Operators Association of India (IATO) has asked its members to contribute to the convention preparations by sharing their opinion on various issues.
Arun Anand Hony. Treasurer, IATO Convention Chairperson 2013
We will soon be announcing the hotels, transport service providers and post-convention tours “We have opted for the best democratic mechanism to make sure that our 2013 convention is far better than the previous convention in Mumbai. Hence, we have asked our members to communicate their opinion on the most important of issues. On basis of their suggestions, we will finalise the theme and various business sessions,” said Arun Anand, IATO Convention Chairperson 2013.
Train discounts spur Spain’s tourism figures SPAIN's Ministry of Transport this week reported that ridership on Renfe AVE services has risen 14% year-on-year in the last four months to 4.7 million passengers, following an 11% cut in all tourist class tickets in early February. The fare cuts were introduced as part of a raft of measures including the launch of 10trip passes, and the introduction of more flexibility in return tickets, aimed at stemming the decline in high-speed passenger numbers, which fell 2.6% last year.
“We have already started on other convention details. I will lead a team, comprising the two co-convention chairpersons and a few EC members, to Kochi to work out the convention details. We will soon be announcing the hotels, trans-
port service providers and post-convention tours,” he added. Lately, IATO had announced that it will host its 29th annual convention in Kochi from 8-11 September at the Le Meridien Convention Centre. IATO had previously organised its con-
vention in Kochi in 2005. Anand, Honorary Treasurer, IATO; Lally Mathews, Honorary Secretary and EM Najeeb, Chairman-Kerala Chapter, IATO had been chosen as the Convention Chairman and two convention co-chairmen.
EM Najeeb
Lally Mathews
Chairman-Kerala Chapter IATO & Co-Convention Chairman
Honorary Secretary IATO & Co-Convention Chairman
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ASSOCIATIONS
TRAVTALK JULY 1 ST FORTNIGHT ISSUE 2013
`10-cr boost to Rajasthan tourism
‘Airfares anti-tourism for J&K’ The stakeholders expect that once the Amarnath Yatra starts from June end, airfares will further sky rocket and touch unprecedented levels… T T B U R E AU
A
Ashok Gehlot with Bina Kak and Rakesh Srivastava, Principal Secretary-Tourism
Rajasthan should proactively market its tourism potential, said the Rajasthan Chief Minister, Ashok Gehlot on the occasion of Foundation Laying Ceremony of a `10 crore ‘Paryatan Bhawan’ in Jaipur.
The state should not in any way lag behind in its marketing efforts to attract both the foreign as well as domestic tourists.
According to Bina Kak, Minister of Tourism, the state has made immense progress in not only tourism but also in the field of art and culture as well as forest and environment sector. She also said the six hill forts were on the verge of being approved as UNESCO World Heritage Sites. These forts included Amber, Ranthambore, Gagron, Chittorgarh, Jaisalmer and Kumbhalgarh. The construction of the new building will be executed by Rajasthan State Road Development & Construction Corporation.
head of the start of Amarnath Yatra, Khaliq Wangnoo, Chairman, IATOJammu & Kashmir Chapter, is concerned about the airfares to Srinagar which may become very high this season. According to him, such high fares are counterproductive for promoting tourism. “There are two major roadblocks that impede growth of tourism in J&K. The exorbitant airfares are one such factor. At present, it costs around ` 12,000` 15,000 to travel one way. Going forward, once the Amarnath Yatra starts from June end, we expect them to further sky rocket and touch unprecedented levels. The Government must do something to ensure that the airfares are kept at reasonable levels,” said Wangnoo. “The second major challenge is electronic media that goes overboard publicising the negative events. In most
Khaliq Wangnoo Chairman Jammu & Kashmir Chapter, IATO
The five mega trends in tourism are the Internet, green concepts, safety, luxury, and health cases, the tourist attractions miles away from the actual sight of the disruption. The media also needs to exercise caution and be more objective,” he added.
Wangnoo is also working at conducting a day-long seminar at Srinagar, where along with the IATO office-bearers, other travel and hospitality association heads will also participate. He also emphasises that the tourism ministry of J&K should prepare the event calendar at least a year in advance.
“The recently held Kashmir festival from May 13-29 was a great success. But most of our members could not inform their principals well in advance because it was planned at a very short notice. Events like this, if communicated well in advance, will create at least three-fold results,” said Wangnoo.
Hurdles for tourism Two major roadblocks that impede growth of tourism in J&K. The exorbitant airfares are one such factor
The second major challenge is electronic media that goes overboard publicising the negative events
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Outbound: ` freefall hits travel As the rupee hits new lows, travel agents and tour operators have geared up to face the challenge and are devising innovative ways to tackle the situation. M E G H A PAU L
T
he rupee’s freefall against the dollar is the latest blow to the stuttering growth story of India. As of now, $1 was a little above
` 59. There has been a slide of over six per cent in the value of Indian currency over the past six months and this affects the outbound tourism industry in India as well. According to experts, foreign
Agents hard hit Guldeep Singh Sahni, President, OTOAI feels agents have been adversely hit. “The travel agents and tour operators have been flooded with calls from customers, especially the ones who booked their holidays in advance. Advance booking customers, who have to shell out more than what was initially conveyed, are refusing to pay the rest of the amount claiming they have been cheated. We even have a rider saying that prices are subject to change and this is there for a reason. So yes, there have been cancella-
tour cost has risen by 11 per cent. The depreciation of rupee is burning a bigger hole in the pockets of Indians travelling abroad who are thus, now rethinking their plans. Typically, half of for-
tions. However, the volumes of bookings are so huge the impact of the cancellations has not yet been felt,” he says. Also, domestic fares are still too expensive and thus, the traveller is just altering his decision of holidays but is still going outbound, he adds. Ajay Prakash, Immediate Past President, TAFI feels the outbound travel market is quite stagnant at the moment. “We have neither registered growth nor degrowth. Traffic movement is quite slow,” he informs. According to him, though bookings for international travel took place usually two to three months in advance, any change in foreign
Madhav Pai Director – Leisure Travel (Outbound) Thomas Cook (India)
Despite rupee depreciation, the company has witnessed an increase in outbound travel
the dollar price can obviously impact tour costs. Travel agents and tour operators have geared up to face the challenge and are devising innovative ways to tackle the problem.
for Europe, Australia, New Zealand and South Africa, travel agencies get quotations from local hotels and service providers in US dollars. As a result, a fluctuation in
exchange rates were paid for by the traveller. Besides, there was a cash (forex) component travellers kept for personal use. Any rate escalation would naturally make that component more expensive, too.
Guldeep Singh Sahni
Shravan Bhalla
President OTOAI
General Secretary OTOAI
Advance booking customers are refusing to pay the rest of the amount
Focussed targeting via innovative products According to Madhav Pai, Director – Leisure Travel (Outbound), Thomas Cook (India), despite the sluggish economy, spiralling fares and rupee depreciation, the company has witnessed an increase in outbound travel this summer of approximately 25 per cent. “Our strategy included the launch of innovative consumer-centric products across price points (super budget, value, to premium), and this has worked strongly in our favour. To give added impetus in a price sensitive market, we released our impactful marketing campaigns of
eign tour costs are paid in foreign currency. While tickets and visa charges are paid in rupees, the hotel costs and ground transport cost at destinations are paid in foreign currency. Except
‘Holiday pe Holiday, FREE!’ and our unique ‘Holiday SuperMarket’ concept,” he says. The Tier II & III markets have powered the company’s growth story in 2013 and the new Regional Tours coupled with aggressive expansion into secondary markets has resulted in impressive growth in volumes. In today’s context, quality and value are both equally significant for the Indian traveller and with movement in the rupee, the all-inclusive Group Escorted Tours are seeing impactful growth. Focussed targeting via innovative products paid us rich dividend, he adds.
With clients ‘becoming’ travel agents, we are left with very less margin
Shravan Bhalla. General Secretary, OTOAI laments, “Nowadays with clients becoming travel agents themselves and airlines offering no commissions, we, as travel agents and tour operators, are left with very less margin. We offer clients the rates for air tickets, visas, etc in INR and for hotel bookings in foreign currency. Therefore, the profit margin remains the same. It’s just the cost of the package that increases.”
Ajay Prakash Immediate Past President TAFI
The outbound travel market is quite stagnant at the moment
Promote Single Price Holiday Rajesh Magaow, Cofounder and Chief Financial & Operating Officer, MakeMyTrip opines, “Tour operators offer different kinds of pricing in the market – a single-price holiday in INR or a dual price with a Forex component and an INR component. A majority of MakeMyTrip packages are booked as a single-price (INR) holiday. For a traveller, the best buy in a volatile market is a Single Price Holiday. This saves them from currency fluctuations and prevents the possibility of booking a holiday at one price and facing a price
Rajesh Magaow Co-founder and Chief Financial & Operating Officer, MakeMyTrip
We sell majority of packages as single-price holidays, so currency fluctuation does not impact
variance at the time of final payment due to Forex variance.” The company books at forward market rates to offset any actual fluctuation at the time of travel. Group package costs remain pretty static but for the flexi-itinerary traveller, incidental expenses of shopping, dining out, etc. may go up slightly. “We also sell a majority of our packages as single-price (INR) holiday, hence currency fluctuation does not impact the overall holiday cost when it comes to balance payment at a later date,” he adds. Contd. on page 25
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Inbound: Cautious optimism on ` slide The volatility in rupee’s value and increase in input costs worries inbound players, as they hope to improve margins on the back of depreciation in value of INR versus the US dollar. VIVEK SETHI
T
he travel industry has been put in a peculiar situation due to sudden erosion of the value of rupee versus the US dollar. It dipped below
Subhash Goyal President Indian Association of Inbound Tour Operators
At present, inbound tour operators are getting more money what they have anticipated the ` 60/$ mark briefly on 20 June 2013, while it continues to struggle to stay afloat. From the inbound perspective, a weaker rupee means that demand for destination India should rise. The industry stalwarts at this point are cau-
Arup Sen Director Special Projects, Cox & Kings
The American market will get a natural impetus, due to the dollar’s position tious to acknowledge the upside of a weaker rupee from inbound perspective, as they want to weigh in other allied externalities. As per Subhash Goyal, President, Indian Association of Inbound Tour Operators
(IATO) and Chairman-STIC Travel Group, “The sudden steep devaluation or appreciation of INR versus US dollar badly affects the tourism industry at any time. A few years back, when rupee appreciated to ` 36-37, our inbound tour operator members who had given quotations to their foreign tour operators in US
dollars 6 to 12 months in advance were in a for a very big loss, because the rates which they got from their hotel counterparts in India were higher than what they got from their overseas clients while converting USD into INR. At the present, the position is that inbound tour operators, while converting, are
getting more money than they have anticipated.” “There should be a balance in currency exchange rates. A few years back, the rupee value was stabilised between ` 42-45/$ and this stayed put for quite a long period. The tourism industry was not affected and tour operators,
both inbound and outbound, were happy. Now this recent devaluation of rupee is not only affecting the tourism industry, but also affecting importers and also Indian consumers as a whole,” he added. In words of Arup Sen, Director, Special Projects, Cox Contd. on page 22
Surinder Singh Sodhi Senior Vice President & Head, Leisure Travel Inbound, Thomas Cook India
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STATES
The 2nd Lalit Walk-A-Thon
` 1.5 bn CFA boost to Madhya Pradesh
The Lalit Suri Hospitality Group recently organised The 2nd Lalit Walk-A-Thon to celebrate Dabbawalas at The Lalit Mumbai. The 2nd Walk-AThon saw participation from
Madhya Pradesh has received approval from Central Financial Assistance for three mega tourism projects - Jabalpur, Bundelkhand and Ujjain - from the Ministry of Tourism under the Development of Mega Destinations/Circuits scheme. T T B U R E AU
“W Jyotsna Suri Chairperson & Managing Director, The Lalit Suri Hospitality Group
about 200 Dabbawalas against 125 who walked the roads of Mumbai during the 1st edition. Conceptualised by Jyotsna Suri, Chairperson & Managing Director, The Lalit Suri Hospitality Group, the event salutes the ever-present 5,000 plus Dabbawalas who deliver over 2 lakh lunch boxes across the busy city every day. Dabbawalas have become an part of the Mumbai culture and have won accolades across the world for their clockwork precision and teamwork.
hile Jabalpur megacircuit covering Bargi Dam, Katni Mandla, Dindori, Shahdol, Seoni and Amarkantak will receive ` 50 crore (approx.) from the MOT; ` 40 crore have been sanctioned for the development of Ujjain mega circuit covering
Omkareshwar, Ratlam, Shajapur, Dhar and Dewas; and ` 36 crore has been sanctioned for Bundelkhand mega circuit which will cover Chhatarpur, Damoh, Panna, Sagar, Tikamgarh,� says Raghvendra Kumar
Managing Director, MPSTDC
MP first in race
` 40 crore have been sanctioned for the development of Ujjain mega circuit covering Omkareshwar, Ratlam, Shajapur, Dhar and Dewas; and ` 36 crore has been sanctioned for Bundelkhand mega circuit Singh, Managing Director, Madhya Pradesh State Tourism Development Corporation (MPSTDC) in an interview with .
Raghvendra Kumar Singh
Bargi in Jabalpur. It will also include development of caravan parking bays and facilities at Sonmudha, Kapildhara and Kabir Chabutra. The Ujjain project will include conservation of Mahakaleshwar temple, Gad
The work for Jabalpur Mega Circuit include tourist facilities at Sangram Sagar and development of Tilwara Ghat, Gandhi Smarak Park, Bhedaghat, laser-show activity and adventure sports at
Kalika, Jantar Mantar, Bharthari Gufa, Harsiddhi temple, Kapileshwar, development of Fort Badnagar and snake park, Omkareshwar Jhula bridge, Narmada and Kaveri Sangam and Brahmpuri ghat. In the Bundelkhand series, works will also be undertaken to develop an interpretation centre near Western Group of Temples in Chhattarpur, upgradation of Damoh Ghat and development of pathways, informatory signs to
Promoted as Holiday on Wheels, MP is the first state in India to launch caravan service. This is a luxury vehicle of MP Tourism which includes microwave oven, LCD and fridge. It can acco modate two adults and two children. Caravan bays have been built in places like Pachmarhi, Tawa, Mandu,Sanchi, Maheshwar, Pench, Katni, Bargi, Biaora and Kanha where the caravan can be washed, batteries recharged, etc indicate ways and distances up to the city. Works will also be undertaken to develop Panna Ghat and development
of pathways at Benisagar Talab, as well as improvement and development of Baldu Temple.
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STATES
Goa clears deck for VoA The state is also working on various e-initiatives to make it easy for international and domestic travellers to plan and book an itinerary online. T T B U R E AU
G
oa Tourism is determined to grow tourism in the state round-the-year and is eagerly waiting for further communication to start
port,” said Nikhil Desai, Managing Director GTDC. There is still some time left for the inbound season, which Goa Tourism now successfully markets as the
Apprising of the other new developments, Desai said, “We are working on various e-initiatives and tourists will be able to upload Goa packages online. The idea is to make things easy for tourists.” On being questioned by that whether such initiatives would end up making things easy for the people and difficult for travel trade, Nikhil responded by saying, “When things become easy for people, all gets benefited.”
Nikhil Desai, Dilip Parulekar, and Valsala Vijayan promoting Goa in New Delhi
the Visa-on-Arrival (VoA) facility, while it puts up relevant infrastructure in place. “It will be great if we could start offering VoA at Goa for the forthcoming inbound season. Presently, we have not got information from the government. In fact, we are geared up in terms of the relevant infrastructure at our newly-refurbished air-
Monsoon Holiday season. To promote the holiday season in Goa in the north, Dilip Parulekar, Minister for Tourism, Goa led a delegation comprising MD, GTDC and other members to Delhi and Gurgaon. In fact, Valsala Vijayan, Deputy Resident Commissioner of Goa also inaugurated a three-day cultural festival in New Delhi.
Major Developments To promote the holiday season in Goa in the north, Dilip Parulekar, Minister for Tourism, Goa led a delegation comprising MD, GTDC and other members to Delhi and Gurgaon. Valsala Vijayan, Deputy Resident Commissioner of Goa also inaugurated a three-day cultural festival in New Delhi
‘Tourists safe in Jharkhand’ In a tete-a-tete with , the Principal SecretaryTourism and Civil Aviation in Jharkhand talks about how the state will improve tourism infrastructure. M E G H A PAU L
rebel stronghold. I went without any security personnel and returned unscathed. I shall be spending nights at several other places of interest so that tourists’ fears are put to rest,” he affirms.
T
ourism in Jharkhand has received a setback in the recent times. Hit hard by left-wing extremism, the tourists from Bengal, which form the mainstay of the industry are giving the state a miss. Thus, the primary objective of the tourism department is to revive the inflow of travellers.
According to Sajal Chakraborty, Pricipal Secretary- Tourism and Civil Aviation, Government of Jharkhand, it is a long way before the state can compete with the luxury quotient of states such as Rajasthan and Kerala. “Currently, we want to promote Jharkhand as a short getaway destination to draw visitors from the neighbouring states. There has been no incident of Maoists attacking tourists in Jharkhand till date. I have established contact with the Maoists over this issue and they have assured that they won’t disturb the tourists. I visited Isco caves in Barkagaon, known to be a
Sajal Chakraborty Pricipal Secretary- Tourism and Civil Aviation, Government of Jharkhand
There has been no incident of Maoists attacking tourists in Jharkhand till date
To strengthen the tourism infrastructure in the state, Jonha Fall, Dasam Fall and Hundru Fall will soon have ropeway facilities and the tourism department has approved the same. The last tourism minister Subodh Kant Sahai hailed from Ranchi and had taken a number of proactive measures for boosting tourism. The department of tourism has asked its consultant agency to now prepare a detailed project report Contd. on page 33
360% Growth Jharkhand registered over 360 per cent growth in terms of visitors from abroad between 2010 and 2011, according to a report of the Ministry of Tourism (MOT), Government of India. The growth percentage of Jharkhand is the highest as compared to other states in India as officials believe other destinations have almost reached a saturation point for foreign tourists
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New kid on the block
The former MD of Kesari Tours-Veena Patil-has recently star ted her own travel firm Veena Patil Hospitality in Mumbai. The first sales office in Mumbai Veena World was inaugurated by Raj Thackeray.
Veena World starts its innings Veena Patil Hospitality-owned Veena World is the new travel company to enter the market this year. With the aim of making travel affordable for every Indian, the company has already started aggressive plans for expansion. T T B U R E AU
T
he company launched its first sales office in Mumbai and plans to open six more offices in Mumbai and one in Pune in next three months. The sales office was inaugurated by well-known politician Raj Thackeray. Along with extensive sales offices, the company has also appointed 50 PSPs (Preferred Sales Partners) in Maharashtra to offer convenient services to their clients in the state. It will soon introduce B2B online gateway for agents to provide seamless browsing of products and itinerary and later introduce booking channels as well. Talking on the launch of its new venture, Veena Patil, MD, Veena Patil Hospitality said, “Our initial priorities are to spread awareness about our new brand, bring in the best affordable travel packages for our clients and connect with our travel service
Veena Patil MD Veena Patil Hospitality
Our company is focussed on affordable travel for every segment of travellers providers. We have received immense support from our travel partners and industry in our previous company and expect similar support from this in this venture.” She fur-
ther adds, “Our company is focussed on affordable travel for every segment of travellers. We have the best group tour options and also tailor-made packages. Currently, we have multiple specialised divisions – students, women special, honeymooners, senior citizens and corporates. We will keep innovating new products in our product-line and inspire our clients to travel.” Understanding the need to cater to the growing youth traveller segment, the company is also focussed on social channels. According to Neil Patil, Primary Director, Veena World; social media is one of the best channels for marketing wherein the brand can not only send across a message, but also take feedback from clients. He said, “Apart from having a strong presence on social networks like Facebook, Twitter, etc; we have an enhanced version of web-portal. Our clients
can find their requirements in maximum four clicks instead of multiple clicks. We have not cluttered our portal with ads or packages, but tried to keep it clean and user-friendly. We will soon introduce online booking channels for our clients. Veena Patil, Shailesh Patil, Sudhir Patil and Sunila Patil moved out from Kesari Tours - one of the biggest family-owned tour companies in India to launch Veena World. Niel Patil, son of Veena and Sudhir Patil has also started his career in Indian tourism sector with Veena World.”
Future Plans AIMS: The company’s initial priorities are to spread awareness about our new brand, bring in the best affordable travel packages for our clients and connect with our travel service providers
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NEWS
LCCs push corporate traffic Consolidation in passenger ground services, getting in published fare system and offering bundled services to corporate travellers, are ‘need of the hour’ for LCCs in the country… A N I TA J A I N
A
t the recently held Business Travel Forum 2013 organised by ATPI in Mumbai, it was underlined that low cost carriers are increasingly becoming ‘hot favourite’ among business travellers for short-haul destinations in India. The Indian no-frill airlines (as there are no real ‘Low Cost’ carriers) are aggressively gaining the aviation market share (currently it has 54 per cent) by offering additional services to corporate travellers. On the
ATPI India; today no-frill carriers are offering everything required by a corporate traveller. She said, “While the principal target audience for no-frill airlines is the price sensitive leisure traveller, there is a growing number of corporates opting for using such services due to low travel budgets. India’s business travel industry is the eighth largest in the world and is growing at the phenomenal rate. This specific industry
Anna Singh
Gaurav Sundaram
Assistant MD ATPI
Country Director – India, Egencia, Business Travel
While the principal target audience for LCCs is the price-sensitive leisure traveller, there is also the growing corporate customer other hand, the travel budgets of corporate travellers are squeezing (post 2008 recession) where they believe in ‘value for money’ and ‘pay less, get more’ policies for short-haul destinations. Thus, budget airlines are boosting the growth of corporate travel in India by offering them affordable, yet elite services. As per Global Business Travel Association, the Indian corporate travel market was estimated to be about USD 20.8 billion and is expected to grow at a compound annual growth rate of 10.8 per cent till 2015. According to Anna Singh, Assistant MD,
LCCs should also collaborate to reduce their operating costs and bring in the real ‘Low Cost’ concept in India has multiple travel requirements, needs and obligations. With this, TMCs (Travel Management Companies) are evolving and improvising on their expertise to cater to their demands and requirements.” However, according to Gaurav Sundaram, Country Director – India, Egencia, Business Travel by Expedia Inc.; LCCs need to evolve to further increase their corporate travellers’ share. He informed that post the 2008 financial crisis, corporate houses are viewing travel more as a necessity and are adopting a conservative travel policy. They are focussing
on return on investment. Today, there is a very thin line between legacy and budget carriers in India with both offering similar price-points, services and even incentives to corporate houses. He said, “Business travellers are looking for value. Soon, there will be demand for business traveller specific product differentiator. Corporates will need bundled fares instead of unbundled fares. For instance, there will be need for business traveller specific products - Price A includes priority check in and onboard refreshment, Price B includes Price A + seat preference, seat with extra leg room and lounge services.” Adding further on the non-published fares, Sundaram said, “If LCCs get on GDS, the market share of legacy would further go down. Moreover, published fares by LCCs would bring in more transparency in the market resulting in rationalisation of fares and level playing market opportunities. Corporate travellers will drive bundled fares for their needs and LCCs should be ready for this change soon. Apart from focussing on a potential segment like corporate travellers, LCCs should also collaborate to reduce their operating cost and bring in the real ‘Low Cost’ concept in India. They can, for instance, collaborate for using common shuttle buses to take passengers from terminals to aircraft, have common check-in counters, etc. This alone will bring down their operating cost to a good level.”
To-Do List FOR COMPANIES: Corporate travellers will drive bundled fares for their needs and LCCs should be ready for this change soon FOR PUBLIC: LCCs should also collaborate to reduce their operating cost and bring in the real ‘Low Cost’ concept in India
Japan promotes 311mph Maglev trains The first five cars of the new train, which has a distinct aerodynamic “nose” at the front, were displayed on a test track in Yamanashi Prefecture. The carriages, which are propelled by magnetic forces, were pulled along the track by a special maintenance vehicle as part of preliminary trials, with wide-scale tests due to commence in September. Shinzo Abe, the prime minister, is currently pushing for a surge in sales of Japanese road, railway and power station technology to emerging nations such as India, which is expected to use Japan’s bullet train technology for a new Mumbai to Ahmedabad line.
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TRAVTALK JULY 1 ST FORTNIGHT ISSUE 2013
RESEARCH TALK
4.8%
Domestic aviation traffic Passenger Growth Passengers carried by domestic airlines during Jan-May 2013 were 259.98 lakh as against 258.08 lakh during the corresponding period of previous year thereby registering a growth of + 0.74%
On-Time Performance (Foreign Airlines) There are about 80 foreign carriers operating to/from India. At the time of compilation of this report, OTP data of 44 carriers was received. The overallOn-Time Performance (OTP) of these 44 carriers for the month of May 2013 has been 80.9% in departures and 77.3% in arrivals
Arrivals
Departures On Time
80.9%
Late
Late 5%
9.
On Time
77.3%
Very Lat 4.5% Exces e sive
9%
11.
Very Late 5.7% Exces sive 5
.1%
5.1%
Market Share Market share of scheduled domestic airlines for the month of May 2013 is given in Table 2. Airline-wise details are as follows:
Cancellations (Domestic)
The overall cancellation rate of scheduled domestic airlines fo r the month of May 2013 has been 0.5%. Airline-wise details of cancellations are as follows:
Passenger Load Factor The passenger load factors of various scheduled domestic airlines in May 2013 are as follows
Passenger Complaints in May-2013
During May 2013, a total of 757 passenger related complaints had been received by the scheduled domestic airlines. The number of complaints per 10,000 passengers carried for the month of May 2013 has been 1.3. The airline-wise details are as follows
DGCA toughens stand Faced with persistent complaints of flight delays, aviation regulator DGCA has come up with a series of measures to ensure that airlines stick to their allotted take-off time, including a threat of not granting them the time-slots they miss in the next schedule. In a new set of rules, DGCA has asked airlines to get their flight schedules approved by it at least 30 days in advance and ensure that they strictly comply with them, official sources said A total of 30 flights would be scheduled per hour, with five departures every ten minutes, they said, adding that at least four slots per hour would be kept to allow VIP, non- scheduled and military air operations.
Refund
10.0%
Finally, May brings cheer For the aviation sector, domestic traffic data for May was something to cheer about. Passengers carried by domestic airlines in May rose by 4.8% on a YoY basis, according to DGCA. This is a positive development considering that passenger traffic growth has been weak in the past few months. DGCA data shows passengers carried in May 2012 had declined by 1.5%.
Others
40.%
Lost Baggage
35.1%
IT Related
6.2%
Staff Misbehaviour
8.3%
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Leisure draws FTAs to Incredible India FTAs in India: Purpose of visit (2009-2011)
Leisure Rules
Gender-wise Foreign Tourist Arrivals in India (2011)
This data was compiled for the first time in 2009. The table gives the percentage distribution of Foreign Tourist Arrivals (FTAs) according to their purpose of visit. About 26% of the FTAs in India during 2011 were for the purpose of leisure, holidays and recreation, followed by the purpose of visiting friends & relatives (24.9%), followed by business and professional (22.5%). The highest proportion of visitors in the business & professional category were from China (66.5%) followed by Japan (63.4%).
Shying away? During the year 2011, sex-wise distribution of the FTAs comprises of 59.4% males and 40.6% females. The male-female break-up of the FTAs in 2010 was 59.3% and 40.7% respectively. Percentage of arrivals not reporting their gender was quite high in 2001 and 2002, but it has been gradually decreasing from 2005, and from 2008 it was noticeably low at 0.1 per cent. During 2009 onwards, the reporting of gender of the FTAs has been 100%.
Foreign Tourist Arrivals (2010-2012)
Foreign Tourist Arrivals in India (Age-wise) 2011
Youth-Connect FTAs during December 2012 were 7.50 lakh, as compared to FTAs of 7.37 lakh during December 2011, and 6.80 lakh in December 2010. FTAs were 57,75,692 in 2010, rising to 63,09,222 next year, and 66,48,318 in 2012 (provisional estimates). The 9.2% rise in the number of FTAs in 2011 over 2010 weakened to a rise of 5.4% in 2012.
Level of Education of Travellers Level of education attained plays a significant role in order to get visas as entry to different countries. Travellers having graduate degrees and above travel the most (89%) as compared to those having higher secondary degree or people who do not have any formal education.
India’s strengths and weaknesses Top 15 Areas where India Lags Behind Cleanliness Infrastructure Polluted Areas Road Setup Poverty Education Population Traffic Corruption Management Technology Organised Tourist Service Beggars Maintenance Visa
Top 15 Areas where India is Ahead Culture Food Friendly People Monuments/Rich History Hospitality Affordability Transportation Diverse Landscape Hotel Festivals Architecture Technology Markets Agricultural Scenic Beauty
The above table gives the percentage distribution of FTAs in India according to age groups during 1996-2011. The proportion of FTAs in different age groups has not changed much in the last few years. However, the proportion of FTAs aged 55 or above has increased from 11.5% in 1996 to about 24.2% in 2011. (As the proportion of FTAs not reporting their ages have varied over the years, therefore, comparison of age-distribution of FTAs needs to be done with caution.)
Nothing but star studdied holiday stays Accommodation availed while travelling Souce of Information vs. Countries Visited by Travellers
57% of the visitors travelling across different countries prefer to stay in star-category hotels followed by 29% staying in midrange hotels. 25% people like to stay with friends/family. 22% and 17% prefer living in resorts and budget hotels.
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Advantage, Inbound Contd. from page 15
& Kings, “International exchange rates are governed by through an exceedingly complex mechanism that works on a nation’s balance of payment. The fluctuations are based on a basket of indices, but seeing the overall performance of Indian economy, the slide of the rupee was not unexpected.”
add that the FTOs should pass on reasonable benefits to their Indian counterparts. “The fall in rupee has made tour packages a lot more affordable. However, in some cases, foreign agents may increase their profit margins and hence only pass on limited benefits to the customer. The depreciation in the rupee also reflects in a hike in fuel prices,”
The FTOs should pass on reasonable benefits to their Indian counterparts Surinder Singh Sodhi, Senior Vice President & Head, Leisure Travel Inbound, Thomas Cook India Suggesting a fresh ray of hope, Sen said, “Most hotels and service providers are quoting in INR and thus mitigating any exchange fluctuation risk. Nevertheless, with the rupee devaluating to the US dollar, the American market will get a natural impetus, due to the increased purchasing power of the dollar.” Here, Surinder Singh Sodhi, Senior Vice President & Head, Leisure Travel Inbound, Thomas Cook India is quick to
said Sodhi. Goyal opines that the rupee should be such a level that helps both the segments. “It is really a surprise that the INR is being devalued so much, in spite of the fact that the government is taking all the measures to stop this fluctuation. Even so, the government is not able to control it. As I mentioned earlier, rupee value to remain around ` 45/$ with 5 per cent plus or minus, so that neither the inbound nor outbound tour operators are affected.”
YES Bank Travel Cards for States Yes Bank is already working out strategic partnerships and tie-ups for its Yes Bank-Incredible India Travel Card aimed at doing away with hassles of carrying currency… Moreover, going forward, the bank wants to replicate the success of its national venture to get more specific and also to make it a big hit with various states.
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es Bank has been involved in various strategic initiatives with the State Tourism Boards. But, lately their strategic team has been working hard for taking away the hassle of carrying cash to experience Incredible India. “Our Yes BankIncredible India Travel Card is aimed at an overall objective of providing convenience to tourists while they travel within India.
It will lessen carrying physical cash while in India and can be used at all MasterCard merchants and ATMs,” said Tushar Pandey, Senior President and Country Head, Strategic Initiatives,
Tushar Pandey Senior President and Country Head, Strategic Initiatives, Government & Advisory (SIGA), Yes Bank
Government & Advisory (SIGA), Yes Bank. “Strategic partnerships and tie-ups for setting up industry specific sales and distribution channels are currently being developed for the card. Going ahead, it would be enriched with attractive value add-ons to enrich the product offering, and further strengthen the country’s image as a diverse and world-class destination,” he added.
“As a derivative, the bank is looking at replicating the model for state specific cards, catering to the states’ USP, or core tourism theme, bundling relevant offers and packages to enable the creation of a seamless and cashless tourist infrastructure,” said Pandey. The Strategic Initiatives, Government & Advisory (SIGA) is the government relationship, advisory and development research arm within Yes Bank. As a division unique to the banking industry, SIGA fosters strong engagement with governments, and their various agencies & programmes.
“Among the key initiatives our bank had undertaken towards taking tourism development forward in the states include mandate to prepare Vision Document on Tourism for Tourism Corporation of Gujarat Limited (TCGL); role of transaction advisor for Development of Tourism Infrastructure through privatisation of land parcels on PPP mode for Madhya Pradesh Tourism among other such initiatives,” said Pandey. “Since tourism involves contribution from a multitude of sectors, and banks being a common participant across these, they bring with them the knowledge and expertise to streamline systems and processes as well as ensure efficient product delivery,” he added.
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NEWS
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Tourism for Tiger conservation Honorary Secretary of Tiger Trust Anjana Gosain was invited by Clemson University, South Carolina, as the keynote speaker at the first meeting of the National Tigers for Tigers Coalition. She talks about how tour operators and hoteliers need to contribute to tiger conservation. P EDEN D OMA B HUTIA
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iger conservation is an important responsibility that we all have towards our national animal. And Tiger Trust has been working relentlessly in India for more than five decades to promote this cause. The trust’s Honorary Secretary Anjana Gosain was invited at Clemson University, South Carolina, as the keynote speaker at the first meeting of the National Tigers for Tigers Coalition. The student group
Anjana Gosain Honorary Secretary Tiget Trust
Commercialisation is good, but it should not let you forget your basic duties. Tigers are important for tourism Tigers for Tigers showed their passion to save wild tigers at Clemson University when they united with 13 other tiger mascot schools to create a new ‘National Tigers for Tigers Coalition’. Gosain says, “I apprised those present there about the Royal Bengal Tiger and the efforts made by the government and the other stakeholders to preserve them. The students are campaigning against tigers in captivity, and we want to see the tigers in their natural habitat.” Gosain also addressed the many challenges that wild tigers face – habitat destruction, poaching and more increasingly humananimal conflict. She acknowledges the power of the youth to act as a deterrent. “The youth have a very important role to play as far as conservation is concerned. Those of us who are professionals may be concerned, but we may not always have the time to talk, campaign and make others aware of the problems. The youth can take up this
responsibility. The number of tigers in captivity is 10 times more than the ones in the wild. Because once you see them in your backyard then there is no curiosity to see them in their natural habitat.” However, it’s not just the youth, Gosain says tour
operators and hoteliers also have a responsibility towards conservation. She says they play a very important role in educating the public. “Some of the most important aspects that have been discussed at length are education and awareness. Besides the com-
mercial part, hoteliers also have a responsibility to make tourists aware of their surroundings and raise objections to anything wrong taking place around them. Under our Constitution, it’s not only our right to enjoy the environment, but we should also
protect it. Commercialisation is good, but it should not let you forget your basic duty. If there are no tigers, there will be no tourism. Tour operators should respect the rules and regulations that are now in place and also make people aware.”
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NTO
India is a strategic growth market From introducing new routes to joint promotions with France, Switzerland is trying its best to woo more and more Indian travellers. Urs Eberhard, Executive Vice President, Markets & Meetings, Switzerland Tourism, talks about the importance of India and Indian agents. PEDEN DOMA BHUTIA
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Urs Eberhard Executive Vice President Markets & Meetings, Switzerland Tourism
We opened our first Indian office in Mumbai 12 years ago because we saw the potential the country had and we are very lucky to be one of the frequented destinations
ndia and Indian agents are important for Switzerland and this was evident at the Switzerland Tourism Mart 2013 in Bern. Talking to , Eberhard, says, “The Indian market is a very important market for Switzerland. We opened the first Indian office in Mumbai 12 years ago because we saw the potential the country had and we are very lucky to be one of the frequented destinations for a lot of Indians. Switzerland is a dream destination, thanks to Bollywood, and we have a lot of demand coming in from India. India is one of our strategic growth markets and we define only 6 markets in the world as being strategic, where we invest more money and more human resources than in other markets. So
The MICE market in India is huge: Eberhard For FIT travel, the source market is mostly Mumbai, Delhi, Bengaluru and Kolkata. The experienced traveller who travelled with a group a few years back is now maturing and travelling on his own. For group travel, we go into Tier II and Tier III cities and now with the average income also going up, more people living in the Tier II and Tier III cities are keen to travel abroad. In group travel, we
understand it’s their first time in Switzerland so they want security, a tour guide and Indian food. That’s why
we go with those larger operators like Thomas Cook, and Cox and Kings in this market. For the incentive market, as the economy
develops and more and more companies set up offices in India, the employers want to retain their employees and keep them happy, so incentive travel is growing really strong. In European markets, the most demand in the incentive markets is coming out of India. We also have the maximum number of requests for proposals from India.”
There are 3 types of travellers coming to Switzerland from India: The standard group tours of 3040 people travelling in a bus, who club another European destination with Switzerland and travel for a week or 10 days The second group is FITs, which is now growing rapidly, the independent traveller with grandparents, parents and kids travelling together or a big group of friends travelling together The third group is incentive travel
far, it has been very successful; we have a year-over-year growth and the Indian market is at par with Russia and is very close to Belgium as a source market.”
Charlie Chaplin’s house in Switzerland
New routes, more to explore With MICE growing rapidly in India, Eberhard says that they are also trying to introduce new routes to India as Switzerland gets many repeat travellers from India. For a first-timer to Switzerland while Jungfrau, Titlis, Interlaken and Lucerne may be the
main ports of call, a second or third timer to the country would definitely want to see more. For this, he says, “We are trying to introduce new routes and destinations through travel agents like a central Switzerland tour, the watchmaking tour of the Jura mountains, etc.
We are introducing itineraries such as these and we also help the agents promote these destinations. Hopefully by introducing new destinations, we’ll convince travellers that there’s more to Switzerland for them to keep coming back.”
Tie-up with France Introduction of new routes is not the only thing that Switzerland is looking at to increase arrivals from India. It is also coming together with France to woo visitors from India, China and Brazil. Informing about the new development, Eberhard says, "From next year, we will start working together with France in India, China and
Brazil markets. We see Paris and Switzerland as a great combination. We just signed a letter of intent a few weeks ago and we want to start from Jan 1, 2014. We’ll be doing fam trips with tour operators and media, we might also do some workshops in India where representatives from the two countries will be present.
Perhaps in the future we will have Italy and Germany joining. We are hoping to stimulate travel between the two countries so France gets some visitors from Switzerland and Switzerland gets visitors from France. We haven’t yet decided on the details, but in the upcoming weeks, we will sit and work out the details."
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23% growth to Philippines Philippines Tourism has announced that it has recorded a double digit growth of 23.13% in Indian visitor arrivals. T T B U R E AU
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ndian arrivals to the Phillipines has been increasing year-on-year and has reached over 100% appreciation in 2012. The Philippines recorded 46,395 visitor arrivals from India during January to December 2012. The overall foreign visitor arrivals to the country reached 1,649,458 during
Indian Arrivals Jan-Dec.2011
42,844 Jan-Dec.2012
46,395 January-April 2013
18,393 Jan-Apr. 2012
14,938 Rise in Percentage
23.13%
January-April, 2013, showing a growth of 10.12% over the same period last year. The figure of visitor arrivals in these months represented 30% of the target arrivals for 2013. The month of January
January-April 2013
This enthusiasm for the Philippines gives us the confidence to achieve our target of 10 million tourist arrivals by 2016,” Ramon R. Jimenez, Jr, Tourism Secretary, said. The Philippines is currently seeking more air connectivity
1,649,458
(International Visitor Arrivals)
yielded the largest volume of 436,079 visitors and February generated the highest growth of 15.52%. “This growth is an affirmation of our various marketing and destination development activities, strengthened by partnerships with the various stakeholders. While the upsurge may primarily be attributed to the summer season, it is also a clear indication that the nation has galvanised its reputation as an attractive destination. We have been seeing a sustainable increase in arrivals since last year.
Ramon R. Jimenez Jr., Tourism Secretary Philippines
between major airports of the two countries. Recently, the DOT participated in Routes Asia, Mumbai - an event specifically organised for the development of new air-links within the Asian region.
Can outboundwithstand ` fall? Contd. from page 14
Look Beyond West Vineet Raina, Vice President-Outbound, Tbi Trail Blazer Tours India opines US and western
till now has been the sliding rupee. We have otherwise registered growth towards Eastern Europe, especially towards Slovenia, Croatia and Bulgaria.”
ule their travel plans.” According to Jackson Fernandez, Managing Director, Wego India, the sustained weakening of the rupee has slowly altered
Vineet Raina
M.S.Manjula
Jackson Fernandez
Vice President-Outbound Tbi -Trail Blazer Tours India
Vice President Travel Air
Managing Director Wego India
We have registered growth towards Eastern Europe Europe have been hit badly due to the currency fluctuation. On the other hand, the company has seen growth from economical Eastern European countries. “Fortunately, the rupee fall has not impacted business much. We have logged growth of 20 per cent over the last year in both outbound and domestic segment. Actually, the only negative impact this year
International hotel prices have largely remained unchanged MS.Manjula, VP, Travel Air affirms, “International hotel prices have largely remained unchanged as compared to the last year. In some cases, there has been a marginal increase of about five per cent. From the bottom line perspective, corporate travel is impacted more as this segment cannot avoid business travel at any cost. Leisure travellers can still resched-
Domestic travel searches have seen a surge on Wego Indians travel preferences. Domestic travel searches have seen a surge on Wego. “However, there are few subtle trends that are apparent. For example, the destination preference has come closer to home to SEA, UAE. The search volume for domestic getaways to offbeat locales like Srinagar, Ooty, Kovalam, Nainital and Darjeeling has shown an increase,” he adds.
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Westin combats oversupply in Pune Starwood Hotels is optimistic about the Pune hospitality sector overcoming the hurdle of excess room supply and less demand, betting on higher ARRs ahead. T T B U R E AU
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tarwood Hotels & Resorts' five-star branded property - Westin Pune, this year, is moving away from the traditional marketing concepts. With Pune hospitality industry facing the lower ARRs challenge, the property is looking at unique ways to engage their guests. According to Sujeet Kumar, GM, Westin Pune; the brand really matters for the hotel to attract customers and
Sujeet Kumar General Manager Westin Pune
The Westin Pune Koregaon Park targets the preferred business customer segments build in trust for longer relationship. It is drifting away from the usual marketing activities which concentrate on an overall aspect of the hotel. Kumar informed that the property is working on 'one venue at a time' concept wherein with variety of F&B offerings including Indian, Oriental and International Cuisine, it will focus on quality of food and enhancing the overall guest experience. He said, “Our objectives are clear and budget have been allocated respectively. Keeping guest engagement as our priority, our activities will now focus and trigger our guest relations and definitely escalate our customer experience.” Elaborating for a need to ditch the usual marketing concepts, Kumar said, “Pune has been growing as a industrial hinterland, with IT, automotive companies and banking sector setting up corporate houses in the district. Wherein I feel with increasing number of hotels in Pune, the industry holds a huge potential to grow in this market." He informed that in last five years, the
city's hotel supply has witnessed a steep growth of over 4,645 rooms with an average increase of 10 per cent in occupancy levels. “It is here where our brand plays a significant role. The Westin Pune Koregoan Park targets the preferred business customer segments,”
said Kumar. The overall growth in Pune hospitality sector was primarily led by the MICE segment as the city is a perfect alternative to Mumbai for hosting large scale events. Kumar said, “The average rates recorded the highest decline (-11.3 per cent) among all the mar-
kets tracked recently in India. Despite the declining average rates, Growing projects, businesses, and new acquisitions has translated in increasing ARR (Average Room Rate) and shows that Pune is back on its recovery path.” The property works with ten online
travel agents and have visibility for many offers which includes advance purchases, last minute deals, packages and various promotions. “We work towards maintaining best rate guarantee wherein the guest would find the same rate across all channels,” Kumar said.
Highlights POSITIVE GROWTH: In last five years, the city's hotel supply has witnessed a steep growth of over 4,645 rooms with an average increase of 10 per cent in occupancy levels FACTOR: Growth in Pune hospitality sector was primarily led by MICE segment. The city is a perfect alternative to Mumbai for hosting large-scale events
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Towards a common ASEAN visa by 2015 This year, Thailand Travel Mart+ 2013 saw close to 22 per cent new buyers. The fourth source market for Thailand, India recorded the second largest number of registered buyers. L YA N D R A D ’ S O U Z A
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n a bid to increase the number of tourists to the region, Thailand plans to work with other countries in the ASEAN to implement a ‘common visa scheme’ in the next two years. Thailand plans to achieve this through the ASEAN Community which is due to take shape in 2015. Speaking on the sidelines of the 12th Thailand Travel Mart+ 2013 held in Bangkok, Thailand earlier this month, Phanom Kaributra, Executive Director, ASEAN South Asia and South Pacific Region Department, Tourism Authority of Thailand (TAT) said, “Modelled on the Schengen visa, this common visa scheme will remove barriers to tourism within the region as well as help the economic integration.” Held at the Exhibition Centre Hall, IMPACT, Bangkok; it had a total of 395 exhibitors and over 400 buyers from across the globe.
The exhibitors’ list included 267 hotels and resorts, 32 tour operators and travel agents, 12 entertainment/ theme park/ cultural products, six transportation companies, five other travel services and nine travel industry associations. For the first time, TTM+ also saw a forum for buyers and sellers as well as keynote sessions on ‘Changing Destination Perceptions through Creative Tourism’ and ‘DIY in Tourism: Dynamic Packaging, Pros And Cons.’
Niche Market Focus The theme for this year’s Thailand Travel Mart+2013, ‘Customize Your Experience’, reinforced the increasing demand from travellers and continuous efforts from TAT to promote offerings for the niche segment. Newer regions such as Khao Yai, Trang, Chiang Mai, Chiang Rai, Koh Samui etc are being promoted for the Indian market. Kaributra added, “Around 60 per cent
Phanom Kaributra
Juthaporn Rerngronasa
Executive Director, ASEAN South Asia and South Pacific Region Department, Tourism Authority of Thailand (TAT)
Deputy Governor of International Marketing (Europe, Africa, Middle East, and the Americas) TAT
Around 60% of visitors from India are repeat travellers and we want them to visit other attractions
The three rapid growth markets were China, Russia and India whose growth rates were in double digits
of visitors from India are repeat travellers and we want to attract them to visit other destinations in the country. The introduction of direct
flights to Phuket from India by Thai Smile will have an impact on travel to other destinations in Thailand beyond Bangkok.”
Juthaporn Rerngronasa, Deputy Governor of International Marketing (Europe, Africa, Middle East, and the Americas) Tourism Authority of Thailand stated, “The Royal Thai Government has entrusted TAT to achieve a tourism revenue target of US$65 billion by 2015. To do this successfully, we must adjust our strategy to pursue the high-yield segments. Therefore, we have been concentrating on four niche markets that Thailand already has a good supply of, and that there is much demand for them in the travel community. They are golf, health and wellness, wedding and honeymoon, and green tourism. The theme, ‘Customise Your Experience’, reflects the increasing shift of the global travel and tourism industry towards niche-market customer segments.”
DISCO Strategy for 2013 Tourism Authority of Thailand also unveiled its
strategy for 2013 at TTM+ titled DISCO - Digital Marketing, Image Building, Sustainability, Crystallization & Crisis Communications and Organisation Management. Outlining the strategy, Rerngronasa informed, “In 2012, Thailand recorded over 22 million foreign tourist arrivals. The three rapid growth markets were China, Russia and India whose growth rates were in double digits. The core theme of the 2013 TAT Action Plan is ‘Higher Revenue through Thainess’.”
Rising Numbers In January-April 2013, Thailand’s visitor arrivals surged to a record total of 8,841,730, up by 19.04% over the same period of 2012 In 2013, TAT is projecting visitor arrivals of 24.14 million, generating a projected tourism income of Baht 1.1 trillion or US$37.05 billion
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AVIATION
‘Thailand Sale’ by AirAsia lures Indians Air Asia has teamed up with the Tourism Authority of Thailand (TAT) and VISA for the the annual ‘Amazing Thailand Grand Sale’ to be held from 15 June - 15 August, 2013. gives more details… L E K H A S H A N K A R , B A N G KO K
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his is the biggest shopping sale in Thailand, which includes hotels, malls, retail outlets, spas, golf courses and jewellery stores in more than 7 citiesBangkok, Chiangmai, Phuket, Pattaya, Samui, Huahin and Hatyai . There are many benefits for VISA card-members too, especially, as this year makes the 15th year of collaboration between TAT and VISA for the ‘Amazing Thailand Grand Sale.’ At least, 500 retailers and shop-
ping complexes across Thailand are offering many privileges along with around 80% discount to Visa cardholders. These include the top malls of Bangkok like Central World, Paragon, Emporium, Robinson, Siam Discovery etc. Vilaiwan Twichasri, Deputy Governor for Tourism Products and Business, TAT, said, "We hope that Indian visitors will avail this once-ayear opportunity to visit Thailand and do some
advance shopping for a number of their upcoming holidays and festivals. Whether it is for birthdays, weddings, school/college graduations, or any other happy occasion, we know that Indians find Thailand a great place to shop for the perfect gifts and get great value for money. This Amazing Thailand Grand Sale 2013 (ATGS’13) is the perfect time to get even better value!” Tassapon Bijleveld, CEO, Thai AirAsia said he was excited by Air Asia’s involve-
Bangkok Air Enters Luxury Executive Charter Business Bangkok Airways, the self-styled ‘boutique’ airlines, plans to enter the executive jet charter business, by converting one of its Airbus 319 jets with a luxurious private cabin, which would be conducive for high-level corporate travellers. The
cabin would have sofas, tables, other amenities, and could accommodate 12 passengers, while the rest of the aircraft would still contain regular airline seats. The VIP conversion kit, purchased at a price of $56 million from France,
made it possible for the 33.8 metre- long A 319 aircraft to be changed to a luxurious cabin, when needed, and then, switching back to a normal commercial airline seating arrangement system for day-to-day scheduled flights.
ment with the ‘Amazing Thailand Grand Sale’ this year, for which they are offering special promotional rates on both the domestic and international routes. “We are providing affordable plane tickets to Thailand for travellers from our entire network of 85 destinations,” he said, adding “India is without a doubt a very important market for us and our fares start from as low as ` 4,000 per way from Kolkata to Bangkok, and
` 4,500 per way from Chennai to Bangkok. To take advantage of the promotional price, passengers must book online immediately at www.airasia.com from today until June 23, for travel dur-
Vilaiwan Twichasri
Tassapon Bijleveld
Deputy Governor for Tourism Products and Business, TAT
CEO Thai AirAsia
We hope that Indian visitors will avail this opportunity to visit Thailand and do some shopping ing June 15-August 15, 2013. Apart from Bangkok, many Indian travellers love to explore other parts of Thailand and we are glad to
Apart from Bangkok, many Indian travellers love to explore other parts of Thailand as well make that an affordable, convenient and accessible option with our low airfares and frequent flights to 12 domestic destinations in Thailand.”
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FAMILY ALBUM
Churning out Switzerland specialists The 17th edition of the Switzerland Travel Mart (STM) kicked off in Bern on May 31 and provided the ideal platform to turn tour operators into real Switzerland specialists. The travel mart helped to strengthen and expand the presence of Switzerland as a holiday, travel, and conference destination in the program of tour operators around the world.
ICTT 2013 in Kerala
Kerala recently held International Conference on Travel Technology (ICTT). ICTT had been organised by the Kerala-based Association of Travel Trade Organisations, India (ATTOI).
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EXHIBITIONS
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Learning the Kuoni way Festival of sports Brendan Crasto, Global Head-Kuoni Travel, Tourism & Hospitality Academy talks about expansion plans in South-East Asia and the future of tourism in India. country to 24 cities. These will be a mix of metros and Tier-II cities. We want to add the professional touch to tourism industry not just in India, but also internationally. Therefore, we also plan to establish Kuoni Academies internationally the following year, especially in South East Asia.
T T B U R E AU
What are Kuoni Academy’s key focus areas in 2013? 2013 will be a year of consolidation for Kuoni Academy. We completed 10 years in the travel education sector last year, and this year will focus on consolidating our position. Kuoni Academy will introduce 12 new programmes to provide students with the best learning opportunities. Last year, we adopted the Abacus GDS platform for our courses. Our goal is to give exposure to all our students on the various platforms used in the travel industry. At Kuoni Academy, our courses which cover travel and tourism, as well as hospitality, focus on knowledge enhancement and service attitude development. We continue to ensure our students are up to date with current trends in the travel and tourism industry.
Brendan Crasto Global Head-Kuoni Travel Tourism & Hospitality Academy
We want to add the professional touch to the tourism industry in India and also internationally Your expansion plans for Kuoni Academy? For FY 2013-2014, we intend to expand our presence from 15 cities across the
How do you view the potential of tourism in India? The travel and tourism is an industry with a continuous learning process, and it is important to constantly update your knowledge. According to WTTC, from US$8 trillion in 2011, the industry is going to move up to US$8 trillion by 2018. This means, for every 10 people worldwide, one is from the travel industry. With the kind of impetus, there is a requirement of professionals to manage the industry assets, resources and flow of tourists.
Contd. from page 3
the adventure sports”. Does J&K tourism plan to address this soon? “In fact, Kashmir Rafting Association wanted to operate without regulations. The Department of Tourism wants all regulations to be followed in letter and spirit,” clarified Bhat. “Currently, white water rafting is done at Pahalgam and Sonmarg. Reputed institutes like the Jawahar Institute of Mountaineering and Winter Sports at Pahalgam and Institute of Skiing, Mountaineering and
Winter Sports at Gulmarg work closely with the Department of Tourism on this. We have trained personnel who closely supervise all adventure sports activities. We have skiing, rafting, mountaineering and water sports equipment of international standard with us. Last month, we organised a mega event, Kashmir Festival in which all adventure sports activities were included. This festival will now be an annual event with main focus on adventure sports,” Bhat explains.
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QUICK READ Union Civil Aviation Minister Ajit Singh has cleared a proposal for civil aviation terminal at the Kheria Air Force Base in Agra. Once this terminal is functional, passengers will not have to pass through the air base to board their aircraft. Singh has zeroed in on unused Indian Air Force land and had discussions with Defence Minister AK Antony for transferring around 60 acres for the terminal building. This has now been agreed upon, reports said.
Makeover for Jharkhand Contd. from page 17
for the same. Installation of ropeway at each site will cost ` 2.5 crore, the Principal Secretary informs. In early April, this year the Department of Civil Aviation of Jharkhand had announced lowering of ATF to four per cent. Night-parking of aircraft was also made free
at Ranchi’s Birsa Munda Airport. However, this has not helped in giving a fillip to the industry. Lamenting on the sad state of civil aviation in the state, Chakraborty suggests the Ministry to identify a lowcost viable model for development of small airports to enhance ‘regional connectivity’. Urging the State Government to prepare a
roadmap for development of civil aviation infrastructure, he points out the state is losing ` 24 crore annually at the cost of reduction of ATF. Even night-landing has not been much effective, as it is only for scheduled airlines. The potential of the charters and air ambulances have been sidelined by the AAI in this case.
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TECHNOLOGY
Tech help for travel entrepreneurs MyGuestHouse has unveiled Traveneur to boost entrepreneurship across India via skill development as well as creating a business opportunity platform. T T B U R E AU
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nline portal for budget accommodations such as guesthouses, bed and breakfasts, inns, motels and serviced apartments MyGuestHouse has now
Prashant Chauhan, Partner & COO, MyGuestHouse says the point is to reach out to people who want to start in the travel business or grow their existing travel business. Betting big on the scope of entrepreneurship in the tourism field, he asserts, “In these competitive times, every other person has entrepreneurial aspirations. And
travel is the best field.” Giving an example of how Traveneur can facilitate business, Chauhan elaborates, “The technology can be used by anyone who wants to start a hotel, a chain of hotels, an OTA, an offline travel business, a corporate travel business, etc. For example- if you want to become an OTA, you can buy white-labelling solution
and technology from the company and start right away. We’ve built plug-and-play technology that you can start using instantly.” “The aim is to cater to the technological needs of those who want to enter the business and don’t possess the technological infrastructure,” Chauhan says.
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TRAVTALK
The future of air travel? The model of an adjustable plane, with wings that can be attached to for instance train compartments, will be shown at the Paris Air Show next week, the Swiss inventors. The ‘Clip-Air’ project is fresh off the drawing board and features a single flying wing that could be clipped onto for instance train ‘capsules’ carrying passengers or cargo, the EPFL technical university in Lausanne said in a statement. "More than a new type of flying device, its innovative concept could revolutionise the airports of the future," it said.
Jitender Arora Founder & CEO MyGuestHouse
The company intends to create over 50,000 travel entrepreneurs over the next five years through this platform unveiled a new initiative. A combination of travel and entrepreneur, ‘Traveneur’ is aimed to promote travel entrepreneurship. According to Jitender Arora, Founder & CEO, MyGuestHouse, Traveneur
Letter from the Turkish Ambassador H.E. Dr. Burak akçapar Turkey is fast rising as a major destination for Indian tourists. I am honored and happy with the outpouring of curiosity, goodwill and interest shown by Indian friends towards Turkey. Every day I hear very positive impressions from Indians who have been to Turkey including those who just came back. Turkish Airlines together with Air India continue to cater to the travelers with very high occupancy ratios. I am also aware that there have been questions recently about the protests in Turkey and I understand that. Tourism is about relaxing and enjoying and every one of us want to be sure. Let me say it very clearly: As an Istanbulite myself, I see no reason for Indian travelers to cancel or postpone their plans to visit Turkey. Turkey welcomes you. You have million reasons to go. The travelers can learn whether there are ongoing localized protests and their places from their hotels in Turkey. I am also asked about the nature of the protests and how they compare to others around the world. The protests in Turkey represent a completely different phenomenon than the social unrest in some European countries due to economic crisis. Turkish economy is among the best performers in the world. The protests are also different from the upheaval in some West Asian countries that demand regime change. Turkey is already an established multi-party parliamentary democracy. We are at a stage that many others in our broad neighborhood are aspiring to reach.
Prashant Chauhan Partner & COO MyGuestHouse
The point is to reach out to people who want to start in the travel business or grow their existing travel business will help in boosting entrepreneurship across India via skill development as well as creating a business opportunity platform. The company intends to create over 50,000 travel entrepreneurs over the next five years in India through this platform.
The protests in Turkey have begun due to environmentalist concerns in downtown Istanbul. The police have taken measures to avoid the voice and demands of the honest protestors being hijacked. After a brief period the police have been able to recalibrate their responses while maintaining law and order. The environmental sensitivity should be seen as evidence of the maturity of Turkish civic culture. The demands of the protesters are being addressed through established channels of communication and dialogue. The rest is politics and will be addressed through Turkey’s democratic process. Turkey welcomes 20% more Indian tourists every year and offers an experience in a unique spectrum ranging from unmatched historical, spiritual, artistic, culinary heritage and to a lively night life. I would like you to know that Turkey appeals to all ages and tastes. Please note also that we have significantly simplified visa procedures recently including by introducing e-visa for qualified applicants. My Embassy in Delhi, Consulate General in Mumbai, Honorary Consuls in Chennai and Kolkata and Culture and Tourism Counselor will be happy to answer any questions you might have including through email, facebook or twitter. I wish you all a relaxing, peaceful and enjoyable vacation in Turkey.
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ANALYSIS JULY 1
Chennai
2
Pune
3
Mumbai
5-7 5-7 6-7 5-14 10-11
Kolkata Australia Bengaluru Brazil Honolulu
11-14 12-14 13-14 17 17-28 19-21
Germany Hyderabad Mumbai Zambia California Bengaluru
19 20-24 24-27 26-28
Zambia Reno China Gold Coast
26-28
Chennai
31-Aug 1 Delhi
Visit Indonesia Tourist Office’s Indonesia Sales Mission Visit Indonesia Tourist Office’s Indonesia Sales Mission Visit Indonesia Tourist Office’s Indonesia Sales Mission Travel & Tourism Fair - Kolkata The Wagga Great Outdoor Expo Wellness & Health Tourism Expo Expotche Hawaii Lodging Hospitality & Foodservice Expo European Outdoor Trade Fair Travel & Tourism Fair - Hyderabad Times Travel Trade Fair Mte Exhibition - Zambia: Solwezi California Mid State Fair India International Travel Mart Bangalore Mte Exhibition - Zambia: Kitwe STN Expo Asia Outdoor Trade Fair Midyear Caravan, Camping, Boating & Fishing Expo India International Travel Mart Chennai Tourism New Zealand’s Kiwi Link B2B Roadshow
AUGUST 3-5
Ludhiana
India Travel Mart
3
Kolkata
Tourism New Zealand’s Kiwi Link India B2B Roadshow
5
Bengaluru
Tourism New Zealand’s Kiwi Link India B2B Roadshow
7
Mumbai
Tourism New Zealand’s Kiwi Link India B2B Roadshow
9-11
Aurangabad
India International Travel Exhibition
16-18
Ahmedabad
Travel & Tourism Fair Ahmedabad
20
Chennai
German India Pool’s B2B Event
22
Delhi
German India Pool’s B2B Event
23-25
Surat
Travel & Tourism Fair - Surat
25-28
Goa
Tourism Australia’s India Travel Mission
26
Chennai
Hong Kong Tourism Board’s B2B Event
27
Mumbai
Hong Kong Tourism Board’s B2B Event
29
Kolkata
Hong Kong Tourism Board’s B2B Event
30
Delhi
Hong Kong Tourism Board’s B2B Event
30-1Sept Mumbai
It’s airlines vs travel agents Already irked by escalating UDF charges at international airports and increased service taxes, the travel trade in India is now forced to comply with IATA’s weekly settlement plan. T E E N A B A R UA H
T
ravel agents will now need to remit the ticket sale proceeds to airlines every week, in place of the current fortnightly span. IATA’s billing settlement plan (BSP) is a payment gateway. According to the new plan, for all sales between 1st and the 7th of a month, an agent
will have to make payment to the airline on 15th and so on. “India has not been affected by recession the way other countries have been, so why such stringent payment cycle for Indian travel agents?”, argues Ajay Prakash, Former President, Travel Agents Federation of India (TAFI). In fact, Fitch Rating just revised India’s
sovereign rating outlook to ‘stable’ from negative. Fitch has affirmed BBB rating to India. “If agents have to pay to the airlines four times a month, in six months’ time half of the agents, especially the smaller ones will go out of business and there will be unhealthy consolidations and increased market control by a few bigger travel
Ajay Prakash Former President Travel Agents Federation of India (TAFI)
agents. And since it’s mostly the bigger travel agents which default, there’ll be bigger defaults in future. So a shake out in the industry is expected.”
Boon to debt-ridden airlines Most Indian carriers (except LCCs such as IndiGo, GoAir and SpiceJet) which are struggling with mounting losses (US$1.65 billion in FY13) and finding it difficult to pay their vendors in time, took the lead to secure an approval from IATA to change the billing cycle to seven days from fifteen. Amber Dubey, Partner and Head-Aerospace and Defense at global consul-
tancy KPMG argues their case, saying, “With the advent of technology, payment settlement on the NSE happens in T+2 days. This used to be spread over several weeks. So it’s not a surprise that in the airline sector, something similar is being tried. It would, of course, cause some pain to travel agents in the short run, but will become stabilised like it did in the case of the stock market.
Faster settlement will increase the velocity of money and prevent any one player in the chain to gain an undue advantage.” “We are seeing the blurring of differences between LCCs and FSCs. Most LCCs charge an upfront deposit and then issue tickets to agents
Amber Dubey Partner and Head-Aerospace and Defense at KPMG
against the same. The weekly settlement by FSCs would still give an advantage to the travel agents,” Dubey adds.
A Thorny issue Albert Tjoeng, Assistant Director, Corporate Communications, IATA Asia Pacific said “Moving to weekly settlement will benefit both airlines and agents. Airlines will receive more timely payments for ticket sales, while agents will have a reduced financial burden as a result of a lower financial guarantee requirement due to more frequent remittances.” However Biji Eapen, President, IATA Agents Association of India (IAAI), points out that APJC-India
had passed a resolution with majority vote to implement weekly payment effective from July 2015 and submitted the proposal to Passenger Agency Conference 2012, which, in fact, had circulated under Agenda items. Unfortunately, our APJC representatives summoned an emergency meeting on September 3, 2012 and unanimously passed another resolution to implement weekly payment from July 1,2013 immediately, instead of 2015.
Albert Tjoeng
Biji Eapen
Assistant Director, Corporate Communications, IATA Asia Pacific
President, IATA Agents Association of India (IAAI)
Moving to weekly settlement plan will benefit both airlines and agents
APJC-India passed a resolution to implement weekly payment effective from July 2015
Travel & Tourism Fair - Mumbai
SEPTEMBER 2-3
Delhi
Atout France’s France Promotion
2
Pune
Oman Tourist Office’s Roadshow
4-6
Mumbai
Atout France’s France Promotion
4
Ahmedabad
Oman Tourist Office’s Roadshow
6
Hyderabad
Oman Tourist Office’s Roadshow
13
Mumbai
European Quartet’s (Czech Republic, Poland, Slovakia and Hungary) Roadshow
16
Bengaluru
European Quartet’s Roadshow
17
Chennai
European Quartet’s Roadshow
18
Kolkata
European Quartet’s Roadshow
19
Delhi
European Quartet’s Roadshow
For more information, contact us at: talk@ddppl.com
Cash crunch coming up ahead Credit is a fact of life in this industry. Gurinder S Bhatia, Secretary, IATA Agents Association of India, says corporate clients usually pay after one or two months. Agents often compete with each other to extend more credit to corporate clients. “So now, we will have to make bigger investments to pay airlines on time,” he adds. Also, as Madhav Oza, Director, Blue Star Air Travel Services adds, “The accounting procedures will increase the work load and cash flows
will get badly affected.” Earlier statements were prepared fortnightly, but now agents have to be on their toes to ensure that payments are made on time. Airlines should be more agent-friendly, as over 80 per cent of International bookings and 40-45 per cent domestic bookings are done through travel agents in India, says Oza. “Offer transparent deals to the agents. Basic fares should include fuel surcharge, offer commensurate remuneration to agents.” he sums up.
Gurinder S Bhatia
Madhav Oza
SecretaryIATA Agents Association of India
Director Blue Star Air Travel Services
Agents compete with each other to extend more credit to their corporate clients
Agents have to be on their toes to ensure that payments are made on time
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AVIATION
India’s Best Airlines Jet Airways is the highest-quality airline in India, according to the 2013 Airline Quality Rating report, an annual study of airline performance by airlineratings.com. gives details on ratings.
Jet Airways Safety rating: 6/7 Product rating: 6.5/7 Country of Origin: India Airline Code: 9W Category: Full service carrier History: Commenced operations in May 1993. Commenced international flights in March 2004. Launched domestic low cost subsidiary called Jet Konnect in May 2009. Bought out Air Sahara and renamed it JetLite in April 2007. JetLite fully incorporated into Jet
Airways in 2008. JetLite merged into the Jet Konnect brand in May 2012. Major Strengths: Comprehensive route network with over 70 destinations including more than 50 domestic. Superior full service airline with good in flight product continuity. Arguably India’s best airline. Aircraft Types 737-700, 737-800, 737-900, A330-200, 777-300ER, ATR72-500 (most belong to Jet Konnect).
Air India Safety rating: 6/7 Product rating: 5/7 Country of Origin: India Airline Code: AI Category: Full service carrier History: Commenced operations as Tata Airways in October 1932. Rebranded to Air India in 1946. India’s flag carrier for many years, increasing pressure from low cost airlines and financial struggles saw it drop to fourth in
domestic market share. Started own low cost carrier Air India Express in 2004. Merger of Air India and its subsidiaries with Indian Airlines and its subsidiaries to become Air India Limited in 2011. Major Strengths: Serves more centers in India than any other airline. First airline in India to fly 787 Dreamliner. Aircraft Types: A319, A320, A321, 787, 777300ER, 747-400, 777-200LR, A330-200
Go Air Safety rating: 6/7 Product rating: 3.5/5 Country of Origin: India Airline Code: G8 Category: Low cost carrier History: Launched operations as low cost car-
rier in November 2005. Aimed to offer air fares lower than premium train fares across India. Operates extensive network across the Indian subcontinent. Aircraft Types: A320
IndiGo Safety rating: 4/7 Product rating: 4/5 Country of Origin: India Airline Code: 6E Category: Low cost carrier History: Commenced operations in 2006 as low cost carrier. Began international services in September 2011. Major Strengths Comprehensive route network with cheap
fares between major centers in India. India’s largest carrier by market share dethroning Jet Airways after just six years. Serves fewer Indian destinations than Spice Jet, Jet Airways and Air India but serves major destinations hence its high market share. Youngest aircraft fleet in India. Will be launch customer for the A320neo for which it has placed one of the biggest orders. Aircraft Types: A320
Spice Jet Safety rating : 4/7 Product rating : 4/5 Country of Origin: India Airline Code: SG Category: Low cost carrier History: Originated in 1993 when Airline Modilift was formed in partnership with Lufthansa. Ceased service in 1996 before
being taken over and renamed Royal Airways. Taken over again in 2004 and the low cost carrier SpiceJet began in May 2005. India’s third biggest airline in terms of market share. Major Strengths Low cost fares between major centers in India Aircraft Types 737-800, 737-900, Q400
Source: www.airlineratings.com
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OPPORTUNITY / CLIPBOARD
JULY 1 ST FORTNIGHT ISSUE 2013
TRAVTALK
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MOVEMENTS
TRAVTALK JULY 1 ST FORTNIGHT ISSUE 2013
The Grand New Delhi
Radisson Blu Resort & Spa, Alibaug
Tux Hospitality
New Delhi
Alibaug
New Delhi
Rajan Bahadur has been appointed as the Chief Operating Officer of The Grand New Delhi. He has experience of over 27 years in various fields, including sales & marketing, operations, revenue generation and corporate relationships. Before this assignment, Bahadur has worked with many global brands like Starwood Hotels, American Express, Oberoi Hotels, ITC & Lebua Hotels and Resorts, etc.
Shantanu Guha Roy has been appointed as the General Manager
Sunil Pathania has been appointed as the Vice-President at Tux
of Radisson Blu Resort & Spa, Alibaug. Graduated from IHMCTAN, Kolkata with over two decades of extensive experience in hospitality, Roy has worked with a number of hotel brands in the country, which include Taj, Holiday Inn, Carlson Rezidor-managed hotels like Radisson and Park Plaza. Roy’s expertise involve handling a diverse range of functions entailing F&B operations, training, budgeting, developing SOPs and operational policies.
Hospitality recently. He has over 17 years of experience in the Hospitality Industry. A post-graduate in Business Administration, Pathania has worked as the Vice President, Operations and Development of Peppermint Hotels. He played an instrumental role in opening and operations of five Peppermint Hotels under his administrative purview. In addition to organising and overseeing all operational activities, he has also been involved in the brand positioning, leadership and corporate office relations.
The Grand New Delhi
Leela Kempinski, Gurgaon
Hyatt Pune
New Delhi
New Delhi
Pune
Nidhi Verma has joined The Grand New Delhi, as Head of PR & Marketing Communications. She comes with an experience of over nine years including Marketing and hotel operations. Her last assignment was with Pullman Gurgaon, where she was part of the pre-opening team and launched the hotel. In her current position, Verma will be responsible for positioning of the hotel with a key focus on brand communication strategy and media management.
Michel Koopman has been appointed as the General Manager
Vishal Singh has joined the Hyatt Pune as General Manager. He has an experience of 17 years in the industry and has worked with Hilton and Hyatt in the past. Singh’s last assignment was with Hilton where he worked for three and a half years as Director of Operations and successfully opened DoubleTree by Hilton, Gurgaon and Hilton Chennai. He has also held assignments of Director Food & Beverage at Park Hyatt Goa Resort & Spa; and Assistant Director -Food & Beverage at Grand Hyatt Mumbai. A state-level shooter, Singh is a Hotel Management graduate from IHM, Delhi.
Radisson Blu Rudrapur
of the Leela Kempinski, Gurgaon. Prior to joining The Leela, Koopman was the Director of Middle East Operations Anantara Hotels, Resorts and Spas, United Arab Emirates and General Manager Eastern Mangroves Hotel and Spa. Koopman’s stints with leading global hotel groups include Hyatt International, Hilton and Intercontinental. He has also overseen regional operations as Director of Middle East Operations Anantara Hotels, Resorts and Spas.
Bonton Tours
Rudrapur
Courtyard by Marriott, Mumbai International Airport
Arun Kumar Manikonda has moved into a new assignment in
Mumbai
Sanjeev Tiwari has joined the Delhi Regional Office of Bonton
his new role as the Hotel Manager of Radisson Blu Rudrapur. He has 10 years of experience in operations, administration and overall management skills. He has worked with hotel groups across the country and abroad like Taj Hotels, Resorts & Palaces, Golden Tulip Hospitality, and ITC Welcom Group. Manikonda has a Masters in Business Administration from the Allahabad University, and a diploma in hotel operations from the Food Craft Institute.
Anang Chaturvedi has been appointed as the Director of Sales & Marketing, at the Courtyard by Marriott, Mumbai International Airport. Chaturvedi brings 12 years of experience in the hotel industry. He started his career at Courtyard by Marriott, Ahmedabad as one of the members of the pre-opening team, in 2010. During his tenure with Courtyard by Marriott, Ahmedabad; he had assisted the sales and revenue team.
Talking People is a special dedicated corner, created as a sounding board for who’s who of the Indian and International travel industry. With Talking People, it is our endeavour to bring you face-to-face with people. Contributed by: Peden Doma Bhutia, Vivek Sethi, Megha Paul & Teena Baruah
Stephen King GM India, Virgin Atlantic
Stephen King, GM India, Virgin Atlantic says, “I am from south of the UK. I studied in a village in France and then did Operational Research and Management Science from Lancaster University, UK. This is my first international stint. I love showing off Delhi to my friends. My favourite being Agrasen ki Baoli, a historic stairwell with a dhobi ghat next door, and the spice market at Khari Baoli. Last night, I went for a run on the green stretch connecting Vasant Kunj and Vasant Vihar where you can spot peacocks, shrines and the Aravali hills. It’s great after dusk.”
New Delhi Tours as Assistant General Manager - Operations. Tiwari started his career after completing his Masters in Tourism Management and has done MBA with specialisation in Marketing. He has experience in companies like TCI and Hospitality Worldwide. Tiwari is a specialist in forty-five countries, certified by various Tourism Boards. In his prior assignment, Tiwari was the Manager-Outbound at Carnation Holidays.
Karim El Guanaini, Vice President, Destination Management, Yas Island, who was recently in India, says, “I see a lot of similarities between Delhi and Cairo, where I had started working in the hospitality industry.” On travel preferences, he says Karim El Guanaini Vice President that he is a naturist who loves Destination Management to explore new destinations. Yas Island “I am a Swiss national and live with my two daughters and wife in Abu Dhabi. I am committed to spend as much time with my family and friends,” he adds.
Stephan Heuberger, Director, Switzerland Tourism India, says, “I don’t have much time to watch Hindi movies, but I love India and its diversity. I love the many smiles I see in the faces of people and I also like the optimism I see in the faces of people. It’s a privilege to live in India. I also love Indian food, Stephan Heuberger though I may no have it everyday. Director, India There is so much of diversity in the Switzerland Tourism country. So far, I have been travelling around the country mostly on work, but I have just moved my household to Mumbai and now that my wife is here we want to explore india. My wishlist is so long I hope I can cover it all.”
Jayant Singh, Chief Executive, International Hospitality Partners loves to sit and watch TV, even if he can do it for 24 hours. He likes to watch theatre and listen to music during the weekends. "I am a guitarist as well. I have jammed a number of times with the Parikarma musicians as we all grew up together. So strumming the chords is what keeps me going. Although I don't play regularly now, on social occasions where music is the ultimate bliss, you can hear me unplugged," he chuckles. Jayant Singh Chief Executive International Hospitality Partners
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Postal Reg. No.: DL(ND)-11/6044/2012-13-14; WPP No.: U(C)-178/2012-14 for posting on 1st-2nd and 15th-16th of the same month at New Delhi P.S.O., RNI No.: 53492/91 Date of Publication:30-06-2013
HIGHLIGHT
Tier II & III cities are important Stephen King, General Manager, India, Virgin Atlantic, speaks to about improved connectivity, courtesy code share with Jet Airways in India and in the US because of the joint venture with Delta. D E E PA S E T H I
AND
T E E N A B A R UA H
Tell us about Virgin Atlantic’s India experience since its Mumbai launch? We are still growing and consolidating partnerships with domestic airlines within India so we can improve connectivity to and from Tier II & III cities. Business has grown from these cities exponentially. Our code share with Jet Airways gives us our focus to spread out more in India. We have launched our Little Red domestic flights in the UK. New flights to New York (JFK) last winter were timed specifically to give connectivity to New Delhi. We are seeing a huge growth in the number of passengers to the US. We connect Mumbai to Boston, JFK, Heathrow, New York and Chicago. We have hundreds of people flying to San Francisco and LA. So we are becoming the carrier to the US. On the return leg, the transit time at Heathrow is much longer, but if you have a valid US visa and a confirmed through ticket within 24 hours you don’t need a UK Visa. This is helping Virgin grow traffic to New York.
Virgin Atlantic had plans to launch direct Hyderabad, Bengaluru and Goa flights, any
development on that? Heathrow slots are always a constraint. Getting early morning slots in an airport which is running 100 per cent capacity is a problem. Our model is good. We need to focus on Delhi and Mumbai and allow local partnerships to connect through. We have a sales office in Bengaluru which is generating a fair amount of business. Our marketing team is exploring Tier II & III cities that are 6-7 hours drive away from one of our gateways. We get the highest revenue from Punjab. Pune is doing well for us as well. We also offer a limo service from Pune to Mumbai if you are flying in a premium class. The focus of our organisation at the moment is the Delta purchase of 49 per cent share of Virgin Atlantic. This trans-Atlantic joint venture will open a lot of opportunities and connections for our customers. It will make us very strong in the US.
Any plans for FDI in India? We are not currently focusing on an investment in a local carrier as the point-topoint model is working well for us. At the same time I cannot deny that India is an underserviced market, considering the size of the middle class here. There are a
lot of opportunities, though the costs make it difficult to operate here.
Delhi and Mumbai are expensive for airlines but even more so for passengers. It’s great that we have got an improving infrastructure, but there are other ways to recover the cost over a period of time. It is doubling costs for the airline.
Virgin is being very cautious about starting new routes in India. Why? It requires a lot of investment to launch a new route. You have to be sure that you are ready for the move because if you expand too fast you’ll end up losing credibility in the market. There is a huge capital outlay. Next year we are also looking forward to having B787 aircraft join our fleet.
Do you work in close partnership with travel agents? We have PLBs with a whole range of partners. We recognise travel agents as key partners of our business. Every advertisement we release for consumers, we have a parallel campaign for agents. Every week, I spend a couple of days getting feedback from them.
Does Virgin have any special offers for students who fly to the US and UK at this time? Students are important for us, we have a great baggage allowance of 50 kg in economy and 75 kg in premium economy. Also, Richard Branson, Founder of Virgin Atlantic has invited young
Stephen King General Manager, India, Virgin Atlantic
New flights to New York (JFK) last winter were timed specifically to give connectivity to New Delhi. We are seeing a huge growth in the number of passengers to the US Indian brains to share their vision on how they can use their education to solve a problem the world faces today. The student whose idea appeals the most will win a 5 lakh scholarship.
How was the summer season? We have had a good summer, with packed flights. In the summer there is always more traffic going out of India and less coming in, but we recognise how important India is as a destination. After the UK and US markets, India is the most important market and I am excited to be a part of it.