TravTalk

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A DDP PUBLICATION

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Vol. XXIV No. 16; August 2 nd fortnight issue 2012

Maharashtra tops with lower score Maharashtra may have topped the list in foreign tourist visits in India during 2011, but the numbers have dropped since 2010. discusses the challenges faced and the solutions for them.

So, why is there a drop in tourist visits in Maharashtra?

Is the state still recovering from global recession? 26/11 terror attacks? Infrastructure?

Marketing issues? Let’s find it out from the stakeholders of the industry.

A N I TA J A I N

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here is no doubt that Maharashtra is the leading state in India when it comes to the number of foreign tourist visits. This was yet again proved by the latest figures released by the Ministry of Tourism, off the total 19.5 million foreign tourists visits in 2011, Maharashtra got the biggest share i.e. 4.8 million.

Tamil Nadu received the second slot by welcoming close to 3.4 million and New Delhi acquired the third position by playing host to

No more a ‘transit’ hub

Dr. Jagdish Patil

Narendra Rathore

Managing Director, MTDC

President, Maharashtra Chapter, IATO

2.2 million foreigners.

However, there is a drop in numbers as Maharashtra

welcomes close to 5.83 million tourists in 2010 and 4.8 million in 2011.

The percentage share of Maharashtra in overall foreign tourist visits in 2011 is 24.7 per cent – almost one-fourth of the total numbers.

According to Iqbal Mulla, President, TAAI; Mumbai is one of the best connected airports in India to the western

world. He said, “Mumbai has the best air-connectivity in India. However, with the state-of-the-art airports coming up in other states and with Airport Authority of India (AAI) giving our incentives and perks to airlines for operating from new airports like Ahmedabad (Gujarat); India is overall becoming a well-connected web of air services.

This way, Mumbai is no more the ‘transit’ capital in India.

This is one of the major reasons why the state is losing out on foreign tourists.” Well, as a Contd. on page 13

Agents & Tech killed commissions

A surprising response from the industry to the poll on who they consider responsible for airline commission cuts.

A majority of our fraternity members feel that travel agents who pass on their commission to the customers and technology advancements, are to be blamed for the reducing commission. Both these responses received 28% votes each. The airlines were not far behind with 24% votes. 16% blamed industry associations and feel their incompatibility is a major reason. 3% of the respondents were confused and 1% feel that the heavy taxation by the government and services charges by the airports should be considered liable.

Government Taxes

1% Confused

3% Airlines

Travel Agents

24%

28%

Associations Technology

28%

16%

Hotel occupancy rises as Indian Rupee slides See full story on page 14

High costs strangling aviation in India See full story on page 20

Save Tiger Tourism See full story on page 44

Travel industry remembers Lalit Sheth See full story on page 52

BULLETIN

850mn domestic visits in 2011 While the inbound and outbound segments struggle to cope with economic uncertainities, the domestic segment has registered a double digit growth.

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omestic Tourism in India proved to be one of the strongest assets that helped the travel and tourism sail through the difficult economic environment in 2008-09.

Today, when the economic uncertainties are on the rise, the recent statistics released by the Ministry of Tourism lends fresh hopes and reasons to bank on the burgeoning Domestic Tourism segment.

As per the data compiled by the Market Research Division of Ministry of Tourism, during 2011, the number of domestic tourist visits to the States and UTs touched 851 million as compared to 748 million in 2010.

In other words, the number of domestic tourist visits to

Percentage share of Top 10 States/UTs in Domestic Tourist Visits in 2011 Uttarakhand

West Bengal Gujarat

3.0%

2.6%

2.5%

Others

14.7%

Uttar Pradesh

18.3

Rajasthan

3.2% Madhya Pradesh

5.2% Maharashtra

6.5%

Karnataka

9.9%

States and UTs registered an increase of 13.8 per cent over 2010. The top ten States in terms of number of domestic tourist visits (in millions), during 2011, were Uttar Pradesh (155.4), Andhra Pradesh (153.1), Tamil Nadu (137.5),

Andhra Pradesh Tamil Nadu

16.2% Karnataka (84.1), Maharashtra (55.3), Madhya Pradesh (44.1), Rajasthan (27.1), Uttarakhand (25.9), West Bengal (22.3) and Gujarat (21.0). Moreover, the contribution of top 10 States was about 85.3 per cent to the total number

18.0% Source: State/UT Tourism Departments

of domestic tourist visits during 2011. The percentage share of top 5 States were Uttar Pradesh (18.3 per cent), Andhra Pradesh (18 per cent), Tamil Nadu (16.2 per cent), Karnataka (9.9 per cent) and Maharashtra (6.5 per cent).

STATISTICS VIEWPOINT

Staying one up!

W

ith new challenges being faced constantly in the travel industry, we have to keep thinking ‘innovative’ to continue staying in the black.

Airlines are beginning to charge an online service fee, seat choice comes at a cost, extra bags and cabin baggage are already being charged for by a few airlines. Some airlines are also offering insurance – all to counter the escalating cost of fuel, ground handling charges, parking fees etc. that are being forced on them.

Travel companies don’t just work on commissions from the companies; they sell but are working hard on increasing their knowledge base to charge a fee for consultancy and services rendered.

NTOs are organising roadshows and trainings to support the travel fraternity while increasing inbound traffic to their respective countries.

Hotels are using the sliding rupee to their advantage by enticing visitors with lower dollar tariff plans.

The weak rupee may have hit Indian tourists wanting to fly internationally, but the flip side is that foreign tourists are finding India much more attractive because of the fall in prices for them.

MOT needs to start thinking out-of-the box too: Since visa fee is reciprocal, can’t we take the first step to reduce the amount, forcing others to follow suit?

• India is losing a large number of inbound visitors because of high visa cost. The visa fee is really a drop in the ocean compared to what a tourist spends once in the country.

• eVisas, which the Minister is talking about, would help increase FTAs because of the convenience and could be given at a lower cost.

• Visa-on-Arrival facilities have lost momentum. We have not seen any countries added to the list of late.

Training programmes and marketing activities abroad need to be enhanced to grow awareness of India beyond the golden triangle and Kerala’s ayurveda… momentum should be given to tourism sectors such as adventure, mountain, beach, heritage, wellness, religious, rail and luxury, as the infrastructure is quite strong in all these segments.

Vikramajit Chairman SanJeet Publisher Rupali Narasimhan Editorial Director Deepa Sethi Editor

Editorial Ratan Kr Paul Vivek Sethi Megha Paul Devika Jeet Anita Jain Dency Mathew News-Editor Peden Doma Bhutia Desk-Editor Archana Sharma Sub-Editor Raina Mandal

Advertising Gunjan Sabikhi General Manager Karishma Khanna Sr. Manager Marketing Geetika Pathak Manager Advertising Amit Sarkar Asst. Manager Marketing Advertising (Mumbai) Suchita Saran Branch Manager Harshal Ashar Deputy General Manager

India clocks 6.29mn FTAs UNWTO had projected a growth rate of 4-5% for world tourism in 2011 and 7-9% for Asia and the Pacific, which the inbound segment managed to achieve amidst rising uncertainties on the global and national economic front…

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s per the recent provisional data released by the Ministry of Tourism, the Foreign Tourist Arrivals (FTAs) in India during 2011 were 6.29 million which showed a growth of 8.9 per cent, as compared to the

FTAs of 5.78 million with a growth of 11.8 per cent during the year 2010 over 2009.

The growth rate of 8.9 per cent in 2011 for India is better than UNWTO’s projected growth rate of 4-5 per cent for the world in 2011 and in line with 7-9 per cent for Asia and the

Pacific. The Foreign Exchange Earnings (FEE) in US$ during 2011 were $16,564 million with a growth of 16.7 per cent, as compared to $14,193 million with a growth of 24.6 per cent during the year 2010 over 2009.

Contd. on page 40

FTAs in India, 1997-2012 Year FTAs in India Percentage % (in million) change over the previous year 1997 2.37 3.8 1998 2.36 -0.7 1999 2.48 5.2 2000 2.65 6.7 2001 2.54 -4.2 2002 2.38 -6.0 2003 2.73 14.3 2004 3.46 26.8 2005 3.92 13.3 2006 4.45 13.5 2007 5.08 14.3 2008 5.28 4.0 2009 5.17 -2.2 2010 5.78 11.8 2011 (P) 6.29 8.9 2012 3.24 7.4@ (Jan-June) (P) (P) Provisional, @ Growth rate over Jan-June, 2011.

Source: (i) Bureau of Immigration, Govt of India for 1997-2010 (ii) Ministry of Tourism, Govt. of India, for 2011 & 2012

Monthwise Foreign Tourist Arrivals in India, 2010-2012 Month

2010

January February March April May June July August September October November December Total Sub total (Jan-June)

568719 552152 512152 371956 332087 384642 466715 422173 369821 507093 608178 680004 5775692 2721708

Better Than The Best

Foreign Tourist Arrivalss (FTAs in India) 2011(P) 2012(P) Percentage % Change 2011/2010 2012/2011 623885 681282 9.7 9.2 635527 677472 15.1 6.6 550051 622658 7.4 13.2 437792 452239 17.7 3.3 355333 371678 7.0 4.6 412336 432128 7.2 4.8 513853 – 10.1 – 444548 – 5.3 – 401995 – 8.7 – 562873 – 11.0 – 636762 – 4.7 – 715364 – 5.2 – 6290319 3237457 8.9 – 3014924 3237457 10.8@ 7.4@

P: Provisional @Growth rate over January-June, 2011 and 2010 Source: (i) Bureau of Immigration, Govt. of India, for 2010, (ii) Ministry of Tourism, Govt. of India, for 2011 and 2012

(Mumbai) Rishika Karra Sales Coordinator Advertisement Designers Vikas Mandotia Nitin Kumar Design: Nityanand Misra Sudhir Mudgal Photographer Simran Kaur-Delhi Bharat Dangiya-Mumbai Production: Anil Kharbanda Circulation: Ashok Rana

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

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The growth rate of 8.9 per cent in 2011 for India is better than UNWTO’s projected growth rate of 4-5 per cent for the world in 2011 It is also in line with 7-9 per cent for Asia and the Pacific The Foreign Exchange Earnings (FEE) in US$ during 2011 were $16,564 million with a growth of 16.7 per cent The growth rate in FEE in US$ terms in December 2011 over December 2010 was 8.3 per cent,

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STATES

AUGUST 2 ND FORTNIGHT ISSUE 2012

TRAVTALK

5

Licenses not mandatory for homestays After being voted as the most tourist-friendly state by the travel industry in a vote conducted by , A P Anilkumar, Minister for Tourism, Government of Kerala discusses the state’s tourism policy and the road map ahead.

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erala tourism ministry has pioneered in putting the state on the international tourism map. Working closely with the private sector, the government has been exemplary in putting forward strategies favourable to tourism.

Discussing changes in the budget this year, the Tourism Minister says, “The Kerala government’s tourism budget outlay for the ongoing

A P Anilkumar Minister for Tourism Government of Kerala

The focus this year is on developing quality infrastructure at major tourist destinations and marketing them in a phased manner 2012-13 fiscal is `172 crore.

The focus, this year, is on developing quality infrastructure at major tourist destinations and marketing them in a phased manner.”

An interesting development made this year was the fast track clearance of tourism projects. “So far, we have not given a fast-track clearance to any tourism project. We will be doing it after formulating the pertinent procedures. The government would recommend stay in quality resort projects that adhere to sustainable tourism principles,” he says.

Another policy that was brought to the limelight is the mandatory licences for homestays, serviced villas, houseboats and Ayurveda centres. But the Minister clears the air about this and adds, “Kerala Tourism has not made licenses mandatory for homestays, serviced villas, houseboats and Ayurveda centres.

All we have done is the introduction of a system of classification of these units so as to

ensure quality service. Such segmentation will enable tourists to choose their preferred service provider.”

“If Kerala Tourism has succeeded in evolving as a brand model among all Indian states, it is as a result of its sin-

gle-minded and sustained efforts. Kerala is the country’s only state that has build up a brand equity of its own and participated in international and national trade fairs. As part of this exercise, Kerala Tourism used to participate in national

and international tourism fairs along with the industry’s private partners. This practice has enjoyed wide acceptance from both our trade partners as well as buyers since they can meet up their counterparts under one umbrella. The roadshows

and workshops that Kerala Tourism organised in the domestic as well as international markets has seen private trade partners from the state getting a chance to participate by spending nominal participation fee,” adds Anilkumar.

“I hope this year’s KTM will be better than the last one in terms of the quality of buyers and their total number. So far, 475 international and 1,300 domestic buyers have registered for this year’s KTM,” says Anilkumar.

MOT

India’s healing touch for ME India is known for its rich heritage of healing and wellness. The country has enormous possibilities to offer wellness seekers from the Middle East.

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s per Subodh Kant Sahai, Union Minister for Tourism, India, the Middle East countries hold great potential for Wellness Tourism in India.

Sharing the feedback received during the recent roadshow conducted by the Ministry of Tourism in Dubai, he said, “The Indian system of healing is world renowned and can easily attract tourists from Middle East, who are connoisseur of wellness products and have good purchasing power. Hence, the wellness potential of India should be fully nurtured in these source markets to harness the true potential of India as a wellness destination,” said Sahai.

Echoing similar views, Sultan Ahmed, Minister of State for Tourism, who had earlier led a business delegation for similar roadshows in Middle East, also spoke on the merits of promoting Wellness Tourism in Middle East at the sidelines of the recently held SAARC Tour Operators conference in New Delhi.

“Middle East countries offer great potential to pro-

MOT Initiatives MOT has laid down accreditation standards for wellness centres with the help of NABH and organised three sensitisation workshops to encourage the wellness centres to adopt NABH wellness accreditations

Subodh Kant Sahai

Sultan Ahmed

Union Minister for Tourism, India

Minister of State for Tourism

The wellness potential of India should be fully nurtured in source markets to harness the true potential of India as a wellness destination mote Wellness Tourism. India has always been known for its rich heritage of wellness traditions and has enormous possibilities to offer to wellness seekers in this region,” said Ahmed.

Lately, the Ministry of Tourism has identified Wellness Tourism among the niche tourism sectors that offer great potential; once the standards of service are laid down to ensure uniformity of experience.

India is known for its rich heritage of wellness tradition and has a lot of possibilities to offer to wellness seekers MOT had laid down accreditation standards for wellness centres with the help of National Board for Accreditation of Hospitals and Healthcare Services (NABH) and organised three workshops to encourage wellness centres to adopt NABH wellness accreditations. Also, in line with the objective of realising the true potential of Wellness Tourism in India, the MOT has decided to support Global Spa & Wellness Summit 2013.

10 ASI monuments for Clean India MOT facilitated the adoption of ten important Archaeological Survey of India (ASI) monuments by Institutes of Hotel Management (IHM) and Indian Institute of Tourism and Travel Management under the Clean India campaign.

The Ministry will engage the Quality Council of India (QCI) for an independent and objective evaluation of the state of cleanliness specific to each monument chosen for adoption. The QCI will classify the improvement over the adoption period as average, good, very good and excellent. Based on the QCI classification, the Ministry will extend awards with citation to the adopters.

MOT will, in particular, work towards the cleanliness of certain identified tourist destinations. The objective eventually will be to ensure that the cleanliness and environmental hygiene, specific to the identified destinations, are truly world-class and that they serve as models to be replicated elsewhere.

MOT, in extension of the campaign, has launched a scheme of awareness for

1) Golkunda Fort, Hyderabad 2) Se’ Cathedral & St. Francis Assisi Church Complex , old Goa 3) Gwalior Fort, Gwalior 4) Buddhist Caves, Kanheri (Maharashtra) 5) Megalithic Bridge on the Um-Nyakaneth between Jaracm and Syndai, Um-Nyakaneth (Meghalya) 6) Red Fort, Delhi 7) Temples at Bhubneshwar ,Bhubneshwar 8) Bhatinda Fort, Bhatinda (Punjab) 9) Mamallapuram Group of Monuments, Mamallapuram (Tamil Nadu) 10) Imambara of Asaf-ud Daula, Lucknow Cleanliness through Facilitators i.e.

NGOs/Schools/Colleges and Adopters (PSUs), Corporates, Industry etc.) to certain selected tourist destinations.

AVIATION

AUGUST 2 ND FORTNIGHT ISSUE 2012

TRAVTALK

7

‘Airfares in India cheaper in comparison’ Examining the growth potential of the aviation sector and highlighting its shortcomings, Naresh Goyal, Founder Chairman, Jet Airways, discusses the present scenario of the Indian skies.

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assenger traffic has grown to 60 million domestic and 40 million international passengers per year. Investments in airport infrastructure have increased the annual passenger handling capacity of the Indian airports from 66 million to 235 million. The numbers of aircraft have increased from 100 to 413.

Naresh Goyal Founder Chairman,Jet Airways

Comparing domestic fares in India to other countries, you will find that fares in India are far cheaper than fares in other large aviation markets for sectors of similar distances “There remains no doubt at all in my mind that Indian aviation is poised for a substantial growth. The fact that aviation today covers a miniscule three per cent of the country’s population indicates the tremendous scope and potential that exists for expansion and growth,” says Goyal.

“India is also envisaged to be the third largest aviation market by 2020. By 2017, annual passenger traffic is estimated to grow to around 270 million,” he adds.

But addressing an important issue baring the industry to realise its potential, Goyal says, “The cost dilemma, which the Indian aviation sector faces, poses multipronged challenges that need to be recognised and require focus. These include the sharply depreciating rupee against the dollar, escalating Aviation Turbine Fuel prices, high taxes imposed on the sector and rising infrastructure

costs. While the tremendous focus on infrastructure is changing the face of airports in India, these improvements have come with a steep price for both airlines and consumers in the form of significantly higher fees and charges.”

Goyal Talks: On sectors more than 2,000 km, when compared to India:

Fares in China are higher by 87% Fares in the USA are higher by 119% Fares in Canada are higher by 162% Fares in Australia are higher by 182%

Highlighting the impending issue, Goyal adds, “The Indian carriers thus operate in an environment where the operating costs are much higher than other large aviation markets while the fares are lower than the same benchmarks. The combined

effect of this has been sustained losses for the Indian carriers.”

Discussing a possible solution, Goyal encourages government backing to overcome this problem.

“Government’s supportive actions on these matters would provide a fillip to the competitiveness of India’s home-grown carriers.”

10 TRAVTALK

AVIATION

AUGUST 2 ND FORTNIGHT ISSUE 2012

Hyderabad and Delhi connected to Dubai Effective August 7, IndiGo has brought Hyderabad closer to Dubai.

Additionally, the airline will now operate its second daily and direct flight

North India gets a new regional airline Mantra, a new scheduled regional airline, started operations in North India last month. The airline aims to connect untapped cities and shares its initiatives to support travel agents.

D E V I KA J E E T

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antra Regional Airline, under the aegis of Religare Voyages, took off on July 23, 2012, with everyday flights connecting the northern sector of India, starting with Amritsar and Chandigarh.

Aditya Ghosh President IndiGo

between Delhi and Dubai.

These flights will give more choice to business and leisure travellers Aditya Ghosh, President, IndiGo said, “It gives me immense pleasure in announcing these new flights connecting Dubai to Hyderabad and Delhi. We are looking at providing affordable fares on these new routes for 6E travellers.”

The airline aims at putting untapped cities on a map; boost air travel and connectivity by inter connecting cities out of the radar of most airlines. With further expansion on the cards, the plan foresees Jammu and Dharamshala entering its fold shortly.

Discussing the launch, Sandeep Bhatt, Chief Executive Officer, Religare Voyages, says, “According to International Air Transport Association, India had the strongest annual growth with the domestic air travel demand rising 16.4 per cent.

Religare Aviation Limited has been into non-scheduled air

charter space for over a decade. We can boast to be one of the most serious air charter operators in India.

The company has been on an expansion mode for the last four years. India has got a wide spread territory. In

realised that there is tremendous scope in regional sectors connecting Tier-II and Tier-III cities and to kickstart, we have the right aircraft also. The Beechcraft 1900D that we have inducted into this operation are proven commuter aircraft.”

Discussing the relevance of travel agents vis-a-vis a new airline, Bhatt says,

Sandeep Bhatt CEO Religare Voyages

India, there are over 400 airports and airstrips and most of them are currently unconnected due to various reasons including infrastructure, demand and non-availability of suitable aircraft to operate into those airports. We

“Travel fraternity is very important to us. We believe that travel agents can fuel the growth of airlines.

Currently all the airlines including Indian carriers are going into a zero incentive regime. We have kept travel agents interests intact.”

India, a country with 28 diverse states, hundreds of cities and more than a billion people, has limited airlines serving smaller cities.

Mantra aims to boost air travel and connectivity. They decided to start their operations in richer states of North India, “When we look at North, Punjab is the most prominent and richest state.

Amritsar and Chandigarh are the most important cities in the region, which were not connected by air. Our research showed that there are number of people who ply between these cities daily. Amritsar is a religious destination. The alternate means of transport was that they were either travelling by road or train which was too cumbersome. Minimum travel time was four to five hours and we are connecting these cities in 40 to 50 minutes and allowing people to return same day with our morning evening connections.

Jammu and

Dharamshala was on our immediate plan but current weather is not too supportive for regular flights to Dharamshala.

Monsoon has started building-up.

Therefore, we consciously took decision to defer flights to Dharamshala and Jammu for couple of months. Yes, we are looking at Rajasthan also for coming winter season,” says Bhatt.

New Mantra for North India Mantra has two 17-seater Beechcraft 1900D aircraft for a special, safe and comfortable travel experience.

Moreover, Mantra has a personalised touch and therefore every seat on aircraft is a window-cum-aisle seat The airline took off on July 23, 2012, with everyday flights connecting the northern sector of India, starting with Amritsar and Chandigarh

12 TRAVTALK

AVIATION

AUGUST 2 ND FORTNIGHT ISSUE 2012

‘Profitability remains difficult to achieve’ With a new airport hub in Paris, Air France-KLM aims at increasing its market share and focusses on providing better services to Indian passengers. However, increasing costs, especially from Delhi, paints a gloomy picture for the airline. discusses with Pieter De Man, General Manager, Indian Sub Continent, Air France-KLM, the highs and lows of this year...

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his year, Air France and Aeroport de Paris have joined forces to work on ‘HUB 2012’, a project focussed to transform, improve and simplify passenger experience at Paris, Charles de Gaulle.

With an investment of 580 million Euros, Charles De Gaulle Airport at Paris

New Facilities June 28, 2012 has marked the opening of ‘Concourse M’ at terminal 2E, whereby all Air France flights from India will operate from terminal 2E at Paris, Charles de Gaulle With this development, Indian passengers will be able to connect to the other international flights within the same terminal

is aimed to be the most efficient and modern hub for the customers from all over the world and in particular for Indian passengers.

“To begin with, June 28, 2012 has marked the opening of ‘Concourse M’ at terminal 2E, whereby all Air France flights from India will operate from terminal 2E at Paris, Charles de Gaulle. Terminal 2E is completely dedicated to the operations of all Air France International, non-Schengen flights such as to USA, UK, South America, Canada and Africa.

With this development, Indian passengers will be able to connect to the other international flights within the same terminal,” says De Man.

Discussing the airlines’ expectations from India, De Man says, “Proposed macroeconomics has been very difficult in 2012 because of the recent hike in fuel prices and slowdown in global economy. Also the looming

At this time, the airline has not turned a blind eye to the travel agents and considers them as important business partners. “The travel agents are our business partners and they are an integral part of these

we offer another successful programme called BlueBiz and depending on the corporate need, we offer points and an upfront discount,” he adds.

QUICK READ Pieter De Man General Manager Indian Sub Continent, Air France-KLM

Looking forward to these new developments and welcoming Indian passengers to the new terminal, the airline hopes to increase traffic from India. By October 2012, all Schengen flights will also be concentrated at Terminal 2F, which will offer faster connections.

Travel agents are our business partners and they are an integral part of contracts with regard to ticketing for corporates increase in airport charges for Delhi has led to an overall increase in the operating costs. Load factors are satisfactory but with the continued increase in costs, profitability remains difficult to be achieved.”

contracts with regard to the ticketing of corporates. For our corporates, we have a plethora of customised offers in form of the corporate contracts. Based on the need, we offer them the relevant ones. For SME,

Foreign tourists from South-East Asian countries, Nordic countries and USA spend more money than tourists from other countries.

The Goa government is making all efforts to promote Goa as a popular tourist hub across the globe.

STATES

Tourist numbers dwindle Contd. from page 1

solution to this; Maharashtra should start retaining the tourists by showcasing attractive facets of the state in international markets, marketing it

(beach, wildlife, forts, etc.), regions, circuits and segments of travellers. This makes the overall product of Maharashtra clear, organised and it can be sold to the correct target audience.”

Private players can build on the infrastructure and other basic amenities Dr. Jagdish Patil, MD, MTDC well along with India, targetting the right market with the right target audience in the right way.

Unbundling the products It is indeed important to market the products to spread awareness about the state to attract tourists.

However, for Maharashtra, the marketing strategy was muddled up until the recent times. Mumbai was the only place for tourists to visit along with Ajanta and Ellora caves. Pandurang Taware, President & MD, Agri Tourism Development Corporation says, “Maharashtra is a paradise as it offers everything except desert and snow. The state was not promoting/highlighting its real face – beaches, wildlife, rural tourism, forts, history, agro-tourism, religious tourism, etc. However, the state has started segre-

Infrastructure – work in progress Be it any state or country, infrastructure is the backbone for the growth of economy. Yes, infrastructure!

Tourism in Maharashtra is highly reliable on this one

ting on the PPP mode and is also developing basic infrastructure where private players are not investing. Dr. Jagdish Patil, Managing Director, MTDC said, “Private players can build on the infrastructure and other basic amenities for tourism. We are not only giving out our resorts for management under PPP mode but have also formulated a five year action plan to boost the tourism industry, giving prime importance to infrastructure at most destinations.”

MTDC has also framed guidelines for mega projects, where private players developing the projects will be eligible for additional exemptions in amusement tax, luxury tax, stamp duty, property

The state is lagging behind in infrastructure and needs basic amenities Narendra Rathore President, Maharashtra Chapter, IATO aspect which might finetune the tourist numbers, if managed in the right way.

According to Narendra Rathore, President – Maharashtra Chapter, IATO, “Maharashtra can be listed as the capital of India in many

duty and electricity duty.

MTDC also plans to create tourism zones, especially in the rural and backward areas in near future.

Moving forward Be it the private players or government body, a state

Iqbal Mulla

Kishore Gadre

Pandurang Taware

President TAAI

GM MTDC

President & MD Agri Tourism Development Corporation

Maharashtra should showcase attractive facets of the state gating the products and promoting them under various themes and offerings.” This was confirmed by Kishore Gadre, General Manager, MTDC when she informed that MTDC has indeed introduced theme-based brochures. She said, “We were finding it difficult to promote the state in domestic and international market as a whole as there are too many products. Thus, we have divided all the tourism products under themes

We have divided tourism products under themes to make ‘product Maharashtra’ organised aspects – Jungle Book when it comes to wildlife and ecotourism, paradise when it comes to beaches, heaven when it comes to religious circuit, craziest party zone when it comes to fairs and festivals, a big family when it comes to hospitality and many more. However, the state is lagging behind in infrastructure and needs basic amenities.”

To tap the infrastructure issues, the state is now get-

The state has started segregating the products and promoting them under themes needs support from both the parties to balance the growth of tourism industry. The live example is Kerala as a state where both the government institutions and stakeholders play a major role in tourism sector. It’s time for Maharashtra to move in the right direction. And with concrete plans for near future, it looks like MTDC has hit the right chord and fine tuned the instrument!

All we need now is the SHOW TO START!

HOTELS

Hotel occupancy rises as ` slides As the Rupee falls in value, both inbound and outbound tourists are making the most of it, which is a blessing in disguise for the hospitality sector in India.

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he domestic currency might be oscillating against the US dollar over the past month and this may have hit the budget of Indian tourists. Grim situation...Not really, as not all is unwell in the industry. It’s a double whammy for the Indian hospitality industry. On one hand, the fall in the rupee has forced outbound Indian tourist to search for domestic options, which is a boon in disguise to

Feels Jagan Lachsher, Hotel Manager, Pullman Gurgaon Central Park, “Foreign tourist interest in the country has definitely been on the rise due to the fall in rupee value. Foreign travellers are now looking at higher-end hotels as well since it has now come within their budget parameters. The fall of rupee has affected not only hotel room tariffs but aviation too. Hence, travelling to and from India, as well as accommodation is now

Jagan Lachsher

Ajay K. Bakaya

Hotel Manager Pullman Gurgaon Central Park

Executive Director Sarovar Hotels

Foreign travellers are now looking at higher-end hotels as well since it has now come within their budget parameters the hospitality industry in India. The discerning Indian traveller who would earlier have headed to destinations abroad is now going to the domestic tourist market. On the other hand, leisure travellers from abroad are lured to India as hotels have become cheaper. With the rupee falling to ` 55.20 to one dollar, foreign nationals have to pay roughly $180.13 for a day’s stay in five star hotel room priced at ` 10,000 compared to $195.08 in January. Hence, the depreciating Rupee is making hotel rooms cheaper for foreign tourists.

According to JPMorgan analysts, INR depreciation is equivalent to tariff reduction.

It improves pricing power henceforth – a lower INR has in effect amounted to a US dollar tariff reduction for incoming tourists, who typically account for over 60 per cent of demand in the luxury hotels category (5 star and above).

In the leisure segment, the `slide increases the value of money. However, this segment is limited in India and real results can only be seen in the season cheaper than it used to be a year ago. India is now on the foreign tourists’ radar and will definitely see an increase in their arrivals.” Traditional tourist destinations such as Goa, Kerala, Rajasthan, Delhi and Agra have definitely benefitted. These destinations will also witness an increase in foreign tourist arrivals during the peak season time in the country due to more affordability amongst foreigners, he adds.

Hoteliers feel the currency impact will be felt only if demand for hotel rooms increases significantly, more so in the business season starting September. On whether the lower INR would lead to a price hike in SeptemberFebruary business season at the hotels, he points out, “The period between SeptemberFebruary is traditionally the peak time for hotels in India.

So there is some rate growth witnessed generally. However, with the increase in invento-

ries in most key destinations, including ours and the European economic downturn, this year, the rate growth impact may be lesser than usual. We hope that the increase in inbound travel due to the rupee’s fall will help overcome some of this gap by increasing occupancy levels.”

price hike for this season as demand always goes up tremendously. However, this has nothing to do with the US dollar tariff and hoteliers need to be quite sensible to such situations to not get the clients upset. The client today feels quickly when the hotels exploit the situation.”

Confirms Ajay K. Bakaya, Executive Director, Sarovar Hotels, “Yes, price hike can be foreseen during the season i.e. SeptemberFebruary. In the leisure segment, rupee depreciation will increase the value of money. However, leisure segment is limited in India and real results can only be

Reiterating the price hike concerns in the peak months, Scott Thomson, General Manager, Hilton New DelhiNoida-Mayur Vihar and DoubleTree by Hilton New Delhi-Noida-Mayur Vihar, argues, “I don’t think the INR changes should be interpreted as a tariff reduction.”

According to the GM, addition-

Oliver Martin

Scott Thomson

Regional General Manager The Claridges Hotels & Resorts

General Manager, Hilton New DelhiNoida-Mayur Vihar and DoubleTree by Hilton New Delhi-Noida-Mayur Vihar

There will be a natural price hike for this season as demand always goes up tremendously

I don’t think the INR changes should be interpreted as a tariff reduction

seen in season.” Bakaya also points out that business travellers are unlikely to be impacted because of the rupee slide. “Business travellers come here for work in spite of the fluctuation.

However, they will get more value for money due to the additional hotel supply in India. The volume of business traveller will not increase but due to the vast available choices, travellers will return satisfied and will get value for money,” he highlights.

al tariffs and costs should be removed wherever possible to help simplify conducting business. “The hotel chain always reviews pricing throughout the year to make sure that we are optimising our returns and are in step with the market.

The same will be done this year as well.”

Fearing that hoteliers should not read too much about the devaluation of the Indian currency, Oliver Martin, Regional General Manager, The Claridges Hotels & Resorts warns, “There will be a natural

A lower INR has in effect amounted to a US dollar tariff reduction for incoming tourists

Win-Win Deal The depreciating rupee is making hotel rooms cheaper for foreign tourists

In the leisure segment, rupee depreciation will increase the value of money

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HOTELS

AUGUST 2 ND FORTNIGHT ISSUE 2012

Indian hotels expanding in foreign lands Driven by the idea of tapping the growing market of Indians travelling abroad, established and newer domestic hospitality companies have now joined the race to increase the pace of their expansion in overseas market.

Israeli-owned real estate company and Saudi-based Kingdom Holdings.

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hile some of the world’s best known hotel chains have set shop in India and are introducing all their brands across various categories, home-grown hospitality players are making a beeline for overseas expansion. After having established a strong and sizeable pan India presence, the key challenge for the hospitality players here is to be known in the foreign market. Setting eyes on foreign shores, the Indian hotel chains are betting big on the increasing pie of the outbound travel from India.

Thus, the move for overseas expansion is also driven by the idea of tapping the growing market of Indians travelling abroad.

The latest to join this bandwagon of Indian chains looking for foreign acquisitions is the Sahara Group. It

Akshay Kulkarni

Jyotsna Suri

Anil Madhok

Regional Director – Hospitality, South & Southeast Asia, Cushman & Wakefield

Chairperson & Managing Director The Lalit Suri Hospitality Group

Managing Director Sarovar Hotels

Sahara has bought another international property and this seems a part of a new trend

We plan to make the hotel, The Lalit London operational by the end of 2014

has reportedly agreed to buy a controlling stake in New York’s landmark iconic prop-

erty – Plaza Hotel – for $570 million (around ` 3,167 crore). The 105-year-old lux-

We are focussing on East Africa as we are well versed with this market ury hotel, overlooking New York’s Central Park, is jointly owned by Elad Properties, an

Elad, controlled by Israeli businessman Yitzhak Tshuva, said it would receive 1.6 billion shekels for its 60 per cent stake, while Kingdom will receive the rest. Kingdom, the investment vehicle of Saudi billionaire Prince Alwaleed bin Talal, will hold a 25 per cent stake once the deal is completed, Elad said in a statement.

The deal will be the second major acquisition by Sahara India after it paid £470 million for Grosvenor House Hotel in December 2010. The acquisitions will be a part of the group’s expansion into the hospitality business and Grosvenor House will be the gateway for the company to introduce other business ventures internationally. The group owns and operates the 210-guest room

Sahara Star hotel adjacent to the Mumbai domestic airport and the Aamby Valley City resort. The Subrata Roy-led Sahara group includes financial services, media, real estate and retail operations.

Talking about this most recent development and the fact stimulating these acquisitions in general, Akshay Kulkarni, Regional Director – Hospitality, South & Southeast Asia, Cushman & Wakefield pointed out, “Sahara has bought another international property. This is indeed part of a new trend and it does seem that this is a resurgence of a trend that Taj started sometime ago.

While the Oberois and Taj have managed properties internationally for a long time, owning substantial inventories seem to be driven these days by multiple reasons. Firstly, there is capital to be deployed and it does seem that some of these troContd. on page 25

HOTELS

India is Hyatt’s No.3 market Having signed management agreements for an Andaz hotel in Gurgaon and a Grand Hyatt hotel in Kochi, Hyatt now has 56 branded hotels under development in India. us, China is No 2 and India is No 3. India is an important market for Hyatt in relation to growth.” As the Indian market matures and people travel, with better representation, there are better chances to attract customers to the rest of Hyatt worldwide. The group sees tremendous growth potential here, he adds.

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alking about the development track in India, Ratnesh Verma, Senior Vice President-Real Estate and Development, Asia Pacific for Hyatt Hotels & Resorts informs, “We are focussed on creating preference by enhancing distribution of our full-service, extended-stay and select service brands in both new and established markets in India where our guests are increasingly travelling. Creating a strong presence for our complete brand portfolio in India is critical to Hyatt’s leadership in the global hospitality sector.”

Stressing on the importance of India as a market, Verma feels, “We have a diverse brand portfolio that caters to a variety of markets – ranging from India’s gateway cities to its midsize cities. Our plan to grow our presence in the existing markets in which we operate—as well as expand into numerous new India markets—is a testament to our

Ratnesh Verma Senior Vice President - Real Estate and Development, Asia Pacific, Hyatt Hotels & Resorts

Creating a strong presence for our complete brand portfolio in India is critical to Hyatt’s leadership commitment to India over the long-term. India is an extremely important destination for us.

In sheer number of hotels, US is one of the biggest market for

Elaborating on the growth strategy this year in India, Verma reveals, “We are already committed to 56 new properties over the next 3 years. That implies a substantial investment in all its aspects. A predominant number of properties are in extended stay and select stay service brands, which, we believe, the Indian market is ready for.”

Hyatt plans to open three new hotels in India in the remainder of 2012, including Park Hyatt Chennai (a 204-room hotel set to open in late 2012), Hyatt Place Hampi (a 115room hotel planned to open by the end of the year) and Hyatt Regency Gurgaon. Hyatt Place Pune will open next year.

Fairmont debuts in India Putting its best foot forward as it marks its debut in India, Fairmont Jaipur boasts of a pillar-less 60,000 sq ft of convention space, which is the largest in the region.

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n August 9, Canadianbased Fairmont Hotels & Resorts opened its doors in the ‘Pink City’. Talking about the importance of the Indian market for the growth of Fairmont globally, Jennifer Fox, President, Fairmont Hotels & Resorts says,

“With the launch of Fairmont Jaipur, it will definitely assist us in introducing Indian travellers to our brand.”

According to Fox, the international hotel channel is betting big on destination Rajasthan. “We look forward to a great opening in the region. Rajasthan being one of the favourite destinations among inbound tourists, we are hopeful that our first entry into India will be successful not only domestically but with our clients throughout the world.

We are confident that the outstanding convention

Jennifer Fox

Atul Lall

President Fairmont Hotels & Resorts

General Manager Fairmont Jaipur

facilities at Fairmont Jaipur will contribute to our building a dynamic market here.”

The hotel aims to mobilise the strong presence of conventional travel agents and tour operators present in India that contribute immensely to hotels’ sales. Atul Lall, General Manager, Fairmont Jaipur points out,

“We work with tourism partners through the ‘Fairmont’s Famous Agents’ programme,

ensuring that they have knowledge about our product and destinations.”

Elaborating on the hotel’s business model in India, the Lall informs, “Our business model has a clear focus on managing hotels, enabling us to grow at a faster pace in the country.” Since the city has shown a great potential as a MICE destination, one of the key focus of Fairmont Jaipur is on MICE.

Hotel Feature The hotel boasts of a pillar-less 60,000 sq ft of convention space

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AUGUST 2 ND FORTNIGHT ISSUE 2012

SUCCESS STORY

LEADERS TALK

Gearing up for the decade ahead Having registered an aggressive growth in its first 10 years, LPTI has garnered over 17 brands in the travel and tourism space. These strategic business units are in various stages of development and will ensure that the group grows even more aggressively in the decades to come.

VIVEK SETHI

T

hese are the selected excerpts from a freewheeling interaction between and Arjun Sharma, Managing Director, Le Passage to India (LPTI) and TUI India.

Strategic Business Units (SBUs): We are nurturing 17 SBUs spread across the inbound, outbound and domestic segments. They are based on our realisation that the end consumer is not the same. Across different sectors, the needs of the consumer are different. These needs can be best met by servicing them through expertise in respective fields.

Here, one needs to understand that the gestation period varies across dif-

ferent segments.

For instance, a dedicated luxury division would require about 5-10 years and our LUXE division has completed four years. LPTI and Go India Journeys have enabled us to pursue growth opportunities aggressively in both conventional and new source markets. Similarly, our other divisions are also in various stages of gestation cycle and

we are committed to nurturing all our units.

Organic growth strategy: We follow a primarily organic growth strategy. To find the most appropriate cultural fit for people is more difficult than creating financial provisions for them. We like to follow 80:20 ratio of organic and inorganic ventures. But, at the same time, when we see value in a business proposi-

tion, we are more willing to invest. For instance, the Ministry of Tourism is promoting niche segments that include golf. We also see potential in golf in times to come and hence had recently acquired a medium-sized company to create a strategic business unit equipped to cater to the needs of domestic, inbound and outbound golf tourism market. Similarly, we

Vrooms at 58% CAGR in first decade

Courtesy: LPTI Group

The group’s turnover has witnessed a meteoric rise at a rate of 58% CAGR since its inception in 2002-03. From mere ` 10 crore, the projected turnover of the group is likely to touch ` 669 crore in 2012-13. Similarly, the group is now poised to service a mammoth 2,49,785 guests in 2012-13 as compared to 5,287 guests in 2002-03.

Arjun Sharma, Managing Director, Le Passage to India (LPTI) and TUI India

are willing to venture into different aspects of tourism that remain unexplored.

We had also started a new SBU; Dakshin Routes which focusses on marketing Kerala. We will like to extend similar units in Orissa and other states in the North-East. We are also keen to extend our presence in neighbouring countries like Nepal, Bhutan, and Myanmar to name a few.

Growth Windows: Today, the revenue contribution from inbound and outbound space is roughly in the proportion of 80:20. Going forward, looking at the dynamics of growth, we will expect them to grow in such a manner that the ratio becomes 50:50. This year, the outbound had shown a little moderation

due to increase in air fares and strong dollar among other factors. However, the overall dynamics predict strong growth in range of 20-25 per cent in times to come in the outbound space. The outbound MICE also offers great potential. In the inbound space, the weak rupee didn’t result in gains for inbound operators due to high air fares.

The inbound sector is also likely to continue to register strong double digit growth.

Challenges: The common challenge to the tourism growth is the poor shape of the aviation sector in India. Affordable air travel options are essential for good health of the tourism sector. We should allow global competition to ensure that the routes don’t get choked.

Contd. on page 25

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AVIATION

High costs strangling aviation in India The International Air Transport Association (IATA) has called for an ‘India Capacity A new airport is needed in Mumbai or economic opporInc.’ approach to resolve India’s aviation crisis and improve competitiveness tunities will be lost. The urgency of the situation needs to be understood and moving the Navi Mumbai airport project forto drive economic and social benefits. Here is a look at what it recommends. ward on a fast track will be required. Aviation should be seen T T B U R E AU

A

viation in India supports 1.7 million jobs, 0.5 per cent of GDP and 90 per cent of international tourist arrivals. But, at present, India’s aviation sector is in a multi-faceted crisis. Before aviation can deliver greater benefits to the domestic economy, this crisis must be resolved with coordinated public policies.

Tony Tyler Director General and CEO IATA

Taxation Aviation can deliver the greatest value to national coffers by facilitating business that expands the tax base. The Ministry of Finance imposes a service tax on air tickets, landing and navigation charges. This contravenes International Civil Aviation Organisation (ICAO) policies. India’s airlines are also taxed on domestic fuel that can add an additional 30 per cent to the fuel bill. On top of that is an excise duty of 8.2 per cent.

As a result, fuel is about 45 per cent of the total operating costs for Indian carriers, compared to a global average of 33 per cent.

Building the future for a successful aviation sector must begin with solving the well-catalogued problems of airlines in India today. The sector is growing, but not profitably. With some relief in oil prices and capacity rationalisation the red ink may recede slightly. But the crisis continues. All the network carriers are struggling financially. Kingfisher’s situation is dire. And Air India is on government-provided lifesupport of financial bailouts and other forms of protection.

High Costs The high costs of doing aviation business in India is squeezing the life blood out of the airline sector. Infrastructure costs and taxes need urgent attention.

Airport Costs India’s airports are becoming increasingly expensive. The recent 346 per cent increase in charges at Delhi Airport will add over $400 million in operating costs for airlines providing connectivity to India through Delhi.

“Despite this great potential, India’s airline industry is struggling financially. Indian airline losses approached $2 billion for the year ended in March 2012, after losing an estimated $3.5 billion over the three previous years.

It’s time for a grand plan to build India’s aviation future and thereby strengthen the Indian economy. To do that, we need an

as a team effort. Common purpose brings a value chain together with governments and regulators. Roughly 80,000 times a day a remarkable choreography of cooperation gets an airplane and its passengers and cargo safely into the air – and back on the ground. That happens in India and around our planet.

“Knowing we are capable of that, we should have every confidence in building a successful future for Indian aviation.

The world is focussed on Indian aviation; from manufacturers, tourism boards, airlines, global businesses to individual travellers, shippers and businessmen,” says Tyler.

‘India Inc.’ approach that addresses the crippling issues of high costs, exorbitant taxes and insufficient infrastructure,” says Tony Tyler, Director General and CEO, IATA. Hoping that all the above mentioned issues are addressed at the earliest possible, Tyler adds, “A bright future is at hand for Indian aviation if we can find common purpose among all stakeholders.

India must not settle for a bronze medal in global aviation. If we can take deliberate action on a handful of critical issues – reducing taxes, ensuring capacity and keeping costs in check – a gold is entirely possible.

And the benefits of such an effort will be shared across the entire economy.”

NTO

AUGUST 2 ND FORTNIGHT ISSUE 2012

TRAVTALK

21

Leveraging the buzz and dynamism of the Asian travel and tourism industry, TravelRave sets the stage for collaboration and enables the industry to better harness the vast growth potential presented in the region.

Explore the changing attitudes of travellers at TravelRave 2012 A

ll eyes are on Asia now as the potential for booming Asian markets has been revealed to all. According

to the World Tourism Organisation (UNWTO) World Tourism Barometer, Asia will see a growth of four to six per cent, year-

on-year in 2012, exceeding the global average of three to four per cent. This brings in the topic of understanding the potential of the

Why Asia and why now?

Taleb Rifai, Secretary-General of UNWTO who is based in Madrid, discussed the potential of Asian markets. Further reiterating this growth is the fact that the growth represents an important opportunity for the airlines in the next five years. Currently, budget airlines like Jetstar, Cebu Pacific Air, Tiger Airways and AirAsia have already harnessed around a quarter of the airline market. In Europe, no-frills airlines take up 35 per cent while that in North America they take up 30 per cent.

Besides, the low cost carriers (LCCs), permeating the market, they open up travel opportunities never before possible for a wider range of travellers. LCCs have also chartered newer territories and gained a firmer foothold in the Asia Pacific region. While most full-service airlines are prized for their high quality service, LCCs have fulfilled the needs of a group of travel enthusiasts whose main agenda is to get from one point to another, at a more economical price. LCCs present themselves as the sensible choice for budget travellers too, creating new demands and providing a platform for the travellers’ changing attitudes.

The region’s LCC sector is poised for more growth with at least five LCCs being introduced by full-service Asian airlines this year. Some examples include Scoot from Singapore Airlines Ltd, Thai Smile by Thai Airways International PLC, Jetstar Japan from Japan Airlines Corp, etc.

About the Singapore Tourism Board The Singapore Tourism Board (STB) is a leading economic development agency in tourism, one of Singapore’s key service sectors. Known for partnership, innovation and excellence, the Board champions tourism and builds it into a key economic driver for Singapore. STB aims to differentiate and market Singapore as a mustvisit destination offering enriching experiences through the ‘YourSingapore’ brand. For more information, please visit www.stb.gov.sg and www.yoursingapore.com.

region: What is it that travel trade professionals, key movers and shakers of the travel industry can do to maximise on this potential.

As part of the TravelRave 2011, the Asia Travel Leaders’ Summit findings, from a survey conducted among 110 industry lead-

ers, demonstrated an overwhelming agreement on the tourism opportunities presented by China, India and Southeast Asia.

On fertile ground LCCs encourage more travel, particularly in Asia, aided by the rise of usage in mobile technology which enables easier, fuss-free, real-time bookings. Then there is also an increase in sharing measures via social platforms which widen the spread and reach of knowledge for destinations. All these create an avenue for understanding risk appetite, travellers’ behaviours and changing consumer trends. Technology certainly plays an important role as a key enabler for travel in Asia. And this is vital for the movement of the travel industry. Across all regions, Asia is poised to achieve the strongest growth in both visitor numbers and crossborder spending. The MasterCard Global Destination Cities Index recorded a growth of 9.5 per cent in visitor numbers in 2012 reaching 77.6 million with cross-border spending increasing to US$ 104.7 billion in 2012, representing an impressive 15.3 per cent from US$ 90.8 billion in 2011.

With so much potential, what can industry players tap on and how can governments or tourism boards in Asia help to maximise these possibilities?

This is where TravelRave opens that window of opportunities as Asia’s mega travel and tourism festival, the only one of its kind that is comprehensive and regional. Packing a punch with its high impact business events, catering to the diverse needs of the travel and tourism industry, TravelRave also seeks to bring tourism professionals and business leaders together to discuss collaborative opportunities that can enable growth. Join the brightest minds in travel to uncover this growth potential, learn from the best practices, share insights through this platform, which showcases innovations and celebrates tourism achievements. Get the updates on the line-ups leading to the event, from www.travelrave.sg or via Twitter @TravelRaveSG.

About TravelRave TravelRave, Asia's mega travel and tourism festival, showcases world-class business events for tourism leaders and professionals from across the travel eco-system to maximise business opportunities and acquire in-depth knowledge from industry insights, best practices and innovations. Leveraging the buzz and dynamism of the Asian travel and tourism industry, TravelRave sets the stage for collaboration and enables the industry to better harness the vast growth potential present in the region.

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NTO

Fly to Australia from ` 58,000 onwards

‘We want to tap the B2B market’

attractive tactical airfares, provide maximum value to consumers who are planning a holiday to Australia. We have had great response to similar initiatives in the past and look forward to a successful campaign.”

Nia Niscaya, Director, International Promotion of MoTCE speaks to about their plans and the roadshows held by Indonesia’s Ministry of Tourism and Creative Economy (MoTCE) in Bengaluru, Ahmedabad and Kolkata.

Tourism Australia has teamed up with Singapore Airlines & SilkAir on a special promotional campaign featuring attractive airfares to Australia starting from INR 58,000 for outbound travel up to October 31, 2012. The promotional fare will be available for travellers from India to 6 Australian cities of Adelaide, Brisbane, Darwin, Melbourne, Perth and Sydney.

Singapore Airlines is a leading carrier for travel to Australia from its network across India. Destination New South Wales and Tourism Victoria are also partnering on this campaign.

Nishant Kashikar, Country Manager, Tourism Australia, said, “Singapore Airlines is one of our preferred airline partners and we have shared a fantastic business association with them over the years. This campaign is an excellent example of a ‘One Voice’ approach of promoting Australia in conjunction with State and Territory Tourism Organisations and airline partners. Collaborative initiatives like this, especially with

P EDEN D OMA B HUTIA

What has changed since Visit Indonesia Tourism Office (VITO) assisted the MoTCE in promotions with participation at key travel marts?

Nishant Kashikar Country Manager Tourism Australia

The all-inclusive fares of Rs. 58,000 onwards are valid for a minimum of two persons travelling together, and are on sale from August 1 – 31, 2012. To avail this offer, travellers must have a return travel time of 3 months. No child/infant discount is permitted and tickets can be booked from all Singapore Airlines & SilkAir online points.

Yes, things have certainly changed. VITO functions as MoTCE’ s eyes and ears in the Indian market. The ministry was recommended the participation of VITO to help us with promotions so that we can use the budget more efficiently.

We believe that the positive double digit growth of Indians coming to Indonesia is also influenced by the active promotion of VITO.

Is unavailability of air connectivity an obstacle for promoting tourism?

According to VITO and the tourism industry, airline connectivity definitely helps in boosting Indian arrivals to

Indonesia. The non-availability of air connection does in fact make Indonesia a destination less competitive in comparison to the others. It becomes an obstacle for Indonesia.

ing people in the world, so ‘the people’ behind the rich culture and nature make Indonesia different from the others.

You have planned roadshows in Bengaluru, Ahmedabad and Kolkata and seem to have left behind markets like Delhi and Mumbai. Is there a strategy to this?

How have you succeeded in promoting Bali and other islands to Indians so far?

We are pleased about the fact that Bali is one of the best islands in the world. In fact, a majority of Indians visit Bali and it is one of the favourite destinations among the crowd, they love to have wedding parties and celebrate their honeymoons here, it is also a popular destination for incentive tours. However, Bali is only one of the 17,505 islands in Indonesia ; we are now promoting more destinations beyond Bali and there are seven special interest destinations. According to the statistics, Indians also love to visit other destina-

Nia Niscaya Director, International Promotion of MoTCE

tions such as Batam, Bintan, Jakarta and Yogyakarta.

What is the unique thing that Indonesia has to offer to tourists and B2B clients?

With the branding – ‘Wonderful Indonesia’ - we would like to communicate to the world that we have wonderful people who live amongst nature and have a wonderful culture of more than 500 ethnicities. We are said to have the highest percentage of smil-

No, we do not want to leave behind the key markets in India. We had held roadshows last time in other key cities and now we want to spread out to other cities. Next time we will definitely visit the other cities which have not been included this time.

How are you planning to tap the B2B market?

We are keen to tap the B2B market by organising roadshows frequently with the help of our industry and VITO, but it depends on the budget that we have at our disposal.

NTO

Visit the unexplored Malaysia Tourism Malaysia launched a new campaign with ten unique itineraries. reports...

We have carefully selected newer destinations that have not yet been fully explored by the Indian tourists.

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ourism Malaysia aims at tapping repeat and experimental travellers through the new itineraries.

The packages start at ` 35,872 per person on twin sharing basis and include four-star hotel accommodation, meals and sightseeing as per itinerary.

Talking about the campaign, Manoharan Periasamy, Director – India, Tourism Malaysia said, “There are many holidaymakers in India who want to do more than just sightseeing in a destination.

Manoharan Periasamy Director – India Tourism Malaysia

These packages are ideal for them as it is aimed for the adventurous and mature travellers who are looking for experiential destinations and activities.

Malaysia Master Programme After the overwhelming success of Malaysia Master Programme conducted three years back, Tourism Malaysia will resume the programme in December 2012.

Talking about the programme, Periasamy said, “We did a generic Malaysian Destination Specialist Programme last time. This time, we want to be more specific to promote unfamiliar destinations in Malaysia. Also, we want to be product specific to ensure that we promote our

islands, adventure spots and homestays. Malaysia is a great destination for weddings too and we want to highlight this aspect as some of our locations like Langkawi will appeal to brides and grooms as it is an island.” He also adds that the Malaysia Master programme will offer a first-hand experience to the agency frontline staff to sell the destination and equip them to provide the latest information on Malaysia and its various attractions to consumers.

We have also consciously launched this campaign in the low season so that couples who do not have kids can take full advantage and enjoy a private holiday.”

The campaign was launched in association with the online travel search site - Ezeego1.com. According to Kiran Nambiar, Outbound Manager, Ezeego1.com; this unique campaign can earn handsome commission for travel agents. He said, “Ezeego1.com has attractive commissions for agents selling these unique packages; the best part being customising the package with exciting ad-ons as per the choice of travellers. Moreover, through our dedicated call centre for travel agents and portal, we are available for our partners 24X7. We are already receiving overwhelming response from our travel partners on these 10 unique itineraries to Malaysia and thus, we will launch our second phase of campaign with Tourism Malaysia next year.”

‘Visit Melbourne NOW’ The Indian outbound travel segment has now caught the fancy of Tourism Victoria.

Gearing up to woo the everincreasing outbound pie from India, Tourism Victoria has unveiled an online campaign called ‘Visit Melbourne NOW!’.

The campaign will showcase Melbourne, its major hallmark events, the authentic nature and wildlife experience and food and wine in India. To promote this campaign, Tourism Victoria will use a dedicated website along with promotional strategies, including online media advertising, public relation, electronic direct mails and social media.

Talking about the new campaign, Celia Ho, Regional Manager, South and South East Asia, Tourism Victoria said, “The objectives of Melbourne NOW are to revitalise and increase the Victorian experiences offered by the industry to the travelling consumers; to strengthen the profile and desirability of the destination with the target markets and to stimulate immediate bookings

Celia Ho

Beena Menon

Regional Manager, South and South East Asia, Tourism Victoria

Representative – India Tourism Victoria

to Melbourne with increased length of stay and visitor spend.”

Along with the launch, Tourism Victoria also conducted a workshop on Melbourne for tour operators in Delhi and NCR to educate tour operators about Melbourne and its specialties and main attractions.

Tourism Victoria has also organised an itinerary contest for tour operators. Tour operators who make the best itineraries for Melbourne will be given a cash reward and Tourism Victoria will engage with them in joint promotional strategies to promote Melbourne.

Speaking about the campaign, Beena Menon, Representative – India, Tourism Victoria said, “This campaign will help us brand Melbourne as a tourist destination among the Indian travel trade. It will increase our itineraries with varied attractions and length of stay.”

Ho revealed, “The Melbourne NOW campaign is being introduced at a time when inbound tourism from India to Australia has been on a consistent rise and is forecast to increase by an average of eight per cent per annum between 2010 and 2020.”

HOTELS

Eyeing the overseas market Contd. from page 16

phy assets are coming in at better value internationally than in India. Secondly, in some of these trophy assets, there is a greater potential of an upside than entering markets that are already inflated.

Thirdly, this is a good time in the business cycle to get in, refurbish if required and be ready for the upside when the market turns for the better in all these locations.”

According to Kulkarni, it is a heartening trend to see that capital is being better utilised and that Indian hospitality companies have the confidence to be able to operate assets internationally. “This will definitely add to the existing value of these organisations,” he added.

After creating the Lalit brand of hotels, an enterprise of Bharat Hotels – The LaLit Suri Hospitality Group – is also investing about £28 million (` 244 crore) in its third overseas project in London.

The company acquired the property for £15 million (around ` 129 crore) in an auction in 2012 and will invest another £12-13 million (around ` 112 crore) to restore the 70-room hotel, which will be positioned as a high-end boutique hotel in the four-star category.

Located in the heart of

London, near the city’s famous Tower Bridge, the group has bought the heritage building — St Olave’s — from Berkeley Homes. St Olave’s was a grammar school earlier. “The company will start the restoration and development work to set up this luxury boutique hotel by early 2013. We plan to make the hotel – The Lalit London – operational by the end of 2014. The group would own and manage the London property and would tweak its product to suit the local tastes and preferences, including an al fresco restaurant, smoking zones, ayurvedic spa, gym and meeting rooms,” Jyotsna Suri, Chairperson & Managing Director, The Lalit Suri Hospitality Group revealed. According to Suri, the company expects to achieve break-even within three years of the London hotel becoming operational, with an average room rate of £158-250 and an expected occupancy of 85 per cent for its rooms.

Sarovar Hotels & Resorts is further foraying into Africa with the signing of The Heron Portico, Nairobi for management. This will be the company’s second hotel in Nairobi after Ole Sereni and the third in Africa, including the New Africa

Hotel in Dar-es-Salaam Tanzania. The Heron Portico is centrally located and close to Nairobi’s business district and tourist attractions. The 108-room hotel offers all modern facilities, including an international cuisine restaurant, conference venue, business centre, a convenience shop and travel desk. Sarovar Hotels will takeover operations at The Heron Portico on September 1, 2012. Commenting on the signing, Anil Madhok, Managing Director, Sarovar Hotels said, “At present, we are focussing on expanding in East Africa as we are well versed with this market and we consider it as a second home for our company.”

Trophy Assets Sahara Group to buy a controlling stake in New York’s landmark iconic property, Plaza Hotel for $570 million (around ` 3,167 crore) The LaLit Suri Hospitality Group is also investing about £28 million (` 244 crore) in its third overseas project in London Sarovar Hotels & Resorts is further foraying into Africa with the signing of The Heron Portico, Nairobi for management

LPTI growth story continues Contd. from page 18

Building future leaders: Travel business is all about passion and motivated manpower. Hence, it’s critical in the travel business to keep the manpower motivated and passionate to scale new highs. All our SBU heads exactly do that to keep the manpower motivated. I encourage all the SBU heads to function independently and with an enterprising spirit.

CSR: Shaping Lives Corporate Social Responsibility is something

Overseas rep in MOT roadshows Indian companies participating in the roadshows organised by the Ministry of Tourism can also authorise their overseas representative to participate on their behalf.

There was some confusion

over the participation of overseas representatives of Indian companies, which was clarified by the Ministry of Tourism at the recently held stakeholders meet on the 3 August 2012.

very close to my heart and I strongly believe that it is very important for us to give back to the society to expedite inclusive growth. In fact, we have created an independent unit - Shaping Lives headed by a General Manager to

collate, coordinate and expand our roles in this sphere. We work with several NGOs and will continue endorsing such initiatives that have potential of shaping lives, especially, of the underprivileged, for betterment.

Delhi’s 1st speciality Jain restaurant Delhi’s first speciality Jain and Marwari Restaurant at The Ashok, New Delhi was inaugurated by Subodh Kant Sahai, Union Minister for Tourism, Government of India.

Also present on the occasion were Dr. Lalit K. Panwar, Vice Chairman and Managing Director, India Tourism Development Corporation (ITDC); Jayaram Banan, Founder, Shraman and Owner, Sagar Ratna.

Shraman is an initiative by Jayaram Banan, founder and owner of Sagar Ratna chain of restaurants.

26 TRAVTALK

STATES

AUGUST 2 ND FORTNIGHT ISSUE 2012

Rameswaram gets Daiwik property The four-star property, Daiwik Hotels Rameswaram, marks the first organised hospitality venture in the Southern region.

Debashis Ghosal Managing Director and CEO Daiwik Hotels

Commenting on the announcement, Debashis Ghosal, Managing Director and CEO, Daiwik Hotels said, “We chose to enter pilgrimage hospitality because of the huge demand and supply gap in the country for quality branded products which are standardised in the mid-segment market. Our attempt is to offer pilgrim focussed, fullservice, elegant and efficiently designed, value-formoney four-star hotels in an unorganised and largely underprovided market.

We have launched ‘In the Footsteps of Lord Rama’, a unique planned tour package that will offer our guests a holistic pilgrimage experience by retracing and undertaking the journey of Lord Rama through 13 famous pilgrim locations across Ramanathapuram district.”

Focussing on the huge traffic in Indian pilgrim hotspots, Daiwik Hotels aims at creating a niche segment in the pilgrimage hospitality sector in India with its brand presence in four major pilgrim locations other than Rameswaram, namely Varanasi (Uttar Pradesh), Dwarka (Gujarat), Tirupati (Andhra Pradesh) and Katra (Jammu & Kashmir).

Land of dragons welcomes India With better air connectivity from 4 different gateways in India, the introduction of services from Mumbai - Paro and joint marketing initiatives with tour operators, Bhutan is trying its best to woo Indians.

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n a bid to increase the Indian arrival figures by 35-40 per cent in 2012, the Tourism Council of Bhutan

joining hands with regional tour operators for joint marketing initiatives. It is also in process of appointing a PR/Representation company in India as a direct touch point of information on Bhutan for travel agents and travellers.

According to the official figures revealed by Damcho Rinzin, Media Spokesperson, TCB; Bhutan received 1,08,333 interna-

tional arrivals off which 53,223 tourists were from regional market (India + Maldives + Bangladesh).

However, India tops the list with 90-92 per cent of the total arrivals from regional markets.

Rinzin said, “We are putting in our best efforts to make Bhutan a ‘convenient’ destination for Indians.

‘Convenient’ Connections Damcho Rinzin Media Spokesperson, TCB

(TCB) in association with Drukair and Taj Tashi organised a series of roadshows in New Delhi, Mumbai, Pune and Ahmedabad. Along with spreading the destination awareness among travel trade, TCB is also looking at

Drukair is in process of signing an interline agreement with Air India to enhance the connectivity from India to Bhutan. At present, Drukair connects Delhi, Kolkata, Siliguri and Guwahati with twice weekly flights to Paro with A319 aircraft (114 seats). Yeshey Wangchuk, Senior Officer – Marketing, Drukair said, “We also operates seasonal flights (December, January, February) from Bhodgaya and will soon introduce services from Mumbai to Paro (twice weekly – Tuesday and Thursday). Connections to Chennai and Bengaluru are in process to tap the South Indian market.”

With its close proximity, no visa requirement and direct flights from four different gateways from India, Bhutan can be sold as a unique destination for high-end travellers which can be combined with South East destinations like Malaysia and Thailand.

We currently have six proposals of companies interested in handling our PR/Representation in India. We are planning to appoint an agency by next month, that will strengthen our presence in this country.”

ANALYSIS

Indians: Hungry for more According to a recent survey, the Indian traveller is changing from ‘conservative’, to ‘experimental’. This change is now giving birth to Culinary Tourism in the country.

D E N C Y M AT H E W

A

demand for tasting local cuisine is definitely on the rise says the travel trade fraternity as compared to earlier times where Indians would restrict themselves to Indian meals while travelling

experience something new in a destination opt for such tours.

They no longer want to just visit a country for sightseeing, but also want to experience the culture of a country and food is an internal part of any country’s culture. Also, Indians by nature are curious and passion-

Madhav Pai

G B Srithar

Chief Operating Officer - Leisure Travel (Outbound), Thomas Cook

Area Director, South Asia Marketing, Singapore Tourism Board

Currently 10-15% of our business comes from culinary or wine tours abroad. Most attribute this change to the exposure that Indians have had in the last decade through the medium of television shows like MasterChef and international dining options available as multi-cuisine restaurants have mushroomed across the country. This has given rise to Culinary Tourism which includes workshops, food trails and fine dining options.

Thomas Cook conducts several group escorted tours that cover wine, cheese and chocolatier experiences in France, Switzerland, Australia and South Africa.

“We have seen an increasing demand for holidays planned around events such as the Singapore Food Festival or the Oktoberfest. Currently 10-15% of our business comes from culinary or wine tours,” adds Madhav Pai, Chief Operating Officer Leisure Travel (Outbound), Thomas Cook.

Encouraged with this new demand among Indian travellers, many tourism boards too have started promoting culinary tours in their respective countries. The recently launched marketing campaign by Singapore Tourism Board considers culinary tours as an important pillar for promotion in India. “People who want to

Indians by nature are curious and passionate about food ate about food,” says G B Srithar, Area Director, South Asia Marketing, Singapore Tourism Board.

the local fare to the discerning Indian traveller. In 2008, MGTO held a food festival in India to promote the Portuguese cuisine. Other tourism boards, such as Turkey and Czech Republic, too have held food festivals in the Indian market in the recent past.”

However, the industry also feels that Indians still tread on a safe path.

Experimenting becomes difficult if you are a vegetarian, says Sheikh. “Sometimes lack of knowledge about the cuisine or dish also does not allow people to experiment. Even today, chefs travel with large wedding groups or incentive group travellers. But then this could also be because the group could have certain dietary restrictions, for eg: Jain food is still not available in many countries,” she says.

Rajiv Duggal, former MD, Kuoni India, echoes the same sentiment, “Many Indian travellers still shy away from experimenting with local cuisines while travelling abroad. To cater to this specific requirement, we ensure that a local chef travel with the group to make food available for the travellers as per their unique requirements and culinary preferences.”

Anjum Sheikh

Rajiv Duggal

General Manager Macau Government Tourist Office

Former Managing Director Kuoni India

Sometimes lack of knowledge about the cuisine doesn’t allow people to experiment Anjum Sheikh, General Manager, Macau Government Tourist Office (MGTO), says, “With the rise in outbound tourism, Culinary Tourism is surely on the rise in India. To promote the country and its cuisine many tourism boards have invited chefs to India to give firsthand experience of

Many Indians shy away from experimenting with local cuisines while travelling abroad Even though Indians want to indulge in a global gourmet while holidaying, there is still a long way to go before ‘Food and Wine’ becomes the core ingredient of a holiday planning and the Indians can be truly labelled an ‘experimental traveller’.

ANALYSIS

India ready for Sufi Tourism There has constantly been a movement of people seeking Spiritual Tourism in India. finds out more about the growth of Sufi Tourism in the country.

D E N C Y M AT H E W

S

ufi Tourism is part of a small cog in the large wheel of Spiritual Tourism in India. Recently, the UP government announced that it will develop a Sufi Tourism circuit in the state. This circuit will cover important mazars in the

tion about the Sufi shrines and artists located across the country. Also, a lot of literature regarding Sufism in India is missing.

“Kashmir has some wonderful Sufi shrines but many of them have been ignored and people are not

Subodh Kant Sahai

Subhash Verma

Union Minister for Tourism India

President ADTOI

The Ministry of Tourism, is working on a plan to create religious circuits

Sufi Tourism is in its nascent stages and is developing slowly in India

state besides working to link prominent Muslim mausoleums in neighbouring states with UP. Earlier, Bihar State Tourism Development Corporation (BSTDC) had announced plans to set up Sufi Tourism circuit in Bihar too.

aware of them. People need to be educated more about Sufism and need to understand that it is not confined

“The Ministry of Tourism is working on a plan to create religious circuits. All these circuits have potential to not only attract the domestic tourists, but also mobilise sizeable number of Indian expatriates and foreign tourists,” says Subodh Kant Sahai, Union Minister for Tourism, India.

“With greater tourist influx and robust feedback channels, many niche categories are emerging and being encouraged by the local stakeholders. It will be interesting to see how these pick up in the near future. As an OTA, we are always on the look-out for emerging areas of opportunity and keen to respond to market demands,” says Mohit Gupta, Chief Business Officer – Holidays, MakeMyTrip.

Most people from the travel trade fraternity agree that nothing much has been done in the Sufi Tourism domain over the years. Many tour operators and even government organisations do not even have adequate informa-

Malaysia and can be turned into a million dollar industry.” says Shanawaz Ahmad, Research Officer, SKICC. “It’s a relatively new domain and Sufi Tourism is in its nascent stages and is developing slowly in India. 20 per cent of the travellers visiting India come for Spiritual Tourism. This kind of tourism itself needs to be promoted more aggressively for Sufi tourism to do well,” says Subhash Verma, President, ADTOI. However, promotion of Sufism as a commercial property goes against the concept of Sufism. Hence, the approach of promoting it has to be very sensitive and not linked to trade.

According to Shanawaz, the experience that one receives through Sufi tourism needs to be the selling point.

He adds, “Sufi Tourism does have the potential to make it big in India and it is definitely an employment generating industry. However, development of infrastructure around Sufi shrines and adequate promotion within the country and outside are also essential.”

“The govt. should organise Sufi festivals and invite Sufi singers to India.

Roadshows must also be conducted for tour operators so

Shanawaz Ahmad

Mohit Gupta

Research Officer SKICC

Chief Business Officer – Holidays MakeMyTrip

People need to understand Sufism and know that it is not confined to a religion to a religion. What Bihar and UP government has done for Sufism needs to be replicated in other states too like Jammu & Kashmir and Punjab where there is a huge potential. If promoted well, Sufi tourism can attract a lot of tourists from Middle East and some Asian countries like

It will be interesting to see how niche segments pick up in the future that they understand the market better,” adds Verma.

With the ongoing development of Sufi tourism circuits in UP and Bihar, what the travel trade industry can hope is that the same will be replicated in other states too leading to the advent of a new market for tourism in India.

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Making a world-class airport in Bodhgaya Sunil Kumar ‘Pintu’, Tourism Minister, Bihar, has invited airlines to extend their help in making Bodhgaya a world-class airport. Bihar Tourism will also release a 360 0 virtual tour of the State.

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he Tourism Minister has urged the airline stakeholders to come to Bihar.

“The Bihar Government will offer all kinds of assistance to airline operators who will come forward to connect Bodhgaya with other metro cities.

Sunil Kumar ‘Pintu’ Tourism Minister Bihar

The State Government would consider exemption on Service Tax on ATF and would pursue exemptions on parking and landing charges with the central departments on this issue,” according to Kumar.

While law and order was the priority for the first five years of the present government, tourism is the main concern for the Nitish Kumar government in Bihar in its second innings. “The Chief Minister himself has travelled

D K Srivastav Director - Tourism Bihar

to Bhutan and China to see the progress they have made in the tourism sector,” Kumar revealed.

Seeing the penetration of internet and technology in today’s era, the Bihar Tourism Ministry has created a 3600 Virtual Tour of Bihar. This was revealed by Kumar while he was deliberating on issues of tourism in Bihar. At the interactive session on ‘Introducing

Air Connectivity to Bodh Gaya’ organised by the PHD Chamber of Commerce and Industry (PHDCCI), Kumar confirmed that the same would be released by the end of August. In a bid to promote the state in the domestic and international market, Bihar

Tourism will also unveil an extensive advertising campaign on electronic media, including television. Speaking about the TV commercial that Bihar Tourism is planning to launch, D K Srivastav, Director - Tourism, Bihar said,

“The campaign will be based on the theme ‘Chalo Chale Bihar’ with focus on historical monuments of the state

such as Pawapuri, Vaishali, Rajgir and Nalanda.”

Every year, there are five million FTAs in India. Out of this, around 1 million come to Bihar which means that Bihar contributes 20 per cent to FTAs in India.

Rising Numbers The state received just 94,000 foreign visitors in Bihar in 2006 The number has now risen to 9.7 lakh foreign visitors in 2011 Bihar contributes to 20 % of India’s foreign tourist arrivals

32 TRAVTALK

GUEST COLUMN

AUGUST 2 ND FORTNIGHT ISSUE 2012

TECHTALK

India’s travel industry is inspiring India’s travel demand is solid largely due to its mixed nature. As its room supply expands to match its diverse demand, the opportunities to fulfill and create more demand will expand as well.

J

une electronic bookings fell short of prior year by -14.2 per cent; not inspiring news on its own. Add some perspective, consider all angles and understand the dynamics of India’s demand and supply, however, India’s travel industry is inspiring indeed.

Perspective: All is not good with the global economy.

Europe is still knee-deep in sovereign debt issues, the

United States’ economy is lethargic and even more energetic economies like China and India have slowed.

Equally important to note when comparing results against prior year is that India made astounding progress during 2010 and 2011. Registering high, double-digit, year-over-year booking growth well above average, created levels that are tough to exceed during a lackluster global economy.

India, Regional, Global – % change over prior year GDS & ADS channels combined Net Reservation

Net ADR

Net Revenue

June ‘12 vs ‘11 June YTD ‘12 vs ‘11

-14.2% -6.8%

-4.7% -6.3%

-13.6% -11.0%

June‘12 vs ‘11 Asia Pacific June YTD ‘12 vs ‘11

-7.6% -2.1%

2.1% 0.6%

-3.0% 3.1%

June ‘12 vs ‘11 June YTD ‘12 vs ‘11

-9.1% -4.0%

2.4% 4.6%

-6.8% -0.3%

India

Global

Net Avg Length of Stay (nights) Net Avg Booking Lead Time (days)

June-12 June-11 % Chg June-12 June-11

% Chg

India

3.46

3.28

5.4%

20.07

19.22

4.4%

Asia Pacific

2.85

2.77

2.7%

20.30

19.24

5.6%

Global

2.14

2.14

0.2%

17.13

16.63

3.06

Much uncertainty remains, and varying degrees of uncertainty instigate uneven travel patterns.

Supplying the Demand: India has a strong and growing base of domestic and international stays, stemming from a high percentage of business and leisure travel.

It is this mix that has helped keep rates relatively firm overall. June’s ADR (average daily rate) came within -4.7% of prior year, the narrowest gap of the last six months.

A varied demand base requires an equally varied room supply and that’s exactly what’s evolving. The majority

of Business Class hotels fall in the upper midscale to luxury range. Leisure hotels, on the other hand, serve a broader scope of interest that extend from luxury through to Economy Class. Much of India’s supply has been concentrated in the luxury segment, capturing high-end business and leisure travel.

Hotel groups in the mid-market range are entering the scene, aware of the relative lack of lower-priced options and eager to fulfill that need.

This tremendously expands the options travel intermediaries can offer their clientele and expands the type of clientele that they can attract.

Global Prospects: Areas in Asia Pacific are continuing to do well, such as Singapore, Indonesia, Philippines, Thailand and South Korea.

Japan is a key market that has made great strides since the staggering chaos faced last year, helping to improve the region’s results. Those and other active outbound markets like Brazil and Russia should be carefully researched for inbound potential.

Other Positive Attributes: India has a healthy average length of stay that’s growing at a healthy pace. This is also the product of having a varied travel mix. Longer stays are driven by guests travelling further distances, those able to spend more and/or packages that make longer stays more affordable.

Customise to Optimise: India’s travel base is building

Julie Parodi Sr. Director, Strategic Planning

and now is the time to ensure you’re building your customer base and properly catering to it. Understand what is most important to your customers and be connected to the type of suppliers that enable you to provide precisely the type of value each is seeking.

(The writer is Julie Parodi Sr. Director, Strategic Planning Pegasus Solutions

The above analysis is based on the over five billion monthly transactions processed by Pegasus Solutions.)

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Lama Tours’ first-of-its-kind initiative Lama Tours took over 100 Indian B2B partners from northern India to Dubai on a familiarisation trip in August to brainstorm and look into the various possibilities to attract Indian tourists to Dubai during Ramadan.

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amadan is a non-peak season and the primary objective of the fam trip is to highlight the various attractive vacation options available at the most competitive prices. IndiGo and Hyatt Hotels have partnered this initiative with Lama Tours.

Kulwant Singh Managing Director Lama Tours

“It’s nothing more than a misconception that Dubai shuts down during the holy month of Ramadan, which limits tourist arrivals.

Practically speaking,

It’s the best time to visit Dubai, as enviable incentives and discounts are available on shopping, hotels and travel attractions to relish the Dubai experience,”

Guldeep Singh Sahni President, OTOAI

said Kulwant Singh, Managing Director, Lama Tours. The tour packages during Ramadan

Maiden Flight Lufthansa’s Boeing 747-8 Intercontinental has touched down in India.

Delhi is the second destination worldwide to receive the B747-8. This new aircraft replaces the B747-400 on Lufthansa’s daily direct Delhi-Frankfurt service.

are a remunerative option for the travel agents.

“With the objective of spurring tourist inflow from India, which is a very strategic market for us, we are taking the first pilot project ‘Lama flight to Dubai’. It’s a

fam flight being worked out for 100 of our strategic B2B partners based out of North India. The agents will get a first-hand experience of various spectacular possibilities in Dubai during Ramadan and will also help

us come out with the best possible itineraries,” he added.

getting a Dubai Visa was a herculean task, which is not the case today.

Further, addressing the query on the feasibility of such a project, Guldeep Singh Sahni, President, OTOAI, responded, “Not long ago,

The fam is a step in the right direction

I am sure that there is a lot that can be offered to the Indian tourists even during Ramadan, which tour operators will find remunerative as well.” The initiative is a first-of-its-kind and will push outbound to Dubai.

ANALYSIS

Airlines making extra bucks Traditional airlines are taking a cue from their no-frills rivals and looking to charge for services that do not need hefty infrastructure investment.

Manish Dureja

Jay Sorensen

Tony Fernandes

Rakesh Raicar

Vice President - Marketing Jet Airways

President IdeaWorks Company

CEO AirAsia

Regional Sales & Marketing Manager – South Asia Cathay Pacific Airways

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ising costs, mounting losses and low sales have forced cash-strapped Indian carriers to fish out for alternate revenue models to boost their earnings without harming their reputation or alien-

Ancillary Revenue Estimates by World Region World Region North America Africa/Middle East Latin America/Carribbean Asia/Pacific Europe

2011 Ancillary Revenue $15 billion $1.4 billion $0.8 billion $6.3 billion $9 billion

2010 Ancillary Revenue $8.7 billion $0.9 billion $0.6 billion $4.8 billion $7.6 billion

Increase for 2011 72% 52% 47% 30% 18.7%

Source: Ancillary revenue statistics applied by IdeaWorks to individual airline results

Building revenue through innovation Once largely limited to low fare airlines, ancillary revenue is now a priority for many airlines worldwide, including India. According to the annual Amadeus Review of Ancillary Revenue Results released in July 2012, a total of 50 airlines worldwide reported US$ 22.6 billion earnings from ancillary revenue in 2011. It also revealed that ancillary revenues grew by 66 per cent in two years from 2009 (US$ 13.47).

See Box No. 1 on page 51

Unbundling works Ancillary revenue is a hot topic for the airline industry, as it seeks to cope with pressures on top line revenues from ticket sales amid intense competition.

The ancillary revenue (merchandising) revolution centres on airlines unbundling their service offering and charging passengers for items they wish to purchase. Baggage fees are one of the fast growing items in ancillary portfolios that also include seat allocation, in-flight services and products etc.

See Box No. 2 on page 51

India in focus However, when it comes to the Indian market, airlines are a bit skeptical about implementing ancillary revenue services.

Considering the current scenario, where there is a very thin line between LCC and legacy carriers, increasing UDF (UserDevelopment Fee), price sensitive passenger, etc; it’s difficult for airlines to introduce additional services. Sorensen said, “By the way, every market is price sensitive. I know there has been commentary about the uniqueness of Indian consumers demanding food and drinks be included in airfare.

I reason that given the choice between a low fare and a high fare with a poor quality (but free of charge) airline meal, the Indian consumer would choose the lower fare. It’s the service quality which matters and not the all-inclusive fares.”

See Box No. 3 on page 51

ating customers. While few airlines ignore this phenomenon, there are others who are relying on it. Now traditional airlines are taking a cue from their no-frills rivals and looking to charge for services that do not need hefty infrastructure investment.

It was not long back when Jet Airways started wrapping brands on their aircraft to earn extra revenue. Indian carriers Contd. on page 51

Revolution with global traction Given the pressures and difficulties of rising fares in tough times, it’s unlikely that the airline will forgo their ancillary revenues anytime sooner. The rate at which these revenues are increasing, it is likely to slow down as many airlines have already snagged the bag fees, change fees, f&b, etc., but that will simply push some to get more, shall we say, creative!

Finding ancillary revenue bliss -

A la carte pricing should support the brand, not change it Link fees to your business model, not to increase cost Seek wisdom from customers and front line employees Create a new product, not a new fee Anticipate change – don’t be surprised when it arrives through alliances and partnerships Ancillary revenue is not an ad hoc project, it’s a meaningful cash flow

Where the world is heading What you should consider in 2012 - Charging fees for checked baggage system-wide - Offering premium seat choices for a price - Providing early boarding benefits What you should consider for future - Linking your frequent flyer program to ancillary revenue activities - Creating annual products for a la carte services - Selling upgraded meal options

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Among BRIC nations

Indians lagging behind in outbound travel According to a special analysis of the World Travel Monitor, commissioned by ITB Berlin, Russia leads the way in outbound travel, among BRIC nations, followed by China, while Brazil and India lag far behind.

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hen it comes to travelling abroad and their economic situation, BRIC countries display no similarities. Neither China and Brazil, the economic powerhouses of the BRIC countries, nor China and India, the most populous in this group, generate the largest volume of trips abroad – instead, it is Russia that leads the ranking in this category.

According to a special analysis of the World Travel Monitor commissioned by ITB Berlin, there is no correlation between trips abroad, economic prosperity and population density. Russia is the

The tourism figures are promising for the tourism industries of the host countries and destinations Dr. Martin Buck Director Competence Centre Travel & Logistics Messe Berlin most sparsely populated of these countries and its economy ranks third, but in terms of outbound travel, the Russians come first. They undertake 1.3 times as many trips as the Chinese, 3.4 times as many as Indians, and 4.6 times as many trips as Brazilians.

In terms of growth in outbound trips, Russia also ranks first. Five years ago, 15.9 million Russians and 13 million Chinese went on trips abroad. According to the latest surveys, 23.8 million Russians and 18.3 million Chinese travel abroad.

As far as outbound travel from India and Brazil is concerned, these BRIC countries lag behind relatively. At 7 million trips abroad, India’s total exceeds that of Brazil (5.2 million trips). However, development in these countries over the last five years show India

Thought Behind The theme ensures that the industry continues to move forward and join hands to sail through the difficult times together

growing by 30% (previously the country registered 5.4 million trips abroad in 2006) and Brazil expanding by 85% (in 2006, Brazilians undertook

only 2.8 million trips abroad).

By comparison, Brazil’s figures may indeed be lower and its economic growth less than India’s, but the Brazilian mar-

ket is more dynamic. Dr. Martin Buck, Director, Competence Centre Travel & Logistics, Messe Berlin: “The tourism figures for the BRIC

countries, in particular for Russia, are very promising for the tourism industries of the host countries and destinations. They show that the BRIC

countries are now catching up, not only economically but as well in terms of outbound trips. This is a process that will no doubt continue.”

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Direct air connectivity from Goa to Israel Israel Tourism recently opened its office in India to increase destination awareness and educate the travel trade.

A direct flight between India and Israel from Goa is also in the pipeline.

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t present, only Mumbai has direct air connectivity with Tel Aviv (three times a week via Israel Airlines).

Under the recent bilateral agreement signed between India and Israel, both the countries have agreed upon the need to strengthen connectivity by introducing new direct flights that can accommodate travellers seven days a week.

According to Albert Benabou, Director, NITO India, this will be the first time in India wherein a government body and private players will be working together to introduce the

India is the biggest tourism source market for Israel from Asia Albert Benabou Director, National Israel Tourism Office, India

concept of ‘consolidated flights’ in India.

Under this concept, NITO India, in association with selective tour operators from India, will have scheduled flight operations from Goa to Tel Aviv/Jerusalem (via Israel Airlines). The partner tour operators will be allocated certain number of seats which they will fill in with the help of their sub-agents network in India. To encourage and make this concept suc-

US$ 6,60,000 for India Israel would invest about US$ 6,60,000 to tackle the issues related to promoting tourism between the two countries, including improving air-traffic, information exchange, Rural Tourism (in Goa), vocational training (Indian-speaking tour guides), special dietary requirements of Indians, removing visa obstacles, etc. NITO is also looking at converting the threetimes-a-week service on Mumbai-Tel Aviv route to a daily service along with starting operations to New Delhi, Kolkata and Goa.

cessful, NITO India will be offering cheaper air fares.

Thus, the total tour package cost will be reduced and sold at a very competitive price.

Divulging further details about the plans for the Indian market, Benabou said, “India

is the biggest tourism source market for Israel from Asia and we will be investing highly on the travel trade education and establishing destination brand in this market. To start with, we have opened our office in Mumbai for trade to have a

one-point access for all information about Israel. However, we still feel connectivity is a big constraint to tap this market. Thus, in association with our trade partners, we are in process of introducing direct flights from Goa to either Tel

Aviv or Jerusalem by October this year. Along with working on easing visa norms, we are also going to introduce educational trips for front-line staff.

We will introduce the destination to Indians and look forward for an exchange in

tourism traffic resulting in ‘People to People’ tourism concept.” Close to 40,000 Indians visited Israel in 2011 and NITO aims at increasing the numbers by 30 per cent this year and reach 1,00,000 within three years.

HOTELS

Bengaluru gets Sarovar’s suite hotel Sarovar Hotels has opened another all-suite hotel in India, their first in South India called Davanam Sarovar Portico Suites. ple who wish to stay for long in Bengaluru. Also, the property is part of a mall, so visitors can have easy access to the mall for shopping.”

D E N C Y M AT H E W

L

ocated at Koramangala, Bengaluru, the hotel began its operations on July 1, 2012 and is within 10 km south of the business hub in Bengaluru.

At the launch, Anil Madhok, Managing Director, Sarovar Hotels said,

“The upbeat business environment of Bengaluru will complement our product and its business facilities.

With three successfully operational properties in the city, we are confident about

Renu Verghese

Anil Madhok

General Manager Davanam Sarovar Portico Suites

Managing Director Sarovar Hotels

the success of Davanam Sarovar Portico Suites.”

Renu Verghese, General Manager, Davanam Sarovar Portico Suites says, “The USP of our property is undoubted-

ly the size of our rooms.

While other hotels will give you a 250 sq ft room, our rooms are almost triple the size making your stay very comfortable and luxurious. It is also an ideal hotel for peo-

The hotel has announced an introductory stay offer of ` 4,990 onwards till September 30, 2012.

The hotel will also offer tour agents and operators 15% commission on per room per night basis.

“We also plan to conduct fam trips with travel agents so that they can experience the property better,” adds Verghese.

Taj Group honours excellence Taj Group organised the second Taj Travel Awards to applaud and celebrate excellence of its travel trade partners at Taj Palace, New Delhi. The Award ceremony, initiated in 2010, was aimed at recognising Destination Management Consultants for their significant contribution to the Taj Group and their support to promote Taj Hotels in India. The Taj Travel Awards were instituted two years ago and is the only award ceremony initiated by a hotel group to acknowledge and felicitate the trade officials for their support and contribution.

40 TRAVTALK

STATISTICS

AUGUST 2 ND FORTNIGHT ISSUE 2012

India’s FEE goes up by 19.6% Contd. from page 4

Top 10 Source Countries for FTAs in India in 2011

Percentage share of Top 10 Countries for FTAs in India in 2011

S. No. Source Country

USA

Others

15.97%

39.02%

UK

12.57%

Bangladesh Australia

2.96%

Japan

Malaysia

3.01%

3.46%

France

3.76%

Canada Germany

4.05%

Sri Lanka

4.85%

4.02%

6.34%

1 2 3 4 5 6 7 8 9 10

FTAs Percentage (in million) (%) (P) Share

USA UK Bangladesh Sri Lanka Canada Germany France Malaysia Japan Australia

1.004 0.791 0.399 0.305 0.255 0.253 0.237 0.218 0.189 0.186

15.97 12.57 6.34 4.85 4.05 4.02 3.76 3.46 3.01 2.96

Total of top 10 countries

3.837

60.98

Others All Countries

2.453 6.290

39.02 100.00

(P) Provisional Source: Bureau of Immigration, Govt of India for 1997-2010

Facts and figures of FTAs •

FTAs in December 2011 were 7.15 lakh as compared to FTAs of 6.80 lakh during December 2010 and 6.16 lakh in December 2009

•

There has been a growth of 5.2 per cent in December 2011 over December 2010 as compared to a growth of 10.4 per cent registered in December 2010 over December 2009

•

The growth rate of 5.2 per cent in December 2011 is higher than 4.7 per cent growth rate observed in November 2011

Facts and figures of Foreign Exchange Earnings (FEE) •

FEE from tourism in Rupee terms during 2011 were ` 77,591 crore with a growth of 19.6 per cent, as compared to the FEE of ` 64,889 crore with a growth of 18.1 per cent during the year 2010 over 2009.

•

The growth rate in FEE in US$ terms in December 2011 over December 2010 was 8.3 per cent, as compared to the growth of 3.2 per cent in December 2010 over December 2009

•

FEE from tourism in terms of US$ during 2011 were $16,564 million with a growth of 16.7 per cent, as compared to $14,193 million with a growth of 24.6 per cent during the year 2010 over 2009

Monthwise Foreign Exchange Earnings (FEE) (in US$ Million) from Tourism in India, 2010-2012 Month January February March April May June July August September October November December Total Sub total (Jan-June)

FEE from Tourism in India (in US$ million) 2010# 2011# 2012# 1215 1434 1209 1013 951 1020 1163 992 1015 1175 1448 1558 14193 6842

1273 1684 1227 1290 1124 1213 1603 1264 1208 1424 1566 1688 16564 7811

1681 1729 1559 1305 1023 1158 – – – – – – – 8455

# Advance Estimates, @ Growth rate over January-June 2011 and 2010 Source: Ministry of Tourism, Govt. of India, for 2011 and 2012

Percentage % Change 2011/2010 2012/2011 4.8 32.1 17.4 2.7 1.5 27.1 27.3 1.2 18.2 -9.0 18.9 -4.5 37.8 – 27.4 – 19.0 – 21.2 – 8.1 – 8.3 – 16.7 – 14.2@ 8.2@

37.62 lakh FTAs from Jan-July 2012 • FTAs during the period January-July 2012 were 37.62 lakh with a growth of 6.6% as compared to the FTAs of 35.29 lakh with a growth of 10.7% during January-July 2011 over the corresponding period of 2010.

• FEE from tourism in, dollar terms, during January-July 2012 were US$ 9967 million with a growth of 5.9%, as compared to US$ 9414 million with a growth of 17.6% during January-July 2011 over the corresponding period of 2010.

Monthwise FEE (in US$ Million) from Tourism in India, 2010-2012

42 TRAVTALK

AUGUST 2 ND FORTNIGHT ISSUE 2012

DESTINATION

IATO’s pre-convention monthly meet Ahead of the XXVIII IATO Annual Convention 2012, IATO conducted its monthly meet on August 1 at The Park Hotel in New Delhi. Subhash Goyal, President, IATO, apprised all the members of the present response and encouraged more members to register for the Convention.

44 TRAVTALK

ANALYSIS

AUGUST 2 ND FORTNIGHT ISSUE 2012

Tigers & Tourism W

e highly appreciate all possible efforts to guarantee the survival of the Indian Tiger. Hence, we can only applaud the firm order of India’s Supreme Court to control the movements into the tiger reserves of India. In fact,

Hans-Joerg Hussong Managing Director COMTOUR and Chairman Discover India Society

over the years, Indian authorities have neglected the importance of strict measures to save the habitat of India’s big cats. Of course, touristic activities always were restricted to the buffer zones of the national parks whereas the inner core areas have always been no-go-zones for any commercial purpose such as tourism. But, in most of the parks, the borderlines between buffer zones and core areas were not clearly declared. We only hope that the respective states will come out with clear decisions about restricted zones in tiger habitats.

Otherwise, if the Supreme Court bans all touristic activities from the national parks, this, for sure, will be the death sentence for this magnificent creature, the tiger.

Two main reasons responsible for the bad situation of the Tigers are:

• The steady growing pressure by encroachment of farm land and human settlements around and in the tiger habitat. This problem is even heightened by uncontrolled building of new hotels around tiger reserves. Of course, whoever books an accommodation like this, has the main object for this, to go on safari. As long as the authorities allow the building of any number of accommodation near national parks, the tourists are not to be blamed for the desire to enjoy wildlife.

• Poaching, since long, is the biggest danger to wildlife, especially to tigers, leopards, rhinos and so on. A total ban of

tourists from the reserves will definitely increase the problem drastically. The movement of tourists definitely disturbs the activities of poachers in a big way. If locals, who, so far, have lived on activities from and around tourism, lose this source of income, they might get attracted to poaching or at least in supporting the poachers.

No method to save the tiger and other wildlife from extinction will be successful in the long run if it is not accepted or carried forward by the local communities.

Hence the best protection is to make clear that income generated by tourists, who want to see tigers in the wild, in the long run guarantees income to many people whereas the poaching of a tiger only brings little money because only international gangs are making the real profit.

In connection with the order of the Supreme Court, it is also discussed to relocate the tribal villages from the national parks. This is absolutely nonsense.

Tribals have lived in the forest for ages without harming the nature.

Problems only rose with the invasion of the so-called civilisation.

The solutions: 1) Limit the number of hotels in the vicinity of national parks. Hotels, which have been built without authorisation, must be closed. No additional hotel should be allowed.

2) The number of tourists has to be limited. The hike of park fees can be increased in order to prevent tourists who are less interested in nature to save the parks from the misuse as party and picnic destinations. So only serious wildlife lovers will be interested in visiting the parks.

3) Tribals should be engaged as rangers and naturalists to provide them with adequate income and to use their knowledge of nature in educating the tourists.

I am sure that serious tour operators are very happy to co-operate with all serious authorities in order to support any sensitive idea to save the tiger.

(The views have been expressed by columnist Hans-Joerg Hussong Managing Director COMTOUR and Chairman Discover India Society who is based in Germany.)

No tourists, no tourism The Supreme Court has finally stepped-in to save the tiger, but, at the cost of tourism. The recent interim judgment has left the industry in frenzy.

D E V I KA J E E T

O

n July 24, 2012, the Supreme Court of India put a temporary halt on all tourism-related activities in the core areas of India’s national parks due to concerns about the interpretation of conservation laws.

The Supreme Court will be hearing submissions from all affected parties and will reach a final judgment in the matter on August 22, 2012.

In the meanwhile, this decision has adversely affected our tourism industry and is creating turmoil with major losses in business.

“This is an interim order but is already having an immediate effect on businesses in this sector, particularly in those reserves that are open all-year around.

Cancellations of bookings, both domestic and international, have already been noticed and park fee revenues will also be down. Such actions are very detrimental to all and create a climate of fear, concern and anxiety for all concerned,” says Julian Matthews, Chairman, Travel Operators for Tigers Wildlife Association (TOFT).

The interim order sent shock ripples in the industry.

Tourism has been working as an ombudsman for the national parks and caring for its wildlife. Highlighting this and other benefits of tourism in core areas, Tejbir Singh Anand, President, Adventure Tour Operators Association of India (ATOAI) adds, “Banning tourism in core areas of tiger habitats overlook several critical considerations. It will harm rather than help the cause of Tiger Conservation. It directly affects the economy of the local jeep drivers and guides whose sole survivor is the daily trips they make to the park. Tourism has never led to poaching but has actually been the watchdog of the wildlife. Banning Tiger Tourism in the core areas will provide poachers a field day thus resulting in increased poaching with no eyes to watch.”

The Wildlife Tourism sector has been galvanised into action. As a result of this judgement, the industry is coming to terms with its effect and taking necessary steps to change its ways for the better.

Julian Matthews

Tejbir Singh Anand

Chairman TOFT

President ATOAI

Cancellations of bookings, domestic and international, have already been noticed

Tourism has never led to poaching but has actually been the watchdog of wildlife

Whilst many different views have emerged on addressing this issue and who to blame, Mandip Singh Soin, President, Ecotourism Society of India (ESOI), reiterates that finding a middle ground is most important. “It is important to regulate tourism, but both sides are to be blamed,” he says. “The government didn’t check the

growth in its nascent stage and too many lodges have come up, especially in places such as Corbett. National parks in Andhra Pradesh, Maharashtra, Madhya Pradesh and Uttarakhand have not even had the core and buffer areas identified.

This leads to a lot of confusion,” adds Soin.

Contd. on page 45

Concerns over SC interim verdict The ban on tourism in the ‘core’ tiger habitat areas of the reserves will provide a platform for illegal wildlife trafficking. explores the concerns.

M E G H A PAU L

H

ighlighting the threat posed to the endangered Tiger species, the Supreme Court on July 24 banned all tourism activities in the core areas of all tiger reserves in the country. A bench of Justices Swatanter Kumar and FMI Kalifullah said no tourists should venture into the core zones of 41 tiger reserves till further orders.

However, it should be noted that the ban is temporary.

The court is expected to release its final ruling on August 22.

In the meanwhile, spoke to hoteliers who have raised concerns about the recent verdict. They feel the ban on tourism in the ‘core’ tiger habitat areas of the reserves will encourage illegal wildlife trafficking as poachers will not be hindered by the presence of tourists.

According to Akanksha Garg Dewan, Director, Waxpol

Hotels & Resorts and VicePresident, Sunderban Tiger Camp, the SC has not taken a holistic approach as to how their interim decision will actually affect the wildlife and the locals in each region.

“The SC verdict has a single stance towards wildlife tourism. Conservation is being viewed in different ways across the world.

However in India, conservation of wildlife will be successful only with tourism and its stakeholders participating in it actively.”

Talking about the illeffects of the SC ruling, Manav Khanduja, DirectorMarketing, Pugdundee Safaris opines, “Not only the wildlife lodge and tour industry would be destroyed but over two hundred thousand people directly employed by the industry and over a million connected to the industry will be affected. Over 80 per cent people attached to the industry are locals making

Akanksha Garg Dewan

Manav Khanduja

Director Waxpol Hotels & Resorts

Director - Marketing Pugdundee Safaris

In India, conservation of wildlife will be successful only with tourism over ` 60,000 annually, which is far higher than the national per capita income. And, in rural India, over half the population lives on ` 35 a day, which is a generous remu-

Apart from wildlife lodge and tour industry, over 2,00,000 people will be directly affected neration.” The spirit of the Eco-Tourism guidelines presented by NTCA in court is community participation and involvement. The interim Contd. on page 45

ANALYSIS

Roaring tiger, crying tourism Contd. from page 44

The Indian Association of Tour Operators (IATO) is planning to file an appeal with the Division Bench of the Supreme Court against its order. The association has already written to Subodh Kant Sahai, Union Minister for Tourism, India, explaining the issue and their concerns. Subhash Goyal, President, IATO, explained that, “The number of Tigers have increased in tourist spots such as Ranthambore, Corbett and Bandhavgarh, which is evident from the last two rounds of tiger census conducted by the government.”

TOFT has taken a different approach and has come up with a solution to address the Supreme Court concerns. They recommend that the interim ban be lifted as soon as possible while a three month independent review of the Ecotourism Guidelines should be done by a high profile committee backed by Supreme Court and with participation of Tiger Range states. Lastly, a moratorium on lodge build-

ing within 10 km of tiger boundaries should be declared till Ecotourism guidelines are agreed by the Court.

bance to wildlife. They offer as extra pairs of eyes for watching poachers thus unknowingly offering security to wildlife. No tiger

Mandip Singh Soin

Subhash Goyal

President ESOI

President IATO

It is important to regulate tourism but both sides are to be blamed Constantly restating the practice of wildlifefriendly tourism, the industry is adamant that tourists are not a source of distur-

The number of tigers have increased in tourist spots which is evident from the tiger census deaths due to tourism have been reported.

Now, there is a hope that the next judgment is in the industry’s favour.

Watchdog of the wildlife Contd. from page 44

verdict goes completely against the guidelines. “Our parks have seen a lot of revenge killing of wildlife by villagers when their cattle get

The hotel business is anyway a seasonal one in the parks and none of the property owners earn more than what is required to manage and run their prop-

Vibhas Prasad

Les Carlisle

Owner Leisure Hotels

Conservation Manager & Beyond

The govt lodging facilities in Corbett will be affected if the final verdict goes against Tiger Tourism killed or fields are destroyed.

My fear is when they lose their livelihood, the revenge could ring the death bell for tigers and their conservation.

The decision will create a larger gap between conservation and local communities and the department will have a tough time handling the situation,” he points out.

We trust that the final judgement on Aug 22 will consider both conservation needs & tourism activities erties, so yes, if lesser tourists are turning up to the park, revenue will be less. Hence, the hotels will be forced to cut down the staff which may create local unrest along with the increased villagers’ dependency on the forest for poaching and deforestation, adds Dewan.

Rather than saying how important Tiger Tourism for the hotels is, one should ask how important tourism is for the tigers, feels Dewan. “One of our firm observations over the years has been that tourism boosts wildlife, provides employment to the locals and promotes conservation. Without the tourists who are the ears and the eyes of the forest, poachers will roam in the forest freely and tigers will be killed in great numbers and nothing will be left to conserve. Fine examples are Sariska and Panna National Parks where there were no tigers left due to lack of tourism. To learn how to manage the park, the Government needs to study and follow the African pattern of Wildlife Tourism, where conservation and tourism go hand in hand.”

Reiterates Khanduja, “Conservation and community development are interlinked and our industry remains the only financial stakeholder in wildlife conservation. Last year, more than ` 16 crore was generated by selling entry tickets in Madhya Pradesh. This money is being used for parks and also for lesser known sanctuaries. The industry is involved directly with community programmes, training and capacContd. on page 52

46 TRAVTALK

ANALYSIS

AUGUST 2 ND FORTNIGHT ISSUE 2012

Do we need Destination Specialists?

Is this the right time for India to move on to the next level by introducing a certified online training programme for travel agents in international markets? gets the industry’s perspective on the same…

A N I TA J A I N

I

t’s time to not just ‘sell’ a destination but to ‘recommend’ a destination. And recommendations don’t come from just choosing a tour from a brochure, an attraction based on a sales flyer or a hotel based on a map location. It comes from an understanding of a destination; the people, language, culture, etc.

Is it worth a shot?

Destinations like Britain, Australia, Austria, Canada, South Africa, Malaysia, Thailand, South

credible and are tagged as ‘experts’ of that destination by travellers. The modules are designed by tourism authority and are aligned with their global marketing objective and vision. Through offline and online trainings for the travel trade, Australia has achieved a brand presence in India and today, we have close to 700 certified Aussie specialists in India with 2,000 more registered for the same.”

Selling with confidence The specialist programmes prepare travel agents to become an expert by educating them about the destination.

Educating the professionals: Offline or Online?

Destinations can either have online or offline certified programmes and sometimes both. According to Rajiv Duggal, Former MD, Kuoni India; certified training programmes are the best way to increase destination awareness and if conducted in association with tourism board, these programmes help in enhancing the image of the destination among the potential sellers and travellers.

Karan Anand

Rajiv Duggal

Nishant Kashikar

Head – Relationships Cox & Kings

Former Managing Director Kuoni India

Country Manager Tourism Australia

The best way to educate the travel trade would be to divide destinations into segments Africa, etc have certified programmes for the Indian travel agents. According to Nishant Kashikar, Country Manager – India, Tourism Australia; certified programmes add authenticity to travel agents and increase the destination visibility. He said, “Certified programmes make travel agents more

The Q&A sessions and evaluation done at the end of the programme are extremely constructive Mischa Mannix-Opie, Regional Manager – South & South East Asia, New Zealand Tourism said, “Our Kiwi Specialist Programme assists us in building capability of the travel trade in selling New Zealand. It provides us with a platform to increase the knowledge of travel agents by educating them on the regions

‘India cannot be taught’ as a whole. The best way to educate the domestic and international travel trade would be to divide destinations into segments like pilgrim destinations, culture tours, shopping destinations, spa & wellness,sports/Adventure, etc.”

in New Zealand, including each region’s unique selling points and how to build these regions into an itinerary.”

Certified programmes make travel agents more credible and are tagged as ‘experts’ of that destination Talking about the format of training programmes, he said, “For destination training, classroom sessions are most effective as they help to captivate audience and help them absorb the nuances of the destinations. The Q&A sessions and evaluation done at the end of the programme are extremely constructive.”

My India, My Way Smeeta Gulvady

Mischa Mannix-Opie

Vice President & Head Thomas Cook Centre of Learning

Regional Manager - South and South East Asia, Tourism New Zealand

With this programme, students can learn how to market various cities and build selling skills Online theory sessions and offline destination experiences and interactive sessions complement each other resulting in thorough knowledge of the product. He further adds, “A certified destination training programme for India would definitely be a welcome measure as this would help travel agents to use it as reference at the time of employment or even for further enhancement of knowledge.”

It helps to increase the knowledge of travel agents by educating them on the regions in New Zealand Go niche Despite having a thorough training programme, destination might not generate increase in tourist figures due to the appeal of the destination.

And if India is divided statewise for educational modules; it will be a partial justice to ‘Incredible India’ campaign which showcases the charm of every corner of India. Karan Anand, Head – Relationships, Cox & Kings says, “I believe,

India Tourism Initiative US-based The Travel Institute offers ‘Destination Specialist India’ programme which is sponsored by India Tourism, Oberoi Hotels, Govan Travels, Greaves Tours LLC, Cox & Kings, Singapore Airlines and MakeMyTrip India. Pat Gagnon, Certified Travel Counselor, The Travel Institute informed that people who enroll and pass

the test earns a specialist designation. He said, “As a second step, those who have visited India and submitted a visitation report and have at least one year of experience in the industry can earn The Travel Institute’s India certification. The programme is available to anyone who would like to enroll whether from the US or outside the US.”

Apart from constantly promoting the innovative ‘Incredible India’ campaign, MOT is also regularly conducting roadshows, sales and marketing initiatives, etc.

However, Smeeta Gulvady, Vice President & Head, Thomas Cook Centre of Learning, believes that a comprehensive destination specialist programme will be a great tool for the diverse offerings that India has. Centre of Learning has recently launched a four-month undergraduate programme named ‘My India My Way’, offering students an opportunity to cater to the needs of the Indian tourist destinations.

Gulvady said, “Through this programme, students can learn how to market various cities, build operational and selling skills. Feel the pride when you say I know my country thoroughly!”

Making India ‘Credible’

more

Through training programmes, certified travel agents can make a destination more credible and reliable during natural calamities, terror attacks, etc. For instance, in recent past, destinations like Queensland, Japan, New Zealand and Thailand suffered from natural disasters. Post the calamities, travellers were skeptical to travel to these destinations and hence believed the ‘destination specialists’ of these destinations.

Hence, India can increase the visitor numbers and also increase the ‘credibility’ of the country.

48 TRAVTALK

AUGUST 2 ND FORTNIGHT ISSUE 2012

FAMILY ALBUM

Celebrating the spirit of sportsmanship To mark the eve of the largest sporting spectacle - Olympics 2012, an event was organised at the residence of the British High Commissioner in New Delhi on July 27, 2012. British Airways and other leading stakeholders partnered the event, which was very well attended.

ASSOCIATIONS

AUGUST 2 ND FORTNIGHT ISSUE 2012

TRAVTALK

49

IATO returns to Mumbai after a decade The IATO Convention titled ‘Moving Forward in Challenging Times - Together’ to be held in Mumbai after a gap of over 10 years, is expected to attract over 1,000 delegates.

T T B U R E AU

I

n times that look tough for the inbound segment in India due to rise in air fares, uncertainties over service tax aspect and difficult global economic scenario to name a few, IATO is conducting its XXVIII Annual Convention in Mumbai from August 30 to September 2, 2012 in Mumbai.

As per Subhash Goyal, President, IATO, the objective

Subhash Goyal President IATO

of the convention, this year, as per its theme, is to ensure that the industry continues to move forward and join hands to sail through the difficult times together.

Goyal added, “All our members should register for the convention and benefit

Lally Mathews Hony. Secretary, IATO and Co-Convention Chairperson, IATO Convention 2012

from the various networking sessions and panel discussions in the Convention.

We have worked out special airfare, hotel and post fam tours for our members, who should not wait for the last minute to register.”

Adding further, Lally Mathews, Hony. Secretary, IATO and Co-Convention Chairperson, IATO Convention 2012 assured that during the course of the convention, IATO will raise the issue of the impact of government policies on various segments in the

tourism industry. “Moving Forward in Challenging Times - Together is an apt theme that we had chosen for our 2012 Convention. We reckon that difficult economic phase first started towards the start of 2008 but India managed to

come out of such tough global environment. Today, when the global economic scenario continues to throw upon difficult challenges, the Indian economy has also started showing signs of considerable weakness. In such times,

The ‘moving forward collectively’ theme holds the silver lining to eventually see us through such challenging times,”

said Mathews. “We are taking care of all aspects to ensure that the IATO Convention 2012 is a great success.

We are hopeful that over 1,000 delegates will attend the IATO Convention 2012,” he added.

Thought Behind The theme ensures that the industry continues to move forward and join hands to sail through the difficult times together

50 TRAVTALK

STATES

AUGUST 2 ND FORTNIGHT ISSUE 2012

All is well, say Northeast travel agents While a travel advisory in Australia warns tourists against visiting Northeastern states, the travel agents of the region argue that they remain unaffected. They say they are trying their best to remain on top of their game. explores.

P EDEN D OMA B HUTIA

A

travel advisory warning its citizens against visiting Assam, Manipur, Nagaland and Tripura was issued by the Department of Foreign Affairs and Trade (Australia). The advisory read, “We advise you to reconsider your need to travel to the Northeastern states of Assam, Nagaland, Tripura and Manipur because of the risk of armed robbery, kidnapping, extortion and terrorism-related incidents. In July 2012, inter-communal violence in the Kokrajhar, Chirang and Dhubri districts of Assam reportedly caused a number of deaths and injuries.

There are reports of displacement and disruption to transport services. Various districts have put curfews in place.

Further violence may occur.”

However, while they do acknowledge the unrest, travel agents in the Northeast feel this is uncalled for. “Yes,

Mukul Medhi

Shreya Barbara

Chief Executive Officer Landscape Safari

Chief Operating Officer Landscape Safari

We are working towards making our services more professional there are issues in the Northeast and these are being dealt with in a socio-

A lot of confusion is also because of the hype that is being generated economic-political manner.

However, this is something that most countries face. A

lot of confusion is also because of the hype that is being generated. Also, disturbed areas and pockets do not come in the tourist circuit. No vehicles run through these regions and there are no hotel stops here. Any destination reporting of disturbances is kept outside the tourist circuit,” says Shreya Barbara, Chief Operating Officer, Landscape Safari.

However, Ranu Barua, Director, Inbounds, Rhino Travels, says advisory or not, they remain unaffected as this is, in fact, a lean period for tourism in the region. “Every time an incident of this kind occurs in the Northeast, the First world countries are quick to issue such travel advisories to warn their citizens against visiting the region. However, the recent ethnic clashes, which unfortunately took place in the two districts of western Assam, have not affected the tourism industry here as this

The recent ethnic clashes have not affected the tourism industry here as this is the lean period Ranu Barua, Director, Inbounds, Rhino Travels is the lean period. As for the main season, we have been getting a substantial number of enquiries, both from overseas as well as domestic tourists.”

Mukul Medhi, Chief Executive Officer, Landscape Safari, seconds the fact that foreign tourist arrivals have gone up with time in the region. He says this is mainly because agents and tour operators are making an effort.

“Today, due to the internet, we are able to directly contact foreign tourists and convince them to visit the region. Out of 10 groups, even if four cancel the tour, we get six confirmations. Those six groups then send their friends when

they go back. We are working towards making our services more professional. The infrastructure has also developed, even though it is far from what it should be, but then work is on. We are also training our drivers and the members of our staff to meet international standards,” Medhi says.

While reiterating that the region is safe for tourists, agents and tour operators say they are also participating in various travel fairs and are talking to visitors to dispel any misconceptions. Efforts are on and now, it remains to be seen how many opt for a trip to the Northeast this coming season.

ANALYSIS

Maximising revenue Contd. from page 34

are slowly introducing ancillary revenue element which has become a crucial factor in the fiscal viability for airlines all over the world. While Air India plans

to maximise its revenue from advertisements on boarding passes and excess luggage, the LCC carriers like GoAir plans to sell holiday packages and is also exploring tie-ups with car rental companies.

Apart from this, airlines are also tapping on board merchandise sale and travel insurance, exploring advertisement opportunities on foot trays, overhead luggage bins, inside the aircraft, etc.

Contd. from page 34

1

Building revenue

According to IATA, US$ 32.5 billion contributed by ancillary revenue has lifted the airline industry from a loss-making position and continues to provide a very effective hedge against runaway fuel bills. The phenomenon has spread across the globe into every airline sector and into

every aspect of air travel.

Airline CEOs want to know, “How can we use an à la carte strategy to capture more revenue?” According to Manish Dureja, Vice President - Marketing, Jet Airways, airlines should develop ancillary revenues with products that support their brand posi-

tioning and deliver value to the traveller by meeting their individual needs and preferences.

Moving early and carefully allows an airline to establish its own direction, methods and message.

Rather than view this world as fee-based, it should be service-based.

Contd. from page 34

2

Unbundling works

According to Jay Sorensen, President, IdeaWorks Company; unbundling fares increases choice for fliers.

He said, “Consumers readily pay fees if they feel value has been added. In service industries, offering better value has always been the key to increasing revenue. This genie is not

going back into the bottle.

How sure am I? 32.5 billion dollars sure. Please note ancillary revenue includes à la carte pricing and I believe this is the secret to preserving a low fare environment. Allowing consumers to pick and choose what they want honours the intelligence of the cus-

tomer. Thrift conscious consumers can choose the bare minimum - an unassigned seat on the aircraft, with no-checked baggage and no meal. Those seeking more comfort and convenience can opt for more - such as early boarding, assigned seats, food and drink, and checked bags. ”

ing the fares for higher yields – running the risk of damaging air travel, we would rather keep fares at reasonable levels so as to attract higher passenger loads and boost revenue through ancillary services.”

Giving an India perspective, Rakesh Raicar, Regional Sales & Marketing

Manager – South Asia, Cathay Pacific Airways said, “The Indian market is slowly getting used to ancillary products as airlines are gradually introducing the charges. Also, as the charges are nominal, passengers do not mind paying additional for the add-on value.”

Contd. from page 34

3

India in focus

For example, AirAsia reports its ‘load active – yield passive’ strategy delivers positive revenue results. Lower fares attract higher number of passengers who purchase more à la carte services. Tony Fernandes, CEO, AirAsia said, “We always maintained that instead of rais-

Panj Takht Darshan launched

In a bid to boost pilgrimage tourism for Sikhs, Parkash Singh Badal, Chief Minister, Punjab, on August 6 launched the Panj Takht Darshan project, under which devotees will visit the five seats of Sikhism across the country by tourist train and by air. Launched by the Indian Railways Catering and Tourism Corporation (IRCTC) along with the Punjab Heritage and Tourism Promotion Board, the Panj Takht Darshan will offer a week-long journey covering the Akal Takht and Golden Temple in Amritsar, Takht Keshgarh Sahib in Anandpur Sahib, Takht Damdama Sahib in Talwandi Sabo, Takht Patna Sahib in Patna and Takht Hazur Sahib in Nanded (Maharashtra). The package will also help pilgrims visit other Sikh heritage spots and gurudwaras in Punjab, Delhi and other places.

52 TRAVTALK

NEWS

AUGUST 2 ND FORTNIGHT ISSUE 2012

Remembering Lalit Sheth AUGUST 16-17 21-23 24-25 27 27-31 28 29 30-2

Mumbai New Delhi New Delhi

Kiwi Link India B2B Event IT&CM India’s Convention FICCI’s The Great Domestic Tourism Bazaar Chennai Multi-city Destination Roadshow Nairobi, Kenya Medical Roadshows by MOT and Dar-E-Salaam and FICCI Mumbai Multi-city Destination Roadshow New Delhi Multi-city Destination Roadshow Mumbai IATO’s 28th Annual Convention

SEPTEMBER 4

New Delhi

6

Mumbai

6-8 7-8

Goa New Delhi

10 10 11 12 12 13 14 12-14

Phoenix Hanoi San Francisco Seattle Ho Chi Minh Vancouver Warsaw Kochi

12-14

Beijing

14-15 17 18 18-21 19-22 20-23

Mumbai St Petersburgh Moscow Paris Moscow Tokyo

25-28 26-28 27-30

Philippines Kazakhstan Kerala

ATOUT for France’s B2B Workshop ATOUT for France’s B2B Workshop 47th FHRAI Annual Convention Indian Tourist Transporters Association’s 4th Convention Incredible India Roadshow MOT’s Roadshow Incredible India Roadshow Incredible India Roadshow MOT’s Roadshow Incredible India Roadshow MOT Roadshow Emerging Kerala Global Connect The China Incentive, Business Travel & Meetings Exhibition TAAI’s Indian Travel Trade Expo MOT Roadshow MOT Roadshow Top Resa Luxury Leisure Jata Congress & World Travel Fair PATA Travel Mart Astana Leisure Kerala Travel Mart

OCTOBER 2 2-4 3 5 5-8 7 9 11 17-19 19 19-21

Melbourne Thailand Sydney Auckland Durban Muscat Istanbul Ankara Singapore Singapore Canada

20-29 22 22 23 23 24 28-31 29 30

Noida Kuala Lumpur Rome Torino Bangkok Milan Guwahati Sao Paulo Alegre

PATA India Roadshow IT&CMA and CTW PATA India Roadshow PATA India Roadshow TAFI’s Annual Convention MOT Roadshow MOT Roadshow MOT Roadshow ITB Asia MOT Roadshow The International Tourism & Travel Show India Travel Mart MOT Roadshow MOT Roadshow MOT Roadshow MOT Roadshow MOT Roadshow Annual Convention of ATOAI MOT Roadshow MOT Roadshow

For more information, contact us at: talk@ddppl.com

On August 1, 2012, we lost Lalit Sheth. An industry veteran and stalwart, Sheth taught us innovative sales strategies. He was not just a leader but also a thorough gentleman. Sheth's strength lay in his marketing skills. Without any formal education or training in marketing and tourism, Sheth created Raj Travels and made it a leading travel agency. He made his own mark in the Indian leisure travel arena by bringing an Indian flavour to his packages. Sheth was one of the first ones to introduce the idea of all inclusive tour packages and offer Indian vegetarian food on foreign tours. He will be dearly missed.

SanJeet Director, DDP Group

Lalit Sheth was a great person. He had given a new dimension to packaged tours making them all inclusive. His contribution to the outbound travel segment in Gujarat is admirable. He was also a pioneer to organise fully vegetarian meals for his clients on an overseas journey by sending dedicated cooks. It’s sad to have lost him in a manner like this.

Arjun Sharma Managing Director, LPTI

Lalit Sheth was a pioneer in the industry and introduced many firsts. The industry will be poorer without him. Sheth fought hard and faced all odds. He was an amazing entrepreneur, though all his ventures did not work out well. He never lost faith and was always optimistic. We will miss him deeply and all his contributions to the industry will go a long way. His death has completely shocked us all.

A leading & path breaking luminary of the travel trade with an infectious smile, always generous with his time and exuding warmth from every pore. It has been 20 years that I have had a professional association with Lalitbhai and I was blessed by a friendship emanating from it. My deepest condolences to the family for the irreplaceable void.

Rayo Choksi Regional Director, Titlis Rotair

Ajay Prakash President, Travel Agents Federation of India (TAFI)

Lalit Sheth was a man of great personality with excellent inborn PR skills. It was always a pleasure to interact with him. He never showed any stress whenever we met. He always believed in a bigger picture, to create a positive mega impact.

Manoharan Periasamy Director, Tourism Malaysia

I had met him at various forums to discuss issues of the industry. I would fondly remember him for bringing a new horizon to the industry. He was a trendsetter, who always had the courage to think out-of-the-box. One of the most active members of the industry, Lalit Sheth had worked actively in the outbound travel segment. Customising the needs of Indian travellers when they go abroad, he pioneered the concept of Indian cuisine and Jain meals on a foreign trip, which was never heard of before. Many tour operators then followed his footsteps and this became a trend.

Guldeep Singh Sahni President, OTOAI

Lalit Sheth was a dynamic person, who had earned a big name for himself in the outbound segment. His ideas were very different from that of the other travel agents. The reliability aspect helped Raj Travels to earn a huge goodwill in the hearts of Indian travellers, especially in places like Gujarat and most parts of South India. He was a great leader, who knew the industry and his products very well and kept them in line with the futuristic needs.

Praveen Chugh

I met Lalit Sheth for the first time at an event in Gujarat. As a speaker, he talked about a ‘train’ as a metaphor for life. He felt that one can either be an engine or the last bogey on the track. He always preferred to be the former one. He used to come to our restaurant for orientation programmes or with tour delegations. An accommodating, forthcoming and warmhearted person is what I remember him as and yes, he definitely proved to be a leader. He was 'the engine' for our travel trade fraternity.

Kamlesh Barot

CEO, TSI- Yatra

President, FHRAI

All hopes now rest on the verdict Contd. from page 45

ity building, which are directly linked to conservation.”

Vibhas Prasad, Owner, Leisure Hotels informs, “That unlike other national parks which are mostly shut during the off-seasons, Corbett National Park is open for 365 days. It is also one of the few parks where government accommodation is available

inside the core zones as well.

This might be impacted if the final SC verdict goes against the benefits of Tiger Tourism.” However, for the time being, the company, which has five properties in national parks, is just hopeful that the verdict will be more favourable.

Commenting on the interim judgement on

tourism in Indian national parks, Les Carlisle, Conservation Manager, &Beyond remarks, “We trust that the final judgement in the matter on August 22 will take into account, both, conservation needs as well as the benefits brought about through sustainable, properly managed and planned tourism activities.

As &Beyond’s four jungle safari lodges are currently closed for the monsoon season and will only re-open in October, the interim judgement does not impact any of the guests. We continue to take bookings for the reopening of our lodges with confidence while we await the final outcome of the court proceedings.”

CLIPBOARD

AUGUST 2 ND FORTNIGHT ISSUE 2012

TRAVTALK

53

54 TRAVTALK

MOVEMENTS

AUGUST 2 ND FORTNIGHT ISSUE 2012

Kuoni India Mumbai

Emirates Mumbai

TripAdvisor Singapore

Rajeev G. Wagle has been appointed as the new Managing Director at Kuoni India with immediate effect. He joins Kuoni India from UTV Software Communications where he held the position of a Group CFO. Wagle had a stint with Kuoni India in the past from 2000 till 2008 as CFO. In his present role, he would be responsible for steering the company to greater heights. He brings in a profound experience in finance and a vast knowledge of the tourism business.

Essa Sulaiman Ahmad joins Emirates as the new Vice

Cindy Tan joins TripAdvisor as the new Vice President of Display Advertising Sales for the Asia Pacific region. Based in Singapore, she will lead a team in continuing to drive the growth of the business in Asia Pacific, including China, India and Japan. Tan brings with her, 14 years of experience across Sales, Marketing and Business Development in the media industry. She holds a Bachelor of Arts degree from Monash University and an Executive Certificate in Finance from Insead.

President - India and Nepal. He joined Emirates in 2003 and has held various senior commercial positions within the airline in countries such as Sri Lanka, Sudan, Jordan and Kenya previously. His responsibilities in India will include taking the airline’s expansion plans to new heights, while also bringing renewed focus into the daily operations the airline handles from its 10 Indian gateways – Delhi, Mumbai, Kolkata, Ahmedabad, Hyderabad, Chennai, Bengaluru, Kochi, Thiruvananthapuram and Kozhikode.

The Leela Mumbai Mumbai

Courtyard by Marriott Gurgaon

The Leela Kempinski Gurgaon Gurgaon

Morton Johnston is the newly appointed General Manager for

Kanika Hasrat has joined Courtyard by Marriott as the new

Col. Anoop Vaid has been appointed as the new Director of

The Leela Mumbai. Prior to this assignment, he was the General Manager of The Leela Palace Goa. Johnston, British by birth, began his career in hospitality at the Mandarin Oriental Hyde Park in London where he held various roles in the Front Office.

He comes with valuable experience at leading hotels in Asia and London.

He holds a degree in Retail and Distribution Management from the University of Ulster, Jordanstown, Belfast, UK.

General Manager of the property. She joins the hotel with an experience of about 16 years in hospitality industry. She will lead the team in developing the hotel strategy, as well as oversee the total operations. She will also play a vital role in employee training and development, while driving performance across various aspects including financial success, brand value, guest satisfaction and engagement as well as service quality.

Prior to this, Hasrat held the position of a General Manager at the Trident Jaipur.

Human Resources of The Leela Kempinski Gurgaon. In his present role, he will be responsible for all HR activities of the hotel. Prior to this, he was with the Oberoi group in Human resources function that took him to multiple properties. Vaid has had two decades of distinguished association with the Indian armed forces. With him he brings an invaluable experience in operational leadership and training responsibility.

Pune Marriott Hotel and Convention Centre Pune

Pullman Gurgaon Central Park Gurgaon

Radisson Blu Plaza Hotel Banjara Hills Hyderabad Hyderabad

Nishanth Vishwanath is appointed as the new Director of Food and Beverage at the Pune Marriott Hotel and Convention Centre. In this capacity, he will be responsible for all the food and beverage operations at the hotel. Prior to this position, Vishwanath was the Assistant Director of Food and Beverage, Pune Marriott Hotel and Convention Centre and was a part of the hotel’s pre- opening team in 2010. He has been with Marriott International for over a decade.

Rudrojit Deb has been appointed as the Director of Food & Beverage at Pullman Gurgaon Central Park. His previous assignments include stints with Hyatt Hotels & Resorts at Mumbai and Kolkata, the Hyderabad Marriott Hotel & Convention Centre and Leela Hotels at Goa and Mumbai. A graduate of the Institute of Hotel Management, Kolkata, Deb started his career with Choice Hotels in Chennai and brings with him over 16 years of experience in the Indian food & beverage industry.

Swami Nandan joined Radisson Blu Plaza Hotel Banjara Hills Hyderabad as the new Executive Chef. In this role, he will oversee culinary operations of the Hotel including the restaurants and bars, in-room dining and banquetting. Hailing from Bihar, his experience in numerous cultures brings in a dynamic and powerful perspective to food in his cooking style. Apart from spearheading the food and beverage segment, he will also be involved in preparing innovative menus.

PP Khanna, Vice President, Association of Domestic Tour Operators of India (ADTOI) says, “Networking is so important for my profile that now it comes naturally to me,”he claims. Apart from his busy schedule, Khanna loves meeting his friends right from his childhood days to college days over the weekends. He loves to read and can often be caught browsing several travel publications, including . Meditation is what Khanna feels is of utmost importance. "This is the truth of life and meditation gives my soul immense peace. Hence, I meditate daily for one or two hours in the morning and evening."

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: Megha Paul, Vivek Sethi and Devika Jeet

PP Khanna

Lally Mathews Hony. Secretary, IATO and Co-Convention Chairperson, IATO Convention 2012

Lally Mathews , Hony. Secretary, IATO and CoConvention Chairperson, IATO Convention 2012 says, “I don’t know, if it really goes well with my age, but I am a real sports enthusiast. I have played cricket at the state level for my college and enjoy watching sports on television, be it Wimbledon matches or other sporting contests. I started my carrier with ITDC in 1976 and had launched my start up company in 1989.”

He adds, “Today, when I look back, I realise that doing business was easier in those days. I also make a point to keep myself updated on all national and international news and events.”

Vice President, Association of Domestic Tour Operators of India (ADTOI)

Komal Seth, General Manager - Trade Relations, North India, Kuoni India, has been part of the industry for over nine years. Her zeal to travel and enthusiasm for outdoor activities fanned with her passion for work makes her ideal for this industry.

“I enjoy travelling and my favourite holiday spots are Thailand, San Francisco and Rajasthan,” says Seth. She enjoys sports and loves to cycle and play hockey. Cooking is another passion especially oriental, pan-asian and thai food. She also enjoys the occasional zumba.

Komal Seth General Manager - Trade Relations, North India, Kuoni India

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:14-08-2012

HIGHLIGHT

Ticket sales up by 1500% in 5 yrs Rakesh Kumar Tandon, MD, Indian Railway Catering and Tourism Corporation (IRCTC), shares how the corporation has gone up from selling 30,000 tickets a day to 4,50,000 tickets, a 1500% rise in five years.

P EDEN D OMA B HUTIA

I

n a conversation with , Tandon talks about how they are constantly upgrading the IRCTC infrastructure to meet increasing demands.

What do you make of the allegations that the IRCTC software allows touts to book tickets 9 times faster? Is that possible?

We need to appreciate that various references to booking software used by touts is actually the use of form auto-filling facility,

Rakesh Kumar Tandon Managing Director IRCTC

which is available in most browsers today or by scripting software, which any techie can do. We have put in a number of checks to prevent multiple bookings by a single user during Tatkal period. In addition, all bookings made in the critical period are being verified by our Anti Fraud team to ensure only genuine passengers are making booking.

How many tickets do you sell in a day from the IRCTC website?

Our daily ticket sales figure is continuously going up. We have gone up from

about 30,000 tickets per day to 4,50,000 tickets per day in the last 5 years. After our latest capacity augmentation measures and modifications in Tatkal timing, our sales have gone up from 3.6 lakh tickets per day to 4.5 lakh tickets a day on a regular basis and we have hit a peak of 4.96 lakh tickets on July 13, 2012. The demand for E-Tickets varies according to season. E-Tickets now constitute about 46 per cent of total reserved tickets on Indian Railways.

Is IRCTC taking steps to help the present situation of increased demands? If so, what are those?

We are continuously upgrading our infrastructure to cope up with the increasing demand of E-Tickets.

Some of the capacity upgradation measures implemented in recent past include induction of new high capacity servers, increase of internet bandwidth, deployment of additional software and tuning up of E-Ticketing application. Further capacity enhancement is in progress.

Significant changes have recently been made by the Railway Board to enable genuine passengers in getting Tatkal tickets.

The staggering of Tatkal time, which we proposed quite some time ago, from 8am to 10am, has helped in better website availability as well as availability of tickets and more disciplined crowd management at the PRS counters.

Is the increase in demand of rail tickets fuelled by the increase in airfare?

It’s true that the Railway demand has been growing much faster, but air travel constitutes a very small portion of the total capacity available on Indian Railways and so the airfares do not have a significant impact on demand for Rail travel.

Tell us more about your latest association with ITDC. IRCTC and ITDC have joined hands to work together to provide improved hospitality and tourism services to the large customer bases that they have, by making use of their expertise and vast network and facilities all over the country. We, at IRCTC, offer a wide range of travel & tourism products and services to meet the requirements of different segments of tourists; popular among these are the Bharat Darshan tourist trains, Mahaparinirvan Express (Buddhist Circuit Special Train), Maharajas’ Express (the luxury tourist train), tours the educational for school children and rail tour packages.

ITDC, on the other hand, has been the prime mover in the progressive development and promotion of tourism in the country. It provides a host

of unparalleled travel-related services and attractive packages. The Corporation is running hotels and restaurants at various places for tourists, besides providing travel facilities as well as the event management. With this cooperation, both the organisations will work towards the development of joint tourism products, opening and managing various catering and hospitality outlets, budget hotels etc.

Could you tell us more about the website foraying into other activities like cab rental, air ticket booking, hotel booking etc?

Our core objective is delivering best value for money to the customers using our online and offline channels. IRCTC has been offering rail tour packages, cabs, online hotel booking, holiday packages since last four years and selling good volumes. We started selling air tickets couple of years back via a third party and the market showed good interest in our product.

Therefore, we have launched IRCTC's own online air ticketing service recently through our portal www.air.irctc.co.in and we are already amongst the top air booking sites today.

This is expected to grow further with various initiatives, which are in the pipeline.

Ticket Sales Figure The company has gone up from about 30,000 tickets per day to 4,50,000 tickets per day in the last 5 years After the modifications in Tatkal timing, the sales has gone up from 3.6 lakh tickets per day to 4.5 lakh tickets a day on a regular basis and they hit a peak of 4.96 lakh tickets on July 13, 2012