TravTalk

A DDP PUBLICATION

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Vol. XXIV No. 13; July 1 st fortnight issue 2012

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India, the market of the future

Despite the key issues that the travel and tourism industry in India is facing, international travel industry leaders praise the country for its potential. They also warn the governments around the world to not ‘kill the hen that lays the golden egg’ with unfair taxation policies. n 2011, the tourism industry (globally) accounted for nine per cent of GDP, a total of six trillion dollars.

The industry supported 255 million jobs. This means one in 12 jobs on the planet. UNWTO forecasts reports that by the end of 2012, tourism will reach one billion international tourist arrivals. One seventh of the world population would have crossed international borders as tourists in a single year.

Our industry is the third largest in the world, larger than automotive manufacturing, and mining

Travel goes tech-savvy See full story on page 4

Trained manpower v/s onthe-job training Air charter market takes flight in India

David Scowsill Contd. on page 8

See full story on page 19 David Scowsill

Taleb Rifai

President and CEO World Travel & Tourism Council

Secretary-General World Tourism Organisation

MOT bats for ‘Clean India’

model under the Clean India campaign. Currently, there are about 6 million foreign tourists coming to India.

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nder the ‘Clean India’ campaign, Ministry of Tourism (MOT) recently launched its pilot project at Qutab Minar. ITDC, the PSU under the Ministry, is entrusted with this project at Qutab Minar.

To reach our target of achieving the 12-million mark, we have to provide a hygienic environment around tourist destinations across the country.”

Subodh Kant Sahai, Union Minister for Tourism (third from left), and other dignitaries launching the Clean Indian campaign at Qutub Minar in New Delhi on June 19, 2012.

3% to 1%: Commission cut reopens wounds See full story on page 30

Unveiled by Subodh Kant Sahai, Union Minister for Tourism, ‘Clean India initiative’ is primarily aimed at improving the conditions of heritage sites to attract more tourists in the country.

Talking about the new development, Sahai remarked, “Going forward, around 100 monuments would be taken up in the PPP

1

See full story on page 12

D EVIKA J EET FROM J ORDAN

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TRAVTALK

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JULY 1 ST FORTNIGHT ISSUE 2012

According to the Tourism Minister, the project involves round-the-clock garbage clearance, drinking water facilities, Contd. on page 20

BULLETIN

India for water-based tourism The tourism industry was demanding the rationalisation of Coastal Regulation Zone Rules to develop water-based tourism products. A new committee set up by the MOT is a strong step towards addressing the concern.

SA N J E E V B H A R

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aying heed to the development of water-based tourism products, the Ministry of Tourism (MOT) has finally committed to form a Committee on Beach/River/Backwater Tourism which will act as force to identify new areas/stretches which can be developed. This has been notified by the ministry through an official letter dated May 18, 2012 where it has apprised the composition of the committee for the development of Beach/River/Backwater Tourism.

To head the committee as chairman, the ministry has

Vivek Nair Vice Chairman and MD The Leela

The aim behind this committee is to identify new areas for the development of beach/river/back water tourism

entrusted the responsibility on Vivek Nair, Vice Chairman and MD of the hotel group – The Leela. The committee will also consist of one representative from the tourism & hospitality industry from each coastal state/UT to be nominated by the MOT Members. Nair is also the Honorary Secretary for two industry associations viz.

FHRAI and HAI. Nair took the initiative by raising the tourism potential at waterfront zones and on behalf of FHRAI forwarded a representation to MOT for rationalisation of Coastal Regulation Zone Rule for development Beach/River/Backwater Tourism. According to MOT's

official memorandum, the Committee will submit its reports within a few months.

It can also consult various stakeholders in the Coastal States/UTs for their inputs as well, before deliberating upon various issues relating to the development of beach/river/backwater tourism.

MOT, in the official memorandum, also said that the committee so formed will present a short-term vision for 2016 and a long-term vision for 2030 on the said subject. Nair informed, “The aim behind forming this committee is to identify new areas/stretches for the develContd. on page 12

STATISTICS VIEWPOINT

Tourism a key to combat slowdown

Travel goes tech-savvy Thomas Cook India launched a Whitepaper - Convergence of Travel & Technology 2012 on June 8, 2012 to showcase the global developments and trends in the travel technology front with its impact on the travel purchase cycle and the travel ecosystem, while drawing parallels to the Indian context. brings you the most insightful excerpts:

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ndia’s growth rate has fallen by 5.3%, the lowest it has fallen in seven years. It may not seem so drastic in this time of troubled world economy, but the results of such a slowdown are frightening. If the near double digit growth attained by India could have been maintained, it would have meant millions of jobs and a speedy alleviation of poverty, by creating opportunities for the youth who will soon reach their working age and step into the job market.

Can India return to its path of high growth?

Are those in office going to tackle the problems at home? As citizens we are asking for reforms that will help the country bounce back…

India has to reform tax and foreigninvestment rules. It must complete big industrial and infrastructure projects. Every industry in the country must play its part. Look at the IT firms in India, they seem to have independently bypassed the decrepit state and continue to move on well-oiled wheels. The travel & tourism industry has been crying itself hoarse for many years about the employment opportunities the sector offers.

According to a research study conducted

by UNWTO and WTTC, presented at the T20 Ministers’ Meeting in Merida last month, G20 economies could boost their international tourist numbers by an additional 122 million, generate an extra US$ 206 billion in tourism exports and create over five million additional jobs by 2015 by improving visa processes and entry formalities.

This is the first time that Travel & Tourism has been included in the G20 Leaders’ Declaration to encourage world leaders to see the potential of Travel & Tourism to create millions of new jobs and billions of dollars of GDP. Preliminary findings show that of the 656 million international tourists who visited G20 countries in 2011, an estimated 110 million needed a visa, many of whom deterred from traveling by the cost, waiting time and difficulty of obtaining a visa. Facilitating visas for these tourists, many from some of the world’s fastest growing source markets such as the BRICs, could stimulate demand, spending and ultimately create millions of new jobs in the G20 economies.

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Attitude towards online payments

GDS book over 2,000 transaction per second worldwide. IATA has projected that 70% of the travellers would do an online check-in. In the Indian context, the number of online check-in at MIAL (Mumbai Airport) is at 63%, which in 2008 was a mere 25% 59% of the surveyed respondents visited three or more sites to make a travel purchase and 51% of people stated that they were not able to get information online to make an informed decision

Comfortable, feel the system to be robust

Risky and hence avoid it

52%

19% Use it for convenience

29%

Source: TCIL Survey Questionnaire 2012

Average number of websites visited for air/hotel booking I hav’nt booked online

1 2

6%

7%

28%

4 & above

24%

3 35%

Over 52% of the respondents confirmed the use of mobile for searching travel related products 81% of respondents felt that the online mode of payment was robust and offered adequate security and used it as a matter of convenience. 76% of the travellers, who were part of the sample survey, were comfortable buying domestic tickets online, whereas only 19% of these respondents were at ease while booking international flights

Source: TCIL Survey Questionnaire 2012

Travel information available online No

9% Yes

Partial

49%

42%

Source: TCIL Survey Questionnaire 2012

Clear Advantage

Evolution of travel

IATA has projected that 70 per cent of the travellers would do an online check in and if we were to step into the Indian context, the number of online check in at MIAL airport is at 63 per cent and a huge increase over the 25 per cent in 2008 IRCTC, the official inventory distribution website of the Indian railways has come a long way since 2005 and currently is the single largest travel e-commerce site in India. It has a few major achievements including the largest rail network on electronic tickets Source: TCIL Survey Questionnaire 2012

Vikramajit Chairman SanJeet Publisher Rupali Narasimhan Editorial Director Deepa Sethi Editor

Editorial Ratan Kr Paul Vivek Sethi Megha Paul Anita Jain Devika Jeet 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 Advertiser Amit Sarkar Asst. Manager Marketing Advertising (Mumbai) Suchita Saran Branch Manager Harshal Ashar Deputy General Manager

(Mumbai) Rishika Karra Sales Coordinator Advertisement Designers Vikas Mandotia Nitin Kumar Design: Nityanand Misra Sudhir Mudgal Photographer Simran Kaur 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

advice before acting on information contained in this publication which is provided for general use, and may not be appropriate for the readers’ particular circumstances. Contents of this publication are copyright. No part of TRAVTALK or any part of the contents thereof may be reproduced, stored in retrieval system or transmitted in any form without the permission of the publication in writing. The same rule applies when there is a copyright or the article is taken from another publication. An exemption is hereby granted for the extracts used for the purpose of fair review, provided two copies of the same publication are sent to us for our records. Publications reproducing material either in part or in whole, without permission could face legal action.

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EXHIBITIONS

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TRAVTALK

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India grows by 14% at WTM 2012 WTM will generate a massive £56 million of deals for India after it witnessed the participation of the country in WTM 2011. Further to this, India will have its own dedicated exhibition region this year at WTM 2012.

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ndia Tourism, the national tourism organisation of India, is expanding its exhibition floor space by 14 per cent to more than 1,000 square metres (1,015 sq m) to create a dedicated India Region at the event, situated in the South

Simon Press Director - Reed Travel Exhibitions World Travel Market

The creation of a dedicated India Pavilion will see WTM 2012 generate a greater amount of business for the country Hall at the East Entrance next to Asia/Pacific/Indian Ocean region.

India had a highly successful WTM 2011 which will lead to £56 million of deals being generated. This was revealed by an independent research from Fusion Communications, either through deals signed at the event or in the following 12 months before WTM 2012. WTM 2011 saw India Tourism expand its stand space by 16 per cent compared to WTM 2010, which was a massive 28 per cent more than at WTM 2009.

The region was also strongly represented in the revamped WTM Speed Networking event at WTM 2011.

Overall WTM 2011 will generate £1,653 million of business for all exhibitors before WTM 2012 opens on November 5. India’s contribution represents more than three per cent of the total.

WTM continues to generate double-digit business growth for the global travel industry despite the gloomy economic

picture of the past few years.

2011’s £1,653m-worth of deals, 16 per cent ahead of 2010’s £1,425m, while 2010 witnessed a 25 per cent hike over 2009.

Talking about India’s role in WTM 2012, Simon

Press, Director, Reed Travel Exhibitions, World Travel Market said, “I am delighted India has decided to increase its stand space to create a dedicated region in WTM 2012.” India has continued to increase its exhibition space at WTM over

Promising Growth WTM 2011 saw India Tourism expand its stand space by 16 per cent compared to WTM 2010, which was a massive 28 per cent more than at WTM 2009

the past three years, which is a clear demonstration of the unrivalled business opportunities that the event offers to all its exhibitors, he added. “India continues to increase its participation at WTM and after the last year’s event will see an

impressive £56 million in deals being generated for the country’s tourism businesses. I’m confident that the creation of a dedicated India Pavilion will see WTM 2012 generate a greater amount of business for the country,” he informed.

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ANALYSIS

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Wooing newly-weds to Destination India spoke to two leading tour operators, who are also IATO representatives, on the pros and cons of attracting a large number of foreign-origin honeymooners to India. Following are their views on the subject...

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Source market

Lucrative market

Arun Anand

t is a lucrative market. The stay of couples on honeymoon is always longer in duration and is the same on the expenditure side. They tend to opt for a better hotel and also carry lots of souvenirs back home.

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apan and Korea are important source markets that should be tapped for attracting honeymooners. India can be a great attraction for those who like to venture out to a new place. The South East Asia region does also hold great potential, which augurs well for the inbound sector and the industry.

M

umbai, Delhi and Rajasthan, will be the places of first choice due to the metropolitan nature of the first two cities and royal experience in the third. The top most priority of a honeymoon couple is to have a safe environment with privacy.

eed more promotional support and marketing research to tap this niche segment in a scientific manner. So long, we have been selling India as a generic holiday destination. Time has now come to specialise and focus on niche segments.

Tapping overseas honeymooners will be a welcome step and similar efforts should be made in other niche areas.

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T

t seems like a good market at the outset, but it is not different or exceptionally lucrative. It is like any other couple coming for a 2 - 3 week holiday.

Their expenditure pattern and stay is also quiet normal.

Hony. Secretary, IATO

Way forward

I

Hony. Treasurer, IATO

Lally Mathews

Attractions and priority

e have handled some honeymooners from the European markets. In fact, we continue to sell a few honeymoon itineraries, which are part and parcel of our overall portfolio of travel packages. But, Europe cannot be an instant growth market.

However, I can’t comment on Far East or the South East Asian region.

ajasthan and South India are good attractions. Hill stations and other travel attractions that fit the requirements of a major portion of domestic honeymooners will also fit the requirements of the overseas clients on a honeymoon.

N

his segment doesn’t require any special treatment. Generally, it is difficult for honeymooners to opt for a long haul destination and mostly they prefer to go on a holiday that is a week or 10-day long.

It is evident from the trend seen in Europe, where couples tend to prefer travelling to other European destinations.

Similarly, honeymooners from the South East Asian region mostly prefer a destination within the same region.

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India on tourists minds Contd. from page 1

“I believe tourism is a main pillar for economic growth. India along with China and Brazil will emerge as the new wave of players bringing a positive change in the tourism sector. During a turbulent economic period, tourism will help find the solution. It is a resilient and flexible industry, but it’s time we come out stronger.

Greece, last year, saw an 11 per cent growth in tourism,” said Taleb Rifai, SecretaryGeneral, World Tourism Organisation (UNWTO).

India, China and Brazil will emerge as the new wave of players bringing a positive change Taleb Rifai Secretary- General, UNWTO

Addressing some of the key issues in the industry, Rifai added, “Unfair taxation is like ‘killing the hen that is laying the golden egg’, a practice that should be hugely discouraged. Our industry needs to stand together and address the FDI barrier. Air travel is very closely connected to the industry and we cannot avoid working together.”

By 2020, travel and tourism will account for 10 per cent of the global GDP, 10 trillion dollars and one in ten jobs.

“At present our industry is the third largest in the world. It is larger than automotive manufacturing, mining and chemical manufacturing. In the future, we will see an enormous tourism growth in the BRIC countries. One must have a strategy for these countries, as they are the market of the future. It is worth noting that with 98 million people directly employed in 2011, the industry’s leading organisations have committed to work in a coalition for the common good, through co-ordination communication, open sharing of information and coalescing around those key global issues

where effecting change is priority. Together with UNWTO, our coalition includes IATA, ACI, CLIA, PATA, USTA, ASTA and WEF,” explained David Scowsill, President and CEO, World Travel & Tourism Council.

An international conference with the theme, ‘seizing tourism market opportunities in time of rapid change’, highlighted that travel and tourism provide a plethora of opportunities.

The Convention was organised by the Jordan Tourism Board, under the patronage of King Abdullah II Ibn Al Hussein and in cooperation with the World Tourism Organisation, the World Travel and Tourism Council, the Ministry of Tourism and Antiquities, Jordan.

Growth Chart In the future, there will be an enormous tourism growth in the BRIC countries.

By 2020, travel and tourism will account for 10 per cent of the global GDP, 10 trillion dollars and one in ten jobs

G20 discusses tourism G20 world leaders have for the first time, recognised the importance of travel and tourism industry.

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he Leaders’ Declaration from the annual meeting of the G20 held in Los Cabos, Mexico, on June 18-19, states “We recognise the role of travel and tourism as a vehicle for job creation, economic growth and development, and, while recognising the sovereign right of states to control the entry of foreign nationals, we will work towards developing travel facilitation initiatives in support of job creation, quality work, poverty reduction and global growth.”

This is the first time that travel and tourism has been included in the G20 Leaders’ Declaration and is the culmination of long-term efforts by the industry, led by UNWTO and WTTC, to encourage world leaders to see the potential of travel and tourism to create millions of new jobs and billions of dollars of GDP.

According to WTTC the industry directly will contribute $2 trillion in GDP and 100 million jobs to the global economy in 2012. When the wider economic impacts of the industry are taken into account, travel & tourism is forecast to contribute some $6.5 trillion to the global economy and generate 260 million jobs – or 1 in 12 of all jobs on the planet.

Research by UNWTO and WTTC, released at the T20 Ministers Meeting last May, showed that the G20 could boost their international tourist numbers by an additional 122 million, generate an extra US$ 206 billion in tourism exports and create over five million additional jobs by 2015 by improving visa processes and entry formalities. Findings showed that of the 656 million international tourists who visited G20 countries in 2011, an estimated 110 million needed a visa, many of whom were deterred from traveling by

the cost, waiting time and difficulty of obtaining a visa.

Facilitating visas for these tourists, many from some of the world’s fastest growing source markets such as the BRICs, could stimulate demand, spending and ultimately create millions of new jobs in the G20 economies.

Speaking after the publication of the G20 Leaders’ Declaration, UNWTO Secretary-General, Taleb Rifai and WTTC President & CEO, David Scowsill said:

“We commend the G20 world leaders for recognising the importance of tourism as a driver of economic growth and job creation for the first time and stand ready to support all efforts by the G20 countries in this respect.”

10 TRAVTALK

NTO

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From 3,000 to 65,000 Indian arrivals India is considered an important emerging source market for Jordan. From focussing on MICE tourism to increasing overnights, and even inviting Bollywood, Jordan is geared up to welcome Indian travellers.

D E V I KA J E E T

FROM

the Indian agent can interact with the local DMCs and tour operators. JTB is trying to enter into co-marketing activities with the Indian travel agents and will pay 50 - 60 per cent of the advertisement price. We are also willing to contribute with the airline to support charter flights to Jordan,” adds Arabiyat.

JORDAN

S

ince Jordan Tourism Board (JTB) opened its India office in 2009, visitor figures have been soaring high for the country. JTB’s campaign creating awareness about security and stability at the destination helped gain confidence among the travellers.

“India is a very important market for us and we have established an office there. The market has a lot of potential and is booming.

Before opening office, we used to host 3,000 to 4,000 tourists from India, but now we have started welcoming 55,000 to 65,000 Indians each year. Most Indian tourists presently come for religious reasons but we want to promote other tourism segments also and increase the overnights from India. Our Indian overnights are very minimal, only one or

two nights. But, we aim to substantially increase this,” says, Abdel Razzaq Arabiyat, Managing Director of Jordan Tourism Board.

Jordan has identified six tourism segments that will attract tourists from India, religion, history and culture, adventure, medical and wellness, eco-tourism and MICE. The tourism board also wants Bollywood to capture its beauty and encourage film shooting in the country.

Home to the Dead Sea, the lowest point on earth and the largest natural spa, Jordan has tried to enter the Indian market in different ways. “We undertook core marketing activities, which included inviting a lot of press and media to Jordan and participating in roadshows and exhibitions. We invite travel agents to Jordan on fam trips. Thereafter, we help conduct workshops where

Abdel Razzaq Arabiyat

Nayef H. Al Fayez

Managing Director Jordan Tourism Board

Minister of Tourism and Antiquities Jordan

Most Indian tourists presently come for religious reasons but we want to promote other tourism segments also

In Jordan, the government and the private sector have jointly chartered our growth plans in the coming five years

MICE tourism is a very important focus and JTB plans to promote Jordan as a business destination. T hey also plan to launch a travel marketplace to showcase offers from Jordanian tour operators to support local industry and facilitate online booking.

“We are proud of an unparalleled wealth of unique treasures our country has to offer. In Jordan, the government and the private sector have jointly chartered our growth plans in the coming five years. We will double tourism receipts by 2015, growing our room capacity by

more than 5,000 and widen access to our destination from new airports and countries. We are diversifying our product offering and working to perfect its quality,” says Nayef H Al Fayez, Minister of Tourism and Antiquities, Jordan.

JTB has utilised social media and established a global reputation for its tourism through this channel.

Focussing on e-marketing for the tourism board, Jordan has decided to increase budgets to enhance its online presence.

Branching Out Jordan has identified six tourism segments that will attract tourists from India, religion, history and culture, adventure, medical and wellness, eco-tourism and MICE The tourism board also wants Bollywood to capture its beauty and encourage film shooting in the country

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ANALYSIS

Trained staff v/s on-the-job training The travel and tourism industry, conventionally, had been training manpower on the job. As the industry started growing faster, post liberalisation, the need of trained manpower has raised manifold. spoke to experts in the training field, on the advantages of hiring trained manpower in today’s time for travel companies, travel as a career opportunity and the best ways to tackle attrition. Here are some selected excerpts:

Is trained manpower better than learning while on the job?

VIVEK SETHI

Madhavan Menon Managing Director Thomas Cook India

Rajiv Duggal Managing Director Kuoni India

Trained Manpower Advantage

Travel as a Career Option

H

iring trained manpower ensures perfect orientation and minimises the time and cost involved in training. Turnaround time of utilising trained manpower is much faster and costs less than training them on the job, hence, giving the company a superior cost advantage. When a company hires a management trainee, they are normally employed on probation basis. The cost involved is saved when a trained employee is hired. Travel agencies by nature are small and medium enterprises where the cost of training becomes the higher percentage of overall cost of operations. More so, travel agencies loathe to train manpower due to the constant threat of poaching by rival agencies.

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he attractiveness index of a career was previously measured by take-home income. 20 years ago in travel, the take-home income was always less and therefore the industry lost out in the talent-share game. However, in the last 20 years travel industry has boomed. Travel management companies have grown in size and scale; opportunities for travel managers have grown multiple fold; salaries have gone up and scope of jobs (Tour Managers, Proration, Contracting, MICE Management etc.) has expanded. In addition, global travelling has become an opportunity, incentive and award which other industries do not provide to young managers.

he world is expanding in terms of destinations and tourism is no longer restricted to Europe and the Far East. Global travel and holidays are being regarded as the ultimate form of incentive.

Even new entrants are multiplying their operations.

Hence, there is immense opportunity in the travel and tourism sector. Checking attrition can only happen when an employee in a travel management company is given a clear career growth plan, which is fair and in tandem with the industry. Hiring outsiders at a higher salary should be discouraged.

There should be an open work atmosphere which helps in reducing inter-personal conflicts as research indicates that 8 out of 10 employees leave because of disagreements with their boss.

O

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ur experience with training manpower on the job has not been good. The biggest disadvantage with training manpower is that they all tend to pick the same work habits prevalent and adhered by the other staff members, which at times doesn’t help in boosting efficiency. There are other agencies, which are always on the look out to recruit employees from their competition instead of training them. The professionals, who had received formal training, do not show any preoccupied bias and can easily be moulded in accordance to the needs of the travel agency. Hence, there is a growing need to render unbiased training to professionals, who want to be gainfully employed in the travel and tourism industry.

nlike 20 years ago, professionals who are inclined to join the travel business have many new avenues. The call centres that started only for young graduate’s vocation, today have matured into an industry in itself. Moreover, be it banking, insurance or malls, there is plethora of vocational opportunities. Likewise, the travel and tourism sector has also grown and the remuneration on offer is at par with the industry average. Moreover, there is a growing emphasis on education and training. We, as a policy, recruit professionals, who are at least graduates. Going forward, like us there will be many other companies, who will desire at least a graduate along with some vocational training from the fresher.

India on backwater tourism Contd. from page 3

opment of beach/river/backwater tourism.”

According to the ministry, while rationalisation of Coastal Regulation Zone Rules is a subject matter that is dealt by the Ministry of

Growth and Attrition

Environment and Forests (MoEF), MOT has the mandate for developing and promoting various tourism destinations and products in the country with the help of private stakeholders. Thereby, after considering the suggestions from the industry and

realising the segment’s full potential in India, MOT has decided to constitute this Committee with the approval of competent authority for identifying new areas/stretches where this segment of tourism could be developed.

T

he travel sector is poised for growth, especially when the outbound, inbound and domestic sector are registering double digit growth. There will be ample opportunity for trained professionals to make it big in the industry.

However, there is no straight jacket solution to check attrition. In a high growth market, attrition will prevail. But, there are measures that can be undertaken to curb attrition. One option is to create a pool of talent and a pipeline of such willing professionals keen to enter the travel and tourism sector. Here again, it will be of great help if the supply of trained manpower is readily available to our sector.

Outbound from India falls by 10% Outbound travel from India during the summer break is estimated to have fallen by 10 per cent, compared to the same time last year. Slow economy, rupee depreciation, soaring airfares amid an aviation crisis are the reasons that have triggered the drop in the number of travellers.

The summer of 2011 recorded a growth of 12 to 15 per cent in outbound travel.

Same figures were noticed over the same months in 2010.

Taking into account the current economic climate, the industry is expecting a year on year growth of around 5.5 per cent in the outbound category.

The travellers are finding the air fares too expensive coupled with hiked airport charges, European and American destinations have failed to pull much crowd. In all of 2011, the total of outbound travellers grew eight per cent to reach 33 million, from around 30.5 million in 2010.

RAILWAYS

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TRAVTALK

15

IRCTC, a full-fledged OTA now With a current customer base of 20 million registered users for online ticketing, the website is planning to go through a tender process in the hotel booking front to identify new partners for the consolidated content.

PEDEN DOMA BHUTIA

W

hile everybody’s talking about Indian Railways Catering and Tourism Corp (IRCTC) ‘planning’ to become a full-fledged online travel agency, Pradip Kundu, the Joint General Manager PR, IRCTC, begs to differ.

Kundu says, “We already are a full-fledged OTA.” And why not, having sold online flights, hotels, tour packages, cab rentals and train bookings, IRCTC is indeed functioning like an online travel agency.

Pradip Kundu Joint General Manager PR IRCTC

Our target customer is anyone who is looking for the best value for money for any travel-related solution Talking about the reasons that came into play while making their decision to go the OTA way, Kundu, says, “There is a definite market for honest offering of all travel solutions from one shop. Moreover, since IRCTC has been selling online rail tickets, tour packages along with hotel and cab bookings, why not air tickets? It is only wise and it definitely makes sense to offer the air tickets as well from our portal to bridge that little gap, which up until now has not been filled.”

As a full-fledged OTA, IRCTC caters to all types of customers, from those wanting sleeper class rail tickets and budget hotel accommodations to those wanting to travel business class and staying in luxury hotel accommodations.

“People’s expectations from IRCTC will certainly be more and we will fulfill their expectations. But we are

geared up to take it head on and plan to be among the top two players in the market in all the segments we operate in,” says Kundu.

With a current customer base of 20 million

registered users for online ticketing, the website is planning to go through a tender process in the hotel booking front to identify new partners for the consolidated content. Cab rental is being handled completely by

IRCTC and their partners in the respective zones.

“In terms of segmentation, we have got travel products targeting the lowest to the highest end. Our target customer is anyone who is looking for the best value for

money for any travel-related solution, offering them a variety of payment options,” says Kundu. But then the portal is not without its problems.

Talking about the issues that they are currently dealing with, Kundu says, “One of the

issues we face is lack of skilled manpower in handling critical profiles. But we have lined up a recruitment drive to address that. Apart from that, the tech scenario changes every other day and we are geared up to take a lead on every front.”

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STATES

Why Kerala’s a God’s own country...

The Government of Kerala declared tourism as an industry in 1986 after realising its economic potential. Now, Kerala is a premier tourism brand in the domestic and international circuit. Here is a look at their new tourism policy.

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Plans and policies of Kerala Tourism

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rom hardly 50,000 foreign tourist arrivals and 0.13 billion rupees in foreign exchange in 1986, Kerala has reached a status of 0.6 million foreign tourist arrivals and 37.97 billion rupees in foreign exchange in 2010.

The total employment generated from tourism in the state is estimated at 1.2 million. These achievements would not be possible without the support of the State Government and the

AP Anil Kumar Minister for Tourism Kerala

underlining importance laid on the public-private partnership. New markets were captured with Tourist Arrivals and Earnings innovative products and novel marketing for 2009 & 2010 strategies and tourism Year Foreign Domestic Foreign has grown to become a Tourist Tourists exchange arrivals arrivals earnings in major revenue earner for the state. Kerala’s to Kerala to Kerala tourism (` in bn) new tourism policy aims to ensure quality 2009 5,57,258 79,13,537 28.53 visitor experience.

2010 6,59,265 85,95,075 37.97 Here are some of the Source: Kerala’s Tourism Policy highlights:

A Cabinet Committee on Tourism has been put in place with the Chief Minister as Chairman and Minister for Tourism as Vice Chairman to oversee the implementation of infrastructure plans which are vital to tourism sector. In order, to facilitate speedy clearances of the tourism projects, they have introduced fast track clearance to tourism projects for investment above ` 10 crore integrating with the existing system The tourism industry has to be continuously consulted on the infrastructure requirements at destinations, to enable the Tourism department to conceive projects that are relevant and important. A task force

on Infrastructure Development, with Minister for Tourism as the Chairman, consisting of members of the tourism industry and representative of line departments will be put in place. A taskforce for Responsible Tourism will be introduced whereby 15 per cent of the total investment, subject to a maximum ceiling of ` 20 lakh, will be provided for investors classified under Responsible Tourism Approval from the Department of Tourism will be made mandatory for obtaining license from local self governments for the homestays, serviced villas, houseboats and ayurveda centres.

During 2010, the State received 6.5 lakh foreign tourists. Considering the strategy envisaged for aggressive marketing targetting to achieve a yearly growth rate of 15 per cent, that will yield 30 lakh foreign tourist arrivals by 2021.

promotional materials subject to a maximum of ` 75,000 for international fairs and ` 50,000 for domestic fairs. The department will make maximum use of social marketing tools for effective promotion of Kerala Tourism.

A new model of marketing emerged with a combined effort of tourism department and tourism industry capturing the national and international markets through innovative campaigns and roadshows.

The marketing assistance will be limited to one international fair and one domestic fair in a year. The department will bear 25 per cent of the travel fare and

The Tourism Board will target an annual average growth rate of 7 per cent for the next decade that will bring 180 lakh domestic tourists by 2021. The average length of stay for foreign tourists is estimated as 16 days. The Department will assist, support and promote industry in developing multi-experience packages and products to increase average length of stay to 21 days.

AVIATION

Religious tours: Driving force behind Heli-tourism The use of helicopters by tourists has opened up huge opportunities for religious tourism. Inspite of this, no steps are being taken to develop heliports.

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ith a diverse topography, India has immense potential of encouraging and sustaining helicopter tourism.

It can promote tourism potential in areas such as the NorthEast, Uttarakhand, Kashmir and coastal areas.

“Helicopter application in Indian tourism is now 20 years old. Though introduced as a business travel tool, helicopters soon became a significant tool to promote tourism.

Initially it saw a slow growth pattern but now it has taken off rapidly. Heli-tourism for religious purposes is growing at a rate of 50 per cent for the last three years,” says Harsh Vardhan Sharma, Treasurer, Business Aircraft Operators Association.

Helicopters have given a new dimension to religious tourism. “It’s grown rapidly in the last 10 years and three main hubs have been developed, namely, Vaishno Devi, Amarnath and Uttarakhand.

Vaishno Devi receives 4.5 lakh tourists a year using helicopters, Amarnath around 50,000 and Uttarakhand is expecting a 50 per cent growth this year with figures touching 75,000 helicopter tourists. Machail yatra in Kashmir and Manimahesh yatra in Himachal Pradesh are also popular destinations for helicopter-based religious tourism,” adds Sharma.

Helicopters also help promote adventure tourism. Heli-

Harsh Vardhan Sharma Treasurer, Business Aircraft Operators Association

North India is very active in Heli-Tourism compared to South India.

The only drawback in North is that in Delhi, we don’t have a heliport skiing introduced in India in 1989 is one such example.

Around 500 skiers come to India each year for heli-skiing.

South, the product has not created a niche for itself yet.

The only drawback in North India is that in Delhi, we don’t have a heliport. We still have to take off from the Indira Gandhi International Airport.

So we are in talks with the government to give us a heliport. A heliport was made in Delhi for the Commonwealth Games and is lying unutilised ever since. We are really pursuing the government to make use of this facility.

We want to have a separate corridor for helicopter. At present, we don’t get a fixed time slot to take-off from Delhi, which is one of the major drawbacks for helicopter tourism,” says Sharma.

Getting heliports in larger cities such as Delhi and Mumbai will help plan heli-based tourism in a more organised manner. Till heliport facilities are not available in Delhi, Heli-Tourism will not take off in the city, but in the future, it will flourish in Uttarakhand, Himachal Pradesh and Kashmir.

Helicopter rides also have a lot of potential in the coastal areas.

Filling The Lacunae

India has 275 helicopters and only 200 are active in public domain. These include regular charters but not all are tourism focussed.

Getting heliports in larger cities such as Delhi and Mumbai will help plan heli-based tourism in a more organised manner

“North India is very active in Heli-Tourism compared to South India. In the

Till heliport facilities are not available in Delhi, Heli-Tourism will not take off in the city

Top-class aircraft service Works India Air Engineering has made a ` 120 crore investment in a Dubai-based private aviation specialist, Empire Aviation Group FZCO (EAG). This move will help Air Works to increase its footprint in the Middle East and provide world-class aircraft management services in India. The company has funded this investment through a mix of internal accruals and structured debt finance from KKR & Co. L.P. “In continuation of our long term strategy to add significant capabilities to our service portfolio, Air Works is delighted to invest in Empire Aviation Group. Air Works and

Gour and Dhamecha

EAG can build a strong franchise in the emerging aviation markets of India and the Middle East,” says Vivek Gour, Managing Director, Air Works.

EAG is a one-stop shop for integrated private aviation services offering aircraft sales, aircraft management, aircraft charter and aircraft finance and insurance. The company is all geared up to kickstart its operations in India and has set up its first office in Bengaluru.

“EAG has built a strong regional aviation business and revenues and profit have grown every year. We have also recently been looking at the exciting potential of the Indian aviation market and opened our first branch office in 2011. We warmly welcome this partnership with Air Works, which will help facilitate our entry into India and allow us to exploit the Indian market opportunity by replicating the full portfolio of aviation services for India that we have successfully developed for the Middle East,” Paras Dhamecha, Co-founder and Executive Director, Empire Aviation Group.

AVIATION

‘Survival of the fittest’ As demand increases so does supply and with more players entering the market, the airline industry is witnessing major changes. But in such challenging times, managing cost is the most important criteria for the airlines to survive, says Adel Ali, CEO, Air Arabia. Excerpts: A N I TA J A I N

What is your perspective on the changing global aviation scenario?

The world of commercial aviation has changed dramatically during the past few years. If anticipated trends are to be reviewed, it is likely to make the business climate more evolving. The airline sector across the globe is headed for turbulent times created by a surge in global fuel prices that have forced it to hike fares and resulted in the slowing of passenger growth, putting pressure on the company’s bottom lines.

Perhaps low cost carriers have an inherent advantage as this model encourages us to save costs at every step.

Air Arabia enjoys one of the world’s lowest operational costs and has been able to grow consistently in a short span of time and be among the most profitable LCCs in the world. The growth of Air Arabia also reflects the demand present in the MENA and the Indian Subcontinent regions for low cost travel.

With UAE shifting its tag from pure business to leisure destination for Indian travellers, increasing number of UAE and Indian carriers are enhancing their connections on Gulf-India route. How is Air Arabia taking on this competition from both legacy and low cost carriers?

Over the past couple of years, we have seen many low cost carriers enter the market and many more will in the near future. But in such challenging times, managing ruthless costs will be vital for any new airline to survive.

Air travel today is no longer a luxury but a necessity. Consider the demographics of the region where the population is one of the fastest growing, where 100 million people are under the age of 24 and millions more are expatriates – air travel is often

Adel Ali CEO Air Arabia

With the large number of Indian expatriates in the Middle East, there is a strong need for affordable air travel for this community to travel to their homes their only option while still maintaining lower fares compared to full-service airlines, the outlook for LCCs is bright.

Air Arabia continues to adapt upon the globally proven LCC model to the unique needs of this region. While focussing on providing the highest level of service offerings at the most competitive fares, Air Arabia continues to be the regional leader for reliable low-cost air travel solutions.

Air Arabia is rapidly expanding its operations in India with profitable returns. What’s the strategy behind this?

Air Arabia’s strategy for India has been to provide affordable, value for money travel for customers travelling to and from the Gulf. With the large number of Indian expatriates in the Middle East, there is a strong need for affordable air travel for this community to travel to their homes.

Our efforts to operate to major as well as smaller, less congested airports closer to our customer base have also been hugely successful. Air Arabia operates services to smaller cities such as Nagpur, Jaipur, Ahmedabad, Cochin, Coimbatore and Thiruvananthapuram, making it easier for our customers to fly to their destinations directly from their home town. The airline currently enjoys high load factor between India and the UAE. India is an important market for the company and we are always looking forward to expand operations further and cater to more markets between UAE and to the different cities of India.

What are the opportunities and challenges for an international low cost carrier to operate in Indian skies?

With increase in disposable income, the demand for travel has only increased and would continue to do so in future from the Indian market. However, challenges such as fuel price, open skies, airport charges and infrastructure are hindering the pace at which low cost airlines can grow. Having said that, there is an enormous opportunity for low cost air travel in India to grow.

How is the Indian market performing for you?

We started services to India in March 2005 and currently offer the most comprehensive destination network of any international airline in India.

Air Arabia currently flies from its hub in Sharjah to 13 destinations in India (Bengaluru, Ahmedabad, Chennai, Jaipur, Kochi, Mumbai, Nagpur, Coimbatore, Thiruvananthapuram, Hyderabad, Kozhikode, New Delhi and Goa) with 105 weekly flights. There is certainly a need for improved connectivity from several cities and towns in North and Central India to the UAE.

Now wider seats for obese travellers With increasing weight issues of passengers, Airbus has decided to build wider seats on its A320 aircrafts. They propose to make the aisle seat wider, while decreasing the other two seats and passengers would have to pay extra for these premium seats.

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Air charter market takes flight in India Air Partner and InterGlobe Established have partnered to launch a range of air charter products in India. Now, commercial jets ranging from 20 to 500 seats will also be available for charter.

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hilst scheduled airlines in India are going through some tough time, the non-scheduled services are making a beeline for the affluent Indian passengers. A new

Nigel Harwood President & CEO THE ESTD

Our target audience is anyone who requires a private air charter – from a 10-seater private jet to a 500-seater Airbus entry into this sphere is the strategic partnership between Air Partners, the world’s largest listed air charter broker and the only aviation company to hold a Royal warrant from Her Majesty Queen Elizabeth II and InterGlobe Established (THE ESTD), a luxury lifestyle provider and subsidiary of InterGlobe Enterprises.

“With a large high networth individual’s community and growing international and domestic travel requirements, the charter market in India is growing significantly.

Currently valued at US$ 135 million and growing annually at 10 per cent, we see great potential for this business. In addition, associating with Air Partner, guarantees a level of quality and service that is second to none and fits perfectly with THE ESTD ethos, making us stand out from the rest,” says Nigel Harwood, President & CEO, THE ESTD. In India, Air Partner will offer full access to the group’s on-demand charter and unique pre-paid JetCard scheme; providing the most flexible pricing options in private jet travel. They will also

have access to Air Partner’s commercial jet services, which charters airliners with 20 to 500 seats to move groups of any size and Air Partner Freight, which charters aircraft of every size to fly any cargo anywhere, at any time.

As part of the alliance, a 24hour flight operations team will be in place to handle all customer needs, providing flexibility and service which is second to none.

“Our target audience is anyone who requires a pri-

vate air charter – from a 10seater private jet to a 500seater Airbus. Therefore, from industry to commerce, state governments and private individuals, to all aspects of the tourism sector, Air Partner can tailor solu-

tions to meet specific needs.

Air Partner does not own aircraft in any particular country. Instead, they have access to aircraft all over the world through their associations with brokers and operators,” says Harwood.

Flying High Air Partner will offer full access to the group’s on-demand charter and unique pre-paid JetCard scheme; providing flexible pricing options

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MOT

Pledge towards building a Clean India Contd. from page 1

maintenance of parking lots and toilets and proper signages at the heritage complex among others. The project will also address issues such as conversion of Qutab Minar complex into friendly zone for physically-challenged persons, tourist help-desks and deployment of volunteers for better management amongst others.

Urging PSUs to come forward to support the campaign, he said,

“The campaign will be carried out in the PPP model with the involvement of PSUs and corporates. I will convene a meeting of PSUs and corporates to work out the details as well.�

ITDC has networked with various stakeholders, including Municipal Corporation of Delhi (MCD), Archaeological Survey of India (ASI), Delhi Jal Board (DJB), Delhi Development Authority (DDA), Traffic Department and the Shop Owners and Trade Association around the Qutab complex to make the project a success.

NGO Prayas has also been roped in as a partner in this project.

Cleaning India According to Sahai, the project involves round-the-clock garbage clearance, drinking water facilities, maintenance of parking lots and toilets and proper signages at the heritage complex among others

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Now, NTOs target women travellers An increasing number of Indian women travelling to South Africa with their husbands on company-sponsored trips are reportedly seeking adventure activities.

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n a bid to encourage this trend, South African Tourism is offering a ‘Spouses Programmes’ that includes activities like bungee jumping and edge driving adrena-

Malaysia for women travellers

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ourism Malaysia has observed an increase in the number of Indian women visitors. Shopping and sightseeing are the real craze for them, and the wealth of shopping options and spa & wellness facilities in Malaysia is what attracts Indian women tourists the most.

Shopping is one of the most exciting choices for Indian women travellers, and the best places to indulge in a shopping spree are Kuala Lumpur, Penang, Langkawi and Johor, among others.

Women also enjoy Malaysia’s spa & wellness activities at various highend properties, which can be found at premium, exotic locations like rainforests and beaches.

They mostly prefer destinations like Sabah, Sarawak and Taman Negara, which provide adventure experiences for those interested in diving, snorkelling, trekking, etc.

line rush opportunities for women looking out for adventure.

"Adventure forms over 65 % of all our leisure itineraries and is a major offering of the spouses programme," said Hanneli Slabber, Country Head, South African Tourism.

Nearly 50% of all Indian arrivals in South Africa (90,367 Indians arrived in 2011) reportedly fall into the MICE category that peaks during the summer months.

"The spouses programme is integral to promoting tourism in the country as delegates are often busy in meetings and conferences

leaving them little time for exploring places," Slabber said.

With more than 200 game lodges in wildlife parks, South Africa is becoming popular with Indian corporates for several offsite sessions. At first, adventure activities like

bungee jumping, edge-diving and kayaking with penguins were an 'optional extra' in the spouses programme.

adventure-based activities and we soon incorporated such activities into the main programme," Slabber said.

"The initial focus was on shopping and spa therapies but we began getting a lot of enquiries from women for

The highest bungee jump by an Indian woman in South Africa so far has been a 700-feet jump from the

Bloukrans Bridge near Nature's Valley in the Western Cape, while an 82year-old Indian woman is the oldest to do edge diving.

Going by the arrivals from India, South Africa expects one lakh tourists from the country this year.

Hanneli Slabber Country Head, South African Tourism

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Ready for a ‘Games Break’ this Olympics Thomas Cook Sport is the official sponsor of the London 2012 Olympic and Paralympics Games while SOTC has partnership with The Indian National Olympic Committee. talks to the spokespersons of these companies to know more.

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ondon will host the Olympics from July 27August 12. This is the third time the city is holding the event after 1908 and 1948.

In a run up to the event, tour operators in India are expecting higher bookings now. The demand for the event had waned due to the sliding rupee concerns and the weak global economy. However, as the sporting extravaganza approaches, tour operators here are trying to woo the high net individuals and corporates with customised packages for the Games.

Says SD Nandakumar, Head Tour Operating-B2B, SOTC, “SOTC Sports is the authorised marketing agent of Prestige Ticketing Limited (PTL). We are offering worldclass hospitality experience tickets to sports enthusiasts in India. The demand is pick-

ing up now as we move closer to the event. The response for customised packages has been good in spite of prices being in the range of £500 to £7,500 ( ` 42,000 to over ` 6 lakh).” The demand has been pouring from the metros and some Tier-II cities.

Sports enthusiasts, HNIs and corporate clients are showing interest for these packages.

Demand is higher for the opening ceremony, hockey and athletics from Indian travellers. With Indian Hockey Team qualifying for London Olympics, considerable interest has been generated among Indian sport enthusiasts and corporates to travel all the way for supporting Indian athletes at the event, he adds.

Official sponsor of the London 2012 Olympic and Paralympics Games, Thomas Cook Sport has also launched London 2012 Olympics Short

Rajeev Kale

SD Nandakumar

Chief Operating Officer Leisure Travel (MICE, Cruises, Sports Holidays & Domestic), Thomas Cook

Head Tour Operating-B2B SOTC

Sports tourism is an emerging sector and we have witnessed strong growth in the past few years

The response for customised packages is good despite prices ranging from `42,000 to over ` 6 lakh

Breaks and hospitality packages exclusively for the Indian traveller. With a range of over a 1,000 pre-packaged short breaks to choose from a diverse range of customer segments, from the budget consumer to the extravagant sports enthusiast, we will find a package that suits their requirement and price points.

Starting at just ` 10,999 (per person on twin sharing basis), the ‘Games Break’ package is ideal for the value conscious Olympic fan.

Further, all Thomas Cook short break package customers will have exclusive access to Thomas Cook representatives throughout their trip. For the corporate customer, Thomas Cook has introduced special ‘Corporate Hospitality’ packages for the London Olympics.

Talking about the upcoming event, Rajeev Kale, Chief Operating Officer,

Leisure Travel (MICE, Cruises, Sports Holidays & Domestic), Thomas Cook informs, “Sports tourism is an emerging sector in India and we have witnessed strong growth in the past few years. Our partnership with The Indian National Olympic Committee offers us exclusive rights to host Official London 2012 Olympic short breaks and hospitality experiences for the London 2012 Olympics, especially for the Indian market.”

Sparking Interest The London 2012 Olympics has received immense interest from Indian sport aficionados. Thomas Cook Sport handles the travel of players, coaching teams, sponsors and fans of all major professional sports teams

HOTELS

1 year and high occupancy st

Opened last year, the 203-room property – Aditya Sarovar Premier Hyderabad has completed one year of operations witnessing an occupancy level of 45 per cent on an average.

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he property is owned by Manjira Group and managed by Sarovar Hotels & Resorts. With services and facilities apt for business and leisure travellers, the property has recently started offering packages for long-staying guests and frequent/loyal guests. It is confident to record an average of 60-65 per cent occupancy this year as there are many domestic and international events, shows, exhibitions, conferences and festivals scheduled to take place in Hyderabad this year. Currently, the property gets bookings from both direct (online website and sales offices) and indirect channel (travel agents) and intends to further enhance the relationship with B2B partners.

Michael Gurpreet Singh General Manager Aditya Sarovar Premier Hyderabad

Moreover, there are multiple events happening in the city from September when the occupancies will be higher.

Hyderabad can still absorb more hotel rooms as the city is developing in various sectors and businesses. Despite having three Sarovar properties, each one is performing well and I’m sure the hospitality players in the city are also as positive as we are about the growth in the market.”

Talking about the future plans, Michael Gurpreet Singh, General Manager, Aditya Sarovar Premier Hyderabad said, “Since the opening, we have received a good response from the market and have received an average of 45 per cent occupancy.

However, this year, we are expecting 60-62 per cent occupancy by year end.

Location tracker Located near Hyderabad International Convention Centre & Cyber Towers, Aditya Sarovar Premiere is about 28 kms away from Airport, about 25 kms from Nampally Railway Station and about 30 kms from the Secunderbad Railway Station

4-star service residences Zero debt firm Assotech Realty launched an eco-friendly business park – Assotech Business Cresterra with 4-star serviced residences. the next decade. We are looking at an investment of Rs 250 crore in the hospitality segment.” To start with, ABC will have a high-end retail wing ‘Sandal Street’ offering, street shopping experience along with multi-cuisine restaurants, food court and coffee shops.

SA N J E E V B H A R

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ssotech Business Cresterra (ABC) has outlined to take its 4-star serviced residences brand ‘Sandal Suites’ as part of its mixed used development in Greater Noida to mark its presence across India.

Talking about the plan, Neeraj Gulati, Managing

Specifications The campus of ABC will be spread across 14 acres of land Sandal Suites comprises of 142 deluxe and premium accommodation options. It will be positioned as a 4-star level luxurious serviced residence complex

Neeraj Gulati Managing Director Assotech Realty

Director, Assotech Realty, said, “There is a huge growth potential in the serviced apartment segment. Keeping in mind the increasing corporate travel and shortage of hotel rooms in India, we will be taking a pan India stride by opening Sandal Suites in 25 cities across India over

It is expected to be operational by the end of 2014. Gulati observed, “Apart from stay options, Sandal Suites will also have an ultra modern club house with gymnasium & spa, terrace swimming pool and a poolside lounge & bar.”

Further, the project has been planned on the intelligent energy-efficient Green Building concept by adhering guidelines of the LEEDS Gold Certification.

Caravan Parks in India Automotive component maker Paracoat Product (PCP) recently launched PCP Terra Home cars in India priced at ` 35-38 lakh. The company intends to sell close to 90 cars by March 2013 across India targeting corporate travellers, politicians, Bollywood stars and car rental companies.

“Once we have enough cars

in the market, we will start rolling out caravan parks in Rajasthan, Gujarat and Madhya Pradesh. With an investment of ` 10-15 crore on each park, one state will have about five to six parks,” informed Rajesh Poddar, MD & Director – Business Development, Paracoat Products.

Rajesh Poddar MD & Director – Business Development, Paracoat Products

HOTELS

‘Ginger’ing up the budget The budget hotel chain – Ginger Hotels, owned by Indian Hotels of the Taj Group of hotels, expects to run 80 hotels in the next three-four years.

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ost the opening of its 25th property in Delhi NCR, Ginger Hotels, a Tata Group enterprise, is looking at investing over ` 600 crore in the next four years to open 55 new properties across the country.

Speaking to after the launch of Ginger Hotels in Faridabad, Prabhat Pani, Chief Executive Officer and Director, Roots Corporation, a subsidiary of Indian Hotels, said, “In the next four years, we are looking at opening 55 new hotels. This would require us to invest over ` 600 crore.”

The group sees a lot of potential in the Tier-II and Tier-III cities. “We will open multiple hotels in bigger cities such as Delhi, Mumbai, Chennai and Kolkata.

However, we are also looking at foraying into smaller places such as Patna, Coimbatore, Kochi and Nagpur. Most of our properties would have an inventory of 100 rooms.” Out of these proposed 55 properties, seven hotels are under construction in Noida, Greater Noida, Chennai, Bengaluru, Jaipur, Chandigarh and Amritsar.

These will be opened in the

Prabhat Pani Chief Executive Officer and Director Roots Corporation

In the next four years, we are looking at opening 55 new hotels.

This would require us to invest over ` 600 crore next 12-15 months, he informed. Elaborating on the details about each property, Pani revealed, “While some of these hotels are leased ones, some have been constructed by us. The total investment will be around ` 60-70 crore

for these seven hotels, comprising a total of around 600700 rooms.” Previously, the company would acquire land and promote the project itself. It has now taken alternative routes which include developing hotels inside malls, a public-private partnership model or redevelopments to an existing property as well.

Regarding its new launch in Faridabad, Pani pointed out, “This is our fourth hotel in the NCR and our first hotel in Faridabad.

Ginger Hotels has been well received in North India for its immense potential in this innovative category of hotels.

The new hotel will meet the needs of travellers visiting the NCR region which has seen rapid growth in industrialisation and urbanisation but has retained the sanctity of its culture.”

New Projects Of the proposed 55 properties, 7 hotels are under construction in Noida, Greater Noida, Chennai, Bengaluru, Jaipur, Chandigarh and Amritsar These will be opened in the next 12-15 months

31% commission for agents Citrus Check Inns is now approaching travel agents to offer ‘flexi-stay’ holiday options to travellers based on ‘holiday ownership’ concept where the agents can earn up to 31 per cent of commission on selling a single product.

Citrus Check Inns, a timeshare company offering ‘flexi-stay’ holiday options to travellers based on ‘holiday ownership’ concept, is now approaching travel agents to popularise the business model in India. By selling Citrus Check Inns (CCI) membership to travellers, travel agents can earn commissions and incentives based on product and volume and apart from quarterly and annual commission.

Additionally, travel agents can build a long-term relationship with the traveller to arrange logistics of the trip planned by CCI member. Launched in March this

Somnath Pal CEO Citrus Check Inns

year, the CCI programme has six DSAs (Direct Selling Agents) spread across Chennai, Mumbai, Andhra Pradesh and Kerala with over 650 members. It intends to have more than 40 DSAs and over 5,000 members in the next one year through various distribution channels, marketing efforts and business strategies.

Detailing about the benefits of becoming a DSA, Somnath Pal, CEO, Citrus Check Inns said, “The concept of timeshare

is still at a nascent stage and thus, there is a huge opportunity to tap in for all the stakeholders of this industry. We are approaching travel agents as they give a strong relation with end travellers as compared to any other channels. With receding commissions from airlines, timeshare can be a good option for agents for surviving the growth of the business. Agents can earn up to 31 per cent of commission on selling a single product.” There are only two main criteria to become a DSA for CCI. First, a security deposit of ` 50,000 which is refundable and second, the agency should have office space with fixed telephone and fax line.

CCI will help agencies with training the staff on the product, branding exercise and assistance in marketing.

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FAMILY ALBUM

Rendez-vous Canada Led by the Canadian Tourism Commission (CTC), Rendez-vous Canada (RVC), hooked up international buyers with Canadian sellers of tourism products and services at its 36th edition on May 13th-16th, 2012, at the Edmonton EXPO Centre located in the Edmonton, Alberta. Also, highlighted at the event was the CTC’s Signature Experiences CollectionŽ (SEC) - which had collected 163 outstanding experiences from every region of the country.

Crowne Plaza Today Gurgaon hosts cocktail Ushering the weekend on a Friday night, Crowne Plaza Today Gurgaon hosted a big bash to honour its travel trade partners. It was a fun-filled event with a music extravaganza, Bollywood quiz and dance, which witnessed the who's who of the trade.

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Reopening wounds

Commission cut from 3%-1%

Air India and Jet Airways’ recent decision to cut agent commission from 3% to 1% from July 16, has created a stir in the industry. Extremely unhappy with this decision, association leaders address the issue and find a way out.

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f air turbulence was not enough for the airlines, Air India and Jet airways have geared up to face the wrath of travel agents. The two airlines are set to cut travel agents commission from the existing three per cent to one per cent, effective July 16, to save costs.

Extremely unhappy with this decision, the Travel Agents Association of India (TAAI) wrote to Air India requesting them to withhold this decision till November 1.

TAAI emphasises that this is not an appropriate time to accommodate any change in remuneration to the travel agents from Air India. With the current situation of Air India

where flight schedules are disrupted due to the ongoing strike of the pilots, this reduction would totally discourage the agents from promoting the national carrier, which would lead to further losses.

“We have opened a dialogue with AI and have exchanged letters urging them to hold the decision till Nov 1.

The travel industry is going through many changes at the moment and cutting the marketing arm for the airline is not a wise decision in the present scenario. Communication with Jet Airways has also begun,” says Iqbal Mulla, President, TAAI. Ready to take immediate action and absolutely not accepting one per cent commission, IATA Agents Association of India

The other side

Iqbal Mulla

Biji Eapen

President, TAAI

President, IAAI

We have opened a dialogue with AI and have urged them to hold the decision till Nov 1

3% commission has to be reinstated and we will make this happen

Ajay Prakash President, TAFI

The reduction in commission should be discussed

(IAAI) wants the 3% reinstated for the agents. “We will not let the industry suffer. 3% commission has to be reinstated and we will make this happen.

The commission is mandatory for travel agents and we will not accept 1% commission. We will not let this issue rest,” says Biji Eapen, President, IAAI. The association has sent registered letters to the DGCA and the two airlines. Around 17 international airlines don’t pay commission to airlines after moving to zero-commission regime. Many travel agents then boycotted these airlines. However, a collective boycott at this time might bring the agents under Contd. on page 32

Agents are crucial for us: Emirates

Unofficially the most popular airline in India, Emirates Airline continues to strengthen its relations with the Indian travel fraternity and increase its market share.

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ith special attention to tailor products and services to each country, Emirates Airline strives to become the preferred choice among travellers. Not just providing air transport, they highlight the importance of an overall experience.

“India, as an operating station, is one of the most critical markets on our global network and contributes significantly to the overall rev-

enues of the airline. The country has a huge population of global citizens and frequent fliers, providing us a significant opportunity for growth. An increase in price does soften demand, though we are confident our superior product still provides passengers the valuefor-money and will continue to provide us with a competitive edge. We enjoyed a healthy load factor from all stations in India and our performance has been satisfying.

However, there is always

room for improvement and we, at Emirates, continuously strive to improve our offerings to our customers,” says Orhan Abbas, Vice President – India & Nepal, Emirates Airline. Travel agents have been hugely credited for the growth of the airline in India.

“The majority of our business comes from travel agents (in excess of 80 per cent).

We believe travel agents are our partners in success and a significant part of our distribution mix.

Hence, we make sure that we provide them with a cohesive business environment. We introduce various incentive programmes, special initiatives, schemes and offers from time-to-time,” adds Abbas.

The airline plans to implement various offers in the Indian market to woo the traveller. This includes

a year-round offer, Dubai Stopover, which enables passengers travelling to or beyond Dubai, enjoy a two-night stopover in Dubai at discounted hotel rates.

Emirates Airline is also expanding globally this year. It plans to launch services to Barcelona on July 3, Lisbon on July 9, Erbil on August 12 and Washington on September 12.

Orhan Abbas Vice President – India & Nepal Emirates Airline

‘Agents bring us maximum business’ Having increased its flight frequency to six flights a week, South African Airways is all geared up to capture the Indian market. The airline credits travel agents for 95 per cent of their sales. route, offering the Indian passengers a state-of-the-art product for their travel.

T T B U R E AU

T

he Indian market is important to South African Airways and they have introduced an additional fifth frequency from Mumbai to Johannesburg as of June 16, 2012, with a sixth frequency scheduled to commence in August this year once approvals are through.

The airline recently acquired an Airbus A330-200 and has dedicated this on the Indian

Sajid Khan Country Manager – India South African Airways

“The total market size of visitors to South Africa from India is approximately 1,10,000 passengers per year.

We have increased our flights, taking our frequency from four to six (with the sixth frequency effective August 2012, subject to government approvals), as we continue to see an influx of visitors.

India is a high potential market and SAA is here to not only meet, but help increase the demand.

South African Airways is now the only airline to fly direct from Mumbai to Johannesburg,” says Sajid Khan, Country Manager – India, South African Airways. Approximately 95

per cent of the airline business comes from travel agents, and they will continue to work closely with the travel fraternity. “We incorporate systems that are more friendly, flexible and adapted to their needs. We continue to have an open dialogue with our travel agents,” adds Khan.

In spite of the challenging times for the aviation industry, South African Airways has seen development opportunities in the Indian

market and will continue to strengthen its market share.

“With rising fuel costs, the current market is undoubtedly a challenge for all airlines. Our load factors have been healthy, and this has been spurred on by strong investment in South Africa from India’s point of view supported by BRICS. This has strengthened the commercial ties between the two countries.” South Africa presents opportunities for wildlife, vineyards, etc.

32 TRAVTALK

HOTELS

JULY 1 ST FORTNIGHT ISSUE 2012

‘Greener’ pastures: Hotels’ next motto As the ‘go-green’ wave in the Indian corporate culture gathers momentum, hotels are leaving no stone unturned to build environmentally-responsible properties that could fill a niche in the hospitality industry…

M E G H A PAU L

A

s the entire world celebrated the World Environment Day on June 5, the hospitality industry in India is also ramping up operations to go green. The growing green consciousness among hotel chains in India,

Niranjan Khatri

Vijay Wanchoo

GM - Welcomenviron Initiatives ITC Hotels

Senior Executive Vice President & GM, The Imperial New Delhi

The new mantra for business is to try and embrace the triple bottom line philosophy: people, planet and profit both international and domestic, shows that such initiatives add to the bottom line rather than just adding a new dimension to a hotel’s brand identity.

At The Imperial New Delhi, World Environment Day was ushered in with the

(IGBC), licensed by the internationally renowned US Green Building Council.

Tamir Kobrin, GM, The Leela Palace New Delhi says, “The LEED Platinum Certification demonstrates our deep commitment to reach the highest level of environmental protection and social responsibility in everything we do.”

inauguration of solar panels at the hotel. Acknowledging the role of the hospitality sector and ensuring green growth, Vijay Wanchoo, Senior Executive Vice President & GM, The Imperial New Delhi points out, “These solar panels will be used for heating water in

We discourage deforestation and regularly recycle metal and oil wastage. We also recycle paper and send waste to recyclers guest rooms which are extremely efficient in saving energy, emit less carbon and thereby is environmentfriendly. We have also launched an organic menu at 1911 for breakfast and lunch.” Some of the hotel’s practices includes following the Earth hour, taking steps

Tamir Kobrin

Manoj Madhukar

General Manager The Leela Palace New Delhi

General Manager Best Western Maryland, Zirakpur

The LEED Platinum Certification demonstrates our deep commitment to reach the highest level of environmental protection towards effective waste management, using alternative sources of energy, reducing carbon footprint, sourcing organic food amongst others etc. “At The Imperial, we have asked our suppliers to reduce packaging material.

We recycle paper and send waste to recyclers. The recycling initiatives also include processing of all printed stationery for notes, internal posters etc. We firmly discourage deforestation and regularly recycle metal and oil wastage,” he adds. Future actions include installation of CFC - free equipment for refrigeration, replacing the pumps with VFD systems

We have a sewage treatment plant that is designed to receive the waste and remove materials that damage water quality (Variable Frequency Drive) that will consume electricity as per the requirement, installation of solar lighting fixtures for plantation areas and solar water heating system and placing water recycle plant for gardening, flushing systems and cooling towers.

The Leela Palace New Delhi bagged the highest level of Leadership in Energy and Environmental Design (LEED) certification, LEED Platinum. The certification was awarded for excellence in sustainable design and integrating world-class green best practices by The Indian Green Building Council

Cutting commissions Travel Business on Contd. from page 30

the lens of the Competition Commission of India (CCI).

Addressing the issue practically and more realistically, Ajay Prakash, President, Travel Agents Federation of India (TAFI) says, “Fighting is the wrong way to address the commission issue. The reduction in commission should be discussed and a holistic picture should be seen. We are talking to all the airlines especially the ones with zero commission to reintroduce at least the token one per cent. The 17 airlines that abolished commission

have realised that it was counter productive. We have to address each airline individually. CCI will not let us all sit together and discuss the issue, with all the airlines.”

TAFI plans to open dialogue with the airlines and take legal advice. “Agents should realise that they offer professional services and can charge a fee for this. A more pressing issue is that of dual pricing. We have to speak to the regulators and the Government and address the lack of fare parity,” says Prakash.

Virgin Atlantic

The 260-room Leela Palace New Delhi, which has been operational for only one year, earned this internationally recognised mark of excellence for being a stellar carbon-reducing facility with rigorous green standards in all key areas, he adds. The other initiatives include placing energy-efficient insulation on the roof and walls to reduce transmission energy needed to cool the building, reducing water consumption by more than 40 per cent by selecting ‘green’ plumbing, mechanical and lighting systems designed to conserve water and energy and installing a state-of-the-art rain water harvesting plant.

Talking about the green initiatives at the Best Western Maryland in Zirakpur, Chandigarh, Manoj Madhukar, GM, Best Western Maryland, Zirakpur comments, "For water conservation we have a sewage treatment plant that is designed to receive the waste and remove materials that damage water quality and compromise public health and safety when discharged into water receiving systems."

The hotel also has a water softening plant.

One of the lacunae in the industry worldwide is that the subject of sustain-

ITC has relentlessly worked in the direction of sustaiability for the last few decades to become the 1st and only company in the world to become water positve, carbon positve and solid waste recycling positive, in partnership with many stakeholders. “The new mantra for business is to try and embrace the triple bottom line philosophy: people, planet and profit. From the India perspective, unless we learn to treat water like money, it will become a limiting factor for businesses.

Hotels should reduce its waste footprint innovatively and productively. In ITC, we call waste as wealth in the wrong place.

It is my personal view that the word waste should be called 'business residue',” says Niranjan Khatri, GM Welcomenviron Initiatives, ITC Hotels.

Eco-friendly methods The other initiatives include placing energy-efficient insulation on the roof and walls to reduce transmission energy needed to cool the building Reducing water consumption by more than 40 per cent by selecting ‘green’ plumbing Mechanical and lighting systems designed to conserve water and energy

Pune to Hyderabad and Delhi in IndiGo IndiGo is further enhancing its customer experience with an introduction of four new flights in its network.

Effective June 25, IndiGo will

The new Virgin Atlantic A330 aircraft will take off on its inaugural voyage from London to Delhi on July 11, 2012. As part of its £100 million investment plan, the international airline has unveiled its redesigned Upper Class Cabin on the new A330. It boasts of the longest bed in Business Class, a spacious and comfortable seat, a 2.7 mt long onboard bar and much more.

able development has not permeated into different disciplines of the organisations like finance, marketing and management. ITC Hotels has taken a lead in empowering knowledge to upgrade skills among its employees which is due to last two decades' effort by its training department.

Aditya Ghosh President, IndiGo

bring Pune closer to Hyderabad and Delhi. It will now operate its second daily and direct flight between Delhi and Pune, and its new daily & direct flight between Hyderabad and Pune.

Aditya Ghosh, President, IndiGo said,

“We are looking at providing affordable fares on these new routes for 6E travellers.

34 TRAVTALK

JULY 1 ST FORTNIGHT ISSUE 2012

NEWS

Monsoon Tourism: Will it rain big bucks? speaks to various states to understand the scope of Monsoon Tourism in the country along with a slew of initiatives undertaken this season.

M E G H A PAU L

W

hile most travellers would typically avoid India during the wet season, now states have geared up to tap this segment by promoting the unique thrills offered by the Indian monsoon.

After promoting its backwaters and houseboats, Kerala is now aggressively promoting its tourist spots as a 365-day destination.

Monsoon tourism in Kerala has also helped to boost footfalls to the lesser-known destinations in the state. The

Kerala’s Plans Kerala is now aggressively promoting its tourist spots as a 365-day destination Monsoon tourism in Kerala has also helped to boost footfalls to the lesser-known destinations in the state

Wayanad monsoon carnival - Splash is an example of joint efforts of the State Government and Wayanad Tourism Organisation (WTO).

Into its fourth year, Splash has helped in positioning Wayanad as a monsoon destination in both domestic and international tourism circuits.

Designed in a way to offer the local flavour of the destination to the travellers, the festival this year will be organised from July 13-15 at Kalpetta in Wayanad.

Expected to be inaugurated

by Oommen Chandy, Chief Minister, Kerala, the event will witness a participation of almost 400 delegates, out of which 200 delegates have already registered. This was revealed by K Ravindran, Coordinator, Splash 2012.

In the recently concluded Global Investors Meet in Karnataka, Vishwanath Reddy, Director - Tourism, Karnataka said, “The tourism

department has invited public private partnership (PPP) for developing 18 tourism projects. For all these 18 projects, the government would be offering land on lease. In these projects, we want to promote Monsoon Tourism in a big way.” To develop Monsoon Tourism, creating infrastructure is the first step. “For example; Augumbe in the Malnad region has no basic amenities for tourists. So, we are roping in private investors to develop highway amenities here.

Similarly, we want to develop Pearl Valley in Anekal with a resort offering adventure sports and urban entertainment. These destinations could be suitable to promote this niche tourism in a big way. Badami needs a five-star hotel. Even Jog requires an eco-resort or adventure sports so that this segment of tourism can be developed here.”

Vishwanath Reddy

Ralph D’Souza

Director-Tourism Karnataka

Spokesperson TTAG

We are roping in private investors to develop highway amenities in Augumbe. We want to develop Pearl Valley in Anekal

The off-season luxury tax is in the range of 2.5-5 per cent, which is a great boost to the hotel industry

Ralph D’Souza, Spokesperson, Travel and Tourism Association of Goa (TTAG), Goa, says, “From this year on with the luxury tax discount, the off-season luxury tax is in the range of 2.5-5 per cent, which is a great boost to the hotel industry and the travel industry in large.

Further to this, there has been a steady increase in tourists with the recent packages that Goa Tourism Development Corporation (GTDC) has unveiled this season as well,” he said. The GTDC has announced two new monsoon packages -Heritage and Hill Retreat and Movie Magic. Furthermore, the corporation is also planning to launch white water rafting this year. This is expected to garner the tourism portfolio of the state this monsoon, he added.

Gujarat ties up with Cox & Kings

With an aim to offer a variety of tour options and assistance in holiday packages in Gujarat, the Tourism Corporation of Gujarat Limited (TCGL) has entered into a marketing tie-up with Cox & Kings.

The India 2020 Strategic Plan

Tourism Australia recently launched a new business strategy –The India 2020 Strategic Plan –at ATE12 in Perth. It argues that to reach the goal, Australia must strengthen its presence within the India market now to be better placed when demand accelerates.

A new report on travel expense According to a latest report on travel expense management process commissioned

by Concur Technologies and conducted by Nielsen India, Indian organisations are increasingly understanding the need to move to an auto-

mated travel expense management process to reduce cost, optimise spend, for efficient processing and for ensuring zero manual error.

Christopher Juneau, Senior Director – Marketing, Concur Technologies said, “This study

confirms that many Indian companies have costly and inefficient travel and expense claim processes that lack automation. It has become important for Indian companies to manage their spend and travel budgets wisely.”

36 TRAVTALK

NTO

JULY 1 ST FORTNIGHT ISSUE 2012

Rising NTO competition in India worries Oz Recognising the growing competition in the Indian market by other NTOs, Tourism Australia has announced that it will double its marketing spend in the year 2012-13.

ARCHANA SHARMA

FROM

“T

here is cut throat competition in the Indian market. Other NTOs such as Britain, South Africa, the US and Canada are targeting India’s growth potential in a big way. And therefore, we have no scope for complacency,” says Martin Ferguson, AM MP, Minister for Tourism.

“To combat the upcoming challenges from rising competition, we have come out with ‘The India 2020 Strategic Plan’ which aims at

• •

A U S T RA L I A capturing traffic from the country’s increasingly affluent middle class, living in New Delhi and Mumbai,” he adds.

The Strategic Plan is developed by Tourism Australia in consultation with the industry and government stakeholders and is seeking to secure a greater share of the 50 million Indians expected to travel overseas by 2020.

Speaking to the media, the Minister discussed the

Australia: No. 1 jealousy destination •

More than 25% of Brits have booked a holiday after seeing a friend’s pictures, a study revealed.

• 27% are left feeling so envious of their friend’s holiday that they end up booking their own.

• The research, from Teletext Holidays, found that Australia, Bahamas and Barbados are the most envyinducing destinations.

The top five destinations most likely to induce jealousy: 1. Australia 4. United States of America 2. Bahamas 5. Maldives 3. Barbados

• •

Martin Ferguson

Andrew McEvoy

AM MP Minister for Tourism

Managing Director Tourism Australia

Other NTOs are targetting India’s growth potential in a big way

India is a market of strong future potential for Australian tourism

possibility of starting a direct connectivity between Australia and India. “Lack of direct connectivity at times plays a deterrent to tourism

growth. So we are in constant discussions with airlines to start a direct connectivity between the two countries.”

Choosing the right target customer A clear geographic strategy to focus resources Building a sustainable, competitive aviation market between Australia and India Developing quality experiences

While talking about India as a source market, Andrew McEvoy, Managing Director, Tourism Australia, stated, “India is a market of strong future potential for Australian tourism given the nation’s rapid rise in such a short span of time in the tourism front.

Tourism Australia understands both the potential and location of the desired, future Indian visitor to Australia, yet we also acknowledge this is a unique and complex market, that is becoming increasingly competitive and which needs a clear, strategic approach to build a platform for any substantive future success by our industry.”

He laid emphasis on improved air access and capacity, which could be one of the keys to unlock India’s long-term tourism potential.

He informed that visitors at the moment had to travel through hub airports in South East Asia to get to Australia.

A number of carriers including Singapore Airlines, Malaysia Air Services, Qantas, Thai Airways, Cathay Pacific and Emirates service the route through hubs, however there are no non-stop indirect flights between India and Australia.

The introduction of non-stop, direct flights would depend in the future on whether the airlines servicing the route can deploy suitable long range aircraft.

“Tourism Australia will also work with Indian airlines and other carriers to identify opportunities for India and provide partnership solutions,” said McEvoy.

Australia calling, but where are the flights?

Tourism Australia has given a high priority to aviation links in its ‘2020 India Programme’. airlines to know the status quo on the same.

ARCHANA SHARMA

O

ut of the four areas pivotal to achieving India’s 2020 tourism potential and winning market share, Tourism Australia is emphasising on an Aviation Development Strategy.

According to estimates, an extra 3,45,000 seats will be required to meet the expected demand from India by 2020.

According to Martin Ferguson, AM MP, Minister for Tourism building a competitive aviation market between Australia and India will be a priority for the country. spoke to a couple of travel agents and airlines to check the demand-supply gap on this route.

Sunila Patil, Director, Strawberi Holidays, says, “It’s commendable that Tourism Australia is working on this 8-year strategy to get things in place. It is true that the biggest need of the hour for the route is direct flights.

We need more seats and

more flights. We all know that there are many tourist experiences in Australia, but getting here is a big problem.

Reach is the biggest chal-

Stephen Thompson Executive Manager, Qantas

We’ll look upon re-starting operations between IndiaAustralia once we see profits coming in

with this partnership and see if we can get some more connections on transit hubs. We realise the potential of the India market and are therefore continuing despite tough challenges. Presently, we find codesharing the way forward for our current challenges.”

lenge we are facing while planning itineraries.’

Vineeta Rawat, Director, Amazing Vacations supports the views given by Patil and does a comparative study between Australia and Europe.

“Europe becomes a little cheaper than Australia because there is one entry and one exit point and then you can travel by rail or road.

However, Australia is different. The distance is too much and therefore, we need flight connectivity within Australia also. So initially flying to the South East Asian transit hubs and then to Australia makes the cost higher in the package.”

What I feel is that direct flights will definitely lower the cost of packages, she says.

Meanwhile, commending the 2020 plan, she says, “It is good that Tourism Australia has started talking about it. If they are planning it now, it will definitely take shape in a year or so,” she adds with optimism.

talks to agents and

Vineeta Rawat Director Amazing Vacations

We wait for the direct routes to open up so that outbound numbers to Australia go up Meanwhile, Qantas, who recently pulled out its direct operations from Mumbai to Australia, sees no immediate plans to start direct operations anywhere in the next few months.

Sunila Patil Director, Strawberi Holidays

We need more seats and flights.

Reach is the biggest challenge we are facing Stephen Thompson, Executive Manager, Qantas, says,” We are committed to the Indian market and that’s the reason we are continuing our codeshare flights with Jet Airways. We will continue

“We will look upon restarting direct operations between India-Australia once we see profits coming on this route. Right now, the rising fuel price and taxes have forced us to pull out our operations,” he adds.

As of now, all hopes are on Air India who has been talking about launching IndiaAustralia direct flights since the last one year. Says Rawat, “We have been hearing about Air India planning to start operations on this route for the last one year. But still nothing has been communicated to us.

So we keep our fingers crossed and wait for the direct routes to open up so that outbound numbers to Australia go up and the package prices fall down,” she adds.

CRUISES ‘Azamara’ from Mumbai & Chennai

A

Gautam Chadha CEO, Tirun Marketing

The seasoned Indian traveller has started to appreciate the value of such cruises packages from Mumbai (to Chennai) and Chennai (to Singapore) respectively.

Tirun Marketing, representing Azamara Club Cruises in India, is reaching out to the travel trade through multiple channels to promote the sailings scheduled in November 2012. “Our travel agent partners are our most valuable industry asset and it is very important to motivate them. On every sale, the agency earns a 10 per cent commission,” says Gautam Chadha, CEO, Tirun Marketing.

Talking about the cruise-ship, Chadha said, “The seasoned Indian traveller has started to appreciate the value of such cruises where each holiday is a path never taken before, or a delightful rediscovery of old destinations, allowing them to explore the unique sites, sounds and flavours of every destination.”

TRAVTALK

39

Steady sail in India: Pullmantur Cruises Pullmantur Cruises is operating a modern fleet of four vessels. It has appointed Mumbai-based Griffon Travels as its sole GSA in India.

T T B U R E AU zamara Journey will sail from Mumbai and Chennai this November. In a bid to provide high-end, boutique cruise experience to Indian travellers, Azamara Journey – rated as the best overall small ship operated by Azamara Club Cruises (operated by Royal Caribbean Cruises) is embarking on Indian waters. With a capacity of 694 passengers, the ship is offering 11-night (US $ 2,399 onwards) and 13night (US $ 3,499 onwards)

JULY 1 ST FORTNIGHT ISSUE 2012

T T B U R E AU

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ccording to Vivek Jain, Director, Griffon Travels, the ‘all inclusive’ concept makes the Indian travellers opt for Pullmantur Cruises.

He said, “With more competition in the market,

every product is coming out with unique ways of selling itself. However, what Indian travellers are now looking for is convenience, ease and hassle-free travel. With the all inclusive concept, Pullmantur offers the passengers a 24-hour gastronomic high quality service at no extra

cost, which is the biggest USP of this product. Furthermore, all restaurants on-board offer Indian and vegetarian cuisine option along with Mediterranean and refined international recipes.” The company is further promoting the cruise product among the Indian travel trade and end

travellers through promotions, unique packages and attractive commissions for travel agents.

Talking about the activities offered onboard, Jain adds, “Believe it. There are hundreds of things guests can do on Pullmantur Cruises.

Vivek Jain Director, Griffon Travels

40 TRAVTALK

STATES

JULY 1 ST FORTNIGHT ISSUE 2012

US$ 6 billion for tourism infrastructure Karnataka recently hosted the second edition of the Global Investors Meet, (GIM). It has inked agreements promising private investment of about US$ 6 billion (` 35,000 crore) in tourism and hospitality projects during the event.

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n the footsteps of Gujarat, the Government of Karnataka went all out to promote itself during the ‘Global Investor Meet’ (GIM). During the second edition of GIM that was hosted in Bengaluru in June, Karnataka engaged in aggressive marketing of its heritage sites, coastal lines, religious places and wildlife spots. This helped the sector attract a whopping ` 36,000 crore in investment commitments by way of MoUs and expressions of interests (EoIs) at the GIM. Latha Krishna Rau, Principal Secretary, Tourism Department, Karnataka says, “We are looking at promoting tourism in tier-II and tier-III locations and are setting up infrastructure facilities for tourists,” she said. While discussing the role of the

Sushil Mantri

Jose Dominic

Chairman Mantri Developers

MD CGH Earth

As part of a mixed-use development project, a 200-key luxury hotel at an investment of ` 250 crore has been earmarked

The Group has committed to invest ` 50 crore in setting up multiple hospitality projects across the state

state government in boosting tourism, she revealed, “We are anticipating $170 million in foreign exchange earnings from overseas tourists in 2020, up from $104 million in 2010, projecting an increase of 63 per cent.” The state government is also offering a range of incentives for developing infrastructure facilities at 100 tourist locations across the state such as 50-75 per cent exemption on stamp duty on investments above $10 million.

Foraying into the hospitality sector, the Sushil Mantriled Mantri Developers is aiming big with investments worth of Rs 1,750 crore across all sectors. The company also has plans of building a theme park. “As part of a mixed-use development project, a 200key luxury hotel at an investment of ` 250 crore has been earmarked. The theme park will also be part of this mixed

The state govt is offering a range of incentives for developing infrastructure facilities at 100 tourist locations across the state Latha Krishna Rau, Principal Secretary Tourism Department, Karnataka use development. We expect to start work on the project in the next one year after getting all the approvals in place,” Sushil Mantri, Chairman, Mantri Developers said.

A leading hospitality chain in Kerala – CGH Earth – is also inventing big time in Karnataka. Jose Dominic, MD, CGH Earth, said, “The Group has committed to invest ` 50 crore in setting up multiple hospitality projects across the state.

Karnataka’s tourism and hos-

pitality sector is a huge sleeping giant which has tremendous opportunities for growth.”

Upcoming Projects Hyatt Hotels & Resorts has signed an agreement with the state tourism department to build a five-star hotel at Hampi Orange County, Somatheeram and Windflower have come forward to set up resorts at other heritage sites

FICCI- YES Bank Study

Infrastructure a must A FICCI and Yes Bank report on capacity building in tourism industry reveals that infrastructural development is essential for a robust growth of the industry.

T T B U R E AU

T

he FICCI-YES Bank report suggests the following steps to ensure that the vision for the growth of manpower in tourism stays on the path of progressive development.

Action points for taxi drivers The safety of the tourists is in the hands of the taxi or coach drivers and the behavioural pattern of the

Dynamic Policy Framework The policies and guidelines devised for HRD programmes have to be designed to be in sync with the market forces of demand and supply, as well as focus upon developing the base level skills (communication, etiquettes etc.) across all segments.

Action points for tour guides: Government should make the tour guide associations a consultative partner.

Not only will the measure provide the government with an insight into the guides’ problems, but the authorities can also look at this as a training dissemination platform.

tour operators and confidence in their ability to offer the services as promised.

Action points for hotels and restaurants There is an urgent need to institutionalise capacity building in all segments of the hotel industry particularly in emerging options such as budget hotels and service apartments and even the restaurants and hotels present in the unorganised segment.

Public Private Partnership Rahul Chakraborty Additional Director FICCI

drivers defines the comfort level of the tourist. Good training and capacity building will not only increase his business possibility, but also build up the brand India.

Action points for travel and tour operators Certification is a crucial aspect as it provides a degree of credibility of the travel and

The private sector (especially industry) can bring in relevant experience for skill development which can help in developing industry relevant skill sets crucial for growth of the workforce of a particular sector. These private sector initiatives can be appropriately certified or monitored by the government and hence PPP is an important institutional innovation for capacity building in the tourism sector.

42 TRAVTALK

NEWS

JULY 1 ST FORTNIGHT ISSUE 2012

Exciting period for GDS in India JULY

Date

Particulars

10-12

HAI’s F&B Profit Maximization, The Park Hotel, New Delhi Travel & Tourism Fair, Kolkata Travel & Tourism Fair, Hyderabad India International Travel Mart (IITM 2012), Chennai B2B Full Day Indonesia Sales Mission, Kolkata B2B Indonesia Sales Mission, Ahmedabad B2B Indonesia Sales Mission, Pune India International Travel Mart (IITM 2012), Bengaluru

13-15 20-22 20-22 23 25 26 27–29

AUGUST Date

Particulars

6

Department of Tourism, Philippines, Roadshow in Chennai Department of Tourism, Philippines, Roadshow in Bengaluru Department of Tourism, Philippines, Roadshow in Mumbai Department of Tourism, Philippines, Roadshow in New Delhi Holiday Expo, Vadodara Kiwi Link India B2B Event, New Delhi Kiwi Link India B2B Event, Mumbai IT&CM India’s Convention, New Delhi Travel & Tourism Fair, Ahmedabad FICCI’s The Great Domestic Tourism Bazaar, New Delhi MGTO’s Macau Tourist B2B Megamart, Chennai MGTO’s Macau Tourist B2B Megamart, Mumbai MGTO’s Macau Tourist B2B Megamart, New Delhi IATO’s 28th Annual Convention, Mumbai Travel & Tourism Fair, Surat Tourism Australia’s India Mega Famil & Workshop, Australia

7 8 9 10-12 13-14 16-17 21-23 24-26 24-25 27 29 31 30-2 31-2 31-6

SEPTEMBER

Date

Particulars

4

ATOUT for France’s B2B Workshop, New Delhi HAI’s “Managing the Training Function”, The Park Hotel, New Delhi ATOUT for France’s B2B Workshop, Mumbai 47th FHRAI Annual Convention, Goa US Travel Association India Mission’s B2B Tabletop Workshop, Mumbai HAI’s “Hotel Opening: Soft & Grand”, The Park Hotel, New Delhi Emerging Kerala Global Connect, Kochi US Travel Association India Mission’s B2B Tabletop Workshop, New Delhi PATA Travel Mart Manila , Philippines

4-6 6 6-8 11 11-13 12-14 13 25-28

Abacus India recorded an increase of 20 per cent in booking volume in 2011 as compared to 2010 and have already witnessed an increase of about 14 per cent in January 2012.

A N I TA J A I N

T

o strengthen its presence in India, Abacus International recently opened doors to their new office in Mumbai and moved to bigger premises in Bengaluru. The company recorded an increase of 20 per cent in booking volume in 2011 as compared to 2010 and have already witnessed an increase of about 14 per cent in January 2012. This is indicative of the fast expansion that Abacus is seeing in India and the reason why they are increasing investment to better support travel companies based in India, says Jeet Sawhney, Managing Director, Abacus India. He

New Offers Abacus India recently launched Abacus WorkSpace, Abacus Mobility Suite to enhance the travel experience for its customers Abacus WorkSpace is the new agency work space that gives Abacus customers across Asia-Pacific strong advantages in productivity, content aggregation and customer management

stated, “Our continued success in the Indian market necessitates the additional manpower and space investment in this high growth travel market.”

The rise of technology in the travel industry has made it a very exciting period for the GDS who are now able to push the envelope when it comes to travel distribution. “Abacus is currently exploring opportunities to

technology to help them stay connected even while on-thego,” adds Sawhney.

Abacus India recently launched Abacus WorkSpace, Abacus Mobility Suite to enhance the travel experience for its customers. Abacus WorkSpace is the new agency work space that gives Abacus customers across Asia-Pacific strong advantages in productivity, content aggrega-

Abacus recognises the importance of instant information requirement and to create a richer travel experience for travel agents and travellers Jeet Sawhney, Managing Director, Abacus further leverage the internet and mobile technology to create a richer travel experience for both travel agents and travellers through our offerings. Abacus recognises the importance of instant information requirement and has already launched several offerings aimed at helping partners as well as travellers, making the most of mobile

tion and customer management delivering through a new, high performance open-source platform allowing optimisation of operational efficiency. Abacus Mobility Suite includes Abacus Mobile (web based point-of-sale application for mobile devices performing transactions relating to reservations, pricing and

ticketing), Abacus WebStart (mobile version of white label internet booking engine specifically tailored to the Asian region) and Abacus VirtuallyThere (mobile-enabled software, gives access to trip itinerary, obtain e-ticket and make any flight changes. In short, manages the entire trip from start to end from mobile device).

New Horizons According to an IMF report, Asia Pacific is expected to maintain its position as the second largest travel market with continued steady growth which is currently projected at about 6 per cent. India’s growth alone is expected to remain at around 7 per cent in 2012, while BRIC data has forecast that the travel intermediaries industry is projected to grow by 15.7 per cent by 2016.

‘Leela’ bets big on leisure As far as business is concerned, this season is not all that bad for Leela Hotels, Sanjoy Pasricha, Vice President (Sales and Marketing), Leela Hotels points out.

“This summer, we have received a great footfall at our leisure properties in Udaipur, Goa and Kovalam.

Hence, our huge portfolio has enabled us to offset the difficult times,” he says. As air tariff becomes dearer and the industry witnesses a rupee slide, there is one part of the market which has declined.

But there are also people who have chosen to travel domestic because of the same reason. “This has helped in diverting the traffic and increasing footfalls to our leisure properties,” he adds.

Sanjoy Pasricha Vice President (Sales and Marketing), Leela Hotels

The luxury hotel group is thus, betting big on the FIT leisure traveller this season.

“What would be affected is the MICE segment.

However, FIT leisure travel and even business travel will not be adversely impacted,” Pasricha believes. He adds, “We are pulling back about 10-15 per cent of the sales and marketing expenditure. We are turning more aggressive on public relations and other below-the-line activities to achieve a balance.”

Safari Trails and Air Arabia’s fam

Safari Trails, in partnership with Air Arabia, recently hosted a six-day trip to Kenya for 10 travel agents from Mumbai, Hyderabad & Bengaluru.

Apart from Nairobi, the agents were taken to some of Kenya’s famous sites such as Lake Nakuru, Masai Mara and Lake Naivasha.

CLIPBOARD

JULY 1 ST FORTNIGHT ISSUE 2012

TRAVTALK

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MOVEMENTS

JULY 1 ST FORTNIGHT ISSUE 2012

New South Wales Mumbai

The Imperial New Delhi

Canadian Tourism Commission New Delhi

Paramjit Bawa is the Inaugural Manager of Destination NSW’s

Vijay Wanchoo steps up the ladder and takes on the role of Senior Executive Vice President & General Manager at The Imperial New Delhi. Wanchoo brings extensive hotel experience to The Imperial in operations and management since June 2009. In his past profiles, he has worked with leading brands like the Welcomgroup, Fortune group of hotels, The Oberoi New Delhi and ITC Marriott Hotel Saket among others.

Tina Singh joins Canadian Tourism Commission (CTC - the representative office in India) as the new Assistant Vice President. Her new role entails handling all marketing activities for CTC and over looking Sales. She comes with over 13 years of experience and started her career with KLM Royal Dutch Airlines in 1998. After a period of 10 year, Singh moved to the Luxury Retail Industry in April 2008, at The Spa Group and worked for 3.5 years with them.

Pune Marriott Hotel and Convention Centre Pune

Citrus Hotels & Resorts Mumbai

new India office based in Mumbai. The Mumbai office will be the seventh in Destination NSW’s network of international offices and will manage the development of Indian inbound tourism to NSW. Bawa has over 20 years’ work experience in tourism, export, marketing, business development and general management. He speaks four languages and has a Commerce degree and MBA in International Marketing. He has managed the operations of Visit Britain in India since 2006.

IATA Sydney Alan Joyce is the new Chairman of the IATA Board of Governors.

He is also the CEO and Managing Director of Qantas Airways. A 24-year veteran of the airline industry, Joyce has led Qantas since November 2008. He was the CEO of Jetstar from 2003 to 2008. Prior to that, he spent over 15 years in leadership positions at Qantas, Ansett and Aer Lingus. He is the third Qantas CEO to serve as the Chairman of IATA’s Board of Governors.

Jatin Khanna has been appointed as the new General Manager at Pune Marriott Hotel and Convention Centre. In his new role, he will be spearheading various specialised functions of the hotel and will be responsible for steering the management team of the hotel. Prior to this, he was the Resident Manager for Marriott Beijing Hotel City Wall and has been with Marriott for 6 years. He has over 16 years of experience.

Kurian Varghese is the new General Manager – Travel Trade for Citrus Hotels & Resorts. He brings with him a rich experience of 15 years in the travel trade. In his role, he will be responsible for the growth and expansion of the company’s market share in the Travel Trade domain and strategic efforts of regional offices to drive more business.

He will also be responsible for evaluating new markets for the company. In his past assignments he has worked with brands like Mansingh Group, President Group, etc.

Fariyas Group of Hotels & Resorts Mumbai

Jaipur Marriott Jaipur

Chapman Freeborn Air Chartering Delhi

Jugal Ray is appointed as the new Director Sales & Marketing

Radhika Dewan joins Jaipur Marriott as the new Associate Director of Sales. She has been associated with the Marriott group of hotels since 2006. In her new role, she will be responsible for developing and implementing sales strategies, looking after revenue enhancement and will oversee the sales teams. Her key focus areas include implementing and executing all aspects of sales analytics of the property. Dewan has a Bachelor’s degree in Hotel Management from the Institute of Hotel Management.

Kajal Juneja is the new Assistant Manager – Marketing for

at Fariyas Group of Hotels & Resorts. In his new role, he will be responsible for the overall success of Sales and Marketing for the Group. Prior to this, he was with Citrus Hotels & Resorts, where he worked as Deputy General Manager – Sales.

Ray brings with him extensive knowledge & experience of 12 years in the hotel industry, especially selling outbound resort from Mumbai.

Chapman Freeborn Air Chartering. In her present stint, she will be spearheading the ideation to implement Marketing activities for Chapman Freeborn in India. Prior to this, she was with Celebi Delhi Cargo Terminal Management India as Key Account Assistant – Sales and Marketing. Juneja is a Graduate in English Honurs and holds an MBA in Marketing from ICFAI Business School, Gurgaon.

Gopal loves his family and friends. "My favourite pastime would be meeting friends and spending quality time with them," he says. He likes watching cricket and hockey. An avid coffee drinker, he hates alcohol.

With a passion for travel, Gopal adores Thailand. "It is the best value for money and has some brilliant beaches. I also like London a lot."

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 & Devika Jeet

Vineet Gopal Director Engee Holidays

Gaurav Aggarwal Associate Director of Sales Courtyard by Marriott, Gurgaon

"I am a hardcore Manchester United fan. The season just got over and I was hooked on to it. It was a depressing season for the Manchester United. Even John Wolley (Area Director of Sales & Marketing Marriott Indian Sub-Continent, Maldives, Australia) is a big fan of the team. So many times we just talk about the game," he says. "I love to party and go out.

In Delhi, I love the Shiro and Blue Frog for the fantastic decor and party scene. I am a Punjabi from the town side of Mumbai and I love Mumbai a lot for its nightlife as well," he chuckles.

Harsh Vardhan Sharma, Director, World Expeditions (India) Pvt. Ltd, is a passionate trekker and enjoys spending time in the Himalaya’s. A professional mountaineer, Sharma decided to promote adventure tourism and got into this line of work in 1987. “I enjoy hard core adventure activities and trekking in my favourite hobby and getaway. I try to trek the mountains at least once a year to unwind and reconnect with nature”. Uttarakhand has many treks that Sharma enjoys frequently. Exploring more areas helps him develop circuits for scenic tours. “I hope to create more awareness about adventure tourism in India,” he says.

Harsh Vardhan Sharma Director World Expeditions (India) Pvt. Ltd

Postal Reg. No.: DL(ND)-11/6044/2012-13-14; WPP No.: U(C)-178/2012-14 for posting on 1st-2nd and 15th-16th of the same month at New Delhi P.S.O., RNI No.: 53492/91 Date of Publication:30-06-2012

HIGHLIGHT

‘Indian agents must expand portfolio Celebrating their 50th anniversary this year, Abercrombie & Kent (A&K) will be appointing sales resident managers in Bengaluru, Chennai, Kolkata, Hyderabad and Ahmedabad. catches up with Geoffrey Kent, Founder, Chairman and Chief Executive Officer, A&K, discussing the Indian market.

D E V I KA J E E T

Adapt and evolve The tourism industry is the most versatile and adaptable industry in existence and we have learnt to bounce back from any crisis. As we adapt, we look for alternative source markets, engage in new product development by updating existing experiences and introducing newer travel interests.

Travel agents in India need to expand their portfolio of offerings and introduce products and services to cater to the growing numbers of discerning travellers who seek experience-based journeys and like exploring emerging destinations. They have been to the developed and established tourism destinations of the world such as Paris, London, New York, Singapore, Dubai and Hong Kong. They are now seeking out new experiences and new destinations as they have more time to travel.

Enthusiastic Indian traveller There is a growing number of Indians interested in travelling abroad and experiencing the European capitals as well as some of the world’s most extraordinary wildlife destinations, including East Africa, the Galapagos Islands and Antarctica.

Our target clients in India are discerning luxury travellers seeking authentic experiences around the world. Based on our experience so far, their interests are quite similar to those of our established source markets.

They are quite sophisticated and expect inspiring experi-

ences worthy of the destination they are visiting.

Unlike other emerging source markets, we do not necessarily need localised content but a portfolio of unique travel experiences which can be personalised.

This can include customising daily excursions, special

as South America, Eastern Europe, Indo-China, MENA region, Southern Africa extending to Botswana, Zambia, Namibia and Zimbabwe, East Africa including gorilla tracking in Uganda and Rwanda, small ship luxury adventure cruising in Antarctica and the Galapagos islands, luxury rail journeys and multi-generation family holidays with stays in private villas.

Destination weddings are growing in popularity amongst Indians, as well as trips to celebrate reunions, birthdays and anniversaries.

Incredible India Geoffrey Kent Founder, Chairman and CEO Abercrombie & Kent

The expansion initiative to other cities is in line with our B2B growth strategy to provide seamless service to our preferred trade partners interest tours, choice of meals and interesting culinary experiences, as well as reservations at the finest Indian restaurants in their destination.

Indian travellers are interested in exploring emerging destinations such

India is a destination that appeals to a wide range of sophisticated travellers, especially those interested in history and culture. The country also boasts of ‘World Class Hotels & Spas’ which provides the affluent traveller a true luxurious experience.

A&K as a group has been promoting travel to India for almost 30 years. We have a very strong presence in the country, with headquarters in Delhi and representative offices across the country. We are firmly committed in promoting ‘Incredible India’ and we are seeing consistent growth there.

We currently have our Private Travel office infrastructure in Delhi and a Sales Resident Manager in Mumbai.

But considering the vast spread of our target group, we will be appointing sales resident managers in other cities such as, Bengaluru, Chennai, Kolkata, Hyderabad and Ahmedabad. This will help to bring along local knowledge and provide an easier connection and understanding of

native travellers. The expansion initiative to other cities is in line with our B2B growth strategy to provide seamless service to our preferred trade partners. As we offer a very niche portfolio of products and services, it requires constant training of agency consultants to help them with specialised product knowledge, updates and also identify and service clients who are seeking highend experiential travel.

Outward flow The outbound division of A&K is a growing part of our business and one that we think offers great potential for the future. We are expecting double digit growth in India.

Our venturing out into India has been so far positive and we have high expectations since we are able to connect with travellers who are not just wealthy and content at staying in opulent hotels and resorts, but also want to explore the world while seeking out engaging experiences.

We have also discovered that our prospective clients in India reside beyond the confines of Delhi and Mumbai. We find travellers interested in our offerings from cities like Bengaluru, Chennai, Hyderabad, Pune, Ahmedabad and Kolkata, as well as we receive inquiries from cities like Chandigarh and Ludhiana.

Expand Horizon Travel agents in India need to expand their portfolio of offerings Introduce products and services to cater to the growing numbers of discerning travellers