No.U(NDGPO)-01/2016-2017 Date of Publication: 14/01/2016 RNI No. DELENG/2015/62794 Posting Dt. 12-17/01/2016 Postal Reg. No. DL(ND)-11/6180/2015-16-17
Vo lu m e 1. I s s u e 9 . ja n ua ry 2 016 . ` 5 0
linking stakeholders for developing the big picture
Rakesh Sarna ‘Dil Se’
Luxury trains belong to a niche segment which caters to consumers seeking most lavish facilities while exploring India’s tourism offerings, and has been found floundering of late. Possibly, the answer lies not in lowering prices, but in finding ways to enhance earnings without jeopardizing the exclusivity factor which sets it apart from the rest... pg 9
He has returned home after 40 years to head the biggest Indian hotel company. Recently, at the Oberoi Hotel School Alumni Conclave, Sarna shared his struggles with his audience and sought their support in working together for a common cause, promoting Mother India to the world.... pg 12
It has taken almost 15 years to be restored and be reborn as a heritage property. For last three years it has been ready, waiting for permissions.
Majestically restored Tijara Fort Palace opens after a heroic struggle
E-visa extends its territory, to now become more effective gamechanger
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ultiple visits and validity of 180 days can effectively change the game for incoming tourism into the country. These changes are under finalisation as reported in a section of the media. The Home Ministry is said to be reviewing whether this can be applied to all or select countries for security reasons. Nevertheless, such an intervention will make a quantum difference in improving ease of travel into India. Tourists are reported to using the e-visa facility more extensively, with figures showing over a 1000% jump in its utilisation.
currents
Staunch supporter for tourism passes away: In Mufti, we had a close friend of the industry (Page 5)
airlines & airports
National carrier to embark on a major capacity addition (Page 6)
states
Niche segments take off in Madhya Pradesh with ‘Jal Mahotsav’ (Page 11)
Online/technology
Big data power – how can Indian hospitality make the most of it? (Page 20)
Tijara, a non-descript location in Alwar district (Rajasthan), is soon going to have a vibrant signpost which may connect it with the larger world. Putting in painstaking efforts of over a decade, Neemrana Hotels is ready to showcase its latest heritage treasure to the world with its formal commissioning on 21st January. The location is 80 km from the national capital.
“Kaun Banega Brand Ambassador”
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ven as an official announcement is still awaited from government quarters,the guessing game is going on in great gusto. Who will it be? S ome have already anointed Amitabh Bachchan as the new face of ‘Incredible India’ campaign. But as they say, “its not done until its done,” we have e very r eason to believe that Big B i s possibly the hot favourite! Of all the other names floated – Priyanka Chopra, Deepika Padukone, Akshay Kumar and even Sachin Tendulkar – Big Bcould well the final choice, with the fact he has been doing some very good work for social causes for many years now. His is an iconic presence, he has proved his shelf life for over four decades. His strength does not emanatealone
from occupying the pole position in filmworld, he has commanded a no-nonsense respect from all quarters. There are others, however, who believe that the campaign needs a fresh face to strike immediate rapport particularly with the younger generation globally and herein a personality like Priyanka Chopra who has made a successful debut in Hollywood just recently could be an alternative. Even more objectively, does doing an advertising campaign make somebody a brand ambassador. You can appear in a campaign also in a stand alone position, unless you are endorsed as "the"brand ambassador. There is also talk of having more than one campaigner, or face for the brand, and that could well be another story altogether!
It’s all in the ‘oil’
New coaches with better facilities on Indian Railways
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n a mega boost to the ‘Make in India’ campaign, a successful mock run of model rake of luxury coaches for railway was conducted recently in Bhopal. A closer look at them indicates a major revamp in the existing facilities. The colour scheme has been changed to purple which adds to its feel. Better suspension, more space for passengers, modular bio-toilets and LED based berth indicators are some of the important modifications in the existing rakes. It comes as a major relief to millions of tourists who are dependent on railway for their travel.
The aviation sector is showing all its buoyancy, thanks to the fall in oil prices, resulting in a ripple effect that means more seats at less prices, and more customers in the air... pg 7
this issue : january 201 6
3
Here’s hoping 2016 is the year of action for tourism
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hat does travel and tourism look like in the year ahead? The Indian economy will continue to grow, the only question is by how much. But grow it will, and remain among the bright spots on the world stage. So will travel and tourism grow, and so will the buying power of the Indian traveller. You can expect more Indians to travel, both within the country and also overseas. We expect oil prices to remain subdued and therefore attractive airfares will continue largely within the domestic ambit, but also possibly to close neighbouring destinations. Domestic travel and also tourism will both grow impressively. Given present conditions, we will have to wait and watch if we cross 100 million mark for air travel domestically in the calendar year! There is better appreciation of the volume business, steered by the OTAs in the country. We expect their share of the overall business to grow. Mobile applications will become more standard for bookings. Customers will book more online for both air tickets as well as hotel rooms. Not too many new hotels are expected to open in most key markets and therefore supply will remain muted. Hospitality revenues should improve upon better occupancies, and possibly even slightly better rates. Expect more numbers but not necessarily equally better rates. Policy will remain an issue for both tourism and civil aviation. Both are yet to be finally adopted and announced. Do these adequately, in their present forms, represent a big enough departure from present conditions to give these industries their desired leap in time and space? Will these become paradigm shifts to bring about a quantum leap? The irony is that one depends upon the other – growth for aviation and tourism is intrinsically and mutually inter-dependent – and perhaps the two need to view each other’s concerns more holistically. Inbound tourism is becoming an issue of national concern and only recently a few voices have begun to be heard, complaining on the inactivity gripping the planners. We have for long felt that foreign tourism was being given short shrift in view of the many uncertainties at ground level, and domestic tourism being viewed as more certain, less vulnerable, and in many cases as more profitable. Nation-wide, it is possibly correct to estimate that Indians may now be around 75-80% of the overall Indian business. Should our tourism policy therefore just look at foreign tourists at the creamy layer level? On the infra front, there are big ticket developments underway with regard to roads, highways and waterways. What we need as a goal for 2016 to see accomplished on the ground five circuits and five model destinations. We have been talking both these goals for last many years. How can we identify just five circuits that are doable, desirable and will comprehensively fulfil inclusive aspirations. These must also introduce new attractions and new tourism products for both domestic as well as international consumption. There are a few thousand unique Indian offerings waiting to be recognised and given their due importance – how can these become part of a larger bouquet of products. This would be our ‘Make in India’ and ‘Start-up India’ for the world. Let us hope 2016 is the year of action.
Contents
4 Major fillip to footfalls expected as IndiaRussia agree on tripling trade 5 Staunch supporter for tourism passes away: in Mufti, we had a close friend of the industry
14 Golden Tulip targets to double its size in India by 2017 end; toying with inorganic options 15 Sarovar group to open six new properties in 2016; eyeing opportunity in the Middle-East
airlines & airports
online : hotelscapes
currents
6 National carrier to embark on a major capacity addition; eyeing for more non-stop international options 7 Tailwinds for the aviation sector in 2016 as oil prices bring about a sea change
infrastructure
8 Inland Waterways expansion also includes connecting religious sites 9 Lowering prices will affect exclusivity of a luxury train; exploring avenues to make business viable, reasons CMD, IRCTC
states/destinations
10 Venturing into J&K an opportunity to
enter new market: Thorsten Kirschke 11 Niche segments take off in Madhya Pradesh with launch of Jal Mahotsav
hotelscapes
12 “More than anything else, we need to fix the foundation first”, says Rakesh Sarna 13 Neemrana’s heritage excellence finds a new expression; Tijara Fort property gets ready for commissioning
16 OYO aspires to bring every under-utilized real-estate online, says Ritesh Agarwal 17 Hotels.com sees e-commerce providers lean back on ‘personalisation’ trend
online : technology
18 Optiontown keen to enhance its presence in India; to tie-up with more airlines 19 Domestic travel growing at 35%; Europe still a favourite outbound, says Neelu Singh 20 Big Data Power- How can Indian hospitality make the most of it?
niche: sustainable tourism
22 Engage communities to create sustainable products and experiences; adhere to carrying capacity, feel experts
niche: event-based
24 Nation warming up to the Rio Olympics; in a first, ticket sales to go online in India
Mahesh Sharma
Tourism and Culture Minister, Government of India After the first meeting of the National Medical and Wellness Tourism Promotion Board which was held in Delhi recently
We will be taking this (medical and wellness tourism) in a mission mode. That is why we have formed a board with a seed capital of `2 crore. Health care industry is growing at a rate of 25 per cent in the last three years and if you use this potential in an organised manner, we will achieve a lot.
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Aamir Khan
After his controversial exit from the position of Brand Ambassador of ‘Incredible India’ campaign
It is the prerogative of the government to decide whether they need a brand ambassador for any campaign, and if so, who that ambassador should be. Whether I am brand ambassador or not, India will remain Incredible, and that's the way it should be.
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Chandrababu Naidu
Andhra Pradesh Chief Minister, after signing a slew of MOUs with Japan's Toyama Prefecture recently
Japan is strong in technology, pharma and tourism sectors. There is a lot for AP to take a leaf from Japan's book in pursuit of prosperity and industrial progress.
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Wolfgang ProckSchauer
CEO, Go Air commented at a recent business meet
It helped all of us (the IndiGo IPO and listing). IndiGo's listing has brought the focus back on an industry, which till recently was awash with red ink and ignored by investors.
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Phee Teik Yeoh
CEO, Vistara on the occasion of airline’s first anniversary
Today marks a significant milestone in our journey as we successfully complete one year of operations. Our first year has been no less than extraordinary. Nine aircraft, 12 destinations, more than one million happy customers, an impeccable record in punctuality and high standards of service excellence – all in such a short span of time. We have a slew of product and service innovations in the pipeline which will further delight our customers in 2016.
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25 Literary festivals can transform destinations, says Sonjoy Roy of JLF
niche : wellness
26 Kairali plans major expansion overseas; eyeing 12 new centres in 2016
niche : cuisines
27 Improvement in food quality is a must to win the confidence of foreign tourists, says Wonderchef MD
delhi ncr
28 Leela takes over management of Ambience in East Delhi, adds muscle on Golden Triangle 29 Pride Plaza is newest addition to Aerocity: looks set for the long run
Navin Berry navin@tourismfirst.org contributing editor: ritwik sinha ritwik@tourismfirst.org features editor: Priyaanka Berry priyaanka@tourismfirst.org senior writer: Shashank Shekhar shashank@tourismfirst.org editor:
global exchange
30 Korea: More connectivity will boost numbers; explore cinema and theatre, suggests Korean envoy 31 Sweden: India second biggest Asian market for Sweden 33 Czech: Keen on resuming direct air connectivity; growing business exchanges, rising footfalls become the trigger
the Last Page
34 In a first for the combined AI-IA entity, 2016 ushers its annual calendar
Tourismfirst is owned, published and printed by Navin Berry and printed at Anupam Art Printers. B-52, Naraina Phase II, New Delhi. It is published from 36-37, 3rd Floor, Indra Palace, H-Block, Connaught Place, New Delhi – 110 001. Tel: 011-43784444. Total pages 36
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Major fillip to footfalls expected as India-Russia agree on tripling trade
PM Narendra Modi with Russian President Vladimir Putin during his visit in December
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ndia and Russia have sustained harmonious bilateral relations for over six decades, irrespective of change of guard in the South Block or in Kremlin, surrounded in a very dynamic neighborhood. Despite sliding down in the list of na-
tions India trades with, Russia's goodwill among Indians remains firmly intact which was expressed by the PM, as he embraced his counterpart in yet another display of his personalized style of diplomacy. “We have a history of cultural relations. And now we
have a strong and reliable friend on the political and international arena – Russia. Russia has always been with us in hard times. We have a strategic partnership, a true strategic partnership,” the Prime Minister said. The outcome of the meeting
France inks major collaborations; to intensify corporate movement
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aking bilateral ties between France and India to a whole new level in the New Year, France, now, intended to have collaborations in newer fields, we were told by the French envoy, in an exclusive interview. Education, skill development and clean enhis excellency Francois Richier French ambassador to India
We are working on programs like bio-technology centers and energy storage. My endeavor, now, is to make it happen in the months to come.
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ergy are some of the areas we are looking at, he shared. This effort of escalating the level of engagement comes at a time when both nations, already, are deeply committed to collatorations in areas like defence and culture – which is helping bilateral movement. Stressing on the need for tapping new areas of exchange like science and technology, he informed that there were a number of projects that had been initiated. “We are working on pro grams like bio-technology centers and energy storage,” he detailed. He added that a lot of new areas were identified during PM Modi's visit to France. “My endeavor, now, is to make it happen in the months to come,” he said. Noting that PM Modi’s pet projects like ‘Skill India’, ‘Make in India’, and ‘Digital India’ were going to have a profound impact on accentuating movement of goods and services, he believed that it would, in turn, boost tourism. “We have to now ensure that this momentum sustains,” said the envoy. Illustrating, he shared that a contract between Indian Railways and a French company was signed for manufacturing
800 railway locomotives in Bihar. “The project, itself, was launched almost a decade ago, and many were saying that it is never going to happen. Railway Minister Suresh Prabhu took the lead and made it happen,” said the French Ambassador. He further noted that it was a huge contract demanding years of work. “It is all ‘Make in India’ in Bihar. We have already started working in Bihar; probably with GE, as two key partners of India in locomotive manufacturing, we will take this forward. So it is, both, ‘Make
in India’ and ‘Skill India’”, he informed us. Indicating that MICE and corporate segment travel could see an augmentation, especially, from the French shores, he said that “There are four to five hundred very big French companies which have invested in India; some of them are major firms. I am trying to understand the amount of education and skill development programs that they have invested into over the last few years and also see that they continue to do it.”
Bihar moots a tourism roadmap
Since the formation of government in Bihar, it has been busy times for CM Nitish Kumar. Known for having a soft corner for tourism, he has recently mooted putting in place a concrete roadmap to boost footfalls with an eye on generating employment and revenue. Besides, he has shown a keen desire to rope in professional experts from the tourism fraternity – which is a laudable step. The state has, now, focused on augmenting facilities and tourism infrastructure at The Buddhist circuit, Mahatma Gandhi circuit, Shiva Shakti circuit for kanwarias, Ramayana circuit and Jain circuit. These directives come at a time when the state is gearing up to host two important functions in 2017 - Prakashotsav, on the occasion of Guru Govind Singh's 350th birth anniversay, and centenary celebrations of the Champaran Satyagraha which was led by Mahatma Gandhi in 1917. In another important development, he has consented to setting up Indian Institute of Tourism and Trade Management at Bodh Gaya for promotion of tourism and has asked the tourism department to submit a proposal for the same.
were substantive, to say the least. Giving a major fillip to bilateral movement of goods and services, both nations agreed on tripling trade figure to thirty billion dollars in the next decade. Also, on radar was active collaboration in areas like agro-processing and diamond trade. In a concrete progress to PM’s core agenda of ‘Make in India’, the two sides sealed an inter-governmental agreement on manufacturing helicopters. “The Inter-Governmental Agreement on manufacture of Kamov 226 helicopter in India is the first project for a major defense platform under the Make in India mission, “PM Modi said. As Russia and India come closer to one another, on the back of a reinvigorated engagement; and, as New Delhi inches closer to sealing a Free Trade Agreement with the Eurasian Economic Zone, chances are that 2016 will bring much greater flow of trade and, consequently, larger footfalls to Indian shores.
Water tourism between India-Bangladesh hostage to visa problems, says Tripura Governor
Addressing the summit "Travel India 2016", organized by the Indian Chamber of Commerce in association with 'Incredible India', BJP leader and Tripura governor Tathagata Roy said that “Visa problems between India and Bangladesh are hampering inflow of tourists from both countries. This is unfortunate, because water tourism is turning out to have has high potential for both India and Bangladesh.” Seeking enhanced air-connectivity between Agartala and other Tier-2 cities, he urged the national carrier to increase the number of flights, as it had a role in evacuation of patients seeking medical treatment to other parts of the nation. He also blamed lack of more air-connectivity to international destinations for the under-utilization of the international airport at Kolkata, besides referring to infrastructural development and quality human resource as important growth drivers of the tourism industry.
Manipur earthquake an opportunity for national integration; time to base its tourism on the goodness of people
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anipur was recently rocked by an earthquake measuring 6.7 on the Richter scale. Although, the devastation was not heavy, it brought to fore the general apathy that has come to define nation’s association with the Northeast, believes Rita Khattar whose NGO Insaniyat, was the only nongovernmental body to be present on the ground, overseeing rescue and relief work Rita Khattar with her NGO team in Manipur in Imphal. Not much had been written about the ordeals of locals in the mainstream media, Rita khattar she alleged. Stating that devastafounder, insaniyat (ngo) tion needed to be looked from a I have, in the past two human perspective and not merely decades of my social based on the volume of loss to life service, never come across such gracious and property, she said “Even if a people. While dealing single life is lost and a few houses with victims elsewhere in destroyed, it is still a calamity that the nation, I have felt that there is, almost, a sense poor locals are in the midst of.” of entitlement. She was delighted to be there herself, and found locals most gracious and hospitable lot. “I have, in the past two decades of my social service, never come across such gracious people,” she said. Sharing that almost everyone she met thanked her for her efforts in bringing the state back to normalcy, she pointed towards a difference in attitude of victims. “People generally react to relief work in a different way. While dealing with victims elsewhere in the nation, I have felt that there is, almost, a sense of entitlement. We don’t want to take credit for our work, but a thank you or a smile does make you feel good about you, efforts,” she said. We have always maintained that the Northeast remains an undiscovered treasure of the nation. All central governments’, irrespective of their political inclination and agenda, have acknowledged the need to reach out to the region bereft of infrastructure. However, we are yet to get it at par with the rest of the nation – which indicates failure in planning and implementation. The region has been projected as a treasure-trove for nature and wildlife enthusiasts. But, as we continue to push for better tourism prospects for the region, as a nation, we may be missing out on projecting the goodness of people as its biggest USP. This disaster has, yet again, pointed towards a need for tweaking our developmental and tourism strategy for the region.
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Staunch supporter for tourism passes away: in Mufti, we had a close friend of the industry By navin berry
E
ver since he took over the mantle of the state once again, from day one, he was chalking out plans for roadshows to meet with the tourism industry, and also the cinema tourism pioneers. And he led these from the front, sat for hours with his invitees to understand how to take the story of Kashmir forward. His sincerity was visible to everyone, and he remained respected by one and all. In his passing away, from the standpoint of tourism alone, the sudden demise of Mufti Mohammad Sayeed is indeed the gravest of losses. For stakeholders in the tourism sector, he was always an understanding and appreciative friend, a man on a mission who while serving his third term was committed to regaining the leading position for the
The baton passes on: for PDP, the state of Jammu & Kashmir and for tourism
ANA adopts the Star Wars Its Boeing 787 Dreamliner was painted like R2-D2, reminiscent of a prominent character from the iconic film created by George Lucas. The aircraft was used to ferry the entire cast of Star Wars from Hollywood to England for the London premiere of the franchise’s widely awaited latest installment.
paradise on earth on the larger national scene. Those who have been part of his close circle in recent times will tell you that Mufti Saab was prone to getting upset whenever television channels gave undue coverage to isolated incidents that created a wrong impression on viewers about peace on the ground in the valley. “They blow up even minor incidents in the state not realising it could lead to hundreds of cancellations by visitors.” He was heard saying this angrily on many occasions. The tone of his expression notwithstanding, the statement subtly reflects the kind of fixation he had with the idea of giving a serious rejig to the tourism sector in the state. His sincerity to promote tourism in his state did not merely rest at retaining the tourism portfolio in his cabinet, assuming the position of chief minister. Despite suffering from serious floods, only a few months after he took over the reins this time (it had taken quite an effort to put life in the valley on track again), he had spearheaded some serious initiatives to revive tourism projects. Among them was the setting up of a high-power tourism board, comprising members from both government as well as the private sector for open discussion and quick decision making on tourism related issues. His efforts to promote cinema tourism in the state by camping in Mumbai last year and directly approaching the stalwarts of the Hindi film industry was arguably a most exemplary effort. And he had not merely indulged in the formal pow-wow with the film fraternity for the
sake of drawing attention. He had immediately followed it with single window clearance facilitation for all kinds of cinema filming in the state. And there have been unreported instances wherein he had personally intervened when any crew facing issues on the ground had knocked at his doors. Mufti Saab was simply clear in his mind that cinema could be a great tool to endear the state tourism assets again with the people outside and he was left no stone unturned to make it happen. From another tourism standpoint, he had also nurtured another unique idea; to give India its Davos kind of annual business show with Gulmarg as a regular venue to host both Indian and international corporate honchos every year. Insiders will tell you that the idea was quite close to Mufti Saab’s heart and he had begun putting the broader contours of the grand show together. After his demise, the reins will now shift to his daughter Mehbooba Mufti Sayeed who is broadly viewed today as a seasoned politician who as an administrator is pitched to retain the concerns for tourism which her father had shown in no uncertain terms. There could not simply be any better tribute to the man than taking his tourism centric initiatives to their logical conclusion. Fast tracking infra projects, marketing of the state worldwide as a unique tourism destination, more direct flights from key generating markets and an equal emphasis on the three parts of the state – Jammu, Kashmir and Ladakh.
perspective
An understanding media can become an asset for tourism promotion
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NN-IBN ran a story ( on the evening of 12th January, 2016) on Goa Tourism splurging money on travel marts and roadshows and suggested they bust up Rs. 23 crores in the act between 2011 and 2014. Apparently, this allegation was made by none other than former Congress CM Digambar Kamat. Surprisingly and fortunately for tourism, the channel anchor, Karma, known for his balanced story telling, argued if this amount was considered too high, as he thought it was modest! Kamat said it was not the amount, not the fact of travel marts and roadshows in principle, but the choice of locations. Kamat said some of the cities visited did not have the potential to send tourists, in the first place. He therefore argued it was simply globetrotting and burning the tax payers’ money. Indeed, there are many sides to this story! Firstly, attending travel marts and conducting roadshows in integral to tourism marketing and should not questioned. Second, this amount is not too high at all, in fact it is perhaps modest, to say the least. Where then is the problem? That too often state governments have fallen prey to politicians wanting to take off, in the middle, to some more exotic locations, for love of adventure. Now, tourism is also a tough industry and often it can help government agencies and planners to go and see for themselves some of the
best examples and learn from them to emulate them here. Educational and study tours are common and necessary. Therefore, when planning a delegation around travel marts, it would be wise to differentiate between the two – cities you visit to market your destination and those you visit to learn from. Indian tourism needs both – ability to learn from best practices and imbibe them, suitably adapted to Indian conditions and mileu. And also, intensive marketing in both traditional and new markets – therefore, often a roadshow makes sense in new markets, assuming we have adequate connectivity with it, and that there is a robust outbound potential. Most importantly, we can remain grateful to CNN-IBN for their most empathetic treatment of the story. Media is more known for tearing down tourism activities, as often it tends to come through as a soft target. Tourism has of late been at the receiving end – with every reckless reporting on law and order cases, often suggesting that cities have become rape capital and things like that! These have scared away tourists, who would naturally prefer to go to safer destinations. This would have come as a double whammy – that even tourism promotion activities can come under the media scanner, with scant regard to industry practices worldwide. Thankfully, CNN-IBN and Karma did not take the bait and reported fairly and intelligently.
Numbers fall at Taj Mahal: is inbound under pressure?
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aj Mahal – the seventeenth century marvel – is the uncontested crown jewel of the Indian tourism offerings, and the biggest attraction for foreign tourists. However, going by the latest report put forth by the Archaeological Survey of India, the number of visitors to the mausoleum is dwindling, and fast. Data complied on the basis of ticket sales has indicated that there has been a constant drop in the number of foreign visitors in the last three years. It hosted almost 8 lakh visitors from foreign shores in 2012 which came down to 7.4 lakh in 2013. The downward slide went worse in 2014, when the numbers came crashing down to a mere 6.9 lakh, registering a 6.8% fall compared to last year's figures. What comes as a bigger concern is that it is the most visited monument in the country, as per several reports issued by Ministry of Tourism. In a relief though, there has been a noticeable increase in domestic footfalls. Industry experts have blamed reporting of stray incidents blown out of proportion by the international media, lack of adequate infrastructure, pollution, inadequate traffic management, and constant harassments by touts – who have been a major irritant to visitors – as important reasons for this downward swing. Prahalad Agarwal, President, Agra Tourist Welfare Chamber was quoted in leading English daily: “After a smooth two-hour journey to Agra through the Yamuna Expressway, tourists come across numerous hurdles to reach the Taj Mahal. It takes them another two hours to reach the monument after they have entered the city. Long traffic jams, pollution, fleecing by local touts and hawkers leave them hassled. They take back bad memories, which in turn results in negative publicity.”
airlin e s & airports
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National carrier to embark on a major capacity addition; eyeing for more non-stop international options With a possible addition of nearly 30 new aircrafts in its fleet by 2016-17 fiscal end, the national carrier has planned a major operational expansion in the near to medium run. Its recently launched Connecting India programme will be the touchstone to provide domestic and international flying options to travellers in tier 1 and tier 2 locations.
By ritwik sinha
F
or national carrier Air India, the next fifteen month period promises (culminating at 2016-17 fiscal end) to be a spell of major capacity addition. The airline is eyeing for aggressive expansion on all fronts – domestic as well as international and seems to be keen to get in a more competitive mode with a substantial addition to its fleet. On the domestic front, its near run moves will be governed by its recently launched Connecting India programme wherein it will not only enhance frequencies but could also bring new destinations on its radar. The obvious objective is to improve its market share and be ready for a more competitive scenario at a time when the established (Indigo, SpiceJet and Go Air) as well as new entrants (Vistara and Air Asia) in the aviation business have firmed up plans to expand their capacity base. The 20 percent plus growth registered in domestic business (thanks to the low oil prices) in 2015 have emboldened most of the players to scale up their operations and Air India too is keen to make the most of the emerging opportunities. On the international front too, it seems to be well set to introduce non-stop products to some defining global destinations after its recently launched San Francisco flight has met with considerable success in the preliminary months. In terms of market share in the domestic circuit, Air India in the month of November had stood at number three rank (16.2 percent) – a segment which is led by Indigo (35.5 percent) and Jet and Jet Lite combine (around 21 percent on a cumulative basis). “We obviously have our eyes set on improving our market share and we will be responding to this objective by significantly enhancing our frequencies in the new year and all through the next fiscal under our recently launched Connecting India Programme. As part of this exercise, we are launching a flight between Delhi and Gorakhpur from 15th January,”
Ashwani lohani CMD, Air India
highlights
Our Delhi-San Francisco service is quite successful and many more such services will be set afoot in the coming months.
With its Connecting India Programme, Air India is enhancing frequency on its domestic routes
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a senior official of Air India recently told TourismFirst. The route will be served with a 70 seater ATR 72- 600 aircraft and operate six days in a week. This marks another flight addition to the Connecting India programme which aims to provide domestic as well as international flying options to the travellers in the tier1 and tier 2 locations on Air India network. “The flight will offer connection to flyers travelling to various domestic and international destinations from Gorakhpur. Similarly, passengers arriving from the Gulf and other international destinations will get a convenient connection to Gorakhpur from Delhi by this flight,” the official added. Under Connecting India programme, Air India in recent weeks has already launched a Mumbai-Surat flight and flight services from Durgapur connecting the destination with Kolkata and Delhi (served by A -319). In the last week of December, the national carrier has also re-launched the service between Mumbai and Gwalior with ATR-72 aircraft which was earlier suspended. “We are toying with many other options in the domestic circuit which will become operational in the coming months,” the official said.
30 new aircrafts to be inducted by March, 2017
Madrid, Washington could be the next major non-stop offering
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aking a major addition to its non-stop international portfolio, Air India had introduced a direct service between Delhi and San Francisco on December 2 deploying the widebody Boeing 777-200 LR aircraft on the route. The aircraft is connecting the two dots in about 16 and a half hours and is considered to be one of the longest non-stop service provided globally. According to Air India chief Ashwani Lohani, the preliminary response to this service has been quite overwhelming. “Our Delhi-San Francisco service is quite successful and many more such services will be set afoot in the future,” he commented. The success judgement for this four times a week service is obviously based on the load factor trends. According to a senior official of Air India, the load factor registered for this service in December had stood at a high 87 percent in the inaugural month (December 2015) and going by the booking trends, the month of January could well show further
improvement – at 89 percent. “The success of this flight primarily emanates from the fact that in some way it is connecting two Silicon Valleys of the world. Among the Indians who are booking on this flight, more than 50 percent are IT professionals from cities like Bangalore and Hyderabad,” AI official informed. Over the years, Air India has built quite a profile in terms of non-stop offerings to transatlantic and European destinations and is presently offering nine services to these routes. The Air India management meanwhile is quite eager to add on more important global destinations to its non-stop offering list in the near to medium run. “To expand globally with qualitative services, connecting India with more important global destinations is certainly going to be a key strategy. And as part of this exercise, we are currently examining to connect Madrid and Washington with direct services from India’s national capital. Nothing though has been finalised as yet,” the official pointed out.
Partnership with states to improve regional connectivity likely to take off after March
Enhancing its market share in the domestic circuit is a prime objective Examining new global hotspots for non-stop services Air India’s services expansion plans in the near to medium run are obviously rooted in a possible significant addition to its fleet size. According to Air India official, before the end of the next fiscal (March 2017), about 30 new aircrafts will be added to the national carrier’s fleet. “It will comprise a mix of narrow body aircrafts (primarily A 320s), turboprops and wide body aircrafts,” the official informed. The wide body induction will include one more Dreamliner (Boeing 787) which is likely to join the fleet in November this year. For both its domestic and international operations, Air India presently has the largest fleet size among all carriers in India comprising about 135 aircrafts (including 17 belonging to its subsidiary Air India Express). “By the end of 2016-17 fiscal, we are likely to cross 150 aircrafts mark in terms of our fleet size,” the official underlined.
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ir India’s grand plans to kick off a massive regional connectivity improvement exercise is now likely to take off after the beginning of the new financial year (2016-17). In a significant development last year, Air India chief Ashwani Lohani after taking over the reins, had shot off a proposal to most of the states asking them to partner with the national carrier in kick starting new services to their destination with smaller aircrafts of Air India subsidiary- Alliance Air. As per Air India’s suggestion, the connectivity to smaller towns will be provided under the viability gap funding (VGF) formula wherein states will have the leeway to participate in the fare related decisions if they agree to square off the losses. Nearly half a dozen states had responded positively to Air India’s regional connectivity gameplan and the services where supposed to begin in January. However, the Air India official told TourismFirst that the last-minute details are now worked out with some states and the project will take another two-three months to get off the block. “Our negotiations are in an advanced stage with two state governments- UP and Gujarat. Rajasthan government had asked for some clarification and we have recently submitted a comprehensive proposal to them. We expect our regional connectivity initiative to commence after March,” the official said while adding that Alliance Air will be better equipped to kickstart these services with the addition of three more ATR aircrafts in its fleet in February. Alliance Air presently has a fleet size of 11 aircrafts which includes five ATR 72 and three ATR 42 aircrafts. The airline is expected to witness a major expansion in its fleet size – 28 aircrafts by the end of 2017.
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airlin e s & airports
Tailwinds for the aviation sector in 2016 as oil prices bring about a sea change The ripple effect was all to see and feel! Starting with the decline in oil prices, airlines were able to offer lower airfares, increase load factor and better yields, resulting in better evaluations. 2016 depends wholly on how oil prices will fare. By navin berry Oil prices bring new found savings for the airline sector; for the time being, all ills within the sector have been forgotten. ● With the Indian basket of crude oil hovering around $30 a barrel, a litre of crude oil now costs about `12 (approximately), which has meant that oil has now become cheaper than packaged mineral water, assuming it costs `15 for a litre bottle. ● ATF prices directly move in tandem with international crude prices and have fallen roughly 26% over the year – to `44.3 a litre currently from `59.9 a litre a year ago – lower than petrol and diesel prices. ● Aviation turbine fuel (ATF) makes up for about 44-48% of operational costs for Indian carriers, between LCC and full service airlines, before this change started taking effect. ● The current drop of 26% per kilolitre rate at Delhi airport, compared to December 2014, is also cheaper by 40 per cent over 2013 and 34 per cent cheaper than 2012. ● Oil prices alone would have contributed to a savings for all airlines and this is possibly anywhere between `6000-7000 crores. This is enormous savings, an impressive figure that would have given new found stability to a sector that was otherwise considered ailing till very recently. Also, as a result, the cost share of oil within the overall cost structure has changed – from 48% to 40% for low cost airlines and from 44% to 37% for the full service airlines. Growth for airlines, as they witness more flyers than ever before; India emerges the fastest growth market in the world ● India was the world’s fastest growing aviation market in 2015, expanding more than 20% for all the right reasons. This outpaced the 10% growth registered in China and 5% increase in the United States, as per data supplied by International Air Transport Association. ● The November 2015 growth alone was a robust 25.1 per cent, ably assisted by higher capacity deployment specially coinciding over the Diwali period; other major aviation markets such as Brazil, Russia and Japan had shown a negative growth during the same period. Reduced airfares mean higher load factors, more revenue ● Leading online travel portal Makemytrip.com was selling for as low as `3,858 for a DelhiMumbai one-way air trip, on a given date, nearly 36% lower than the previous year’s average fares of about `6,000. Similarly, a DelhiKolkata trip came for as low as `5311 compared to nearly `7,000 last January. ● Airfares between Delhi and Goa were selling around `25,000 one way in the Christmas season
end 2014, and these were selling for around `20,000 return in the 2015 season! In fact, travelers who bought advance tickets last year in the belief that fares will rise, found they never did much at all. ● Average airfares in India in 2015 have been the cheapest in three years. ● Side by side, domestic airlines are said to have witnessed higher load factors, perhaps 5 to 6% over the corresponding period. This in itself would have also meant additional revenue for all airlines. ● Airlines like SpiceJet continued with their frequent offers with their spot fares. An aggressive AirAsia offered matching fares and others were not too far off. Full service carriers too followed suit. The fact is that there were offers in the market virtually through the year. Even with a change in management at SpiceJet, spot sales continued! Share prices went up, valuations for the sector rose, and the airline sector could well be deemed to be profitable ● Jet Airways climbed 8.2pc to its highest since January 2011, making it the best performing share on the Bloomberg Intelligence Global Airlines Valuation Peers Index in the past month. ● InterGlobe Aviation changed the rules of the game with their public offer. Since it publicly listed, the airline shares went up over 30%, giving its new found shareholders happy – these included some airline employees who had been given stock options. ● SpiceJet in its recent earnings report said the current volume growth of around 20 per cent witnessed in the domestic market shall continue for the next 8-12 months, before stabilizing at around 10-12 per cent. SpiceJet shares over this period have risen over 300% in the last year. ● GoAir said with these developments it may consider doing an IPO later this year. New capacity addition on all airlines, more connectivity promised with new flights ● Capa projects domestic air passenger volume to grow at a CAGR of 12.8 per cent between FY15 and FY20. More aircraft in the air, more routes and possibly the same level of fares, attractive as they are, will mean more bums on the seats during 2016. Here is a quick recall of what the new year heralds. ● Vistara currently operates a fleet of 9 Airbus 320 aircraft and operates 307 weekly flights to 12 destinations across the country. In addition, “we are looking at adding four more aircraft in 2016," Vistara CEO Phee Teik Yeoh was quoted in a newspaper interview. ● Spicejet has said it will add 10 new daily frequencies on its domestic network. On its international network, SpiceJet is increasing frequencies on the Delhi-Kabul route. The airline is said to be reviewing its aircraft orders, weighing between Airbus
and Boeing, for additional aircraft to augment its fleet. Separately, it is reported it will induct six new aircraft within 30 days, calling the move “a first of its kind initiative in the history of Indian aviation". SpiceJet also unveiled a new winter schedule, raising a total daily flight operation to 291 from the current 250, adding 10 new If the Indian economy, like many others around the world, is benefitting from the fall in oil prices, so is the aviation sector. However, in India unlike in many other countries, there was a large dormant market waiting to be tapped, reflective of the size and middle-class population of the country. India had the potential to grow. This growth will only increase in the new year, if only oil prices remain steady at present levels. sectors, 30 new frequencies and 22 connecting flights. Air India has added two new routes from Mumbai to Surat, a diamond hub in the western state of Gujarat and historic city Gwalior in central India. Air India
has started operations between Kochi (COK) and Dubai (DXB). Air India now serves Dubai from six Indian airports, the other being Chennai, Delhi, Goa, Hyderabad and Kochi. Air India is said to be considering inducting an ambitious 30 new aircraft in the next 15 months, adding more direct flights to cities such as Washinton, among others. ● Recently, IndiGo announced the launch of 24 new flights connecting key cities within the country. IndiGo is launching twelve flights connecting Delhi to Trivandrum, Bengaluru to Vishakhapatnam, Bengaluru to Bhubaneshwar, Ahmedabad to Bengaluru, Bhubaneshwar to Kolkata and Chennai to Trivandrum. With effect from January 14, 2016, IndiGo will launch its sixth daily non-stop flight between Chennai and Hyderabad. Additionally, IndiGo is also launching 10 flights on January 15, 2016, connecting Bengaluru to Kolkata, Delhi to Ahmedabad, Delhi to Bengaluru, Delhi to Kolkata and Hyderabad to Mumbai. Its plans for 2016 also depend upon new supplies of the A320Neo.
Outlook for 2016: what do the stars foretell? Oil will reign supreme. If oil prices remain at present levels, then recoveries will come around. Faster airline movements will also mean better economies for the airports. In effect, it would help every segment in the game. What happens if the oil prices start going up? It would depend entirely on how much? If they go beyond manageable levels, then all the recent past fissures will start showing up – airlines would start asking for reduction in taxes of ATF, to begin with. We will be told, ATF is a state subject and even GST, assuming it would have come, will not be able to remedy the situation. But if oil stays at present levels, and many say it would, we can only hope it does for at least the next two years, over which time airlines can learn to better manage their cost structures.
perspective
Can we touch 100 million domestic air travellers in 2016?
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irca 2015 is inching close to its culmination. But before it finally bids adieu, in all likelihood it would have proved a vital point pertaining to aviation management in the country. With right kind of pricing environment (on the input side), the performance output could well be quite dazzling in one of the fastest growing markets in the world. The recently released domestic passenger figures by the DGCA for January- November period pegs the volume at 7.38 million marking
At another level, DGCA’s latest figures also underline capacity growth and intense competition which has come into the play with the addition of two airlines in the game (Vistara and Air Asia) and a s trong comeback by SpiceJet. For instance, if we look at the figures of November alone, Vistara tops the chart in the On Time Performance (OTP) list registered at four major airports – Bangalore, Delhi, Hyderabad and Mumbai. For long, this distinction has been the major USP of the market leader Indigo which has
a significant jump of a n impressive24% over the corresponding period figure last year. This has triggered the hope that the total volume of domestic passengers will cross 7.5 million level – for the first time in the history of Indian aviation. In 2014, the total domestic passenger volume had stood at 6.7 million. And, therefore, if this same growth level continues,the final domestic passenger number in 2015 could go pastthe8 million mark. The extremely bullish trend witnessed clearly is primarily on account of the steep decline in the oil prices, something that has benefited the aviation industry around the world. In India, with the existing high taxation, oil prices have constituted over 40% of the overall operational costs, as against a worldwide average of 25-25%,have always been cited as the major spanner in the growth story for aviation in India. Even as there has been no change in the taxation slabs on ATF, itis the steep decline in price that has given airlinesthe elbow room to keep the prices affordable.
now moved to second slot. In terms of passenger loads, the top position is held by SpiceJet with over 90% (primarily being attributed to a series of flash sales it hadinitiated earlier this year). Indigo, Go Air and Air Asia have reported load factors in the range of 80-84 percent during the same month. Global aviation body IATA has predicted 2016 to be the most profitable year for the airline business in recent history thanks to the lower oil prices. And trends in the Indian market in 2015 clearly reflect that the domestic growth story will become more formidable with the most vital input in the overall cost of airlines’ operations remaining subdued. Going ahead,the real icing on the cake could be a decisive move from the government via its soon to be announced civil aviation policy in doing away with the existing taxation anomalies. This could well turn out to be double bonanza for domestic players who may take a shot at 100 million in 2016.
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infra struc ture
Inland Waterways expansion also includes connecting religious sites Eight locations identified along Brahamputra and Ganga
The National Inland Waterways Bill, 2015 is slated to get the final clearance during the budgetary session of the parliament. The bill promises to ignite rive-based economic development and religious cruise tourism is slated to become a major beneficiary. Inland Waterways Development Authority of India (IWAI) has already begun making preliminary moves in clearing the decks to link eight religious sites with river cruise. National Waterways 1 – River Ganga
By ritwik sinha
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fter decades of ignorance, there is finally some hope that the process of developing inland waterways as a vibrant mode for all kinds of transportation in the medium to long run would now become a reality. The trigger comes from the clearance of The National Waterways Bill, 2015 in the lower house of the parliament during the winter session. And in all likelihood it will get the nod from the Rajya Sabha during the budget session next month. The bill promises to bring a tectonic shift in using country’s river assets for economic development in myriads of ways. Shifting freight load to inland waterways from railways and roadways, no doubt, is the larger goal but the overall development plan has several layers of objectives. Among other things, it also promises to unleash the potential of river tourism in India – a largely untapped segment despite the presence of over 10 major rivers in the country cover-
amitabh verma chairman, inland waterways authority of India (IWAI)
Promoting religious cruise tourism is a major project in its own right and considering the enthusiasm shown by the concerned stakeholders, it is likely to emerge as a vibrant subplot of our mega inland waterways development plan.
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ing a staggering stretch of around 15,000 km. “The drive to give a major facelift to inland waterways in the country is now reaching to decisive stage wherein over 100 new waterways will be created over and above the five existing waterways. Initially, we had planned 101 new waterways. But after the consultation with the states and discussions at the level of the parliamentary standing committee, five more have been added to the list,” says Amitabh Verma, Chairman, Inland Waterways Authority of India (IWAI), which is spearheading Inland Waterways expansion drive. Verma claims that the authority is ready with all ground work to immediately kickstart development in over half a dozen stretches after bill gets the final nod.
River cruise tourism is picking up momentum
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number of operators with smaller hough these are the early The river cruise on our vessels have also sprung up to hours of inland waterways developed stretches can ferry tourists on shorter point-todevelopment (vis-à-vis now match with any wellknown similar service in the point routes in NW1 & 2. the grand plans of additional world when it comes to the Verma asserts that on the 106 stretches) in the country, movement of the vessel. according to IWAI chief there are However, we do not compare developed stretches of the nawell with global models when tional waterways, the river cruise pointers to suggest that a vast we look at the issues like services introduced in the recent network of river connectivity will connectivity, embarkation, years are quite capable of offering fuel the growth of river cruise disembarkation, movement tourism in a major way. “On our on the roads, the bus services world class services. However, to to the terminal, etc give a big push to the segment, developed national waterways some basic issues need to be 1 and 2, three luxury cruise sorted out. “The river cruise on operations have been launched our developed stretches can now since mid-2014. Additionally, we match with any well-known similar service in the have opened a Patna-Varanasi luxury cruise service world when it comes to the movement of the veswhich operates for four months every year. And sel. However, we do not compare well with global these are ultra- luxury vessels (costing around `2530 crore) offering 5-7 star facilities to foreign tourists models when we look at the issues like connectivand high networth individuals. Probably we are noity, embarkation, disembarkation, movement on ticing beginning of a momentum in the river cruise the roads, the bus services to the terminal, etc,” he tourism segment,” says Verma while adding that a points out.
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Circuits Identified
Major Religious Attractions/Places
Allahabad circuit
Kumbh Mela, Triveni Sangam, All Saints Cathedral, Patalpuri Temple and Akshaya Vat, Hanuman Mandir, Chitrakoot
Varanasi circuit
The Ghats, ‘Ganga Aarti’, ‘Dev Dipawali’ Kashi Vishwanath Temple, Sankat Mochan Hanuman Temple, Gyanvapi Mosque, Shri Guru Ravidass Janam Asthan
Patna Circuit
Harmandir Sahib, Mahavir Hanuman Mandir, Patan Devi Temple, Padri-kiHaveli, Bodhgaya, Gaya, Nalanda, Rajgir, Vaishali
Bhagalpur Circuit
Batechwar Sthan, Vaasupujya Bhagwan Mahavir Jain Mandir, Mandir Hill, Sultanganj, Deoghar
Kolkata Circuit
Ganga Sagar, Belur Math, Dakshineswar Temple, Pareshnath Jain Temple, Kalighat Temple, Nakhoda Mosque, St. Paul’s Catheral, St. Andhrews Church, Old Nizamat Imambara, Katra Masjid
National Waterways 2 – River Brahmaputra Circuits Identified
Major Religious Attractions/Places
Guwahati circuit
Kamakhya Temple, Navagraha Temple, Bhuvaneswari Temple, Basistha Ashram Temple, Hayagriba Madhaba Temple, Umananda Temple
Tezpur circuit
Da Parbatia, Bamuni Hill, Agnigarh, Bishwanath Ghat (Shiva Dol)
Neamati Circuit
Sivasagar, Majuli Island
“We have identified eight waterways where the potential traffic is high and water flow is also good. These waterways will be developed on Ghagra, Kosi, Gandak, Kambarjua, Mandovi, Zuari, Barak river in the North East.” While the development of waterways in the eight stretches is likely to get immediate attention, in the non-freight development plan along the proposed waterways, the authority has also been mandated to supervise the promotion of river cruise tourism to support the larger plan to develop defining religious tourism circuits in the country. Quite clearly, in periodicity terms, these are medium to long-run projects but according to Verma the authority has already set the ball rolling. “We are looking at promotion of religious cruise services in a big way. Earlier, we had formed a committee which had representatives from the Union Ministry of Tourism as well as state governments and the committee has identified religious sites along Brahmaputra and Ganga stretches which could be connected with cruise services. We have drawn a basic plan which enlists the basic improvement work on the site like putting up new pontoon bridges and also improving the road access. Some preliminary work has begun,” informs Verma. The religious circuits identified on Ganga (National Waterways 1) and Brahamputra (National Waterways 2) include Allahabad. Varanasi, Patna, Bhagalpur, Kolkata, Guwahati, Tezpur and Neamati. (Refer to the chart) The development of river cruise in the identified religious
circuits is going to be a collaborative effort wherein IWAI would primarily be involved in keeping the river infrastructure in fine fettle. “Our primary job would be to maintain the draft there so that cruise movement should be easy. We have to ensure that there are standard terminals where vessels can berth,” Verma emphasises. In precise terms, IWAI’s responsibility in promoting religious river cruise would include undertaking dredging activities, provisioning for night navigation aids (wherever required), fortnightly survey during the lean season, supervising the installation of River Information System in the vessels which will operate in thee circuits and providing safe passenger embarkation and disembarkation facilities. The state governments which will be part of this project will be taking care of putting up tourist amenities at terminals, jetties, river fronts, ghats, etc. The committee which has mooted the proposal for development of religious cruise tourism has also asked the state government to provision for pay and use separate restroom facilities for ladies and gents apart from taking care of any emergency medical facility. The state governments have also been entrusted with the responsibility of linking all pontoon jetties with roadways. “Promoting religious cruise tourism is a major project in its own right and considering the enthusiasm shown by the concerned stakeholders, it is likely to emerge as a vibrant sub-plot of our mega inland waterways development plan,” Verma underlines.
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infra struc ture
Lowering prices will affect exclusivity of a luxury train; exploring avenues to make business viable, reasons CMD, IRCTC Brushing aside concerns of low occupancy in luxury trains, A K Manocha CMD, IRCTC called it a global phenomena. Hoping to diversify earnings by operating Maharajas' express in the off-season, he is also keen on venturing into MICE, weddings and chartered trip segment to boost IRCTC's coffers. An exclusive with the CMD. By shashank shekhar
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he business of running luxury trains has been a tricky affair given the successive losses incurred by operating parties. Issues of occupancy, exorbitant pricing, and lack of visibility in the domestic markets could be some of the major reasons for its failure to emerge as a viable business proposition. A K Manocha CMD, IRCTC shared his understanding on the business of running luxury trains by saying that the idea of luxury train tourism in India was essentially confined to a handful of states – which were being jointly run by the Ministry of Railways and the respective state. Noting that, maybe, domestic travelers were not very forthcoming in luxury tourism, he said “A person willing to travel for a week in luxury, all through a train is not a common phenomena, yet. People in India are used to very inexpensive travel. Fact remains that domestic travellers would prefer a Shatabdi or a Taj express over a luxury train to go to Agra.” Sharing that there were thirteen luxury trains in the world, and India, currently, had five of them, he said that, “It is essentially created for the high-end luxury consumers, but we do come up with discounted tariffs to attract more passengers.” He informed that IRCTC had decided to run Maharajas’ Express in the off-season this year. “We will work out packages which will be cheaper. The issue remains that most of these packages are generally not availed by domestic tourists. Perhaps, it is yet to catch the fancy of domestic travellers,” he opined. On the question of low occupancy ratio, we were told that most of their guests were foreigners coming from distant shores like the USA, the UK, Japan, France and Turkey. “Occupancy in all the luxury trains in India is not very high anyway, and, so is the case world over. Any occupancy ranging around 60 percent is considered excellent for luxury trains globally,” he shared. Adding that the Palace on Wheels was the only train in the world to have touched a hundred percent occupancy for a few years, he told us that “Despite all odds, we still command the largest booking share, as far as luxury train travel is concerned. We have
We had requested the Ministry of Railways to cut down the layoff time meant for maintenance, and they have agreed to it. So, we will run it in the off-season as well. We are even looking at newer avenues like MICE, conferences, weddings and chartered trips. We are trying to diversify our income without cutting down on the element of luxury that has come to define us.
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a share of almost 45 percent of total bookings.” However, he did concede that profitability just was not there. “It cannot happen in matter of months. The issue remains that to get sixty percent occupancy is not that easy. We have a carrying capacity of around 84 passengers and the fare is inclusive of five star dinning, accommodation and local travel,” he said, referring to their inability to slash prices to a great extent. Attributing a number of factors that needed to be taken into account, when one looked at the economics of running a luxury train, he told us that the cost involved in maintenance was exorbitant. “We had requested the Ministry of Railways to cut
down the lay-off time meant for maintenance, and they have agreed to it. So, we will run it in the off-season as well. We are even looking at newer avenues like MICE, conferences, weddings and chartered trips,” he said. Adding that they were exploring putting in place packaged tours, he said “We are trying to diversify our income without cutting down on the element of luxury that has come to define us.” Noting that the conundrum lied in finding a balance between pricing and luxury, he said "the USP of our train is exclusivity. Somebody who wants exclusivity would not want too much crowd and commotion." Indicating the enormity of the challenge in creating
profitability without compromising world-class hospitality and service, the CMD said “We cannot lower the prices to the extent that we lose that element. It is, indeed, a tough call to take. But, as of now, we are doing alright. Other luxury trains plying in India are not doing very well in the financial sense,” he added. Agreeing to the notion that Luxury train travel could be made profitable, he said “I do not deny that; but, we have been in the business for only four years, now, and we have been awarded the most luxurious train by the WTA. So, I think it is a solid start, and we will better it in days to come,” he confidently added. IRCTC was now looking at newer means to diversify their income, we were told. Referring to their recently launched Buddhist circuit train, he shared that they were keen on strengthening their presence in the mid-segment to augment profits. “We have launched a number of new initiatives like the heritage and desert special trains aiming to bring on board mid-segment travellers, as well. Now, one can even opt for a LTC, and with the inclusion of air-packages, we hope business will pick up,” he told us. Adding that the initial response has been very encouraging for them, he said “In the desert special, we cover Jaipur and Jodhpur; Buddhist special train covers Khajuraho and Varanasi.”
Business aside, we are doing our bit to help achieve national priorities
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he CMD pointed towards a plethora of engagements undertaken by the IRCTC to further national priorities. “Aggregators, vendors and SHGs are being given adequate space to display their products on our website. National programs like ‘Make in India’ are being furthered through steps like inducting luxury coaches manufactured domestically,” he said. Referring to the recently unveiled first luxury coach in Bhopal, by the Ministry of Railways, he hoped that it would be inducted into operations shortly. “The interiors of luxury trains are also being created domestically – which will, of course, create employment, besides boosting national pride,” he added. Mentioning that the IRCTC had looked into installing heavy-duty RO water dispensers which helped travellers and locals, alike, to avail very cheap and clean drinking water, “Providing hygienic meals was, also, one of the important undertakings,” he said. Referring to the concept of ‘Janta Aahar’ – which was essentially food vans which catered to economy segment seeking fulsome meals – he said “of course, it is not very elaborate in menu, but offers substantial quantity of food at an unmatched pricing.”
Looking at ways to enhance e-catering; expanding e-commerce remains high on our agenda
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ivulging the future course of action, CMD shared that IRCTC intended to become a formidable e-commerce player in the long run. “We understand that e-ticketing has its own limitations,” he said. Informing that they had started ‘food on track’ by roping in reputed catering companies, we were told that “although, integrating them with our website is a lengthy affair, we have managed to rope in 85 aggregators – with some of the big names like Haldiram’s, Dominos and Food Panda – into our system.” He said that the Ministry of Railways had agreed to their suggestion of introducing it, irrespective of whether passenger trains were equipped with pantry cars or not. “For now, the facility is available at 45 stations – including Rajdhani and Shatabdi express. The registration fee has been kept very low and we are mooting further lowering charges to encourage enhanced participation,” he told us. “However,
the integration cost, still, remains very high. We are looking into it,” he added. Giving further insight into the steps taken by the IRCTC to enhance consumer experience, he told us that they had heavily invested in improving existing infrastructure to better serve consumers. “With the help of CRIS and the Ministry of Railways, we have streamlined e-ticketing, upgraded hardware and software components for faster bookings and payments. In fact, we are investing close to 180 crores to upgrade the current software,” shared the CMD. “However, it will remain to be an ongoing process as the IT is constantly evolving. It is sad to see certain sections of the society making a hue and cry about a minuscule escalation in the convenience charge,” he shared with us. Noting that there was a steep rise in the number of online ticket booking users with the numbers touching almost 55 percent of the total ticket bookings, he suggested that it
was a quantum leap from last year’s figure of 37 percent. He believed that the process of making their online presence more vibrant was an ongoing one; he pointed towards their efforts in incorporating e-catering and tourist packages on to the website. He also mentioned some of the steps taken to make stations user-friendly. “In a bid to improve facilities at railway stations and to make them user –friendly, we have donated a number of battery-operated golf carts and wheel-chairs, besides funding their utilization and maintenance,” the CMD said. Adding that they had kept in mind the growing demand for e-bed rolls, he shared that “e-bed rolls which can be repeatedly used – are being introduced, allowing the passenger to pre-order bedding at a very affordable pricing. Stitched from bio-degradable material made of linen, it is sure to enhance consumer satisfaction.”
state s/de stinations
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Venturing into J&K an opportunity to enter new market: Thorsten Kirschke Calling India the anchor of the group's existence in the entire Asia-Pacific region, Thorsten Kirschke, President, Asia Pacific, Carlson Rezidor Group hopes to add value to destinations in the state with high-class hospitality experience on offer.
Tourism is ultimate winner; deal signifies positive market sentiment for the state, notes KB Kachru
J By shashank Shekhar
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ndia has always been a halo-mark for us, an anchor of sorts, in the entire Asia Pacific region. We enjoy a fortress position in leadership as the largest international hotel operator in the sub-continent, and we have all plans and full commitment to further substantiate that position,” he declared. “We create value for our partners; if you come from a position of strength to take something good and make it even better. So, that is one value addition that we bring on the table, ably demonstrated by our association with the Chaya family for new properties in the J&K,” Thorsten further explained. Pointing towards their wellestablished presence in the international and the domestic market with a sales team on the ground – which operates according to market segments, he added “be it MICE or leisure, we are leveraging our strength across the Asia-Pacific by 29 global sales offices, supported by one of the strongest loyalty programs in the world of hospitality.” Terming the agreement an important milestone for the group, he said that “It is a deal you do not sign every month. It is a fabulous opportunity for us to enter a new market. We are very proud of being attractive to hotel owners such as the Chaya family that trust us with their hotels to drive superior return on investments.” Calling his group’s commitment towards India a long-standing one, he noted “we have been here through good and bad times for over fifteen years now; so, I think we have proven ourselves and the strength of our systems through the value that we have added to all the other owners that are doing business with us.” Accentuating his argument, he mentioned that “we are present in more than 13 state capitals; we have signed fifteen agreements this year including this one.” With the announcement of this deal, Carlson group has yet again ventured into an uncharted territory; a state capital which has been bereft of international standard accommodation. When asked whether this seemed to be a consistent strategy on the part of the group, he told us that “I think it is a two-pronged approach. On one hand, we are leveraging our fortress position from our presence in the state capitals – that provides recognition, ‘word-
hotels. And, all of them are performing very well. I think there is something to be said about scaling the depth of the market and at the same time expanding into the woods of a destination,” noted the President. “That is essentially our approach to India, including secondary and tertiary markets,” he added. With addition to hospitality offerings in six destinations of J&K, there is no contesting the fact that it will strengthen the tourism product of the state and destinations. Thorsten, too, believed that each such Thorsten Kirschke investment was not only President, Asia Pacific, an opportunity to explore Carlson Rezidor Group the prospect of returns in We create value for our partners; if investments, in terms of hard you come from a position of strength to take something good and make dollars, but retrospectively it even better. So, that is one value promoting a destination in addition that we bring on the table, ably return. “It is true, especially, demonstrated by our association with in one of the mega-trends in the Chaya family for new properties in the J&K. global hospitality – offering new destinations to explore. As the global infrastructure takes on further, it will play a pivotal role in promoting these of-mouth’ publicity, and brand new destinations,” said Thorsten. equity. Our second and third tier “Jammu and Kashmir is right in hotels are leveraging from that the centre of this initiative – which effect, but having said that, cities is why K B Kachru plays a key role like Mumbai and Delhi can have in government’s advisory body on several more hotels.” tourism,” he added. He reiterated Referring to the scale of the his full commitment to his foray depth of Indian cities in accominto J&K and said that “we support modating many more hotels in its kitty, he asserted that there was no this project and more, not only reason why these cities could have from the commercial point of view, but also in helping governmore properties. “In Delhi and ment improve destinations.” greater NCR, we are counting 21
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&K has been in news for all good reasons in the recent months. The state is in midst of rolling out a new tourism policy which aims at increasing footfalls, and creating new tourism infrastructure and products. K B Kachru, Chairman, South Asia who also features on the panel of high-powered committee on tourism in the state said “The state government is facilitating the draft tourism KB Kachru Chairman, South Asia, policy for Jammu Carlson Rezidor Group and Kashmir. I hope The government has been very that with a definite supportive of us. As you are aware tourism policy in that I am also a member of the place, it will be of recommendation committee, so it is being very accommodative – which great help.” is good for the future of tourism and He had a word of hospitality. praise for the state government for its proactive approach in augmenting their visibility and tourism numbers. “The government has been very supportive of us. As you are aware that I am also a member of the recommendation committee, so it is being very accommodative – which is good for the future of tourism and hospitality,” said K B Kachru. He divulged that besides this aggressive entry into the state, this concerted push would not be limited to only J&K. “We will also move into other cities and non-metros with equal vigour,” he shared. Noting that the signing of agreement was going to send a positive message to the market that J&K was right and ready to host guests, he reasoned that “These should serve as an indicator of J&K heading to normalcy again and also of the larger market sentiments towards the state.” He shared that local investors were coming forward and there was an international brand on board “so it speaks a lot about future possibilities,” he said. He added that “in terms of sense of security, and by having an international brand coming to the state – it will send a positive signal to the domestic and international market.” When asked whether this launch would catalyse the process of altering state’s positioning as a destination, he concurred. “I am in total agreement with the logic. That’s what we want. The success of this endeavour will depend on delivering,” he said. “We have a saying in hospitality that ‘how many heads can you put to bed’? So, we have to actually have a pull factor to get people to visit Kashmir,” he further noted.
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Indian hospitality over supplied; demand-supply equilibrium will dawn in a couple years, says Raj Rana
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Raj Rana CEo, South Asia, Carlson Rezidor Group
ccupancy has certainly gone up; we look at our operating performance which is measured by occupancy, so we are doing pretty well on that count,” said Raj Rana. Conceding, though, that his group would have liked the growth to be stronger, he noted “But, there is no denying that there has been an overall growth in terms of business and occupancy.” Giving an insight into the reason behind less than expected growth in the hospitality sector in the recent months, he referred to the fact that India was grappling with excess supply. “In cities, where there is excess supply, demand has surely grown, but not to a level to create an equilibrium between the two. The balance between the two will come, may be, in a year or two as more business and money comes in,” he explained. “But, the long-term prospects of demand exceeding supply are very good, because the pipeline of new hotels is slowing down. As a result, demand will improve in time to come,” he added. On the question of regions where he saw growth in movement into India, he said that the
USA and UK led in corporate travel segment, while Southeast Asia, Russia and larger AsiaPacific countries were dominating the leisure segment. Noting that the traffic was generated owing to diversified interests and not one particular segment, he shared that ‘Make in India’ had generated some interest in the international circles, besides IT sector which remained a big reason for exchanges. Hoping that all these efforts would enhance India’s share of the MICE and corporate outbound, he said: “We hope that India grows as an international MICE destination; today, largely our MICE segment is led by domestic traffic. As infrastructure improves, large convention facilities in big cities come up; there will be more international traffic on that front.” Exuding confidence after having closed 2015 on a very strong note, raising group’s portfolio to 120 hotels, he, now wanted to sustain and build on the momentum generated. “The fact that we have been first entrant to many tier-2 and tier-3 cities, we will fully leverage our ‘early-bird’ advantage,” he noted.
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state s/de stinations
Niche segments take off in Madhya Pradesh with launch of Jal Mahotsav The state has unveiled an annual festival which aims to promote water based tourism, besides highlighting local art, folk music and culture. The move signals state's intent to diversify its offerings at a time when the discourse for adding new elements to the national tourism bouquet is intensifying. By shashank Shekhar adhya Pradesh is all set to add an illustrious product to its already vibrant tourism offerings in the coming month. ‘Jal Mahotsav’, as the recently launched annual event has been named, will be essentially spanning for ten days, giving visitors one of a kind opportunity to experience a heady concoction of state’s tradition and customs, besides engaging them in an array of water sport adventure activities. Located in the Hanumantiya Island of Khandwa district in the reservoir of the mighty Indra Sagar Dam – which is one of the biggest manmade water reservoirs in Asia – the event is aimed at creating a new element in the form of water based tourism. It is expected to play host to a number of activities which include local sightseeing, paragliding and
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treasure hunt, to name a few. The first edition of the event will be held from 12th to 21st February. Commenting on the launch, Tanvi Sundriyal, Additional Managing Director of MPSTDC said that “MP Tourism has taken this initiative to raise this awareness through Jal Mahotsav, which is an enthralling mix of cultural performances and adventure activities taking place against the beautiful background of the Indra Sagar Dam.” It remains no secret that MP has done reasonably well in promoting and capturing a major share of spiritual, religious and wildlife based tourism. This recent foray into water based tourism must be viewed as an attempt by the state to diversify its gamut of products which will help it in escaping over-dependence on few established pegs of its offerings. It may come as a surprise to
ture to take it to the next level,” she said. Alleviating concerns of over-exposure and ecological degradation of pristine flora and fauna in the vicinity of the Indrasagar Dam, representatives of the MPSTDC stressed that the state remained firmly committed to responsible development, ensuring that no harm was done to the sensitive ecology of the region. Om Vijay Choudhary said that their primary concern remained maintaining the sanctity of any destination they wanted to promote. “We will ensure that all laid guidelines by various government bodies are adhered to in letter and spirit.” He informed us that the master plan of this particular undertaking was apmany, but Madhya Pradesh has ample water resource despite its handicap of being a landlocked state – courtesy its Rivers. We were told that the state had identified ten such grand water bodies that could be further developed to create new attractions for travellers. “Possibilities are endless. We are committed to
perspective
How will the magic of Dharam–Hema work for Haryana Tourism?
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he Haryana government announced appointing the charismatic celluloid pair of yesteryears, D harmendra and Hema Malini (couple in real life), as ambassadors to promote tourism to the state. After their glorious silver-screen careers, both of them have aligned with politics though Dharmendra, nearing 80, is now out of the political ring even as the eternal dream girl currently represents Mathura Lok Sabha constituency and is an active BJP leader. Needless to say, both of them continue to command considerable respect from their innumerable fans both within the country and outside. Dharmendra Hema Haryana’s move marks another addition to the growing list of celebrities’ association with state tourism departments in the country. This initiative had clearly begun around the later part of the previous decade when Amitabh Bachchan was roped in by Gujarat as the face of its tourism promotional campaigns, a move believed to have done wonders in creating unprecedented buzz for the state. Another successful example has been that of Aamir Khan spearheading union tourism ministry’s “Athithi Devo Bhava” campaign. The market has also been abuzz with speculation that Mamta Banerjee was keen to have Shahrukh Khan carrying brand West Bengal tourism on his shoulders and another state pitching in to have Hrithik Roshan as the flagbearer. None of these moves though have materialised so far. It is generally accepted that having a noted celebrity to promote tourism does help if the exercise is pursued diligently. That is,you do not just rope in a celebrity for the sake of showing a popular face but also build consistent buzz around his persona with unique promotional activities. And herein potentially lies the rub for
Haryana Tourism. Within the national tourism circles, Haryana is believed to have been in a state of comatose for quite sometime on several fronts. At a time, when a definitive sense of competition is quite visible among a select group of states to milch their tourism products as a mainline economic activity, Haryana has certainly not sent any message of this kind. The annual Surajkund Cultural Fest continues to remain its biggest tourism signpost but nothing much more has been done by the state in recent years. The new state government which took over the reins last year had promised to develop some religious circuits (e.g., Krishna Circuit) but there isn’t much information available in the public domain if these projects have got off the block. Historically, the state had realised that it did not have adequate products to boast, and had diversified into highway tourism and became a pioneer. But this was over 30 years ago. This too has, of late, been in hibernation without any new thrust and direction visible on the ground. It is in this context that the appointment of Dharmendra- Hema Malini duo as brand ambassadors and the resulting possible benefits need to be scrutinized. Despite their star-power and appeal, the state tourism is unlikely to hit the bull’s eye if the exercise does not have an intrinsic consistent character. Merely showcasing them as the flag bearers of Haryana Tourism at the next Surajkund Fair will be not enough to convince the world that Haryana Tourism has begun pulsating again. The entire exercise has to be more comprehensive: not only on the promotional front but also in terms of bringing into play an unflinching commitment to fine tune the existing assets as well as develop new products which should be attuned to the taste of new age tourists.
developing water based Om Vijay Choudhary tourism in the same way Executive director, we developed religious, Madhya Pradesh Tourism wildlife and spiritual Possibilities are endless. We tourism. It is our next are committed to developing water major area of focus,” said based tourism in the same way we developed religious, wildlife and Executive Director Om spiritual tourism. It is our Vijay Choudhary. next major area of focus. No matter how grand ideas are, steering them, however, to execution at the grass-roots has always been a difficult proposition proved for an area spanning in for states. There are a plethora of excess of 500 kilometers. Adding permissions and clearances that that all the planned development are needed to be put in place. was to be done inside that apBut, what is more challenging proved area, he said “we are well is to create a new product out ahead in terms of ensuring that of scratch. There is always a clearances are obtained. Any oplurking fear of failure and loss portunity for tourist experience in investments – which deter and investment into the state private players to test the water. will not be caught in the web of Tanvi Sundriyal, however, argued formalities.” that the responsibility of making This development is, indeed, headway for a new product or laudable. It comes at a time when a destination lied with the state. the nation is yearning for infusion “We cannot expect private playof new products and destinations ers to create infrastructure from into its repertoire. It is a lesson for scratch. We have shown the way. other states to move beyond their We hope that when private playcomfort zone and established ers see assets functioning well products to set in motion fresh and attracting tourists, they will and innovative ideas to create bolster the available infrastrucnew attractions.
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PM pitches for ‘weekend tourism’; lays foundation of 14 lane expressway between Delhi-Meerut
He called the proposed 14 lane expressway the ‘highway to development’, as he laid the foundation of a much anticipated infrastructural project. Stressing that once completed, it will attract movement, leading to promotion of weekend tourism in a number of areas adjoining the expressway, besides development of a number of satellite towns in the near future, as well, he said “We are not merely constructing a road, this is a highway to development.” PM Modi stressed on how road connectivity and infrastructural development needed to remain in tune with changing times, noting that the proposed expressway would drastically bring down travel time, between Delhi and Meerut, to mere 45 minutes.
Plan for extending metro from UP to Dehradun in motion; likely to curb pollution and boost tourism
In what could turn out to be a game-changer in boosting connectivity and curbing pollution across the most dense part of the northern India, Uttarakhand is mulling on extending metro connectivity to Dehradun, recently revealed state’s chief Principal Secretary Rakesh Sharma in an interaction with media. The state government is proposing extending metro network, passing through a number of towns in Uttar Pradesh, before terminating at Dehradun. Expected to run, both, underground and overhead, depending on factors like population density and traffic congestion, it is likely to be modelled on the lines of transport systems in Dubai and Singapore. It is being believed that once functional, it will make a huge dent on rising pollution levels, besides driving enhanced footfalls to these cities and towns. Further, the state government has also expressed interest in creating a local network of trains, linking state’s top tourism destinations – Haridwar, Rishikesh and Dehradun. These schemes were in-sync with the larger plan of making Dehradun a ‘Smart city’, said the chief Principal Secretary. It is a welcome move, but the challenge will remain steering the project through an intricate web of bureaucracy, specially when there are a number of stakeholders in the undertaking.
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“More than anything else, we need to fix the foundation first”, says Rakesh Sarna e was most informally attired,as his flight from Male to Mumbai was diverted through a series of incidents H and 19 hours later he was in New Delhi to keep his commitment to Dilip Puri, made last April, thatwe would be glad to attend and address this conclave. When the top boss of Tata Hospitality Rakesh Sarna took the stage to deliver his keynote address at the recently held Oberoi School alumni, he stumped the gathering by his plain speak. For he did not dabble in the nitty gritty of the hospitality business management, which many may have expected. He rather chose to speak on the value system which is driving the business, mincing no words in pointing out the serious faultlines. Highlightsfrom his speech:
and make a meaningful contribution in selling our tourism sector the way we sell our hotels. How do we go from our present 7 million to 45 million? We have E-visas in place and I dare say they are working very well. People are prone to only talk of the two three times when somebody or the other has got stuck, but what happens every other day when thousands of tourists are effortlessly landing using this facility. Only seven years ago, we did not have these world class airports as we do in New Delhi and in Mumbai. If then somebody had said that this is what we were
By TF bureau
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ll of us sitting here may belong to different groups and different brands. But if we really are guardians of the industry, then our concerns for the business should transcend the brand barriers. If the past is any signal, then the future promises to be very bright. The doyens of the industry – J R Tata and Rai Bahadur Oberoi – have painstakingly created a vibrant platform. And we are privileged to be standing in their shadow. But standing in their shadow also imposes a great sense of responsibility upon our shoulders. Some of the events happening around us globally are terrifying. But business wise, there are reasons to feel excited. In this scenario, where do we fit in? We need to ask ourselves. All of us have our own share of day-to-day operational struggles. But many of these could well be resulting from the fact that our basic value system is not in fine fettle. I find myself struggling because I notice an absence of mutual respect in the 5000-year-old culture. In our industry, I notice a n a bsence of empathy, ignorance to gender specific issues and nobody seems
Expecting the government to intervene in resolving our issues amounts to asking for too much. Its hands are full with plethora of issues – Kashmir, RSS, Pakistan, etc.
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competition, not between Starwood and Marriott but with the arrivals in Thailand, and for that matter, the arrivals in France and compare them with those in India. I cannot do this by myself. I can at best contribute some ` 50 crores to some marketing fund, but then what happens? Only if we can all get together, then thins can change. We certainly deserve to do much better than this. We are an amazing culture and that is a natural strength. But we have hardly used it as an ammunition. We are owners of spirituality but nobody seems to be talking about it. And considering our basic cultural premise, we are also the rightful owners of hospitality, this business is in our DNA. All these factors can only produce results if we put up a collective fight. Let’s come forward
When it comes to industry representation, we have plenty of associations – HAI, FHRAI and God knows how many other I’s. But they simply don’t talk to each other. Why can’t we have one hospitality body which should work for Mother India?
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to be bothered about doing away with the element of servility which has set into the value system. The Indian metropolitan cities today are the major hospitality hubs. And our personnel in these cities,like any other average commuter,have to deal with three-four hours of traffic blues everyday. How can we expect them to come to the office with a smile on their faces? Do we take these factors into the account in our management processes? We are doing great things in our industry. I firmly believe that any good manager can come in, fix the balance sheet and may even create right EBIDTA margins for the unit. But how do we deal with more pertinent issues like inequality, low self-esteem of majority of hospitality industry personnel? Do we acknowledge the importance of valuable contribution which a dishwasher is making? These issues are not going to be sorted out by somebody outside. They are our problems
and we will have to join hands to resolve them while tending to improve our value system which in my reckoning is the core issue. When it comes to industry representation, we have plenty of associations – HAI, FHRAI and God knows how many other I’s. But they simply don’t talk to each other. Why can’t we have one hospitality body which should work for Mother India? The way business scenario is unfolding, a significant change in the value system is critical and coming together seems to be the only solution. Indian hospitality has I find myself struggling because I notice an absence of mutual respect in the 5000- year- old culture. In our industry, I notice absence of empathy, ignorance to gender specific issues and nobody seems to be bothered about doing away with the element of servility which has set into the value system.
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Let’s make it a collective goal to bring in more people in India. Getting a meagre seven million tourists every year is a huge embarrassment.
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to indulge in a competitive brawl of a different kind at several fronts and this would need a sincere collaborative effort. For instance, we can’t wait for an administrator like Amitabh Kant to do something path-breaking every time and get us the right numbers from the overseas markets. Expecting the government to intervene in resolving our issues amounts to asking for too much. Its hands are full with plethora of issues – Kashmir, RSS, Pakistan, China, etc. We would simply need to take the battle in our own hands. Let’s make it a collective goal to bring in more people in India. Getting a meagre 7 million tourists every year is a huge embarrassment. What can we do about the
going to get, he would have been laughed at. But then we do have them. People like Sanjay Reddy have done us proud building them and truly we are proud of them. Supply in India of hotel rooms is still aenamic. A few years ago, we had less hotels in 4 and 5 star category that there were in downtown Manhattan. And look where we have arrived today. Our manpower issues also need a collective effort. No doubt, we have tremendous talent around. But, by and large, it is in a raw state. They might not be as good as what we would like to believe. But have we done anything to make a difference? The point is: all of us share the good intents but there is a huge gap when it comes to execution. We certainly need a new bunch of leaders with larger industry-specific vision to bring in the critical changes, people who are committed to change the ecosystem wherein everybody who is part of the industry has highesteem and act as the guardian of the industry. No gain saying, what we need to do most urgently is to fix the foundation.
Marriott and Starwood alliance: Its implications for Indian hospitality
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arriott is a formidable travel company and its current president Arne Sorenson has never pretended to be a hotelier. He wants to be the biggest and strongest travel company in the world because he realises that OTAs are going to kill us. So what Marriott has done is brilliant. It is equally good for Starwood for they have joined forces with an equally strong player and together they can offer more value to their customers. Now, what does it do to us? There could be some initial setbacks because people in India are no different than others when it comes to being addictive to loyalty programme cards. People would say why should I buy a Taj card when a Marriott card can serve me in more destinations in the world. So what are we going to do? Rollover and except defeat. No way. We have to create distinctions in our services. We have to stop being like them - Starwood or Marriott. We have to start being more Indian. Let’s put Indian hospitality’s best foot forward, create new experiences. From the standpoint of supply and demand equation, I have no doubt in my mind that the pie is too big. So I am not worried in the long run. It will, in fact, be good for India. The presence of more foreign brands only validates India’s growing reputation as an international destination.
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Neemrana’s heritage excellence finds a new expression; Tijara Fort property gets ready for commissioning Neemrana’s passion for heritage property restoration and management will now have a new signpost – on the hills of Tijara in Rajasthan. The 18th century fort which was lying in a dilapidated state has been transformed in a vibrant heritage unit after painstaking efforts of over a decade. By ritwik sinha
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ome 21st January and the globally renowned Neemrana Group (known for its excellence in heritage properties) will add another feather to its cap. Tijara Fort Palace, about 40 km from Alwar city in Rajasthan, will be officially unveiled marking a significant addition in the portfolio of Neemrana group. An architectural marvel at the hilltop of Tijara, the fort palace is finallyready to welcome guests – clearly a critical movement in its over 150- year-old history wherein it has probably journeyed from the stage of splendor to ruin before now being rediscovered and restored in a new avatar through a public-privatepartnership (PPP) arrangement between Rajasthan government and Neemrana H otels. Historical accounts suggest that the fort was built by Maharaja Balwant Singh (construction work had started in 1836) under the supervision of famous architects from Kabul and Delhi. It had taken about 13 years in the complete construction of the fort with its attractions like hanging gardens, three distinctive palaces (Rani Mahal, Mardana Mahal and Hawa Mahal) and Aam Khas sections. This, however, is the story of its origin. When the process of restoring the fort into a heritage property had kickstarted about 12 years ago, the fort was simply in a dilapidated state. “We had found three palaces, half built and in ruins since they had been vandalized . These were sitting in an undulating, hilly terrain,” recalls Aman Nath, Chairman, Neemrana Hotels Group who admits that Tijara Fort’s transformation has been quite an exercise (read the box piece: Tijara Fort has been a difficult project). “Tijara Fort Palace is a clear testimony of our passion in creating defining heritage products catering unique experiences. It has been quite an effort for more than a decade now to give this shape to the fort. In its design and architecture, we have spared no effort in ensuring that nothing comes in the way of its appeal. The services so essential to run a property have been concealed underground. We have levelled the hill in seven terraces and gardens,” says Aman Nath. The rooms have been redone with rare art workmanship and special emphasis has been given todecorating the hanging gardens which occupy quite an expansive stretch in the fort palace. Even before the refurbished property has been shown to the world, rave reviews have poured in. A noted Dutch travel writer in his blog last year had called it a unique project. “A stupendous effort has been underway to give history a new interpretation…. The basic decision was to use the hilly
Tijara Fort when it was put for bidding 12 years ago
Tijara Fort Palace after the makeover which took more than 10 years
aman nath Chairman, neemrana hotels group
An inside view of Anjolie Mahal, an important section of Tijara Fort Palace
In its design and architecture, we have spared no effort in ensuring that nothing comes in the way of its appeal. The services so essential to run a property have been concealed underground. We have levelled the hill in seven terraces and gardens.
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Tijara has been a difficult project, says Aman Nath
E Aman Nath with his late partner Francis during the formative years of Tijara Fort facelift
nature of the terrain to locate all the large-scale functions at such depths that they would not clutter the historic composition of the three historic buildings above the ground. The three historic buildings have been creatively restored and eclectically renewed with an eye for detail. Tijara teaches us how it’s not the relentless conservation of singular, old buildings but the creative use and adaptive reuse of a complex of historic buildings in their larger context that gives the best results,” he wrote. Tijara Fort Palace is eventually going to be 75 rooms property, though in the first phase it will have 35 rooms. According to Aman Nath, the property has all
the ammunition to turn heads, both within the country as well as globally. “Every property we add opens a whole new region. This is among the larger ones and the countryside around Tijara FortPalace, is comparable to nothing. Let the world come and discover it. It has been my dream since we met Bhairon Singh Shekhawat, some 20 years ago,” says he. For its promotion, Neemrana Group intends to use the social media to the hilt in the initial stage. “We have 27 properties and every guest promotes us by word of mouth. Besides that we have all the modern weapons of marketing with an impressive list of Friends of Neemrana and a huge Facebook following,” he underlines.
ven as Tijara Fort Palace is going to be the first successful PPP project in tourism sector in Rajasthan which will finally see the light of the day, Neemarana Hotels chief Aman Nath minces no words in underlining that it has been a difficult project, more because of administrative apathy than any other reason. “The execution of this project has literally seen four governments at the helm in the state. The government went to We had been ready for the past three the cabinet to take an years but unimportant objections were extension of the lease period from 30 to 60 raised. The idea of the small babus is years. Still no one came never to see the broader picture but to forward. We were embroil everything in some controversy probably the only crazy However, we have triumphed over all company which did not run away. hurdles and now ready with this unique property,” he says. According to Aman Nath considering the anticipated bottlenecks in turning around the ruined fort, the private sector had not shown much enthusiasm for the project when the tender was floated for bidding. “It was such a difficult project to do, that no one really bid for it. All the big and medium chains had collected the tender bid papers. So the government went to the cabinet to take an extension of the lease period from 30 to 60 years. Still no one came forward. We were probably the only crazy company which did not run away,” he recalls while adding that getting an NOC from the local panchayat too turned out to be a lengthy process. “This despite repeatedly telling them that the project brings economic development to the region.”
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hote lscape s Golden Tulip Goa
Royal Tulip Bangladesh
Golden Tulip targets to double its size in India by 2017 end; toying with inorganic options Corpus for India and introduction of new brands
Golden Tulip’s journey in India since 2007 has been of slow and steady nature. But after the acquisition of the brand in early 2015 by the largest Chinese hospitality group Jin Jiang International Holding, the scene is likely to dramatically change. In an exclusive conversation with TourismFirst, Vimal Singh, Managing Director (South Asia), Golden Tulip says the company’s growth in India will be significantly accelerated since the parental firm is keen to put up more flags for strategic business reasons. Edited excerpts: By ritwik sinha Golden Tulip had made its debut in India in 2007. Please briefly take me through to its journey; how it has evolved in one of the fastest growing hospitality markets in the world?
We had started with one hotel in November 2007. And today we have 19 units in the country and signed properties are in the range of 25. We are expecting to open about half a dozen new hotels in the next few months in different parts of the country. We have gone through ups and downs in our journey so far and have learned some valuable lessons. We now have a target to do multiple brands and ultimately reach to a situation wherein we can choose one city and put up more than one brand. We have also gone through ownership change at the parental level. We were part of an independent group which was acquired by Starwood Capital in 2009. And in February 2015, it has been acquired by a Chinese group called Jin Jiang which today happens to be one of the leading hospitality players in the world. They are ranked at number five or six in the global hospitality business with over 7300 hotel units in their portfolio. The general impression about Golden Tulip in India is that under the previous management, the approach was cautious. But now the Chinese parental firm is keen for making aggressive moves in
Is it true that the new management has earmarked something like $100 million corpus to expand your footprint in India? Some recent reports suggest this.
the India market. How would you respond to this perception?
There is probably a greater synergy which Jin Jiang feels in the larger Asia markets. They vimal singh have over 100 million Managing director (south Asia), members in their loyalty Golden Tulip programme. So it’s a huge We have been number two hotel base for us to get busigroup in Europe after Accor. Jin Jiang has expressed an intention to ness from. We are hoping develop some primary markets in their to grow that India- China portfolio. The present management corridor in terms of tourcertainly looks at India as a major ism or business travel future market- both in terms of catering to the domestic tourism helping us in converting business and outbound business some of the traffic into our hotels which are already attuned to Jin Jiang properties. Surely, after the arrival of Jin Jiang, there is a agement certainly looks at India different impetus for our growth as a major future market- both in because of their focus on Asia. terms of catering to the domestic And when you talk of Asia, China tourism business and outbound and India are the two largest business. markets. Therefore, their focus on India is quite understandable. What is your next two years of There are also subtle indications roadmap look like when it comes of taking inorganic route to beto putting up more flags on the come a major player in India. Indian turf? If we talk of organic options, then Louvre Hotels (operates Golden we are looking at addition of 6-8 Tulip) has traditionally been strong properties every year. We are right in Europe. But after the acquisition now, spread across from Manali down to Bangalore. We now want of the firm by a Chinese group, to open some hotels in Kerala. But are you noticing any conscious atour primary target is the major tempt to change your stronghold six metros. We presently have a from Europe to Asia? We have been number two hotel smaller presence in Delhi and group in Europe after Accor. Jin Ji- Mumbai and we want to put up ang has expressed an intention to larger inventories in these cities develop some primary markets in as well as other metros. We are their portfolio. The present mantoying with all kinds of options –
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They have basically said that there is some fund available for us to look at. $100 million is the number that was bandied about but I am not too sure. Our sense is: if there is a good deal, money will be made available. And we are looking at multiple deals. We are looking at the possibility of a serious strategic investment in a local company. We certainly have the appetite to invest quite a bit of money. A critical point which needs to be understood is that we are not a fund. We are an operating company which has enough cash reserves which could be invested for future growth. So our approach will be transaction driven. That leaves the scope for both small as well as possible big deals. You gave me a sense of possible property count in the next two years. Does it also entail introducing some new brands which have not been used as yet?
Yes, we are looking at those opportunities. For that, we
organic or inorganic. When I am saying inorganic, it could be buy out of the existing units or through the strategic investment route. The broader idea is to create a hub and spoke model- you put up a large hotel in a metro and create supporting units in the adjoining region. For instance, we have two hotels in Bangalore. We can now look at more management
will need to join hands with developers who are looking at multi-location options. We are looking to introduce Campanile brand and Golden Tulip premier class brand which is a hard core budget unit. Campanile is a 2-3 star property but distinctively stylized, boutique property in look and feel. The brands which are existing in the country are Golden Tulip (4 star), Tulip Inn is our 3 star and Royal Tulip is our luxury offering. You also seem to have a decisive mandate to expand your footprints in South Asia now?
Yes, that is the plan. Apart from 19 units in India, we have recently opened a large unit in Bangladesh. In Nepal, we were close to signing a property which got stuck after the earthquake. Some structural issues have emerged which we are trying to resolve. In Sri Lanka, we have closed one transaction in principal. We are looking at some other opportunities in Sri Lanka since the tourism market is growing quite well there and India outbound is a major contributor. And we are also looking at more opportunities in Bangladesh, presently we are negotiating for two more projects. or franchise agreements in the region with Banglore unit acting as the hub. Chennai and Hyderabad are our next big targets. So in the next two years, our major focus would be in developing major metro markets. On the basis of our signed contracts, what I can tell you is that by 2017 end, we will have anything between 37-40 units commissioned in the country.
Sentiments in the market Is sentiment improving in the market? Do you anticipate any bullish phase round the corner?
There is certainly an uptick in our business. But not to the extent which could be compared with the bullish phase of pre-2008 spell. But it will eventually come back to the business. As the Indian economy is growing, it will need more hotels. What is holding back the hotel sector in India is the cost of money. The cost of borrowing is very, very
high here compared to other places. So a lot of players are not entering into the business. But probably a couple of years down the line, an inflection point will come wherein it will be realised that room inventory growth is not matching the pace with the business growth rate. What happens to the ARR pattern in the future?
The rates which we had seen in 2006-07 period in India were
not realistic. So if anybody had looked at those rates as the benchmark and decided more projects on the basis of those trajectories, they have made a serious mistake. Those days even 4-star hotels on their best day were charging $150-200 which was totally unrealistic. It can’t be sustained. So even during the best bullish phase whenever it happens in the future, I don’t really see ARRs sky-rocketing. They will be more realistic.
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hote lscape s
Leela to unveil a comprehensive future roadmap; Agra, Jaipur projects to commence before May
By ritwik sinha
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016 is going to be a critical year for the domestic hospitality major Leela Hotels which has undertaken a major financial restructuring exercise in the recent past. Buffeted by a heavy debt burden of around `5,000 crore which was on its balance sheet around the end of the last fiscal, the company recently sold off its Goa property to a Malaysian investor MetTube Sdn Bhd at a reported price of `725 crore. Leela, however, still holds the management mantle of this 216 rooms luxury unit. The market r emains abuzz with speculation pertaining to possible moves by Leela to get into fine
fettle again on the financial front. A popular theory doing the rounds is that the company would eventually resort to a light-asset model and could well divest off its Chennai property too in the near run. Speaking to the media on the sidelines of a recently held hospitality seminar in Gurgaon, President of The Leela Palaces, Hotels and Resorts, Rajiv Kaul, however, refused to comment on any speculation. Hemaintained that the company is working on a long-term roadmap which will be ready soon. “In consultation with an asset management company (AMC), we are working on a future roadmap. I think, this plan will be ready in the next six months’ time. At this stage, all theories floating in the
at solutions to fix its c ritical fi nancial issues, the new year would also see its next line of properties – Jaipur and Agra - reaching to the ground breaking stage. “We are going to start work in Jaipur next month and we hope to have this property ready in one year’s time. It will be a 56 room property under the brand ofLeela Palace. In Agra, we are hoping to break ground in April or May. Agra will be a 90 room luxury property, all rooms giving a view of the Taj Mahal, and rajeev kaul it is likely to take around President, the Leela Palaces, three years to reach to Hotels and Resorts If you compare to the trends last year, the finishing line,” Kaul informed. While pursuing there has been a growth in the room rate of about 5-8 percent this time these projects, Leela will which is a modest growth. Occupancy be adhering to the asset too has grown up by 2-5 percent. So on the whole there is a topline growth light formula – thesewill in the single digit – around 7-9 percent. be joint-venture projects with developers wherein Leela will be operational partner. Meanwhile, commenting market are mere speculations. Furon the current market trends, ther divestments in any property Kaul underlined that a slight may not even be required,” Kaul uptick in the luxury segment is emphasised in his response. But while Leela will be looking visible. “If you compare to the
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trends last year, there has been a growth in the room rate of about 5-8 percent this time which is a modest growth. Occupancy too has grown up by 2-5 percent. So on the whole there is a topline growth in the single digit - a round 7-8 percent. However, before the season had started, we were expecting growth in the luxury segment to the tune of 15 percent,” Kaul pointed out. According to Kaul, trends in the luxury segment would have been much better but for some unexpected spoilers. “Flood like situation in Chennai has affected the business across all segments in November and December. These months traditionally have been strong for us in the past because of a surge in conferencing which we missed out this time. The good news is: things are getting back on track again in the city and what we lost out could be a momentary blip,” he said. Speaking specifically on the performance of Leela units inthe recent months, Kaul maintained that while Delhi and Bangalore properties have seen growth in the business, its units in Goa and Kovalam have seensomewhat subdued business. “It is primarily because of the fact that the Russian markets are in a serious turmoil and there has been a 70-80%decline from this market.” He further added that to push the small uptick in the luxury business, the country will need to attract more tourists from the US as well as some select European markets where growth momentum h as beenvisible again.
Sarovar group to open six new properties in 2016; eyeing opportunity in the Middle-East By ritwik sinha
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he expansion drive of domestic hospitality midsegment major, Sarovar Group, is all set to roll on smoothly in 2016 with the commissioning of nearly half-dozen new properties in 2016. This would also include a major international opening in Kenya, a market which has emerged as a favourite turf for the Sarovar Group’s international footprint design. “We will open at least six new hotels this year. The
robi airport (Sarovar Premiere brand) would be Sarovar’s fourth property in Africa. Currently, it is managing two more properties in Kenya’s capital apart from having a unit in its kitty in Darussalam. According to Bakaya, the company is now also looking at new management opportunities in the Middle-East markets as part of its international expansion drive. “We are looking at replicating what we have done in India and Africa. And we are looking for opportunities in the Middle East
tives are averse to the idea of aligning with the new age budget aggregators. The latter is probably considered more of a disruptive force which is growing in scale at the expense of those who have put in painstaking efforts in creating fixed assets. Sarovar group, however, seems to be veering to the view that these aggregators can’t be taken lightly and could be an effective partner in enhancing the marketing canvas of a hospitality company. On an experimental basis, it has tied up with an ajay bakaya aggregator now. “Digital Executive Director, Sarovar Hotels marketing has evolved big After a period of six-seven years, we time and there seems to are noticing an upward trend. 2015 be a larger mood to align winter has seen an increase both in terms of ARR and occupancy rates vis- with the market aggregaà-vis 2014 winter. It has not been a big tors. Everybody is getting boom but there is a positive move. We expect the demand drive would further involved at some scale. grow for our business. We have already started working with them and our five properties are enrolled now. You can say the room inventory base of the we are working on an experimencompany will also increase by a tal basis. Let’s see how it goes,” he modest margin. “We have already informed. Bakaya was, however, crossed the room inventory quick to point out that the partnerbase of 6000 and the addition of ship between Sarovar and the new another six hotels will bring in an age aggregators would be on its additional 600 rooms in our kitty,” own terms. “We are a mid-market Bakaya informed. company and we are clear in our In the realm of the organised mind that we will not allow any hospitality segment, it is widely aggregator to put up his signage on believed that industry representamy property,” added he.
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largest would be a 5-star, 150 keys hotel at the international airport in Nairobi, Kenya. Within India, the important openings we are going to have this year include Chennai and Jaisalmer markets,” Ajay Bakaya, Executive Director, Sarovar Hotels told TourismFirst on the sidelines of a recently held event in Delhi. The 5-star property at Nai-
as bridge to Africa. We are discussing some properties, we will share the details shortly,” he said. Meanwhile, with the proposed six new openings in 2016, the total property count of the company will shoot up to 76 by this year end. The company presently has a portfolio of 70 units (three abroad) in 48 destinations in the country. With the new openings,
Commenting on the current market sentiments, Bakaya emphasised that the business trends are improving and it is likely to get stronger in the near to medium run. “After a period of six-seven years, we are noticing an upward trend. 2015 winter has seen an increase both in terms of ARR and occupancy rates visà-vis 2014 winter. It has not been a big boom but there is a positive move. Considering the fact that India continues to sustain a higher growth trajectory when other important markets are in a struggling mode, we expect the demand drive would further grow for our business,” he said. Meanwhile, on the critical issue of the possible equity dilution of the two foreign partners in Sarovar in favour of Wyndham group, Bakaya said nothing has been finalised as yet. “30 percent of the company has been up for sale for the last two-three years. Our foreign partners would like to sell their stake but they are clearly not in a hurry. The negotiations are on,” he responded succinctly. The investors in Sarovar Hotels Bessemer Venture Partners and New Vernon Private Equity- had pumped in $10 million around 2007 picking up 30 percent stake in the venture. The majority stake of 70 percent is held by Indian partners and there would be no change in their equity holding pattern after foreign partners exit from the venture.
online : hote lscape s
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OYO aspires to bring every under-utilized real-estate online, says Ritesh Agarwal Speaking at the third Global Hospitality Conclave, Ritesh Agarwal shared his vision of transforming nation’s online space by bringing on board all available utility spaces for enhanced optimization and profit.
By shashank shekhar
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erming the online space a vibrant, organic community that had immense power to create opinions and influence businesses, he said that those days where a single bad guest experience could be whisked away were long gone. Reasoning that even a single bad consumer experience made more difference to companies dealing with large volumes, he shared that OYO Rooms had booked a million rooms last month – clocking upwards of 92 percent positive reviews. “It looks formidable. But, in reality, going by the figure, there are a large number of people who did not have a satisfactory experience. The challenge will be to push these numbers to closer to a hundred mark,” he explained. Analysing future trends in the realm of online space, he believed that the real-estate was under-represented in the online space, and under-utilized nationally. “There are a number of cafes, airport lounges and eateries in expensive hotels that are functioning at low levels of efficiency and occupancy. Some of them as low as thirty percent. Why cannot we get them online to make it financially rewarding for all parties involved,” he asked. He went as far as to say that the company that figured out a way to better utilize the available infrastructure creating more value at a better pricing would run away with the pie from them. Noting that innovation remained vital in order to nurture a thriving online consumer space, he advocated innovation and the ability to think ‘beyond the box’. Asking the larger community to refrain from the tendency of straying into emulation, he said “one must try to think organic and innovate. Real problems need indigenous solutions.” Illustrating his argument, he mentioned that his company grew by targeting all unbranded hotels, service apartments and B&B’s which was a unique prospect when rolled out, at least in India. Stating that it had encouraged hotels to improve their facilities, in turn creating better travel experience, he told us that hotels had increased income with more demand of F&B and other services. “The concept of online space was simply not there in India for the unbranded private hotels and
aggregators lied in calculating the predictability of service quality meted out to the consumer, and not the discoverability of property or guests, besides enhancing skills of the staff handling consumers. “How do you know if the rooms are prim and proper, and every detail is taken care of? Nine out of ten times, it may work well for us. But, there are instances where it doesn't. And, that is where the use of IT to iron out glitches come in,” he batted for extensive application of IT in running operations. He said that age of internet, hand-held devices and online communities, and creation of e-data at an unprecedented rate had modified the consumer behaviour. “Today’s consumer wants to have a personalised service. As a service provider, you must be able to pre-empt his needs and deliver him tailor-made solutions and services. Unless, you do Ritesh Agarwal not streamline and use founder & CEO, OYO Rooms the sea of data to your Today’s consumer wants to have a advantage, you can not personalised service. As a service provider, you must be able to preempt deliver the expected his needs and deliver him tailor-made results,” he said. It is the solutions and services. Unless, you do ability to pre-empt evernot streamline and use the sea of data to your advantage, you can not deliver evolving consumer needs is what keeps some ahead the expected results. of the rest, he felt. He noted that there were instances where the hotel staff was not up to the lodges. There is a huge segment mark to meet consumer expecof travellers who would like to tations which could impact the have a reasonably priced accombrand’s standing. “It remains modation. There have certain a challenge to ensure similar expectations like a clean room skill levels to create a similar and washroom, besides basic experience as a brand. That is amenities in place,” he said. something we are trying to work Ritesh believed that the on and deal with.” problem with online hotel
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Instil a sense of pride in staff to ensure standardization of service
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n the question of creating a standardization in guest experience, he said that there were two aspects to ensuring them. “When we think about the quality of experience with our surveyors, one is, of course, the basic – like a bed, TV, Wi-Fi, and cleanliness. Second, and a more vital part, is service,” he said. He shared that he found the former a more solvable conundrum. “For instance, we have partnered with Airtel to give free Wi-Fi to all our hotels with 4G connections. To ensure cleanliness, we have OYO cleanliness vans to assist our hotels,” Ritesh said. He noted that the standardization of service to deliver a guest experience and cement brand value were a common problem for all hotels, and not just e-commerce aggregators. “In general, we do know that our manpower is not averse to working hard, but most of the times, they are simply not skilled enough. If they are, they are so over-
burdened by the QSR, or the F&B industry that they simply find it difficult to give good service,” he explained. “We have done everything from recognition, compensation, to increasing remuneration, and so forth. We are also setting up an institute for training our staff. I guess the problem will solve when people who work for the hospitality industry start taking pride in their work, especially in the budget segment,” he opined. Adding that staff in a non-branded hotel made comprehensively lesser money than any five star hotel staff, he said “they just do not feel proud of working for a non-branded hotel. Hopefully, our brand programs and referral programs will enable that, but it is a challenge that gives me sleepless nights,” he said. Delving further on his future engagements, he mentioned that they had been fiddling with the thought of breaking the price-barrier for a very long time. “We have run some experiments and will continue to do so, but I firmly believe that it could work for those 400 million travellers that get into buses and trains, and there are so few of us,” he said, referring to the Indian hospitality industry. He told us that when he looked at a standalone or a large brand, he did not see a large brand integration value that OYO could add. “I, although, see a big distribution power I can add. So, if a brand wants to partner us in distribution, we would love to explore that,” said Ritesh. Adding that they promised predictability, affordability and availability to their customers, he noted that “Our board which hangs outside any hotel is an assurance that your experience will not be bad. Whereas, when a consumer goes to The Leela or The Taj, he already expects predictability. They do need an OYO board, up front, to create that sense of assurance.”
Whoever uses infra better than us will disrupt OYO; brands and distributors fast integrating
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growing trend which I feel very strongly about is the amazing integration of brand and distribution. I consider myself more a part of brand than the distribution fraternity,” he said. Illustrating how the integration was visible in the modus operandi of new companies, he said “If you see the new generation of companies that are coming up, brands and distributors have nothing much in different, because there are brands of hospitality and they are the distributors of inventories as OTAs.” Placing his wager on more Indian hospitality brands venturing on the same path in the years to come, he noted “What my strong belief is that the next generation, very similar to let us say UBER which is a distributor and a service provider, hospitality companies will be, both, brands
as well as distributors.” The Marriott-Starwood deal illustrated that shift, he said. Explaining his argument, he said that technology itself was becoming a commodity, and data the only real asset. And, this commodity could be used by anyone. “Every company is innovating in their own way. I believe is, in the long-term, people who are service providers and delivering the last-mile experience to the consumer will be the biggest distributors, because consumers are getting smarter day by day,” added Ritesh. He attributed OYO’s success to passionately following what he believed in. “Our journey from three hotels to over 4,500 hotels has been nothing short of amazing. The major reasons of our growth can be attributed to being very passionate about what
we are trying to do,” he shared. “Secondly, we managed to build a team which shared a similar vision and commitment to the idea. Our long-term ambition, though, is very different from all these numbers,” he claimed. He, further, said that the real-estate globally had been very inefficiently utilized; it was not only with India, but global phenomena and we want to change that, he said. Our biggest weakness is the reverse integration. A company has a cycle. There is growth with an idea, but you may stagnate and die if you do not keep improvising. We want to ensure that we keep rejuvenating ourselves with fresh ideas and newer networks all the time.
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Giving an insight to what he believed could disrupt OYO’s march towards a lion’s share of online bookings, he predicted that “The company that should disturb OYO’s aggressive expansion will be the one which figures out a way to better use the available infrastructure than we did.” Adding that if they could put to use available infra most efficiently, besides providing the experience to the consumer, not marginally, but at an exponentially better price than OYO, might disrupt them. “Our biggest weakness is the reverse integration. A company has a cycle. There is growth with an idea, but you may stagnate and die if you do not keep improvising,” explained Ritesh. “We want to ensure that we keep rejuvenating ourselves with fresh ideas and newer networks all the time,” he said.
online : hote lscape s
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Hotels.com sees e-commerce providers lean back on ‘personalisation' trend Spurt in users of online bookings is swiftly creating a new trend – rise in last minute reservations. As travellers seek to make the best bargain, competitive pricing and personalised customer interface are turning out to become crucial factors in attracting clinetele, feels Hotels.com representative. E-commerce is also creating a need for service providers to constantly innovative their offerings which is, in turn, improving travel experience. By shashank shekhar
for the hospitality industry that has taken elaborate measures to ensure their patrons continue here are no points with them. As a result, we have for guessing that seen the growth of app-based India’s e-commerce service, as well. Ours is one of is in midst of an India's first travel apps, he shared. unprecedented boom. Driven Stating that it was compatible with by Smart phones, tablets, wearable technology to receive and growing mobile penetrahelpful notifications directly on tion in the hinterland, online their wrist, he noted that it was businesses are becoming not a one-off attempt to connect ubiquitous in character. Travel to consumers, but an ongoing and tourism as a sector, too, process. “We continue to improve has not been left untouched. user experiences by updating our In fact, on the contrary, acmobile app and websites as minor cording to Hotels.com, travel as filter options, search criteria, industry in India commands a etc. affect consumers experience 77% share of the total e-comin searching for hotels via our app merce market. Stating that or website,” he said. over half of Indian travellers amit agrawal Besides personalization of serwith internet enabled mobile senior marketing manager, hotels.com vice, it has helped boost business devices, engaged in various Due to the humdrum routine, as well, we were informed. “Smart travel-related activities like travellers today are pressed for time apps are especially beneficial researching travel products, and in many cases planning a trip in advance is difficult. Last-minute travel while making last minute booking. booking, trip management is the only way for some travellers to Over 25% of travelers across the etc. on mobile platforms, take a vacation or short getaway. globe tend to book their trip with Amit Agrawal, senior marketlast minute deals at our website ing manager opined that the to enjoy the best hotel discounts trend was now percolating in the first nine months of 2015,” into tier 2 and tier 3 markets. he shared. “We are among the first to embrace Apple’s Illustrating the spurt in Smartphone users, he shared that “During the first nine months of 2015, more than 1 in 3D touch technology which allows one-click access to the most popular hotel booking features,” he added. 3 bookings on Hotels.com were made on Smartphone.” Crediting one of the largest hotel contracting teams in the Noting that India had fast evolved as a huge industry, along with the knack of negotiating the best rates travel market; both inbound and outbound, and for its customers for their success in the sub-continent, an increasing number of Indians were purchasing he opined that understanding the unique traits of each travel products online, he believed that providing market and local consumer preferences helped them great value through special offerings and seasonal optimize their product offerings. “We operate more than promotions would help them in creating a niche for 85 sites, majority of which are in localized languages. The themselves. “We plan to aggressively expand our insites feature more than 17 million unique user-generated ventory of domestic hotels and also plan to provide reviews from those who have actually stayed in hotels to payment options in India, soon,” he added. ensure customers can make an informed choice when Personalization of service has been one of the booking,” explained Amit. major outcomes of e-commerce. It holds true more
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Real-time feedback on consumers helping hotels to take quick decisions
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xplaining the modus operandi of Hotels.com in bringing hotels on board to use their services, he shared that the group had extensively invested in creating responsive design on their sites exclusively for hotel partners, besides improving their tools to optimize results. “It provides a real-time and relevant feedback about how to better optimize their distribution strategy,” Amit added. Extensive use of real time feedback provided hoteliers with a private feedback from travellers about their first impressions of their hotel in real-time, enabling hoteliers to act on that feedback and potentially avoid a negative hotel review, we were told. The concept of ‘Sell Tonight’ makes it faster and simpler for hoteliers to push out same day rates and availability to travelers, he added. “Our system having the mobile app allows hoteliers with a look at market intelligence, production and inventory information right from their mobile phone,” Amit further explained. The most important attribute of taking real-time decisions, and tweaking offers to suite the clientèle's specifications, in order to attract the most traffic has augured well for hotels, as well as for consumers who are in a better position to make an informed choice. Being an extremely dynamic space, e-commerce has
also had a profound impact on fostering new trends. One of the newest trend has been the rise of last minute bookings. “Due to the humdrum routine, travellers today are pressed for time and in many cases planning a trip in advance is difficult,” he said. “Last-minute travel is the only way for some travellers to take a vacation or short getaway,” added Amit. Divulging that as many 25% of travelers globally opted to book their trip with last minute deals at the website, he stressed that the impact of the trend of last-minute travel, on the hospitality industry was indisputable. “Thanks to the emergence of the Internet age, our apps achieved more than 50 million downloads (globally) since the launch in 2011, while over 30% of our bookings (globally) came from mobile,” he explained. Sharing that, in India, last minute travellers included families who hadn’t planned their holidays during vacations or business executives, who usually had their necks deep in meetings; he noted that niche travellers’ preferred luxury hotels. “Many travellers in the age group of 25-35 years have begun to travel at least three to four times in a year, which has led travellers to cut costs in terms of accommodation,” explained Amit. “Hence they opt for budget hotels, especially those managed by hotel inventory companies,” he added.
Start with small steps to create awareness and wider consensus, suggests Karan Singh Grewal
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ists looking beyond a stroll in tea-gardens. ndretta is a small village, nestled in “We came up with a number of activities to the backdrop of the mighty Dhaulensure that guests do get caught in moadhar range, which has had its moments of fame and adulation. Known as notony. We have tied up with one of the five tea factories here; we organize visits to it for an artist’s village – and established when our patrons – so that they learn all about the Irish theatre personality and environmenprocess and savour its unique flavour,” he talist Norah Richards shifted from Lahore told us. “It has encouraged local producers in the late 1920’s – It is now known for its to improve their output in terms of quality, pottery. Left only with a noteworthy past helping them sell better increasing their and a museum, it has lost out to Palampur earnings. It has given some recognition to and Bill-Billing, between which it lies. But, the local tea, too,” said Karan Singh. through constant encouragement and Tourists can also explore trying a hand planned excursions to this tiny hamlet, by at trout fishing (only in specific seasons), the hotel’s management, some of its lost walking through forests, and an option of sheen is slowly coming back. “It is a village visiting popular monasteries and temple, and there are limited home-stay options. We share information with our visitors about Andretta, and it is being received well. Potters and local businesses are seeing better days,” said Karan Singh Grewal. His success not only lies in creating a buzz around a faltering destination, but also in his uncanny knack of proving better business opportunities to locals in Palampur – where the hotel is based. It is, essentially, a scenic and laid-back hill station, in Himachal Pradesh, revered for its sprawling tea-estates. Besides its natural beauty though, it Norwood Greens, Palampur is bereft of engagements for tour-
besides bird watching at the Pong Dam, he told us. “We have trying to diversify as much as we can. We want to create experiences that are unique,” he substantiated. Proximity to Bir Billing – a famous paragliding destination – is also getting a helping hand from Norwood Greens. There are many guests who are interested in paragliding and other adventure activities. We facilitate their visit, adding to traffic into Bir Billing. A staff of 30 is almost local, besides a number of helping staff comprising of drivers, guides and cleaners that have gained from this initiative. Gaddis – a local tribe – has benefitted immensely, we were told. “They are hired by our guests who want to explore offbeat trails. They have an exceptional knowledge of the local terrain and accompany visitors for long treks and picnics,” he said. Sharing his understanding on the way forward, he batted for small steps that were within the capacity of an individual traveller to implement and a hotel, regardless of its size and business, to implement. “Use less water, use LED bulbs and solar panels as much as possible; instead of grand schemes, imbibing and implementing these steps will go a
karan singh grewal Owner, norwood greens, Palampur
Use less water, use LED bulbs and solar panels as much as possible; instead of grand schemes, imbibing and implementing these steps will go a long way in making a difference.
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long way in making a difference. “A small a step as putting up a tag reading ‘please switch it off when not using’ on the hotel’s geyser is an important step forward. Let us begin with ourselves and then we can create a wider consensus,” he assertively concluded.
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online : technology
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Optiontown keen to enhance its presence in India; to tie-up with more airlines The global air travel platform which tends to provide high-end value added service going beyond the basic online ticket booking is eyeing for a firmer foothold in India considering the rising volume of the aspirational class. By ritwik sinha
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he name ‘optiontown’ is unlikely to force your grey cells to imagine a set of services meant to provide benefits to air travellers. But this is what precisely it is: offering a series of online services for air travellers which is more than basic deliverables of any general OTA. In fact, it could well be dubbed as stage two of basic online offerings in the air travel segment which tends to respond to the common aspirations of a flyer – like upgrading to the business class. “We are not exactly an OTA. You should rather look at us as the extension of the commercial wing of an airline company helping them to shore up their ancillary revenue by providing high-technological support. And it is immensely benefiting the common flyers and thus there is a win,win proposition for everyone involved in a transaction,” Sachin Goel, CEO of Optiontwon succinctly introduced the company’s profile in these words in a formal recent conversation with TourismFirst before sharing the details of company’s various schemes. The company which was formed in Boston in 2003 and claims to have 19 patents to its credit for its technological innovations in the air travel arena had begun its operational inning in 2009 and according to Goel, the journey since then has been quite satisfying. “It had taken us six years to develop our comprehensive platform and things have broadly unfolded as per our expectations. With nearly thirty airlines as our partners globally, we have contributed in nearly a million transaction last year. Our major markets are the US and Europe and we are keen to enhance our presence in some promising Asian markets which include India,” Goel said. Some of the major airline companies which have introduced Optiontown schemes include British Airways, Jet Blue, Scandinavian Airlines, Air Asia X, Egypt Airlines, Vietnam Airlines, Air Arabia, Fly Dubai and Biman Airlines. In India, Optiontown has already forged alliance with Air India, SpiceJet and Vistara. The first partner to sign up with the company though was Kingfisher Airlines which does not exist any more.
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Sachin goel CEO, Optiontown
We are not exactly an OTA. You should rather look at us as the extension of the commercial wing of an airline company helping them to shore up their ancillary revenue by providing high-technological support. And it is immensely benefiting the common flyers and thus there is a win-win proposition for everyone involved in a transaction.
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Upgrade Travel Option (UTO) is clearly the flagship product of Optiontown which facilitates an easy and cheaper upgradation to a business class seat from the basic economy class ticket depending on the last minute availability. This is how it works. A traveller who may have booked an economy class ticket on a partner airline can seek the assistance of Optiontown in upgrading to the business class by making an online payment. And if the flight has empty seats in its business class on the flying day, the customer will be transferred to the premier section. He will get the information in advance ranging from three days to four hours prior to the departure of the flight. If due to non-availability of seats, his ticket is not upgraded, the amount submitted to Optiontown will be returned within five
working days. “It is not a guaranteed service but an option for upgradation. For instance, if the business class ticket between DelhiMumbai route is `18,000, our customer will get it for around `10,000 – `6,000 fare for the economy ticket and another `4,000 fare for request for upgradation with us. Its win-win proposition if the seat is available – the flyer gets to travel in business class at a considerably cheaper fare and the airline makes more money by way of getting a premier class seat occupied,” Goel explained the mechanism. A dynamic pricing mechanism, of course, works with Optiontown offerings – sooner you book, lesser you pay. Another major offering of Optiontown is Empty Seat Option (particularly attuned to LCCs which have no business class) which facilitates a traveller to show his interest to book the adjoining seat (in case, he needs more space) by shelling out a fraction of the total ticket cost. In case, the seat is not booked, it will be given to the customer. “This product is doing very well in Malaysia where our partner is Air Asia X. We expect this to pick up in a major way in the Indian market as well,” Goel underlined. For the eight- year- old high tech air travel platform, India though is a small market contributing around 5-8 percent of its total revenue. “We are very optimistic about India and are keen to enhance our presence. It is definitely going to be one of the fastest growing aviation markets in the world and we are convinced there would be immense opportunities for us,” said Goel. The company is presently engaged in negotiation with other airline companies in India to get them on the board. “Our engagement with three existing partners – Air India, Vistara and SpiceJet – is moving smoothly and we are looking at formal tie-ups with other carriers. We are also talking to the market leader Indigo,” Goel informed. The company has also planned to do away with its low buzz reputation by setting afoot some aggressive promotion campaign in 2016 – in social media as well as through radio jingles in country’s leading metros. The company is also looking at its first round of PE funding which is likely to be in the vicinity of $20 million.
An option for foreign tourists too
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ith an aim to enhance its presence in India and covering all kinds of travellers with its portfolio of services, Optiontown is now also looking at creating a symmetry between its international airline and domestic airline partners to offer a lucrative package to the foreign tourists. “We have realised that the foreign tourist footfalls is increasing in India and given our association with airlines globally as well as in the country, we would be in a position to offer a composite value added services package to the international tourists as well,” Sachin Goel informed. He, however, clarified that the package is at the drawing board stage. While upgrading the seats to the business class and occupying the empty seats in a budget carrier while travelling within India are likely to be important components of the deal for the foreign tourists, Goel explained that the package can be further sweetened with more offerings. “With the information of the possible destinations where a foreign customer will be travelling within the country, we can also add on hotel and restaurant discount coupons in the offering. We expect to finalise this package soon,” Goel informed.
Introducing subscription commerce in air ticket booking
ith India being in the forefront of e-commerce explosion (in a global sense) thanks to its huge consumer base, other business streams meant to provide benefits to a particular class of consumers for a specified service line are also stemming out on the horizon. The world is increasingly witnessing the emergence of subscription commerce facilitated by online platforms particularly in the areas like food, apparel, holiday packages, etc. and the reverberations of this trend is well visible on the Indian turf as well. Optiontown which is seeking to get a firmer toehold in the Indian air travel
market has made a small beginning on this front by introducing a new scheme – Flight Pass Option (FAO) which facilitates bulk retail booking for a specified period by paying an initial subscription fee. “Flight Pass allows you to conveniently pre-purchase a number of flights at an agreed low price and enjoy the privilege of booking flights later as per your need. The option ensures no more fare increase for the subscriber as his flight pass low fare is locked-in at the time of booking. If you are a subscriber, then you can avail even peak period flights at a relatively low price,” Sachin Goel explained.
At the time of subscription, the customer has to indicate the possible number of flights, travel period and the number of users who will be using the option. This facilitates the flight pass option to be conveniently used with friends, family and colleagues. The customer, at the time of subscribing a specific package, has to pay 20 percent charges and the remaining he can settle in easy instalments. Optiontown is claiming that if used efficiently, this model can result in reduction of air travel costs upto 50 percent for the subscriber. “This is a new product which we have developed and India is the first market
where we have introduced it. Considering the kind of explosive growth in e-retail and e-ticketing, we felt India is the right place for this kind of product. We are convinced of its success as both retail consumers (for their usual vacations with family and friends) and corporates (for their bulk annual travel plan) will find it useful,” Goel underlined. According to Optiontown, the three month old product has been received well in the market (especially on the corporate part) with about 2000 merchandise partners joining the board. This also includes some hospitality firms.
online : technology
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Domestic travel growing at 35%; Europe still a favorite outbound, says Neelu Singh Calling domestic movement the backbone of tourism in India, Neelu Singh, Director and CEO, Ezeego1.com shares that J&K, and the Northeast, is receiving good numbers in this holiday season. She further notes that Europe continues to hold fort, despite some untoward incidents, as the premier destination for outbound. By shashank shekhar
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s the winter vacation and travel gathers stream with travelers heading to all corners of the country, and abroad, domestic tourism numbers are climbing north at a pulsating rate. The in vogue experiential holidaying, improved visibility, and steadily strengthening connectivity, to the North-east and wellness tourism are all lending meat to domestic tourism segment. “During this season, popular destinations are Kerala, Andaman and Nicobar Islands, and Goa,” informed Neetu Singh, Director and CEO, Ezeego1. com. “Then, there are snow clad destinations such as Gulmarg, Kullu-Manali and Auli among others,” she added. Sharing that destinations such as Sikkim and Arunachal Pradesh were attracting a major chunk of the movement into the Northeast, she stressed that domestic travel remained the bedrock of Indian travel and tourism. “And, this segment keeps growing at an average of at least 35 per cent per year,” she told us. Taking a stock of growing areas of engagements for Indian travellers, both locally and globally, she opined that there was a
Calle Alcala, Madrid, Spain
growing interest among them to fuse the element of experience in their culinary vacations. She told us that they engaged with a local chef or an experienced hand at cooking and spending a few days understanding various culinary styles. “We see this trend picking up next year, especially to Europe and Australia,” noted Neelu. Pointing towards a distinct breed of tourists who preferred to soak in the experience by staying at a destination for a considerable number of days, simply understanding the local culture and history, she said “They are tired of the cookie-cutter approach to vacations; this new emerging class of travellers prefer visiting a destination at their own pace; staying in a reasonably priced hotel and soaking in the local culture and
history.” Further adding that “They like to interact with locals and understand customs and traditions.” This exposure to varied experiences, across the globe, has also resulted in patrons seeking similar experience and Glamping, as an outcome, seems to be getting due attention. “Glamping is the latest trend and we believe Indians like to experiment with this style of holidaying. Having visited top glamping destinations in South Africa and Europe, many of them prefer glamping closer home in Ladakh and Kohima,” she said. On the international front, India’s outbound has steadily grown over the years. The concept of winter vacation has come to fore, resulting in travellers seeking long-haul destinations for their sojourn.
on the impact of Paris attacks on winter tourism prospects not only in France but, in wider Europe. Neelu Singh, however, brushed aside these concerns saying that it was natural immediate reaction for any traveler, at such situations, to exercise caution. “Paris in particular, and France in general are sought after destinations for the Indian traveler,” she said. She further added that the situation was behind us, and she had not noticed any drop in the numbers neelu singh of outbound heading to Director and CEO, Ezeego1.com Europe. “Indian travellers A new emerging class of Indian travellers prefer visiting a destination at have not postponed their their own pace; staying in a reasonably trip to France, at all,” said priced hotel and soaking in the local the Director and CEO. culture and history. They like to interact Hoping for better numbers with locals and understand customs in the months to come, and traditions. she believed that India, in the past months, had opened up much more when asked about the impact of Western Europe, apart from the USA, has been the top contender national programs undertaken by the government. “Any campaign in attracting them, but some fear that provides the country visibility that this time might be different. There have been voices that have is welcome, and this increases inbound travel,” she concluded. expressed their apprehension
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Growing ‘start-up’ culture will boost MICE and corporate travel in months to come: Sharat Dhall Sharat Dhall, President Yatra.com bets big on domestic segment travel. Calling J&K and the Northeast growing favourites among domestic inbound, he believes that a mushrooming ‘start-up’ culture would make India a hotspot for MICE and corporate travel in the months to come. By shashank shekhar
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015 was a successful year for the travel market, and we do envisage the same to be continued in the coming year,” noted Sharat Dhall, President Yatra.com. Despite, a despicable terror attack on Paris and instability in Europe on account of migration crisis, the outbound had pretty much remain intact, shared Sharat Dhall. “There was definitely a short term impact on tourism as the attack had left people apprehensive of travelling to Paris, especially since the closure of some monuments,” he said. Adding that, however, they noticed that this was just a minor hindrance, he said that people were again back to making plans to travel to Europe in the summer. “We are getting enquiries and bookings for the same,” he shared with us. Stating that the trend of people taking breaks and exploring larger number of domestic destinations was on the upswing, he noted: “Which is why the footfalls have been very good in the past few years.” Making a special mention of destinations like J&K and North East that have been promising for his business, he expressed surety that the number of tourists visiting these places was only going to in-
crease on an annual basis. “With start-ups mushrooming in India, it is also being adapted as an excellent MICE destination which is why business traveller visits are also increasing,” he reflected, indicating the positive implication of the growing trend of ‘start-ups’. Calling domestic travel segment mature, he observed that a large number of Indians were now looking forward to taking breaks more frequently. “Winter and summers are specially prime seasons for travel as a lot of Indians are
North Eastern states and Andaman are also gaining a lot of popularity on the domestic front.” As India’s interaction with the wider world gathered momentum, government’s key undertakings have also helped create an interest around business opportunities and tourism experiences on offer, felt Sharat. “National Programs, such as ‘Make in India’ and ‘Digital
SHARAT DHALL PRESIDENT, YATRA.COM
National programs aims at promoting India as an important investment destination and a global hub for manufacturing, design and innovation. Thus, by creating such propositions, we have managed to pull global interest towards our country and have observed significant growth in inbound tourism.
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looking at taking annual breaks during these seasons. Domestic is definitely preferred over international holidays and our bookings soar up to almost three times the normal during the peak vacation season, he shared. Divulging that preference for destinations differed according to seasons, but some of the key favourites remained Goa, Kerala and hill stations, he said that: “Places such as
India’ definitely help boost tourism as they generate significant interest in the country,” he explained. “The ‘Digital India’ initiative not only helps in bridging the gap between rural and urban areas, but also helps in infrastructure development which is required to further strengthen tourism,” he added. Stating that ‘Make in India’ had in it to convert India into a manufacturing hub, he said that
it had already created enough global attention to boost inbound tourism in the coming months. “It aims at promoting India as an important investment destination and a global hub for manufacturing, design and innovation. Thus, by creating such propositions, we have managed to pull global interest towards our country and have observed significant growth in inbound tourism,” he noted.
in bri e f India climbs up 13 places in travel competitiveness index According to a World Economic Forum report, India has registered a considerable jump in its ranking in the tourism and travel competitive index. India, now, sits at 52nd rank from the previously recorded 65th. Ministry of tourism, soon after, released an official statement on latest tourism figures, stating that “Foreign tourist arrivals from January to November, 2015 were 7.10 million, representing an increase of 4.5 per cent over the same period of the previous year, which was 6.79 million.” The report further added that foreign exchange earnings of `1,12,958 crore were recorded between January and November 2015 which represented an increase of 1 per cent over the same period last year – which was pegged at `1,11,889 crore.
‘Heritage Circuit’ train by IRCTC could boost tourism around historical destinations In a major shot in the arm in an attempt to augment footfalls around heritage sites and destinations, IRCTC has recently launched a ‘semiluxury tourist train’ that is offering a five-day-four night package taking passengers to Varanasi, Khajuraho, and then to Agra, before returning to Delhi. Armed with the option of choosing among 1st, 2nd, and 3rd tier AC coaches; inclusive of luxury hotel accommodation and AC buses for local travel needs, this package is expected to give momentum to the long mooted idea of a functional ‘heritage circuit’ around our nation’s diverse offerings. Interestingly, it has roped in centres revered by different faiths, adding more diversity and sheen to the product.
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online : technology
Big Data Power- How can Indian hospitality make the most of it? Deciphering individual behaviour pattern by using big data analytics is believed to be subtly ushering in a more efficient paradigm for companies-customers engagement. Analysts claim it could also significantly aid the hospitality industry which is battling against OTAs and new age aggregators to save its sales turf. By ritwik sinha
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hat is happening in the technological space could well be considered as a miniatured expression of that big bang theory which many believe led to the creation of the universe. The explosive emergence of big data analytics in the recent years, mostly recognised by the growing prowess of cloud computing and internet of things, is slated to change the interaction pattern of all kinds including business allowing companies cutting across all spectrums to understand their customers better. Almost on a personalised basis in a microsense. While hoi polloi would be quite oblivious to this trend, billions of social site subscribers or individual broadcasters (as facebook, linkedin, or twitter
be inevitable,” that appeared out to be the central message. “If oil was the fuel for the industrial revolution, then big data is the fuel for information revolution. It is a game-changer which among other things will also change our business engagement processes forever,” Dr. Chekitan S Dev of Cornell School of Hotel Administration set the tone of the session with these words. He further substantiated his opening remarks by underlining that more data has been generated in the last two decades than in the entire history of the mankind. For a marketplace like India where e-commerce boom has been the most defining trend in the recent years, big data analytics as a business process has begun picking up momentum. According to an estimate, the annual business amounts
Analytics at MasterCard Advisors explained the broader contours of big data which is making it a lethal tool to shore up businesses of all kinds. “Earlier we used to deal only with transaction data.
sanjay rishi President, american express india
chekitan S Dev Cornell school of administration
The big data power can be used to elicit a host of business centric information. It can tell you the best locations for future projects, locations where you are under-indexed vis-à-vis your peers, share of different class of travellers and even the business trends of your competitors.
If oil was the fuel for the industrial revolution then big data is the fuel for information revolution. It is a game-changer which among things will also change our business engagement processes forever.
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would like to call them) are being analysed on the basis of their mundane postings everyday. The broader objective is to understand their preferences and choices as consumers and this information is used by the companies to enhance their engagements with the end-users of their products. And this is a trend which is going to grow much stronger with the increasing penetration of the internet on the planet. A dedicated session at the recently held Global Hospitality Conclave saw senior representatives of global tech leaders explaining to the hospitality fraternity the immense benefits of adopting big data analytics not only in retaining their customers base but also for expanding it. “At a time when the hospitality industry is battling with the OTAs and new age smart aggregators, leaning on big data analytics would
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to over $3 billion growing at a hefty 35 percent plus rate. For the top notch global firms, either from the tech or merchant sides, the business is shaping up as a defining platform which will become the all-pervasive base. “Big data is anything but a fab. It has given us a big information leap. What was done in a year is now accomplished in a few hours. Mapping each customer’s preferences put us as well as our merchants in an advantageous situation,” Sanjay Rishi, President, American Express India pointed out. According to him, the growing influence of big data analytics is also a major contributory factor in fuelling the online transaction growth all across the planet in a big way – last year it amounted to 6.7 billion transactions resulting in a staggering $1 trillion worth of business. Dr. Sukanya Misra, VP & Business Leader, Advanced
major change.” The phenomenal emergence of sites like Facebook (it is getting 1 billion hits everyday) is resulting in this revolution which will make big data adaptability inevitable for all forward
more quickly,” Dr. Pramanik of Microsoft India presented the crux of the issue in these words. However, the leaders in the technology space share a common belief that with adoption of
Dr. sukanya Misra VP & Business Leader, Advanced Analytics at MasterCard advisors
Prasanjeet Baruah Business Head (Tech-Telco and New Business), Facebook
For a hotel in tier 2 city, using big data analytics we found out that 98 percent of their business is coming from locals. To shrink this percentage and get more revenue from the outsiders, we gave them a set of advise based on our big data findings including the specific platforms mediums they should choose to advertise.
About 500 TB of data is generated every 10 minutes on the planet. This is a huge resource base which provides everybody the opportunity to scale up personalised marketing in a major way. Consumers are telling you what they like. It is for the businesses to understand these messages and make the most of them in engaging their customers.
But big data has leaped into multiple sources. Now on platforms like Facebook, subscribers are giving all kinds of information. And using social information for product customisation has become a major trend. There are 2.6 billion internet of things devices installed globally. Life is simply changing big time because of big data power,” she said. Dr. Bhaskar Pramanik. Chairman, Microsoft India explained another dimension of the benefits of big data analytics – something that is critical to all businesses. “Forecast plays a major role in any business and in the past, we have been doing it on the basis of Customer Relationship Management (CRM) system. But now it is getting replaced by big data because it can be more accurate. Companies like ours are working on improving the accuracy quotient of big data. It will usher in a
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looking companies. “About 500 TB of data is generated every 10 minutes on the planet. This is a huge resource base which provides everybody the opportunity to scale up personalised marketing in a major way. Consumers are telling you what they like. It is for the businesses to understand these messages and make the most of them in engaging their customers,” Prasanjeet Baruah, Business Head (Tech-Telco and New Business), Facebook opined. The moot point now is: how can big data make a big change in the hospitality business? Especially at a time, when OTAs and new age online aggregators have begun wielding considerable clout when it comes to actual sales. “Today, online companies like expedia are making more money on your fixed assets. They can take forward looking calls pertaining to your business
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digitised processes and big data analytics, hotels can still have a major control in their interaction with customers. “Platforms like Facebook can tell you the new set of customers whom you can target and make offers. They are helping us a lot in new customer acquisition exercise. My company is working very actively with Facebook and Linked for this and I don’t see any reason why hospitality companies can’t do the same,” said Sanjay Rishi. He further added myriads of specific benefits which big data analytics can provide to the hospitality industry. “The big data power can be used to elicit a host of business centric information. It can tell you the best locations for future projects, locations where you are under-indexed vis-à-vis your peers, share of different class of travellers and even the business trends of your
online : technology competitors.” “In the hospitality business, everybody is looking to deliver differentiated experience. Big data analytics understand this and it can figure out what kind of services you need to provide to your customers. It can even go to the extent of making anykind of processing, invoicing to collection, completely unmanned,” Dr. Pramanik of Microsoft India added. According to Dr. Sukanya Misra of MasterCard, some section of Indian hospitality has begun aligning with big data power and this trend is slated to grow manifold. “For a hotel in tier 2 city, using big data analytics we found out that 98 percent of their business is coming from locals. To shrink this percentage and get more revenue from the outsiders, we gave them a set of advise based on our big data findings including the specific platforms they should choose to advertise. And it has worked for them. Big data simply helps in taking smart decisions and Indian hospitality will definitely lap to it more aggressively in the future,” she opined.
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“Hospitality industry can still make a comeback” technology options which are available today, they can find ways and means to approach customers directly.
According to Bhaskar Pramanik, Chairman, Microsoft India, hospitality industry can still put up an effective fight to the OTAs threat by adopting smart technological applications. Excerpts of a brief conversation:
What is Microsoft doing in terms of helping the hospitality industry with new age, smart solutions? You know their basic challenges.
We are trying to help them out on several fronts with solutions- social, mobility, analytics, using the power of the cloud, etc. Our solutions can help them in reducing the cost of their operations and become more customer friendly.
A popular view pertaining to hospitality business is that the players holding these large fixed assets have lost the game to the OTAs and new age aggregators,when it comes to sales. Why do you think it happened inthe first place?
They faltered on this front because somewhere they could not anticipate the fast moves made by platforms like Expedia. These platforms have subtly developed greater influence with people who make online bookings. And the number of online subscribers has significantly grown. But I don’t think, it is too late for them yet. They can still make a comeback. They can still learn to use technology to reach and engage their customers more efficiently. Do you really feel that getting back is a strong possibility? There is a strong section which believes that things have gone out of their hand.
higher degree of adoption of technological proA cesses will play a major role. The current model which theyhave is largely not aligned with smart technology. The hospitality industry, by and large, has been based on the brick and mortar, real estate model. The point in favour of hotels is that at the end of the day, customers are looking for an experience which only hotels can provide. Using
Do you think, Indian hospitality industry is really rising to the fact that they need to transform their attitude vis-à-vis the use of technology?
bhaskar pramanik chairman, Microsoft india
These platforms (like Expedia) have subtly developed greater influence with people who make online bookings. And the number of online subscribers has significantly grown. But I don’t think, it is too late for the hospitality players. They can still make a comeback. They can still learn to use technology to reach and engage their customers more efficiently.
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I think they are recognising this. The writing is on the wall: if they don’t do it, they will face problems in engaging their customers. So you are optimistic in the sense that technological solutions are readily available and players in the hospitality domain will leverage them more aggressively?
In any traditional industry, everybody has to reinvent themselves at some stage,whether it is banks, government, education sector, etc. It is a commonplace knowledge that technology is changing everything. It is for this reason that I am optimistic for the hospitality industry. If it does not happen, it could well become detrimental for their survival.
No breach of privacy, assures tech leaders
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hen out of the sheer urge to share your experience of a holiday well spent (with your friends and family members) you post the pictures on a social site, the chances are it is eventually turning out to be much more than just being a joy sharing exercise confined to a small group. There is a set of back-end devices and processes deployed by the players in the data analytics who would be probably reading more than what you would imagine your posting to transmit. These postings could well reflect your preferences and choices – a future opportunity for all service providers who could respond to those specific aspirations. And then they could well try to reach out to you in myriads of ways. Pictures of a holiday is just a small example. The urge to better understand the consumer in you is gradually becoming an all-encompassing exercise now including all activities which you may be sharing on a social platform. As the big data analytics spread its wings in a marketplace which is becoming increasingly competitive, the debate pertaining to breach in privacy is also growing in decibel. Afterall, consumers as leading actors in the play (its all about catching them), are not exactly aware of behind the stage happenings. The increasing commoditization of individual consumers is the main rankling point for some observers. The representatives of global tech players as well as industries which are aligning with big data analytics, however, refute the charges that they are leaving loose ends in the process. “We are a responsible company. We never cookie anybody without their consent. We only share generic consumer behavioural pattern with the merchants in our loop,” Sanjay Rishi of American Express pointed out. Prasanjeet Baruah of Facebook was equally assertive in his claim that personal information shared with the platform is not liable to be passed on to any company. “ We only talk about a cluster of people who look similar in their preferences and choices. No personal information is ever compromised,” he said. According to Dr. Sukanya Misra of MasterCard, no responsible player in the value chain would ever indulge in this since it could tarnish its reputation. “We are governed by data security laws which are very stringent in nature. Nobody in his right mind would tend to fall on the wrong side of the law.”
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niche: sustainable tourism
Engage communities to create sustainable products and experiences; adhere to carrying capacity, feel experts Sustainable tourism, through concerted efforts from individuals and some hotel chains, has steadily come to the centre-stage of the discourse on the conundrum for the way forward for the wider tourism fraternity. As we engaged with stakeholders and experts, they unequivocally called for engaging with local communities and consumers, in same breath, to mainstream sustainable practices into our tourism offerings. They all seem to agree on the fact that the difference between responsible and sustainable was blurring fast and there was no two way about it, at least, not anymore.
By shashank shekhar
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ong years ago, tigers were a common sight in Manipal – a sleepy village, some six kilometers from the temple town of Udupi in Karnataka; it was essentially a jungle in the lap of pristine Western Ghats. Now all that reminds of that long lost majesty is a roundabout in the busy town – which has been emblematically named the Tiger Circle. It has, through the years, transformed into a busy educational hub, dotted with high-rise buildings and entertainment centers. India is replete with such examples where names are the only leftovers of what has been systematically ravaged and over-exploited; sometimes driven by greed and mostly by pure disregard. Willful neglect of wildlife, incessant pollution and over-grazing have converted some of our most scenic towns and hamlets into glorified destinations – which resemble half-baked products; uncertain of their character and diluted in essence. However, it is also hearty to note that amidst the usual crud, sane voices advocating responsible tourism, and more importantly way of life have also begun to appear on the horizon. As the discourse on sustainable tourism has gathered some degree of momentum, off late – thanks to a brigade of activists and some responsible hotel operators – there is a growing sense of concurrence on keeping the community at the centre of any such initiative. Community with its knowledge systems, culture and values not only lends more weight to the appeal of a destination, or a product, but also ensures the long-term viability of any undertaking through diversification of the product and experiences on offer. As our cities get more cramped, demand for an escapade into nature and wildlife, wilderness and mountains will only get more pronounced. Communities that have better understanding of their local ecology and terrain can help curate better experiences for travellers; besides acquiring meaningful employment for themselves – which has long eluded them for reasons best known to us. It makes serious business sense, too! It is the attraction of a unique experience and its degree of fulfilment which will decide the fate of hotels and destinations yearning for a share of footfalls and hard-cash. Maybe, that is why we are witnessing a growing trend of home-stays and village-stays. Hotel like InDeco have smartly curated experiences that gets patrons a bullock-cart ride and bestows them with a license, if they manage to steer them safely! While, Devijibhai has yet refrained from putting up air-conditioners in the middle of a desert; and Norwood Greens emphasizes on a visit to the potter’s village to better appreciate an art which is slowly receding into oblivion. These are, indeed, bold moves that defy traditional wisdom. Understanding dictates having plush surroundings and an over-dose of modern-day comforts to stay ahead in a crowded race where the consumer is spoilt for choices; but these owners have little to complain about, as they have been getting more than a fair share of travellers into their hotels. The changing trend is also reflective of the fact that a modern-day traveller is beginning to understand the limitations under which more and more hotels and products will have to operate; if we intend to preserve them for posterity. This growing awareness can be better harnessed, provided there is a broad-based consensus among diverse stakeholders. As we engaged with a number of people who have made a significant contribution towards nation’s quest for setting a benchmark in practising responsible tourism, all of them believed that the line between responsible and sustainable tourism was getting blurred by each passing day. These select hoteliers and stakeholders have put forth an admirable mechanism. The moot point is whether we will be able to carve out a holistic approach that turns these practices into a norm rather than an aberration. Sustainable tourism is not a choice; it is the only option at hand. As their experience teaches us, responsible is sustainable and vice versa; there is no other way to look at it, at least, not any more.
Tourism must be in-sync with carrying capacity; need for excessive opulence a wrong notion, says Mandeep Singh Soin
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tourism, communities have, invariably, been at rediting increased exposure to foreign destithe centre of the process, he agreed to the idea of nations by domestic outbound, and constant involving local community, calling it a must. “But, demand created by FITs for enhanced sadly, sometimes it is the local community that, awareness and sustainable practices in tourism, driven by the sheer lack of understanding of ways he says that, now, most travelers wanted to do their to make the most of footfalls, spoils the travel bit; this increased demand for sustainable and experience,” he noted. responsible tourism bodes well for the future of our He mentioned that if a tourist wanted to take a nation in particular and tourism, in general. Jeep safari from Delhi to Leh, He cited by saying he needed to change vehicles that if there was a five owing to an outright ban on star property in a desert outstation vehicles from plywhere water is a scarce ing. “There is a lot of unionism resource; it is not that a that comes into play; only if we hotel has to have a swimwere to have a unified strucming pool. “Hotels can ture where in the tax collected convince guests that it is could be equitably distributed, not advisable to divert so without compromising travelmuch water for a luxury ler’s comfort, we could make a like a pool. And, believe huge progress in providing an me a modern day guest experience,” he explained. will understand that He mentioned how Ecolimitation,” said Mandeep tourism Society of India had Soin. “Hotels believe that been looking at focus areas they will lose brownie to carve out a national policy points in the process. on sustainable tourism at the However, it is not like behest of the government. “It that,” he added. started by launching a series When asked whether of workshops in ten states our heritage, monuments Mandeep singh soin in an attempt to share their and destinations were founder & MD, IBEX Expeditions understanding and knowledge also susceptible to overHotels can convince guests systems; but even that has grazing – as has been the that it is not advisable to divert so not been enough,” noted the case with many famous much water for a luxury like a pool. And, believe me a modern day guest veteran explorer and moundestinations, globally – will understand that limitation. Hotels taineer. “These aberrations are he cited the example of believe that they will lose brownie not limited to India, but are Machu Picchu in Peru, points in the process. However, it is plaguing the global tourism and its successful crowd not like that. industry,” he added. and monument managePraising Jaisalmer and ment. “They only allow a Ladakh for retaining their limited number of visitors, local architectural style – which imbibed the keeping in mind the carrying capacity of the traditional wisdom for coping up with prevalent place.” He compared it with the prevalent situation weather extremities, he said that these destinaat the Pangong Tso Lake in Ladakh – which shot tions had a sense of architectural harmony. to fame after the climax of the blockbuster 3 Idiots “Structures blend with the landscape and are was shot there. He shared that over 350 Jeeps, full sustainable by the virtue of construction material of tourists, were heading there every day. “There is used – which is sourced locally,” he told us. no crowd management and adherence to carrying He concluded by stressing that need for excescapacity,” he lamented. sive tourism facilities was a wrong notion which Stressing that tourism essentially was a had been established for a long time. “People will medium to increase the positive quotient of a walk the mile, if initiatives are taken,” he added. destination, he conceded that there was no twoHe pointed to how ITC had started using RO ways to the fact that increased footfalls and more water system in cottages to avoid use of plastic exposure did increase the risk of over-grazing. bottles, and people had readily taken to it. “It is “How you tackle it, and ensure that positive for the tourism fraternity to make the effort in that aspects get a boost and negatives are contained direction, and I believe with time the wider travel to a bare minimum will decide the future of our fraternity will also come on board to enjoy tourdestinations and tourism products,” he reasoned. ism responsibly,” he propounded. Noting that in most models of sustainable
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niche: sustainable tourism
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Let them do better what they know best: Steve Borgia
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can also take pride in bessociating communiing probably one of the few ties in an undertaking, hotels not under some sort either to augment the of bank-loan or mortgage. “I product or to ensure healthy have taken up a parliamenparticipation at local levels, tary constituency; about 18 have been trends that have kilometers in area,” said Steve caught on, off-late, with Borgia, Mentor and CMD of the dawn of home-grown InDeco Hotels. Calling India a entrepreneurs. But, what niche tourism product whose makes InDeco hotels different innate strength lied in heritis positioning community in age, culture and ayurveda, he the centre of its operations. noted that India essentially So much so, that locally had a monopoly over these acquired staff manages the segments, and we as a nation hotel, and a number of acmust, by all means, push them tivities to engage patrons are as our tourism products. facilitated by members from He pointed towards some local villages. While, fabric successful ventures that had needed for rooms are created imbibed local ethos and creatin the neighbourhood; wood steve borgia ed linkages. “Neemrana hotel needed to carve doors and Mentor & CMD, Indeco Hotels is an apt example of how to window frames are either In the last hundred years, we have create a property in the local acquired from the remains of lost more heritages and ravaged milieu and keep it profitable. a demolished building or are environment more than we ever have as a civilization. Why are we trying to Some of the best eco-hotels in bought from antique stores. Its project India with casinos and wellness? the country are being run by cumulative effect has, essenIt is prudent that we channelize our people who have had little to tially, altered the fate of three focus on our niche areas and do with hospitality. Responsiabandoned villages – previconfirm our Numero Uno status. ble tourism is smart tourism; ously notorious for communal it is a profitable way of going discord – which are now about it,” he said. Sharing that swarming with visitors. it indicated the need to better grasp the importance Located in Kumbakonam, Tamil Nadu, InDeco hotel has created a reputation for itself as a beacon of of linkages that created livelihood for people, he explained that “We have interwoven ourselves in the sustainability. Through its unique model that involves cultural framework of these villages.” locals in creating requisite operational infrastructure, The hotel provides certificate of co-existence if it is showing a way forward to responsible tourism a guest learns to safely feed a deer; or, a bullockand a smart business strategy in equal measure. It
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cart license if he learns to steer a bullock-cart. “These are catered to guests purely by locals. There is so much of transmission of traditional knowledge systems, besides creating a sustainable livelihood and a sense of selfesteem for them,” said Steve. He termed sustainable tourism as the only way forward. Any unsustainable and exploitative tourism sends the delicate balance of the local ecosystem for a toss, he said. “In the last hundred years, we have lost more heritages and ravaged environment more than we ever have as a civilization. Why are we trying to project India with casinos and wellness? It is prudent that we channelize our focus on our niche areas and confirm our Numero Uno status,” he insisted. He appreciated the PM for his stress on developing niche verticals of tourism, but pointed to a glaring anomaly – the absence of concurrence on what was being done and what needed to be our way forward. Noting that the government, invariably, decided the future course of action – which kept changing with a new Secretary at the helm, “he advised that “Government’s job is to ensure the presence of adequate way-side amenities, last-mile connectivity and infrastructure.” Adding further, he said “It must try and provide incentives and tax-exemption to people who are a part of the chain in creating sustainable products. It is time we moved to the field from the lab; we have been stuck in the lab for too long. He noted that the problem also lied in attempting to create businessmen out of locals in a bid to push sustainable tourism. “Farmers are experts. All we need to do is to give them a platform to sell and teach him how to live with that money,” he reasoned. The model that Steve has put forth has essentially positioned locals as providers and an intrinsic part of the supply-chain. And, going by the success of his venture, it is a model worthy of emulation.
MoT unveils Comprehensive Sustainable Tourism Criteria
In a bid to put in place mechanisms to better preserve India’s threatened and over-exposed tourism assets, The Ministry of Tourism has recently launched a Comprehensive Sustainable Tourism Criteria for India, accommodating major segments comprising of beaches, backwaters, lakes and rivers sectors. As proposed measures have been embraced by stakeholders, one could hope that these segments will have some marked improvement in the near future. Roping in the hotel industry to further its efforts in propagating sustainable tourism practice, MoT has also made it mandatory for hotels to incorporate various eco-friendly measures like pollution control, introduction of non- Chloro Fluoro Carbon (CFC) equipment for refrigeration and air conditioning and sewage treatment plant at the project stage itself. With stringent implementation of these measures on the ground, it is expected that the larger tourism product of the nation will move a step forward in the intended direction.
West Bengal moots a fisheries village, eco-tourism initiatives in the state
In an indication to establish an ecotourism hub with a solar plant for Nayachar, an island on the Hooghly River in East Midnapore district, the West Bengal Chief Minister recently announced that the government was working on several ideas to boost footfalls and visibility. The plan for creating a eco-tourism hub had been long proposed for the island known for its serene beauty. However, it could not be initiated owing to one or the other reason forcing it to get shelved more than once. “We will see what can be done at Nayachar. We are working on several ideas like a fisheries village, an eco-tourism project and a solar plant. We will discuss and take a decision,” said Mamta Banerjee.
Disastrous to create a Delhi everywhere; small establishments better for sustainable way forward, suggests Devijibhai
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here are a number of ecocamps and resorts that provide their patrons an opportunity to come face-to-face with wildlife and nature. But, the distinctness which caught our attention to this initiative was the fact that it is being managed by a man – who has been an ardent propagator and practitioner of wildlife conservation himself. Not only has he, through his concerted efforts by resorting to advocacy, petitioning and relentlessly creating public-opinion against over-grazing, managed to maintain the sanctity of surroundings; but, has given it recognition as a destination meant for serious wild-life enthusiasts and researchers. Eco-tour Camp is situated near ‘Sumera’ lake of Jogad village, 20 K.M. from Halvad and 45 K.M. from Dhrangadhra in Surendranagar district of Saurashtra region in Gujarat. Located in the Little Rann of Kutch – a marshy expanse bordering the Great Rann of Kutch– it is essentially a wasteland famous for being the last remaining natural refuge of the Asiatic Wild Ass,
besides hosting migratory birds like the Flamingo. Environmental limitations and unadulterated wilderness, however, did not deter Devijibhai Dhamecha from setting up a unique eco-tourism initiative – which, through ‘wordof-mouth’ publicity, has gained an envious reputation among wild-life enthusiasts and conservationists’ world-over. There are six camps and five kubas – traditional huts made of mud and hay – which can accommodate 22-25 guests. There are no air-conditioners or other
modern-day luxury; solar power is used to light the living area and a humble staff of five locals take care of patrons needs. A limited menu featuring vegetarian home-made local delicacies is served to guests. Smoking and consumption of alcohol are strictly prohibited, and measures prescribed by the wild life department while taking guests out for a safari are followed in letter and spirit. Vehicles are parked at a safe distance when guests are taken out for a safari, we were told. Devijibhai ardently defended this frugal existence, saying that if
people really wanted to appreciate experiences they must learn to live away from luxuries that they have deeply entrenched in their lives. “You cannot create a Delhi or Mumbai everywhere. It will kill the sanctity of destinations that are closer to nature,” he said. Despite numerous restrictions and little in the name of luxury, he has been kept busy. Apart from a steady stream of guests from Maharashtra, Kolkata and Bengaluru, he has been receiving good number of foreigners as well. “We are running full until
the end of January. We get so many enthusiasts coming from Australia, the United Kingdom and France – who not only relish a completely different India, but also learn that this barren stretch teems with life,” told Devijibhai. Asked, if he considered increasing the number of rooms to have more patrons, he explained that a major reason for over-exploitation of destinations was stemming out of such a trend. “Big establishments put pressure on the local ecology; Gir sanctuary is suffering the same fate. Over thirty thousand visitors come there daily, it is an unhealthy practice,” he noted. “I am sure it will pay the price of over-exposure in coming months and years,” he added. Mooting profound involvement of professionals with adequate support from local community a way forward to sustainable tourism practice, he batted for more community centric initiatives. “Unless, you do not take everybody along, tourism will never be responsible and sustainable,” he concluded.
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Nation warming up to the Rio Olympics; in a first, ticket sales to go online in India As the world gears up for Rio 2016, there has been a growing interest in the outbound. With easier ticket bookings and plethora of activities designed to keep guests glued, Raghav Gupta CEO, Fanatic Sports predicts a substantial Indian presence in the world's biggest sporting extravaganza. By shashank shekhar
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outh Africa’s claim to fame as the ‘rainbow nation’ was globally cemented after the historic Rugby World Cup in 1995 demonstrated its ability to host a major tournament, while the FIFA World Cup continues to be a top draw among sport enthusiasts. These ably demonstrate the power of sports in projecting a nation’s capability of managing big-ticket events, besides an opportunity to increase travel to their shores. As Rio de Janeiro gears up to host the 2016 Olympics, a sizeable number of Indians are expected to attend the world’s biggest sporting event. What comes as a relief to many, for the first time, tickets to the event is being made available through a private party. “It is a major challenge and a huge opportunity at the same time,” reacted Raghav Gupta. Sharing that most countries were given out license to sell tickets some time ago, he said that they were able to commence the process, only, in November. “Therefore, we are facing a time crunch and have a number of things to take care of,” he added. Informing that previously the government had taken the onus of distributing tickets – which meant a lot of formalities and waiting time before one could get their hands on
raghav gupta CEO & founder, Fanatic sports
We, during cricket matches, take our guests for stadium tours; arrange a dinner with some sporting icon. Guests get to understand intricacies so much better.
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it – he told us that now the process has been streamlined to create a seamless experience for travellers. “Essentially, we have streamlined the process which allows people to simply book tickets in a flash. You do not have to stand in queues and submit documents, it is a hassle-free process,” he shared. Noting that today’s traveller was seeking a complete experience, he highlighted how they had incorporated several elements to engage people during their stay in Rio. “Instead of just facilitating tickets, we curate experiences. And, that is our USP,” he said. Adding that a typical package included flight tickets, accommodation, local-sightseeing and, of course, match tickets, he told us that they were trying to bring ex-Olympians from India to interact with their guests. “We are trying to rope in the Indian Olympics Association to facilitate this. We are hopeful that they will agree to the idea. It will infuse the ‘Indian spirit’,” said Raghav. Taking a stock of the state of sport tourism in the country, Raghav mentioned that with the corporate sector involving itself with a plethora of tournaments, things were beginning to shape up for the better. Arguing that every nation had its own issues to grapple with, he We, during cricket pinned his hopes matches, take our guests on the rise of enfor stadium tours; arrange a dinner with some trepreneurial spirit sporting icon. Guests get and youth that had to understand the shown tremendous intricacies so much better. Its impact on the interest in sporteconomy of the country ing events and will be huge, and so will activities. “Look at be on augmenting the rise of Indian footfalls. Soccer League and Indian Hockey League. These steps have resulted in Guwahati hosting the FIFA under-17 World Cup in the coming year – which will definitely increase its visibility many times with international media exposure,” he argued. He further pointed towards the need to add more elements into sports tourism to add luster to offerings. “We, during cricket matches, take our guests for stadium tours; arrange a dinner with some sporting icon. Guests get to understand intricacies so much better,” he said. Noting that sports could act as the first introduction to the country, he referred to the fact that, in all probability, a large chunk of travellers heading for Rio were visiting Brazil for the first time. “Its impact on the economy of the country will be huge, and so on augmenting footfalls,” he noted. India is no way near being a world-class sporting destination. Our facilities are average; implementation shoddy, and add-ons to lure travelers’ virtually non-existent. India’s biggest sporting push, in the recent past, was the CWG games – which did grab the world’s attention, but for more wrong reasons than right. Raghav, however, sounded optimistic of the future ahead. “A country of 1.3 billion people cannot be left behind, for long. The government is taking interest in improving the current state of sports in the country. A number of new stadiums are coming up, especially in the Northeast,” he reasoned. “So, to my mind, we will be at par with the world in the next decade and a half,” he concluded.
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Literary festivals can transform destinations, says Sonjoy Roy of JLF Literary festivals are becoming more than just a pursuit for brainstorming and displaying literary genius. An event – which lends a new aspect to a city’s profile – it is also acting as a catalyst for tourism and, more so, as the first introduction to India as a destination for many. We speak with Sonjoy Roy who has transformed the Jaipur Literary festival into one of the biggest events across the globe, and, in his own words, now, a stage where culture marries heritage. By shashank shekhar
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LF commenced as a part of Jaipur Virasat Festival – as a literature segment to a much bigger gathering – has, through the years, transformed into a literary festival of such magnitude and stature that it is now giving a run for money to the most established literary gatherings around the world. “Contrary to the Harvard Business Report, we never thought that it will grow into such an enormous name. We started off in 2006, with some 100 odd authors and an audience of over 7,000 in attendance,” shared Sonjoy Roy, the man behind this thriving undertaking. What started as an attempt to create something different and add a new, and probably unique, dimension to the city’s offerings, just kept growing beyond everyone’s wildest expectations. “We got a lot of ‘word of mouth’ publicity from authors who came for the first edition,” said Sonjoy. Everybody who participated, and those who attended as visitors, went back as our ambassadors bringing more people the next time around, we were told. “We were lucky and fortunate,” he added with a hint of modesty. However, interestingly, he contended the idea of calling it merely an ensemble of intellectuals, brainstorming policy and general sense
of direction in which the society was heading. He called it ‘The Great Indian wedding’. Arguing that JLF was a distinct festival, he noted that: “It has a character to it, unlike any other festival. The most reputed festival – Edinburg Literary Festival – hosts as many guests that can be easily accommodated in one of our lawns! That is how grand it is,” he substantiated. Besides books and literary genius, on display is retail furniture, locally crafted jewellery, clothing and
The 9th edition of the JLF is scheduled to be held from the 21st to the 25th of January. In all likelihood, it will host the largest number of speakers and audience, since its inception. ancillary products – all of which are adding more to the value of the festival, besides creating additional employment opportunity for local weavers, women and artisans. Giving us a peek into how the festival was organized; a barrage of visitors – foreign and domestic writers –accommodated and their travel itinerary managed, he shared that JLF held some 4,000 hotel rooms during the event. “We have deputed an agency that looks into ensuring accommodation and travel tickets for visiting
participants by handling our inventory,” he explained. Further divulging that all expense was borne by the festival management committee and a not a penny was taken from participants, he shared that it helped them maintain a sense of freedom and a non-discriminatory approach. “There are a lot of festivals that get recommendations and ‘requests’ from various quarters to ‘accommodate’ writers, but we simply do not do it,” he proudly added. To shortlist writers for the gathering, a tentative list is put together by the members of JLF. “We are already planning for 2017. We are also supplemented by writers who keep us updated with latest work in their respective country. It helps to keep having fresh faces every time we come together,” shared Sonjoy. On the question of whether JLF could further the cause of regional literature in India, we were told that almost 40 percent of total participation came from different states. “We are featuring 11 Indian languages this year. In fact, best Indian writing comes from regional work,” said Sonjoy. Adding that succinct translation remained an issue, JLF had roped in translators to address this lacuna. “We will showcase 20-25 of the best work, and these will be showcased at our mart,” he told us.
Develop tourist spots where culture meets heritage; turn them into centre of economic activities
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eyond the realm of promoting a literary festival and consequential upliftment of Jaipur’s profile as a city that attracts the best and brightest to argue pertinent issues of the day, he has been able to smartly merge it with heritage preservation by hosting events at places with historical and tourist importance. “The minute you marry culture and heritage enabling an economic incentive for restoring heritage property, you have a win-win situation,” he reasoned. That is our USP, and if we are able to sell it well, there is no stopping us,” he added. Calling Neemrana Hotels an apt example that had demon-
strated the transformative power of heritage in becoming a pivot to tourism and footfalls, he noted that people increasingly yearned to go beyond the tumult of malls and Friday night parties seeking experiences. “Everyone wants a different and a unique experience. You have to give the discerning tourist something extra,” he noted. “Heritage, and its enormity in the context of tourism, is yet to be understood completely in India, leave apart utilizing it,” he added. He quoted the success story of Khajuraho – a town most famous for rock carvings depicting Vatsayayana’s Kamasutra – and how a sleepy hamlet gained international
prominence. “It would not have happened unless quality accommodation was created. Unless you create infrastructure and stop looking everything from the prism of ‘business is bad for heritage’, nothing will ever happen,” asserted Roy. “Of course, you have to be smart about it, and develop facilities in a sustainable and an organic way, but someone has to do it,” he added. Referring to the thoughtful management of heritage and bygone era relics in Western countries, he pointed towards an array of activities and engagements designed to keep the tourist spellbound, and how it amplified the impact
Acting as a first introduction to India; repeat guests bringing family and friends
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n terms of sheer impact on tourism and footfalls in the state, JLF has scored on all counts. In an in-house survey, conducted 4-5 years ago, the state registered an additional income of 18-20 crores. In terms of footfalls, over 2,70,000 visitors attended the event in 2015 edition that spanned for five days. 11 percent of total influx was from abroad, out of which 33 percent came from the USA while 27 percent descended from British shores. Canada, Hong Kong and Singapore, too, saw participation, we were informed. But, what has been significant is the rebound effect. “There are a number of writers who come back with their families and friends. They either come a few days prior to the event, or leave for other parts of the country, after we wrap up,” said Sonjoy, indicating how events like these have an enormous impact on bolstering tourism. Sonjoy roy “I have, personally, founder & MD, teamwork arts advised many visitors The minute you marry culture and on sightseeing in Kerala, heritage enabling an economic incentive for restoring heritage Goa and other destinaproperty, you have a win-win tions of repute. So, it is situation. That is our USP, and if we not just about boosting are able to sell it well, there is no Rajasthan or Jaipur’s stopping us. economy, it has implications on a national level,” he explained. Besides creating a unique product to further Jaipur’s reputation beyond a land of mighty castles, JLF must also be congratulated for creating a model that has been emulated not only in different parts of the country, in form of Kochi and Kasauli Literary Festival to name a few, but, also, globally. “A lot of organizers come to us to study our model, understand our method of R&D, and we are happy to help. It is flattering to know that people are copying you,” he said. Indeed, if a successful JLF can add so much more luster to Jaipur’s offerings, besides creating additional exposure to India as a destination, it is only a wonderful development to see so many literary festivals popping up at distant corners of this vast country. However, its success is not just about bringing big names of the literary world under one roof, but positioning a destination as a centre for cultural exchange, with ample for the locals to gain from. The success of other such endeavours will depend on whether or not they are able to take a leaf out of JLF’s book on this one.
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by creating an experience. They can sell three bygone era bricks as something magnificent, he quipped. “Compared to India, Western countries have very little in the name of heritage. But, they have achieved so much more in terms of footfalls and economic gains. You have audio-visuals, 3D tours, and ample shopping experience which accentuates the look and feel of the
whole thing,” explained Roy. It is noteworthy that Broadway shows adds some 11.3 Billion USD, annually, to New York’s kitty, we were told. “How we can create something as iconic that makes so much business sense is a challenge, and the answer lies in creating value and entertainment for the travellers. Innovation is the key,” he asserted.
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Kairali plans major expansion overseas; eyeing 12 new centres in 2016
The new year is going to be very critical for Kairali Ayurvedic Group, a prominent flagbearer of India’s wellness tourism offerings, in terms of putting up units in diverse markets across the globe. From eastern Europe to Australia and east coast in the United States, the 108-year-old group has firmed up plans to take its unique ayurvedic treatments much closer to its overseas customers.
By ritwik sinha
new openings will happen in association with local partners,” Ramesh added. erala-based Kairali He, however, was quick to Ayurvedic Group, point out that Kairali Ayurmuch known for its vedic adheres to a watertight luxury ayurvedic operational contract with its spa offerings, is embarking overseas franchise associates on a major overseas expanto ensure that the standards sion drive in 2016. The group prescribed by it for different which presently has 25 overtreatments are not tinkered seas centres in 10 countries at the delivery point. “We (with five centres in Japan) is have our own standard likely to add over 10 units durprocedures which we want ing the course of 2016 while to be sustained at all our making debut in new markets overseas outlets. These like the US. outlets usually have Indian “2016 is going to be a very managers who are trained significant year for us in terms by us and the franchise of our international expanpartners are mostly involved sion. During the initial months abhilash ramesh in the management of these of the new year, we will be Executive Director, centres,” informed he. making debut in the Czech Kairali Ayurvedic group The group today has the Republic (two centres) and 2016 is going to be a very significant Bulgaria. Later in the year, we year for us in terms of our international unique distinction of having expansion. During the initial months of more outlets in the overseas will also have an important the new year, we will be making debut markets than in the domesopening in Stanford, the US. in the Czech Republic (two centers) We are also eyeing to open in and Bulgaria. Later in the year, we will tic circuit. “This is primarily also have an important opening in because customers in the other new markets like AusStanford, the US. evolved markets probably tralia and Bangladesh before have a better understanding the end of 2016 apart from of the benefits of Ayurveda adding units in some existas an alternative therapy,” ing markets. On an overall be strong pillar of India’s medical Ramesh said. However, in a basis, we expect to open 12 new subtle way, the company is also tourism portfolio. international centres in 2016,” expanding its footprints within Lebanon, Poland, Mauritius Abhilash Ramesh, Executive Dithe country. Currently Kairali’s and Gerogia are other counrector, Kairali Ayurvedic Group ayurvedic centres exist in 15 locatries where Kairali intends to told TourismFirst in a recent tions in the country and the group open its outlet in 2016. Most of conversation. Kairali Ayurvedic is eyeing for more destinations. the new openings would be Centres are much known for “Our domestic expansion has undertaken via the franchise offering scores of ayurvedic been quite steady. In the recent route while some of them could treatments (as many as 40) months, we have opened ayurvewell be acquired as well. “For which are both generic as well dic centres in Nagaland, Raipur as ailment specific solutions. The our international expansion, it and Siliguri and we are currently group is also involved in produc- is the franchise model we have examining more destinations. resorted to in the past and this ing in-house ayurvedic wellness We will shortly take a call on our will continue to be the fulcrum products and has emerged as future domestic destinations,” he of our strategy since it is faster a major name in the arena of underlined. and cost effective. Most of the alternative therapy, believed to
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To shore up medical tourism volume, Indian alternative therapies should be recognised
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he government has clearly identified wellness tourism as a major growth vertical for the future. And this encompasses a vast array of centuries old alternative therapy which India has to offer – yoga, ayurveda, homeopathy, naturopathy, etc. In these respective domains, the country does have a handful of centers which have emerged as the models of excellence (Kairali for instance is one in the arena of ayurvedic therapy) and
are believed to be drawing good volume of medical tourists. But according to Abhilash Ramesh of Kairali Ayurvedic Group, to shore up the volume of medical tourists, the real game changer would be the recognition of Indian alternative therapies in the overseas markets. “After Prime Minister Narendra Modi’s initiation on yoga, no doubt, Indian alternative therapies have gained popularity in the global market. But the
problem is: they are still not registered as alternative therapy in most countries. If India pushes to get our therapy registered, it will lead to a huge growth in medical tourists footfall,“ Ramesh underlined. He further pointed out to the case of Chinese alternative therapy – Tai Chi. In the recent past, the Chinese government has aggressively pushed for its official recognition in the developed markets and this is believed to have started paying dividends
Foraying in FMCG market will be the next big push from Kairali
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he reins of Kairali Ayurvedic group are in the hands of the fourth generation now – it had come into existence way back in 1908 even as it assumed a corporate identity in 1989. And in the past two decades, it has grown considerably cementing its position as a vibrant signpost on India’s wellness tourism turf. But for the company, which has been primarily catering to medical tourists in the past, the next big frontier seems to develop a direct connect with consumers. And as part of this exercise, it has planned abhilash ramesh a foray in the country’s FMCG marIt is going to be a natural ket with its auyrvedic and personal extension of what we have been doing for over care products. 100 years now. We have a “It is going to be a natural extenwell-developed research sion of what we have been doing & development unit which for over 100 years now. We have has developed over 150 ayurvedic treatment a formidable research & developproducts. It is time to take ment unit which has developed our products directly to over 150 ayurvedic treatment prodthe consumers. ucts. It is time to take our products directly to the consumers,” said Abhilash Ramesh. The company has begun testing the waters of the domestic FMCG market with the recent launch of an arthritis treatment product called Kairtis which is available on select outlets. “We have developed Kairtis after noticing the escalation in bone and joint disorders over the years. Kairali has treated many cases effectively at its centres and resorts worldwide. It is specially formulated as an anti- inflammatory and analgesic. We are very confident of the results,” Ramesh added. For Kairali group’s FMCG push, these are clearly the early hours and according to Abhilash Ramesh, the launch of more products from its stable will be a gradual process. “We are not going all hog on it presently. We would rather have a slow and steady approach and other products will be gradually launched. We ultimately want to expand our ambits in a big way. Eventually direct consumer connect will also help in creating a better buzz for our medical tourism offerings,” explained he. The FMCG business is being set up as a separate unit by the company and Kairali Group is looking for PE funding support (to the tune of $10 million) to aggressively push its over-the-counter consumer healthcare product segment.
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in terms of growth in the volume of medical tourists. “The registration of our alternative therapies as formal modes of treatment is a must. Most of the medical tourism segment is driven by the insurance coverage which would only happen if the therapy is recognised. If the Ayurveda treatment is not registered in a country, the potential medical tourists are unlikely to come on their own expenses even if they are convinced of its benefit. The government must take decisive steps for the tourism centric big leap of Indian alternative therapies,” underlined Ramesh.
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niche : cuisine s
Improvement in food quality is a must to win the confidence of foreign tourists, says Wonderchef MD More than anything else, it is the food related issues which could be the major concern for foreign tourists in India. The country with a rich culinary heritage might just not be catering products which conform to the health concerns of tourists from the overseas markets.
ravi saxena managing director, wonderchef
We are losing out heavily on foreign tourists because we have consistently failed to respond to their health concerns. We can’t stay ignorant to this issue forever. By ritwik sinha
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oing by a well-rooted popular perception within the tourism circles in the country, Indian food offerings is second to none and if promoted aggressively, culinary tourism is the next big thing waiting to happen. The key statistic put forth for substantiating this argument is: over 5000-year-old ancient civilization (from where modern India has stemmed) offers a treasure trove of over 2500 original recipes. And that every region in the country has its own culinary offerings which have the potential of becoming a major draw in the tourism sense as well. Ravi Saxena, MD, Wonderchef though does not dispute India’s rich culinary heritage theory, he however points out its poor management which is probably holding back its appeal to become truly captivating in nature. Particularly when it comes to find favours with the hygiene
conscious tourists from the developed markets. “In a general sense, we are yet to make a mark in terms of food offerings which are attuned to the international palate. We don’t have a viable eco-system for healthy and hygienic food. Our food heritage may be rich but this does not hold true of our food,” he told TourismFirst recently. Wonderchef which Saxena (a serial entrepreneur) had co-founded with Celebrity Chef Sanjeev Kapoor in 2006 primarily deals with offering non-stick cookware in the domestic market aspiring to enable Indian homemakers to cook tastier and healthier food more conveniently. The appliances (Wonderchef has a portfolio of over 450 products today) are sold alongwith Sanjeev Kapoor’s popular recipes. According to Saxena (a widely travelled man himself who has been to over 50 countries primarily for business reasons), tourism planners in India have somewhere missed
the point that food concerns of an incoming tourist is at the top of his agenda and shortcomings on this front could have serious consequences. “What we get in terms of international tourists volume is simply too small than what we are capable of. And believe me, more than terrorism or any other reason, foreign tourists are wary of the quality of food offered to them especially when they go out to distant places and have to procure their meal from unorganised outlets. The overuse of butter and ghee and common spices is what they dislike the most. They have serious health concerns when they are in India,” Saxena underlined. He cited an example from France which had realised this discrepancy long time back and made suitable adjustments. “Historically, French cuisines also used to be too spicy. But about 100 years back the country had undergone a culinary revolution based on understanding that over-use
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of ingredients is not good for anybody – either the domestic consumers or the visiting foreigners. They had set up standards for the bare use of certain ingredients which are not good for the health. That movement had completely changed the game for them,” he pointed out. Ravi Saxena firmly believes that if India has to plug this gap, it needs to formulate an effective strategy involving all concerned stakeholders. “There has to be a larger awareness on our cooking methodologies. There should be clear standards even for the roadside outlets. We may even need to test our original recipes to examine if they are suitable for international palate. We are losing out heavily on foreign tourists because we have consistently failed to respond to their health concerns. We can’t stay ignorant to this issue forever,” he underlined.
Spreading the message of healthier cooking with a human chain
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o achieve a five-fold growth by 2020 end, Wonderchef seems to be firing on all cylinders when it comes to promotion. In marketing parlance, its strategy would be broadly dubbed as omni-channel approach wherein Wonderchef is making use of all known platforms – television, print, online, etc. – to grab the attention of Indian households. On the actual retail front, it is opening its own stores apart from taking space in the outlets of popular retailers like Shoppers’ Stop. The most interesting element of this omni-channel approach, however, seems to be in directly enrolling small time women entrepreneurs in different cities and towns. It almost amounts to creating some kind of human chain and members of this network are briefly trained before they eventually promote and sale Wonderchef products in their respective locations. Wonderchef claims to have created a sound base of these sales representatives over the years. “We have a battery of over We have a battery of over 35,000 women entrepreneurs who are selling our products in all parts of the country. It has become a strong network for us.
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35,000 women entrepreneurs who are selling our products in all parts of the country. It has become a strong network for us,” Saxena informed. While sharing the details of this strategy, Wonderchef MD explained it has been very consciously mooted. “Our entire product range is rooted in the principle of promoting healthier cooking. And the best segment to attract the attention in this regard is that of womenfolk. Having them as our marketing ambassadors too is an added advantage,” explained Saxena.
Wonderchef seeks five- fold growth in business by 2020
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onderchef which has been in existence since 2009 is now looking for its big leap in business terms in the next five years. Relying on the huge draw of its promoter-ambassador Sanjeev Kapoor (arguably the most popular chef in India) and its omni-channel marketing strategy, the company is looking for nearly five-fold jump in its turnover. “Our current annual turnover is in the range of `120 crore and by 2020 end, this figure is likely to cross `500 crore mark,” Wonderchef’s MD, Ravi Saxena told TourismFirst. According to Saxena, Sanjeev Kapoor’s mass appeal in promoting appliances which offer healthier cooking options has begun finding willing buyers in the domestic market. “Plus, we are also offering our products at a rea-
sonable pricing point vis-à-vis high end appliances which are sold in the European and American markets,” he added. The appliances offered by the company conform to the LFGB standards, a globally accepted German benchmark for cookware. Going ahead, the company is expecting a major addition to its growth story by way of exports. “We have already begun exporting some of our appliances to countries in the Middle East and ravi saxena
Plus, we are also offering our products at a reasonable pricing point vis-à-vis high end appliances which are sold in the European and American markets.
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South East Asia and we are likely to make a debut soon in Canada. For exports, we are primarily targeting markets which has a sizeable population of Indian diaspora,” Saxena elaborated. The appliances sold under Wonderchef brands are currently manufactured by contract vendors in 70 factories in India and in other countries like the US, Germany and the UK. The appliances are manufactured as per the design specifications set up by Wonderchef. The company had earlier raised $5 million from Zurich-based investment and for its further expansion, it is likely to go for another round of funding soon. “We are likely to raise another $10 million in the coming months to support our future expansion plans,” Saxena said.
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Leela takes over management of Ambience in East Delhi, adds muscle on Golden Triangle The newest Leela in the NCR, the Leela Kempinski Ambience Convention Hotel, is poised to push Delhi’s position as a premier MICE destination. Economically priced and strategically located, as a gateway to Agra, the hotel plans to tap into the leisure segment by leveraging on the ‘golden triangle’, once group’s properties in Agra and Jaipur are up and running.
By shashank shekhar
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s The Leela Group takes over the Kempinski Ambience Convention Hotel, some major changes are expected to be incorporated. In a bid to strengthen its presence in the NCR, through consistent quality of service and ‘feel’, it has planned lending ‘Indian style of
hospitality’ to the hotel, shared the General Manager in an interaction. “The biggest element of change begins with the infusion of Indian style hospitality; a sense of warmth, welcome and great service attitude which was missing in the European brand of guest service, answered Jaydeep Anand, GM, the Leela on the introduction of new elements since its acquisition from the Kempinski
Jaydeep anand GM, The leela kempinski ambience convention hotel
We are pitching for making Delhi a global hub of MICE travel. We are not only looking at becoming the number one player in this segment, but attracting serious global crowd, seeking a world-class convention space, to the capital.
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Group. The makeover is extensive, we were told. “From uniforms, interiors and product to people and service, it is vast in the real sense,” exerted the GM. The process was to be concluded in a time-frame of ninety-days to be battle-ready by February, he informed. This being the third property in the NCR, the group is substantiating its claim on footfalls and business; however, the GM, going a step further, called the hotel a ‘masterstroke’ in the convention business space in the NCR. Backing his assertion by informing us that it was 480 rooms inventory, he shared that the hotel boasted of a 70,000 sq. ft. of convention space, too. We were told that almost 5,000 people could be accommodated, in total. “We are pitching for making Delhi a global hub of MICE travel. We are not only looking at becoming the number one player in this segment, but attracting serious global crowd, seeking a world-class convention space, to the capital,” he asserted. Claiming that the location of the hotel was a not a disadvantage, as convention travelers moved in wee hours of the morning, or late night, he pointed out that it was, one of, the fastest getaway to Agra. “Once our properties in Agra and Jaipur are ready, we will leverage movement within the ‘golden triangle’ better. Besides, this hotel is an ideal getaway to Himachal and Uttarakhand from the capital. These are major advantages of operating from here which are unique,” Jaydeep Anand argued. He, however, steered clear from calling it a complete MICE driven hotel. “Our strongest positioning, of course, remains that of a corporate hotel, but we will not get bound by one flavour. We are serious about leisure segment; we have the most economically priced rooms compared to the other two Leela properties,” he said. “We are ideally located from places of interest like Connaught Place and the Red Fort,” he added. Sharing that the hotel had, also, been organizing ‘Purani Delhi’ walks for their patrons, he said that it helped catering guests seeking some engagement. Sounding upbeat about considerable business in the coming months, he mentioned that there were a number of major companies that had businesses in this part of the city to tap into. “There are a large number of collaborations and ventures happening now; Ericsson, Samsung, Mercedes, Honda Motors, each one of them has a presence here. We intend to attract them, courtesy our distribution network,” he detailed the road ahead. Pinning his hopes on enhanced business and manufacturing related activities in the months to come, and Delhi receiving a substantial chunk of that inflow, he said that his hotel was ready for a busy season ahead.
Monkey Shoulder Triple malt comes to India
An exciting new developmentfor bartenders and lovers of malt, is the launch in Indian market of Monkey Shoulder Triple Malt, a free-spirited, fun-loving drink that offers aneasy going smooth, rich and mellow vanilla deliciousness. It can be enjoyed neat, on the rocks, mixed or in cocktails. There are no old-fashioned rules when it comes to drinking Monkey Shoulder. Launching into the Indian market this 2015, Monkey Shoulder is now available to savour in New Delhi, Gurgaon, Chandigarh, Kolkata and Mumbai.
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Pride Plaza is newest addition to Aerocity: looks set for the long run Pride Hotels opened the doors of Pride Plaza at Aerocity last month. The formidable strength of this unique development zone is beginning to show off and already, given its proximity to the airport, is proving to be a reasonable success. By navin berry
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ride Plaza opened its door at Aerocity with 270 rooms, with another 100 to follow – the blue film is in the process to be cast on its glass to make these rooms equally secure, and in conformity with government requirements. The hotel has impressive neighbours, with JW Marriott on one side and Novotel on the other – behind it is the soon to open Aloft by Starwood. The chain now has an inventory of over 2000 rooms across 14 properties, among which 9 are owned and the rest on management. The group’s strategy, interestingly, is that owned properties are in the metro cities, as its founder S P Jain believes he has a strong brand equity among business travellers and is yet comparatively newer as a brand in resorts and tier two and three cities. Pride Hotels has a loyalty card that is usable across its products and continues to command a strong loyalty among his business clients across cites. Jain proudly says that both the cricket teams are staying with him in Nagpur. The
official launch of Pride Delhi beyond the spa and fitness will be later this month, centre. The lower lobby has when Tourism Minister an impressive banquet hall Mahesh Sharma and divisible into three 9 comInfrastructure Minister Nitin bined capacity for 400/500) Gadkari are expected. and another smaller hall First a word on the with 100+ seating. product: it is more like Jain is happy to belong coming home, very clean to this prestigious developand neat and not formiment in the heart of the dable, and making you capital. He strongly believes detract somehow. It is that real power of each of within these contours that the hotels at Aerocity lies in there are no compromises their being part of the larger and everything works – the hub; together these hotels hotel has a young team, make for a great developvery enthused with the ment, as every category work ahead, aware of the of room is available and long road ahead in making together it makes for a great Aerocity hotels profitable. events based destination, S P Jain The rooms are in three he says. Jain believes the Managing director, pride hotels categories, with common success of this zone would The real power of each of the hotels amenities, distinguished lie in intelligent marketing at Aerocity lies in their being part of largely through their sizes and understands that with the larger hub; together these hotels make for a great development, as – 28/30/32 sqm with the some yet to unfold developevery category of room is available best of toilet fittings. We ments, like the food street and together alongwith WorldMark would call them compact adjacent to his hotel, and and Food Street products on the and good 4 star, assuming the two WorldMark projects anvil, it makes for a great events based destination. international criteria and soon to open, Aerocity will standards, where everything become soon a happening is not 5-star except in India. destination. The hotel lobby extends How does he see the onto the coffee shop and one hotel industry performance at without liquor licences on acspeciality restaurant. The bar is this point in time? It has been count of unforeseen glitches. yet to open and most of newer somewhat slow but he does see A poolside barbeque will open entrants in the zone have been business happening. The pace later this year, and will extend
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is not what everybody expected but tit is there, considering also that supply has been consistently improving. In other cities, his hotels are doing very well in Kolkatta and Nagpur and also in Bengaluru, he says. He has been insistent upon location, and this emphasis has paid off. He has a two acre hotel plot in Saki Naka area in Mumbai but is unsure of its location and there continues to scout for more suitably located opportunity. He also says that Pune is a city of great opportunity; here, he is also developing a 400-acre township, alluding aside to his other business of developing land parcels for residences and townships. Pune is also a city where he has a strong product, the Pride Hotels in Pune and Ahmedabad remain much sought after properties. Overall, he is witnessing slow but steady growth. Group wise, he looks after finance and growth, while his son spearheads operations and sales. The company is run by CEO Arun Nayyar, based in Pune. The group largely trains its own staff and remains modestly bullish on hospitality in the country – the story of Indian tourism, he says, is just beginning.
Delhi witnesses record liquor sale; excise revenue expected to touch a new high scoring hospitality sector’s contribution By tf bureau
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he New Year has brought cheers to the city’s administration as they are raking up big money, thanks to a steep spike in the excise collection from liquor sales. Going by the latest figure in the public domain, compared to the last year, excise revenue from the sale of spirit has been up by a whopping 30 percent. In the last year, the government had set a target of three thousand five hundred crores, and missed the mark by a whisker. Now, it has set a target of four thousand crores, in the form of revenue, and in all likelihood, it will surpass that figure by the end of the fiscal. By the time this story was filed, over three thousand one hundred and sixty one crores had been deposited in the treasury, and it is expected to reach an unprecedented four thousand five hundred crores – as buoyed by the bumper sale, the government is mulling on revising the target. A break up of the month-wise data points to the fact that the excise collection increased in a major way post July 2015. In the months of May, June and July, the monthly revenue jumped moderately by 8-11% over the corresponding period in 2014. However, August saw a massive increase in collection with an abnormal jump of 44.64%. This spike was sustained in the subsequent months, as September saw a 64.50%hike, October registered a 39.64% jump, and November gave a 15.14% extra
revenue to the excise coffers. Excise officials have told the media that 90% of the revenue came from premium brands in the Indian-made foreign liquor segment – which was a result of imposing new conditions to qualify for selling in Delhi. Reduction in sales of budget brands is being attributed to those stringent conditions placed under the excise policy in 2015. In terms of specifics, Wine, although, may not have become the favourite, its popularity is steadily increasing as indicated by the sales figures. Beer sales picked up in the summer, but whisky and rum are emerging to be clear favorites of Delhiites. Excise officers have pointed to a number of reasons for the boom in numbers. Moving the entire process of tax collection online has helped curb tax evasion and bring a semblance of transparency in the process. Meanwhile, hoarders and smugglers have been dealt with in the strictest of terms, media was informed. Inspection teams stationed at the Haryana border are being constantly rejigged to ensure strict enforcement of law. Flying squads, frequent show cause notices to defaulting shop owners and operators have played a part. Infusion of technology, too, has had a crucial role, media reports suggest. Mobile application has been introduced to track the status of each liquor bottle using its barcode. Any illegal liquor is immediately notified to the control room, helping the excise department put out liquor-related information in the public domain and make it difficult to violate rules.
global e xchang e: kore a
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More connectivity will boost numbers; explore cinema and theatre, suggests Korean envoy In an exclusive with TF, Korean envoy Cho Hyun shared that with a palpable sense of urgency in the government for executing big-ticket projects, Korea saw a great opportunity to engage in areas of its expertise for mutual benefits. He further hoped that India will look into better preservation of Buddhist heritage to fully realize the unexplored potential of religious tourism. By shashank shekhar
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alling cinema tourism an opportunity to better understand each-others culture and values, he wished that filmmakers from both the countries could enhance mutual co-operation. “Filmmakers from one nation can travel to the other and make a film there, and other way around. Or, they can remake well known films in either country,” he noted. He suggested that Korean companies could sponsor and support these endeavors. “Companies like LG and Samsung can sponsor Indian filmmakers to visit Korea and shoot an entire movie there. I have urged them to do so,” informed Ambassador Cho Hyun. Divulging that he had also invited businessmen running theatres and movie festivals to join in, he said “I have proposed hosting movie festivals in both countries, so that we get to know each other better. We have to appreciate each other.” Hoping to host more tourists from India on the Korean Peninsula, he also batted for having more Koreans to come to India and look around this great country. “National carrier is already coming to Mumbai and, after the recent MoU on enhanced connectivity, will come to Delhi shortly,” said the envoy, referring to the recently signed MoU between two countries on tripling the number of flights every week. “Further details pertaining to it will only be announced sometime in the next year; I cannot say anything
Improve facilities, conserve heritage to bolster Buddhist tourism; Korean language needs to be given importance for student exchange to grow
His Exellency Cho hyun Korean ambassador to India
India may think about enhancing the level of services to pilgrims; better connectivity, enhanced sense of security and at least an assurance that they are being cared by some responsible Indian authority will go a long way in addressing these lacunae.
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for sure as of now, because the announcement will be made by the government in Seoul after due consultations with airline companies. I am sure, though, that our national air carrier – Korean Airlines – will come to Delhi,” announced the Ambassador. Noting that it was because of historical linkages and presence of a robust Indian community that countries like Malaysia and Sin-
gapore held the fort in attracting Indian outbound, especially in the Asian continent, he said “naturally, they benefit with higher Indian outbound. But, we are slowly but surely increasing our visibility and reach into the Indian market,” he explained. “Essentially, Korea is a high-end destination and mostly wealthy Indians looking for some sort of experience are going there, as of now,” he added. Calling India is an enormous entity, he said that “I will not dare to define it. But, I can tell you that this is the place where human stories are told; human problems are created, too,” said the envoy. “All the aspects of human interface are so visible and prominent here. I am very happy to be here because every day I am exploring the contemporary India, besides understanding its past; different cultures and diverse religions,” he further added.
esides a long history cemented by matrimonial alliance, bilateral ties between the two are also connected through the umbilical cord of Buddhism. India is the cradle of Buddhism and Korea has a substantial Buddhist population. However, envoy Cho Hyun blames inadequate efforts on India’s part in its failure to emerge as a strong peg of bilateral tourism. “We have been doing our bit as a nation. We have many pilgrims coming into India; a number of Korean pilgrims visit Buddhist sites, here, in large groups,” he said. “They tour variety of sites scattered across India. But, there are very few Buddhists remaining here. That is why, may be, it is difficult to create reciprocatory bilateral footfalls, especially in the area of Buddhist tourism,” noted the diplomat. He advised India to try harder and take better care of Buddhist heritage and pilgrims. “India may think about enhancing the level of services to pilgrims; better connectivity, enhanced sense of security, and at least an assurance that they are being cared by some responsible Indian authority will go a long way in addressing these lacunae,” he noted. When asked whether enhanced student exchange could help creating better awareness and improved mutual tourism, and whether
language remained a barrier in achieving it, he dispelled the argument by divulging that language was not a barrier and university level students, in Korea, were well-versed in English. "Increasing numbers of Indian students are speaking Korean, too. Back in Korea, there are many universities that have Indian studies as a part of their curriculum along with Hindi language,” he explained. He, however, did concede that it was not enough. “We can, of course, increase footfalls. What I think is important that Indian government adopts Korean language as a foreign language, or at least bestows some degree of official importance to it,” he suggested a way forward. “That is our dream; and our text-books should cover more aspects of each other’s culture and history. I, personally, have been encouraging inclusion of Indian history in Korean textbooks to cover more salient aspects, and we would want the same happening in India,” he added. Sharing that he had been getting good response so far, he noted that the problem lied in outright migration of those who gained proficiency in Korean language to their shores to work for Korean companies. “Instead, if they become teachers, we would have a number of youngsters better aware of Korea and its offerings,” said the envoy.
Government initiatives provide an opportunity for stronger ties and improved bilateral footfalls
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e are very happy to see new initiatives undertaken by the new government headed by PM Modi, and to be partners in India’s quest for better quality of life for its citizens, said Excellency. Explaining that Korea had ably succeeded in transforming itself into a beacon of prosperity and it was those experiences that it could share with India in its mammoth undertakings, he said “we have a certain degree of experience in these areas; Korea was a poor country and an agrarian society. But, it took us only three decades to become a mature economy and a developed country; we are a part of OCED nations.” Adding that
it was possible not because they were smarter than the rest, but because Korea was a smaller nation with a homogenous society, he said “I do not brag about it. But our case can be studied by Indians.” He believed that with ample experience of such rapid development, Koreans could come to Indian shores and reap mutual benefits through business engagements. “That’s why I believe in the coming days, more and more Korean companies will come to India and this exchange of ideas and concurrence of action will steadily boost footfalls,” noted
the senior diplomat. Pointing to specific areas of engagement, he referred to waste management being a huge issue. “Korean com-
panies are world-renowned in that aspect; treatment of odour and toxic waste is another aspect that we are very good at. So, these mega
initiatives open a big window of opportunity for Korea,” he explained. Noting that once trade volume will increase, it will automatically lift the bilateral tourist numbers, he sounded more than confident about the shared future of both nations and hoped that intense engagement at various levels will augment tourism in the months ahead. Further substantiating his argument, he mentioned that “there is a major program slated to be held in February in Mumbai on ‘Make in India’. We are trying to ensure a serious partition from the Korean
contingent. We are also hosting a major business summit here in Delhi, soon,” said Excellency. Talking specifically about sectors, he pointed towards opportunities in large-scale manufacturing. “It is a key area. Hyundai motors can definitely have one more factory here; Samsung can raise its stake here to a much higher level,” said the Ambassador. However, refusing to limit bilateral engagement to the macro levels, he believed that many smaller companies will come to India, too. “It will help India become more effective, beautiful and efficient. We want to see that happen,” noted the envoy.
global e xchang e: swe de n
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India second biggest Asian market for Sweden Massive investment in tourism to boost online outreach
As Sweden embarks on an ambitious undertaking, infusing over 70 million SEK in the tourism sector, aimed at promoting its experiences on offer, we caught up with Lotta Thiringer – Regional Director, Growth & Development, Markets to understand the contours of this mammoth push. High on their agenda is to reach out to new markets and increase outreach through innovative means. An excerpt of the interview follows:
Vasa Museum, Stockholm
By shashank shekhar
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he government’s investment into tourism, of an extra 70 Million SEK over the next three years, is primarily aimed at promoting Swedish nature experiences in all prioritized markets, along with strengthening tourism from bordering countries, and supporting new digital initiatives, we were told, when asked about the contours of this hefty investment. She said that besides strengthening Sweden’s tourism product, it is also looking into increasing activity in newer markets, such as China and India. Describing the modus operandi of this outreach, she noted that online media remained a crucial form of communication, and all efforts were being made to increase their online presence, especially in priority markets. “We believe that this is the best way to reach our target audience in a cost-efficient way with a tailored message, a way to build a strong relationship with future visitors.” Stressing that online media allowed, both, building the
Lotta Thiringer Regional Director, Growth & Development, Markets
For 2015, we were at an accumulated growth of 20% by October, and we have yet to see the result for the whole year as the yearly statistics come in beginning of 2016. This makes India our second biggest Asian market.
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brand and reaching out to people who still haven’t decided where to spend their vacation, she stressed that it provided very detailed information for planning purposes. “We run all our bigger campaigns on relevant digital platforms and, of course, social media is core to our digital strategy,” she informed. Speaking specifically about India, she did concede that it was still a very new tourism market for Sweden. “We are currently doing research and forming ideas on how to best target our audience through online channels.” Divulging that VisitSweden prioritized 12 foreign markets, we were informed that the markets were Norway, Denmark, Finland, Russia, Germany, Netherlands, UK, USA, France, Spain, Italy and China. “The biggest markets today are Norway, Denmark, Finland, Germany and the UK. These countries deliver the largest volumes of visitors, and have a huge potential in the segment of city breaks and active nature vacations,” she said. “For them, Sweden is exotic as well as close,” added Lotta. Calling India a growing market for Sweden, she told us that Indian travellers have been contributing increasing number of commercial bed nights, since the past few years. In 2014, Sweden had 1,55,203 bed nights spent by Indian travellers, which was an increase of 22% from the preceding year. “For 2015, we were at an accumulated growth of 20% by October, and we have yet to see the result for the whole year, as the yearly statistics come in beginning of 2016. This makes India our second biggest Asian market,” revealed Lotta. In a bid to attract long-haul markets as the likes of the USA, China and India, Sweden is planning on leveraging the novelty of a Scandinavian platform. The strategy is to work out from a Scandinavian platform, a partnership that brings forward the unique combination of Sweden, Norway and Denmark in one trip, we were told. “As we know that these visitors love to travel around and get more destinations into their vacation,” she explained. Sharing that it had witnessed a steady increase from India, she hoped to maintain this incremental growth over the next few years. Besides, leveraging the Scandinavian platform – which, indeed, is value for money, and a lure of many experiences in a single jaunt for the discerning traveller – Sweden is also mindful of the need to boost its own image as a destination with varied experiences on offer. “Sweden is blessed with a lot of natural beauty with a long and fascinating coastline, dramatic mountains and romantic rolling landscapes, along with the strikingly beautiful and vibrant capital of Stockholm,” said Lotta. She insisted that it is the combination of authentic nature experiences, world-class progressive cities and a friendly modern sustainable lifestyle that set Sweden aside as a unique destination. “The Swedish cuisine and restaurant scene is another reason to visit that has become increasingly popular, as new Nordic cuisine has gained popularity across the world,” added Lotta. She further listed unique history combined with a modern sustainable lifestyle, nature attractions; fresh waters, green land and clean air as key reasons for visiting Sweden. “State-of-the-art design, manifested in arts, furniture, fashion and architecture, coupled with cool cities where modern urban pleasures and nature meet in harmony and new Nordic cuisine at your finger tips are reasons enough to create a pull for tourists,” she noted.
global e xchang e: rwanda
32 Akagera National Park, Rwanda
Guerrilla tracking is a major attracton for foreign tourists in Rwanda
Rawanda to consolidate its position as tourism hotspot in Africa, says Ernest Rwamucyo By ritwik sinha
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or global tourism observers looking for emerging bright spots in the African continent, Rawanda in East Africa has certainly evolved as a major prospect in the last one decade. The country is believed to have successfully capitalised on its wildlife and natural assets and the growing macro-economic trends is giving its tourism assets a lot more visibility than ever before. According to an estimate, the total volume of foreign tourists footfall in Rwanda is now over a million, a significant jump over around 700,000 figure registered in 2009. Speaking at a seminar organised by TourismFirst in Mumbai recently, High Commissioner of Rwanda to India Ernest Rwamucyo emphasised that tourism is emerging as a stronghold sector of the country and the government is keen to further consolidate the recent gains. “Tourism is certainly a critical pillar for us now and we have taken initiatives which have ensured that our footfall growth has been to the tune of 8 percent in the recent years. The world has begun recognising us as a major tourism destination in Africa and we are developing some new products which would aptly supplement our wildlife and natural offerings,” Rwamucyo said. Tourism’s growing importance in Rwanda is reflected in the official statistics which pegs it as the highest foreign exchange earning stream for the country. The country is believed to have
Medical tourism and education major pull factors; using diverse platforms to boost presence By shashank shekhar gradually become a favourite turf for wildlife enthusiasts with its series of national park offerings like Volcanoes National Park, Ngungwe National Park, Akagera National Park, etc. The 227 km long Congo Nile Trail has also become a major draw for global adventure enthusiasts, not to forget the tracking mountain gorilla activity. Surprisingly, the country also has a pocket Kabale which is now being dubbed as “Switzerland of Africa” because of its hilly terrains and cold weather. Some noted bloggers have also resorted to this tag owing to the sense of orderliness which is noticed in the region. “We are planning major tourism centric developments in the location which is called Switzerland of Africa,” Rwamucyo emphasised. Rwanda, the land of thousand hills, is also keen to appear more prominently on the global tourism map by a closely integrating with
Ernest Rwamucyo High Commissioner of Rwanda to India
Tourism is certainly a critical pillar for us now and we have taken initiatives which have ensured that our footfall growth has been to the tune of 8 percent in the recent years.
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cinema tourism. It is developing a region called Hillywood (a spin off on the name Hollywood) for filming by international crews. An annual film festival is organized here which has already become one of the major film events in Africa. “We have significantly simplified the permit procedures for filming in the region and we are going to create more facilities. We are convinced that our Hillywood offering will go a long way in aggressively showcasing Rwanda tourism to the world,” he underlined.
Focus on ‘new destination appeal’ Rwanda is one of the most successful nations in Africa which has steadily been attracting investments and tourists. RwandAir’s unveiling of flight between Mumbai and Kigali could not have been timed better. By shashank shekhar
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s Rwanda pitches to project itself as the preferred getaway for MICE and corporate clientèle emanating from Indian shores, it competes with some of the most established destinations that have created a niche for themselves – Singapore, Malaysia and Hong Kong to name a few. However, Clarence Fernandes, Representative, Rwanda Development Board believes that the attraction of experiencing a new destination will set them apart from the rest. ““New Destination Appeal’ is what will make Rwanda stand out and take a lead over traditional destinations like Singapore and Malaysia,” he said. “Indians are al-
ways looking for newer and fresher pastures. Here, Rwanda has much to offer,” he added. Indicating that the country stood right and ready to host corporate outbound and enhanced bilateral movement of goods and services, he pointed towards the ease of doing business in the country. "Where else in Africa, other than in Rwanda, can you actually start your business in a matter of just six hours,” he exclaimed. "It is a fact that the Registrar General's Office of the Rwanda Development Board will complete the entire Company registration process within just six hours!” he further added. Noting that MICE business made up a major portion of Indian
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Clarence Fernandes representative, Rwanda Tourism Board
arrivals into the country, he shared that, every year, they marketed an important MICE event, under the brand name of “Rwanda Calling" which aimed at attracting trade , tourism and investments into the country. He told us that “While this event hosts the majority of dele-
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esides MICE and corporate travel which forms a large chunk of outbound and consequential bilateral movement, India has remained a key destination for medical tourism and education. “There are hundreds of Rwandan students studying in various Indian Universities in Tamil Nadu, Karnataka, Maharashtra, Punjab, and even in the capital city of New Delhi,” shared Clarence Fernandes. Noting that India's forte in medical tourism and education played a pivotal role in tapping inbound from Rwanda, he explained “There are ever so many Rwandan patients coming to India for treatment. Our hospital partner, SevenHills, in Mumbai is actually training as many as forty eight Rwandan nurses which, by itself, will tap and increase medical tourism into this city and country.” Adding that SevenHills recently conducted a medical camp in the capital city of Kigali, he said “it is all geared towards increasing movement into the country,” he added. Looking at the number of new and diverse elements through which Rwanda is engaging with the wider tourism fraternity in the country, it is evident that it seeks to take the bilateral ties, and consequently footfalls, to a new pedestal. “We took a booth at the Cinema Tourism Show 2015 held at the Marriott Hotel, in Mumbai. Earlier this year, the Rwanda High Commission organized, in collaboration with the Rwanda Development Board a most productive “Road Show "at the Eros Hotel, New Delhi, informed the representative, explaining their diverse means of engagement. The only glitch, in an otherwise promising prospect, in tourism remains the lack of direct air-connectivity. Seeking to address this long-standing omission, Rwanda is all geared up to cement the relationship with direct flights to Mumbai from its capital. Calling RwandaAir’s foray into Indian skies as the icing on the cake for enhanced tourism connect between the two nations, he shared with us that “our very own National Carrier, RwandAir, will commence flights in to Mumbai from September, 2016.” He believed that it will open up new avenues for trade, tourism and investments.
gates from India, “Rwanda Calling” has also attracted businessmen from Uganda, Kenya, Lesotho, United Arab Emirates, Georgia, the United States of America in the West and even from Singapore and Thailand in South East Asia.” Sharing that it was only one of the three countries in the entire world, where one can actual see and come in very close quarters to the endangered mountain gorilla, he said that "this unique tourism product is only available in Rwanda and Uganda. And, it is generally felt that this is better experienced from Rwanda.” As India engages deeper with African Union, Rwanda stands to be a frontrunner in benefiting from the escalated ties between the two. "The Hon. Prime Minister
of India is laying adequate stress on Africa and has recently announced a funding of USD 10 billion for projects across the African continent,” said Fernandes. Although, latest visitor arrival figures were not out, yet, Rwanda attracted over 11,000 Indian visitors each year, we were told. “It is, by far, the safest country on the African continent. Both business and leisure visitors look at safety and security,” he asserted. Refereeing to the recently unveiled Gallup International Report, he said that it had indicated that Rwanda was the 4th safest country in the world, after only Singapore, Hong Kong and Norway. “Moreover, Kigali, the capital city is spotlessly clean and is often referred to as the “Singapore” of Africa,” he said.
global exchange : czech republic
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Sunrise at Prague
Cesky Krumlove
Czech keen on resuming direct air connectivity; growing business exchanges, rising footfalls become the trigger For the new ambassador of Czech Republic in India, resuming direct connectivity between the national capitals of two countries is the topmost priority given the growing interest of India outbound. A formal negotiation with the potential carriers to connect the two dots is expected to begin soon. By ritwik sinha
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ith India outbound story becoming stronger, there are clear visible signs of new markets setting afoot initiatives to get a slice of the expanding pie. This also includes countries in the Eastern Europe which are part of the Schengen block (comprising 26 countries) where Indians can freely travel using a common visa. Czech Republic, a highly industrialised entity in the region and a tourism powerhouse in its own rights, is certainly one such example today which is keen to build a formidable base of India outbound in the medium run. And for this, the newly appointed ambassador of the Czech Republic to India Milan Horvoka is willing to go that extra mile in making accessibility to his country a lot more easier for the desiring Indians. For Milan Horvoka, the foremost priority is to explore the option of resuming direct air connectivity between the two countries – a critical missing link in making travel easier on both ways. The direct air linkage between Delhi and Prague had existed for two years between 1989 and 1991 (run by Air India) which was suspended
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in 1991. But given the growing bilateral trade (currently pegged at $1.3 billion) and increase in tourists footfall, Horvoka is convinced that this is the opportune moment for the re-introduction of this service. “We have noticed a modest growth in the arrival of Indian tourists – to the tune of 30 percent this year. There is a clear growing interest in the Czech destinations when it comes to India international leisure traffic and for the further growth of this number, it becomes imperative to bring back a direct service,” Horvoka told TourismFirst in a recent exclusive conversation. Over
his excellency milan horvoka Czech republic ambassador to India
With the growing Indian footfall in the Czech Republic, it has become imperative for us to position our facilitation centers in other cities too. The new centers will be in place very soon.
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10,000 Indian visitors are expected to visit the Czech Republic this year which has an annual arrival base of 8 million foreign tourists. And according to Milan Horvoka,
this number is based on the strict analysis of one-night stay pattern which means those who come in for a day are excluded from the list. Germany, the UK, France and the US are major middle to long-haul source markets for the country with Hungary, Poland and Slovakia (formerly a part of the combined entity Czechoslovakia) being the major neighboring tourists feeders. In the recent years, South Korea and China have emerged as the major contributors from Asia. Recently, a direct flight has also been introduced between the Czech capital Prague and Beijing to provide better accessibility and that is what Horvoka has in his mind while trying to make it easier for the Indian travellers to reach to Prague. For Indian travellers, however, the best stopover options to reach out to Prague presently are provided by Turkish Airlines (from its Istanbul base) and Emirates (from its Dubai base). Frankfurt and Munich are other major stopover points (European carriers provide plenty of options from India to reach to these destinations) from where flights to the Czech capital are readily available. According to Milan Horvoka, efforts will soon be set afoot to approach concerned authorities
and the potential airlines which could initiate direct service between the two countries but prior to that a critical assessment exercise will be undertaken. “We are also part of Schengen countries and, therefore, many visitors might be coming on the common visa which works in the region. We are currently examining the volume of Indian visitors also visiting the Czech Republic on this common visa and then we will have the precise idea of the potential traffic. We will kick off our negotiation exercise for direct connectivity after the data has been compiled, It will happen soon,” he underlined. In order to shore up India outbound numbers, the Czech Repulic is also strengthening another front – making visa facilitation easy in India. It has recently opened two visa centres in Mumbai and Delhi and in 2016, it is likely to open three new outlets in other important Indian metros. “With the growing Indian footfall in the Czech Republic, it has become imperative for us to position our facilitation centres in other cities too. The new centres will be in place very soon,”Hovorka added.
Expanding profile of Czech Tourism
zech Republic, a relatively small country, has a tourist arrival base which is slightly less than its actual population. While country’s population is close to 10 million, its tourists base is in the vicinity of eight million. The statistics is self-explanatory underlining the strong drawing power of the Czech Republic thanks to its innumerable assets. According to the Czech Ambassador Hovorka, the country has quite a holistic profile – old and new assets which have been preserved and nurtured meticulously to cater unique experience to the visitors. The country boasts of nearly a dozen UNESCO recognised sites which include Gardens and Castle at Kromeriz, Historic Centers of Prague and Telic, Holy Trinity Column in Olomouc, Lednice- Valtice Cultural Landscape, Kutna Hora Historical Town Center with the Church of St. Barbara, Litomysl Castle Pilgrimage
Church, etc. “These have been our traditional assets and they continue to remain our major draw. After the Czech Republic became an independent entity in early 1990s, we have also spent quite a lot in restoring many monuments in the country considering their importance for tourism purposes,” Hovorka pointed out. The Czech Ambassador was also quick to point out that the country in the past twenty years We fully understand that while on one hand you have to rely on your traditional strengths, you also need to have a rich portfolio of modern products, particularly to make an appeal to tourists of younger generation. We are now quite famous for para-gliding, mountain trekking and other sports related events
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has also worked Karlstejn Golf Resort – Czech Republic is fast consolidating its position as an attractive golf tourism destination in Europe in the direction of creating products which are much attuned to the taste of the new age travelers. “We fully understand that while on one hand you have to rely on your traditional strengths, you also need to have a rich portfolio of modern products, particularly to make an appeal to tourists of younger generation. We We are one of the most noted golf larger tourism linkage. “Due to are now quite famous for para-gliding, mountain destinations in Europe. Thouthe recent emergence of these trekking and other sports related sands of tourists who come to two sectors, we are now finding events,” said he. The country Czech are driven by our golf offer- tourists also spending money in also seems to have built quite ings,” Hovorka underlined. buying Czech glass, chandeliers a strength in the arena of golf Interestingly, two of the and jewellery items. It’s a win proposition for both the local tourism. “Around 1990, we only emerging business sectors in the industry and our tourism sector,” had a couple of golf courses. But country – glassware and jewelHovorka said. now there is a network of them. lery – have also developed a
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In a first for the combined AI-IA entity, 2016 ushers its annual calendar
Puss Moth: J.R.D. Tata flew it and heralded the beginning of Air India, in 1932
Avro HS-748: India's first indigenous passenger aircraft, joined the fleet in 1967
Boeing 787: The Dreamliner – The most advanced, eco-friendly and fuel efficient aircraft. It has redefined passenger comfort and luxury. It was introduced in the Air India fleet in 2012
Airbus A320: This workhose of the fleet has set a new benchmark in providing comfortable flights to passengers, since 1989
The first calendar since its merger with Indian Airlines, it opens with its cover depicting the flight of the falcon, relecting the airline’s new agility both on the ground and in the air. The calendar boasts of a theme which depicts the evolution of flying and also of the airline itself. Interestingly, though, it is also demonstrating its aspiration and vision for the future. The calendar incorporates a diverse set of images which suggests its hunger for scaling new heights, while, also, going back to its roots with a striking picture of the Puss Moth of JRD Tata fame. It has also depicted a picture of Boeing-747, recalling the very fact that ‘the Maharaja’ was amongst the first airlines in the world to induct the Jumbo Jet. So, while it scales its Dreamliner operations, and looks at regional connectivity, the calendar incorporates its vision to soar to new heights, and once again acquire a pivotal position in the Indian aviation industry.
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