JULY 2010. VOLUME 26. ISSUE NO. 4. RS. 50. R.N. 45698/85. Posting Dt. 12-18/07/10. Regn. No. DL (C) 01/1214 / 09-11 License No. U (C)-301 / 2009-11 W.P.P. at MBC-1
• SECTION 1 PAGES 1-28 • SECTION 2 PAGES 29-48
2 6 t h Y E A R O F P U B L I C AT I O N Kochi Marina Constructed by Sharjah’s Gulf Marinas under the supervision of the Kerala Industrial and Technical Consultancy Organisation, the Kochi International Marina was inaugurated on April 24 by Defence minister AK Antony in the presence of Kerala's Tourism minister, K Balakrishnan. (See full story on pg 4)
DESTINATIONINDIA SECTION 1 (PAGES 1-28). INDIA INBOUND, DOMESTIC AND INFRASTRUCTURE BREAKING NEWS Oberoi Grp announces new projects
Joint MD, operations, Vikram Oberoi and PRS Oberoi at the recent press conference.
I N S I D E
Oberoi Hotels and Resorts is going ahead wit h it s plan to double the group's room inventory in the next five years. “The Oberoi in Gurgaon will open later this year or early next year; it will have 200 rooms. The Oberoi in Dubai will also open around the same time. Also in t he nex t 18 months, t wo hotels will be commissioned in Hyderabad,” said P.R.S. Oberoi Oberoi, cha ir man, EIH, at a press conference in New Delhi. Apart from these, the Group is also developing a property under the Trident brand in Dehradun and another resort hotel near Chandigarh. In addition, the Group is developing a hotel in Marrakesh, Morocco. They have also earmarked a sum of Rs 100 crore to renovate some of its properties in 2010. Meanwhile, P.R.S Oberoi said that EIH is not looking to sell their stake in the company as of now. “But I cannot stop anybody from buy ing shares in the compa ny f rom t he market,” he said. ITC Ltd. holds just under 15% shares in the EIH; there has been speculation that they might be interested in buying a bigger stake. – NAVIN S BERRY
Kerala introduces serviced villas product – Pg. 10 Delhi’s hotels: Is CWG not drawing the numbers envisaged? – Pg. 14 International flights and domestic holidays segments bring cheer to OTAs – Pg. 20 Garden, Bollywood & Pet tourism – are these the new focusses ? – Pg. 20, 24, 25
T3 INAUGURATED! L-R: GM Rao, chairman, GMR Group; civil aviation minister, Praful Patel; prime minister Manmohan Singh; UPA chairperson Sonia Gandhi and Delhi’s chief minister, Shiela Dikshit, at the inauguration of Delhi Airport’s Terminal T3.
India’s aviation triumphs The much awaited T3 was inaugurated amidst fanfare witnessing easily the largest and the most prestigious gathering seen in the aviation and tourism industry in the country. For India’s aviation sector it was a dream come true: we now have a world-class airport. It has finally arrived and is among the very best in the world. That the operations have been postponed to the end of the month is understandable as it is paramount to ensure there are no glitches as have been witnessed at many international airports elsewhere. For a sector that has been struggling to ward off the recession, the inauguration was marked by “we can do it too”. Minister Praful Patel pointed out that Indian expertise in this sector was now being coveted by other nations. T3 is the largest public building to be made in India since Independence. It is the 5th largest airport in the world. Currently the 9th largest aviation economy in the world, and destined to b e among t he top five, t his is a landmark development. Among the other laudable announcements was
that the AAI-led new airports at Kolkatta and Chennai would be ready by the end of next year. Also that 35 non-metro airports will have modern terminals in the next 18 months. T3 has announced the big ticket entry of India into the aviation industry of the world. It marks a new chapter for the country’s civil aviation infrastructure. Over the last six years or so, Praful Patel has been batting for a new order in this spectrum. In his speech, he likened the sunrise development of civil aviation in the Manmohan Singh government to the growth of the IT industry during the time of Rajiv Gandhi as prime minister. It was clearly Praful Patel’s day, as he drove the prime minister and Sonia Gandhi in a golf cart around the impressive expanse of the airport. Not many ministers have had the fortune to do this. And what a happy moment this must have been for him! His vision of steering the aviation sector now has an impressive symbol – the – NAVIN S BERRY landmark T3.
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JULY 2010 ◆ TRAVEL TRENDS TODAY
Q
UOTE OF THE MONTH
“India is such a fascinating country but receives only about 3.5 million foreign tourists a year, which baffles me. I am really keen on setting up an integrated resort experience on the lines of the Las Vegas strip in India, anywhere (in) Mumbai, Chennai, Bangalore or Delhi. But the government is sadly not keen…..Why does not India want tourism…? There are thousands of underground gambling holes, people bet on cricket, horses, so why not use it as a legitimate source of income and employment, coupled with world class spas, restaurants, ballrooms.”
Sheldon Adelson Chairman and CEO, Las Vegas Sands Corp., the parent company of Venetian Macao Limited which operates The Venetian Resort Hotel Casino and the Sands Expo and Convention Center.
Editorial 3
GST/ VAT refund for Commonwealth Games mooted The Commonwealth Games 2010 is a good opportunity for Delhi to establish itself as a shopping destination. Minimal efforts on the part of Delhi’s government should quite easily achieve this goal. Experts from the industry are of the opinion that the said government should initiate a pilot project to refund the Goods and Services Tax (GST)/Value Added Tax (VAT) on purchase of any commodity by foreign visitors during the Games. Globally, the tradition exempts tourists from local taxes such as excise duty and sales tax on commodities being exported out of the country. Various governments across the globe have devised ways to compensate tourists for the taxes imposed on them in their purchases. The refunding of GST and VAT not only positions a destination as a shopping haven but also makes it cheaper and, therefore, more attractive. The current debate centres around why India is not practicing this tradition when it is a proven draw for inbound visitors. The main problem lies in India being a federal country. Globally, countries follow a unitary or federal structure. Countries with a unitary constitution collect taxes which go to the Central government which does not have difficulty in refunding the local taxes as the collection and distribution points of the taxes are the same. Countries like Singapore, Thailand, Malaysia, South Korea, the ASEAN countries and the European Union follow this model. The problem of refunding the tax at airports or any exit points out of the country arises in federal nations like India, the US, Brazil, Australia and Canada, among others. In the federal structure, taxes go to both, the Centre and the States. So, when the manufacturing of a commodity involves more then two states and export takes place from the third state, it becomes difficult to calculate the refund amount because there are multiple points of collection and distribution of taxes. India can introduce the refund system, but no one has thought it through. We, at T3, are suggesting a system whereby a State should refund GST or VAT if the purchase and export of goods takes place from within the same state. So, hypothetically, when visitors to the Commonwealth Games shop in Delhi, the government of Delhi should be able to refund the GST or VAT when they leave from the Delhi International Airport. We suggest that the Delhi Government adopt this practice as an international tradition, not as a law. Why can the Delhi Government not do this for the duration of the Commonwealth Games atleast? The mechanism for refund of tax during the Games can be worked out and the government can initiate this as a pilot project. This will definitely benefit Delhi as more people would visit and shop here in the capital. We also suggest that the States should come together and develop a common clearing house mechanism to give a push to tourism. The task is easily achievable. With the availability of advanced technology, Delhi’s cabinet can think of implementing a GST or VAT refund system at Indira Gandhi International Airport during the Commonwealth Games 2010.
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4 Tourism Today
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TRAVEL TRENDS TODAY ◆ JULY 2010
MoT unveils ‘Code of Conduct’ for safe and honourable tourism To further strengthen the brand of ‘Incredible India’, the ministry of tourism recently unveiled a ‘Code of Conduct for Safe and Honourable Tourism’, to be implemented by all stakeholders of the tourism industry.
HIGHLIGHTS
While the code is not a legally binding instrument, it is a set of guidelines for the tourism indust r y. The guidelines are applicable to tourism service providers and include infor mation and t raining of personnel, public awareness, regulated use of premises and official equipment, ethical business practices and marketing. The function organised by the ministry of tourism at Hotel Ashok, New Delhi to unveil the ‘Code of Conduct’ and honour two young mountaineers who climbed Mt Everest in May this year, was attended by union tourism minister Kumari Selja Selja; tourism secretary Sujit Banerjee Banerjee; additional secretary Sanjay Kothari Kothari; additional secretary and financial advisor, EK Bharat Bhushan Bhushan; joint secretary Anand Kumar Kumar; ITDC CMD Lalit Panwar Panwar; additional DG Devesh L-R: Anand Kumar, joint secretary; Devesh Chaturvedi, additional DG; Sanjay Kothari, additional secretary (all from the MoT); Rakesh Chaturvedi Chaturvedi; representative for the regional Mathur, member PATA India chapter; union tourism minister Kumari Selja; Cristina Albertin, representative for the regional UNODC office UNODC office for South Asia, Cristina Albertin Albertin; for South Asia; tourism secretary Sujit Banerjee; Subhadra Anand, CEO, Save the Children and E K Bharat Bhushan, additional secretary and CEO of the Save The Children, Subhadra financial advisor, MoT at a ceremony to unveil the ‘Code of Conduct for Safe and Honurable Tourism’. Anand Anand, and PATA India chapter member, Rakesh come to light in recent times, reflecting poorly timing is appropriate what with India getting fut uristic needs and The ‘Code’ to establish Mathur Mathur, among others. The on our attitude and sensitivities. “It is against ready to welcome a large number of tourists challenges.” She averred code is aimed at instilling this background that we are adopting the code for the Commonwealth Games 2010. t hat the moment was India as safe for tourists confidence among tourists of conduct,” she said. Explaining the objectives of the code of historic because India had Applicable on hotels, about India as a safe and The code will be applicable to all owners, conduct, Sujit Banerjee said that the code been the eyes and ears of transporters, suppliers, secure destination. suppliers, contractors and employees of the asked service providers to respect the basic responsible tourism for contractors and employees. Unveiling the ‘Code of travel and tourism sector, including hotels, right s of dignity a nd safety of tourist s. years. “From the time of Conduct for Safe and rest aurant s, lodges, guest hous es, tour “A nother obje ct ive of t he code is t he t he Indus Valley It aims to prevent Hounourable Tourism’, op erators and t ravel agent s, as well as prevention of prostitution, sex tourism and Civilisation, we have been prostitution, sex tourism and Kumari Selja said: “It is a entertainment establishments. This code will forms of sexual exploitation, assault and worshipping nature. forms of sexual exploitation historic moment for all of also b e applica ble to t ransp ort serv ice molestation, in particular of women and Women were treated with us as we define this code. providers such as ta xis and buses, tour children,” he added. much respect and there is This code of conduct, inspired by UNWTO’s guides, as well as other services and agencies Selja informed that the union tourism no evidence of child labour,” she declared, code of ethics, is based on meeting our adding that certain disturbing instances had associated wit h the tourism sector. The se cret ar y would organis e a series of workshops with stakeholders of the industry to effectively implement the code. “We will be issuing an advisory to foreign tourists to book only those hotels that adhere to the code of conduct. And, we will post the names The Kochi Marina project, which was initiated in 2008, is the first such enterprise in the country of only those hotels on our website that abide and modelled after the Marina built on the river Thames in London. by the code,” Banerjee added. The ministry has been trying to enhance the safety and security of tourists in the country. Under the direction of the ministry, several state governments have formed a Tourist Police Force. “We are working closely wit h the police and other law-enforcing agencies to strengthen law and order. Tourism industry stakeholders have to help agencies strengthen the law enforcing mechanism not only for the Commonwealth Games, but also after it,” Selja informed. She said that the tourism ministry had launched a social awareness campaign under the banner ‘Atithi Devo Bhava’ that spreads awareness about responsible tourism and teaches industry stakeholders to treat women and children wit h resp ect. “We need a separate campaign to look into the safety of incoming tourists and tell service providers that they must not be a party to activities that Kochi International Marina is a Kerala Tourism restaurants. We also want to make the marina the exploit women and children. Such exploitation Development Corporation (KTDC) venture and is area where the buzz is,” stated Phillip. should be brought to t he notice of lawlocated on the eastern coast of Bolgatty Island in The Marina House here features 32 rooms, – MM JHA enforcing agencies,” she urged. the Bolgatty Palace. The recently launched marina including four suites, a health club, cafeteria, will be managed by Ocean Blue Marinas, in a recreation cent re, convention cent re and 50:50 profit sharing partnership with KTDC. It is playground for children. The golf course, one of the designed and develop ed by Mumbai-based main attractions in Kochi, is part of the marina at Ocean Blue Marina s, a t ur nkey marina Bolgatty Island and will be open to tourists. “Kochi development company. has become a popular port of call for luxury cruise Poised to become an icon in the travel and liners. During the last one year, 50 luxury ships tourism sector of Kerala, the marina has berthing touched Kochi; the Volvo Ocean Race too stopped Cherian facilities for 34 yachts. According to over,” informed Phillip. The Kochi International Cherian Philip Philip, chairman, KTDC, Anand Kumar Marina, he added, would establish appointed JS, promoters of the project, Kochi as a sea port as well as a Kochi’s marina project MOT t his capacity will b e major tourist attraction. was developed at a cost Anand Kumar has been enha nced by b ert hs for It is als o expected to of Rs 8.21 crore appointed joint secretary another 16 yacht s in the significantly enhance cr uis e in the ministry of second phase of the project tourism to Kerala. According to Dr To be managed by Ocean Venu VV, secretary, Kerala Tourism, tourism. Prior to his which is expected to kickBlue Marinas in a 50:50 current appointment, off next year, during which “Kochi will now be a stopover for partnership with KTDC Kumar, a 1984-batch water front facilities w ill ships coming from Sidney, IAS officer of Kerala also b e introduced. “We Singap ore, Dubai and also The marina has berthing cadre, was resident commissioner in Kerala House, would like to int roduce European nations, especially from facilities for 34 yachts; New Delhi. He has held numerous prestigious water front facilities like the next tourism season.” 16 more planned positions in Kerala, as well as in the Centre. Dr Venu V – RAADIA MUKADAM souvenir shops, pubs and
The recently launched Kochi International Marina has been built at a cost of Rs 8.21 crore.
India gets its first international Marina in Kochi
HIGHLIGHTS
appointment
5
6 States
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TRAVEL TRENDS TODAY ◆ JULY 2010
GIM beckons global investors to prosper with Karnataka Karnataka’s commerce and industries ministries are celebrating as the state reportedly bagged investments to the tune of Rs 4 lakh crore during the two-day Global Investors Meet (GIM) held last month in Bengaluru.
HIGHLIGHTS
More than 3,000 investors from tourism projects across Karnataka India and overseas gathered at the REPORT were offered for development under two-day Global Investors Meet. While public-private partnership (PPP). information technology, power generation and The government sought investment for 12 other industries in the state drew substantial mega projects including Rs 750 crore for a investment at the Meet, tourism did not garner heritage centre in Hampi; Rs 1,000 crore for as much as it had expected to. a health and wellness city; Rs 1,000 crore for Sources from FICCI reveal that while over eco parks; Rs 500 crore for a film city and 80 projects worth Rs 4 lakh crore have already Rs 1,050 for a MICE centre. “An international been approved by the state’s High Level convention cent re at t he Banga lore Clearance Committee, one is yet to learn of the International Airport and a world-class 18exact amount that is for the tourism sector. hole golf course in Mangalore are also to be Regardless, the government did make the right set up in the state,” stated the secretary. noises about promoting tourism in Karnataka. The Karnataka government also expressed If this really translates into action in the interest in caravan and wildlife tourism. It has coming months, Karnataka will certainly be reportedly received a few proposals from among the top three tourism destinations in interested parties in this regard. In addition, India by 2015. a n aqua marine park, cr uis e tourism, heli Over 3,000 investors from Tourism to open up tourism and many more India and overseas gathered to global investors opport unit ies were at the two-day GIM Other than a few spots presented for investment like Mysore Palace, Hampi by K Jyothiramalingam. Rs 1,600 crore worth and Kodagu, Karnataka’s O ver t he nex t f ive tourism projects offered for tourism potential is yet years, t he state will b e development to be met. The governlooking to draw Rs. 10,000 ment of Kar nata ka laid crore in investment in the Over the next five years, special emphasis on the tourism se ctor a lone, Rs. 10,000 crore tourism se ctor at t he which should also increase investment targetted Investors Meet. employment opportunities Principal Se cretar y, in the state. “The Tourism Tourism, K. Jyothiramalingam, informed that Policy 2009-2014 aims to make the tourism 300 acres of land had been earmarked in se ctor t he largest revenue ear ner a nd Devanahalli for tourism-related activities for employer in Karnataka,” he added. G. Janardhana Reddy which tenders inviting companies would soon Reddy, minister of tourism, b e issued. Ab out Rs. 1,60 0 crore-worth Karnataka, informed that the government’s
Tourism minister G. janardhana Reddy; principal secretary tourism department Jyothiramalingam and Tushar Pandey, executive vice president and country head, strategic initiatives and advisory – government, Yes Bank, releasing a report on the Emergence of Tourism in Karnataka at the Global Investors Meet. heli tourism project was in the process of taking off with the first contract having been offered to Delhi-based OSS Air Management. “This marks the first heli tourism project in India. We are also planning other initiatives like increasing the number of helipads in the state and setting up a tourism training centre in Hassan,” said the minister.
Yes Bank unveils report At t he meet, Yes Ba nk unveiled it s research report titled ‘Karnataka Tourism – Opportunities and Challenges’. The report says that the state received approximately
Karnataka to introduce heli tourism by September 2010 Delhi-based aviation company, OSS Air Management, has signed a MoU with the government of Karnataka to offer helicopter tours in the Hampi-Bijapur circuit.
HIGHLIGHTS
Italy’s Agusta Helicopter’s authorised service provider and maintenance facility for India, OSS Air Management signed an MoU with Karnataka for a heli-tourism project at the recent Global Investors Meet in the presence of chief minister BS Yeddyurappa and tourism minister, G Janardhan Reddy. Chopper services for the well-heeled tourist visiting some of t h e f ines t leisu re d es t inat ion s in Kar nat a ka could com mence as early a s Septemb er 2010. As p er det ails disclosed, the services will initially be limited to the heritage tourist circuit connecting the world heritage sites of Hampi and Pattadakal, besides offering heli-connectivity to Badami, Aihole and Bijapur. It has been proposed for the Malnad coastal and pilgrimage circuits as well. The company will be Vishwanath Reddy, director tourism and Sunil Narayanan, dy allowed to make use of government-owned helipads for its general manager, OSS Air Management, signing the MoU on Heli Tourism in the presence of chief minister B.S. Yeddyurappa services. Modalities wit h regard to the numb er of days and tourism minister, G. Janardhan Reddy, on the second day of each tour, the number of departures ever y week, cost of the Global Investors Meet in Bengaluru. and dist ribution channels are yet to be worked out. modalities are yet to be worked out,” said Heli-tourism will cover According to deputy general manager, Narayanan. The heritage circuit will probably op erations, OSS, Sunil Narayanan, t he be a three-night and four- day package. Hampi, Badami, Pattadakal op erations will com mence wit h one Financial stakes in the project however, still and Bijapur helicopter. Dispelling notions that heliremain undisclosed. OSS Air Management will tourism was like an air taxi operation, he G. Janardhan Reddy said that he had kick-off operations by said that the company was clear that it was dreamed of launching heli-tourism two years September 2010 not an air taxi operator. “We want to add ago when he visited the Grand Canyon. “I value to tourists’ experience. Tourists will visited the Grand Canyon in Las Vegas soon Government to permit OSS receive information about the significance of after becoming minister and experienced the to make use of governmentheritage spots, including the must-see sites excitement of heli-tourism. I thought owned helipads and the various activities they could engage immediately that we should have a similar in. We want to help them soak in Karnataka’s project in Karnataka. Today, I am happy that rich heritage,” he said. Apart from foreign tourists, they will Karnataka is becoming the first state to offer heli-tourism in the target domestic tourists as well. “The cost of travel and other – RAADIA MUKADAM country,” he said.
32.95 million domestic tourists in 2009. It is estimated t hat Kar nataka can exp ect 62 million domestic and 0.70 million foreign tourists in 2015. “It is estimated that in 2015, tourists will spend approximately Rs 15,000 crore in Karnataka. This increased inflow needs to b e matche d by supporting infrastructure, both from the public and private sector. We could exp ect a daily demand of 30,137 starred rooms in the year,” said Tushar Pandey Pandey, executive vice president and country head, strategic initiatives and advisory – government, Yes Bank. – RAADIA MUKADAM
in brief… Goa to have a second airport The government of Goa has approved the construction of a new airport at Goa in Mopa, at the Maharashtra-Goa border on the northern tip. At present, the Goa airport handles 2.7 million passengers annually. The existing airport, owned by the Navy and operated by the Airport Authority of India (AAI) situated at Dabolim in south Goa Goa,, has been rendered incapable of handling the increasing traffic of 2.7 million annually.
Haryana Tourism concludes 19th edition of Annual Mango Mela The two-day annual Mango Mela was held at Yadavindra Gardens, Pinjore in the Panchkula District of Haryana from 2nd to 4th July 2010. 2,355 varieties of mangoes and 326 mango products were displayed by the farming community from various states like Haryana, Punjab, Himachal Pradesh and Uttar Pradesh. A traditional crafts bazaar was set-up and folk dances from Haryana, Punjab’s bhangra, and a puppet show from Rajasthan, were a part of the progamme.
Timely monsoon revives tourism in Maharashtra Monsoons in Maharashtra are driving arrivals to the state, according to Maharashtra Tourism Development Corporation (MTDC). A statement from MTDC said that bookings were in full swing till September to getaways such as Malshej Ghat, Bhandardara, Amboli and Karla which represent monsoon hotspots. 25–40 percent of the rooms at these destinations are booked during weekdays; they are reportedly packed to capacity on weekends. MTDC reports that figures are 15–20 percent higher this year compared to last year when the rains came in late and most tourists postponed their trips.
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TRAVEL TRENDS TODAY ◆ JULY 2010
G Janardhana Reddy
The GIM left no stone unturned to invite investment in the hospitality sector. Karnataka Tourism is offering investors five acres of land each at 100 tourist destinations, to promote the hospitality industry.
“The gover nment will offer various sops including tax exemptions for three years to attract investments. It has even relaxed the Revenue Act to allow investors to buy agricultural land for tourism project s,” said G Janardhana Reddy Reddy, Tourism minister, Kar nat a ka. He added that around 3,000 acres had been identified for the purpose. The minister informed that an investor- and indus t r y-f riendly tourism p olicy had b e en announced in 2009 providing a comprehensive package of subsidies and incentives, including
Chender Baljee
making loans available at 10 percent interest, VAT exemption for three years and availability of up to f ive acres for est a blishing hot els and resorts. T h e GI M inaug u rat io n wa s marke d by effusive words from veterans of the hospitality industry who lauded Karnataka’s potential as an investment haven. Chender Baljee, chairman and MD, Royal Orchid Hotels, said: “My dream of setting up a chain of luxury hotels would not have b een t he successful reality it is today w it h ou t t h e cont inuou s s upp or t of t h e government of Karnataka.” He said that his association with Karnataka b ega n in 20 01 w h en t h e St at e Tourism Development Corp oration a l lott e d la nd in t h e h eart of Benga lur u a nd fa cilit at e d t h e construction of his group’s first fivestar property, Hotel Royal Orchid. “Cont i nuing o n t h is not e of coo p erat ion, t h e Kar nat a ka Golf Association entered into a privatepubl ic par t ner sh ip w it h u s by a llow ing ou r g ues t s to us e t h eir Ajay Bakaya
HIGHLIGHTS
Karnataka lures hospitality investors with compelling incentives
Karnataka offers investors 5 acres land each at 100 tourism destinations 3,000 acres have been identified for investors in tourism projects Investors can avail of loans at 10% interest and VAT exemption for 3 years
facilities. Since then, we have acquired two heritage prop erties in Mysore, again with t he help and support of the gover nment,” said Baljee. Ajay Bakaya, executive director, Sarovar Hotels & Resorts said, “This meet will give an impetus to Karnataka if public and private sectors work together. It is a great way to put Karnataka Inc. on the global map. Karnataka is an investment destination with cordial industrial relations and conducive work culture which adds to productivity.” He stressed that the Sarovar Group’s growth in Karnataka had been possible because of the positive attitude of the state government. – RAADIA MUKADAM
Puducherry announces incentives for hotels projects While a considerable number of hotels have come up in Puducherry in the last few years, it still lacks a five-star hotel and definitely needs many more star category hotels.
Mathew Samuel
In a bid to address this issue the government is now offering a slew of incentives to the private sector to launch hospitality projects. Puducherry Tourist and Transport Development Corporation (PTTDC) has announced incentives for star-category hotels, heritage categor y hotels, resorts and other tourism projects. “While PTTDC will remain the nodal state agency involved, the growth of tourism depends as much on the growth of hotels, leisure centres, travel agents and allied services. It is here that the private sector will have to play the main role. To ensure that, we are offering incentives and are happy with the response,” said Mathew Samuel Samuel, director tourism, Pondicherry. Potential areas where hotels, recreation parks etc., can be developed and where land is available, have been identified for investors. “Besides hotels, we are also keen on tourist attractions like amusement parks, theme parks, craft
villages etc. We have invited initiatives in this segment,” informed Samuel. As per the state government’s gazette notification, the incentive in the form of capital grants for a one-star category hotel will be Rs 2 lakh per room, subject to a maximum of Rs 30 lakh. An incentive of Rs 3 lakh per room, subject to a maximum of Rs 75 lakh, will be given for a two-star category hotel, and Rs 3 lakh will be available per room, subject to a maximum of Rs 1 crore, for a three-star category hotel project. The state government will also sanction incentives of Rs 3 lakh per room, subject to a maximum sum of Rs 75 lakh, for heritage hotels, if the building is listed in the current list of heritage buildings in Puducherry. “Five hoteliers have responded and we have paid Rs 3.26 crores as incentives in the last four months,” revealed Samuel. He also added that amongst tourism projects, Rs 68 lakh had been given toward developing an – RAADIA MUKADAM amusement park.
IN CONVERSATION
Andhra Pradesh Tourism to have new branding The image of Andhra Pradesh took a beating due to the continuous unrest because of the Telangana issue which peaked last year. That was followed by floods in the latter half of October-November 2009, further disturbing the state. A new image, therefore, was the need of the hour. T3 speaks to Andhra Pradesh’s tourism secretary, Jayesh Ranjan Ranjan. tagline for the state, like major changes in the new AP witnessed 8% decline Kera la’s ‘God’s O wn business environment. The Country’ and Karnataka’s in arrivals in the first six p olicy will encourage ‘One State. Many Worlds’. projects through publicmonths T he way we have b e en private participation. It will New tourism policy to be also focus on adventure, projecting tourism in the finalised in next three st ate until now ha s not pilgrimage and beach months brought a ny dist inctive tourism to attract more benefits. Currently, we are international tourists to the The state is venturing in talks with a number of state. The draft is now into heli-tourism for agencies with regard to under consideration and the first time our brand building. Once likely to be finalised in the we finalise the branding next three months, before and tagline, we will market Andhra Pradesh the Global Investors Meet in mid-November in in a more effe ct ive manner. The brand Hyderabad, where tourism will be one of the building exercise will also highlight t he major components that will be discussed. You were planning to conduct roadshows state’s tourism potential. across the country and abroad. What is the Our most immediate priority, however, is to progress on that? introduce a new tourism policy. The current policy was implemented in 1998 and needs We are waiting for our new tourism policy.
HIGHLIGHTS
Have arrival figures in the first six months been satisfactory and, what is the expectation from the next six months? The current tourism scenario in the state is not ver y encouraging. There has b een a decline of 8 percent in overall arrivals in the first six months. We have been receiving cancellations for international and domestic events and conventions since December. Hotel occupancies have also dropped significantly. The decline is due to political reasons, as well as natural calamities. At the moment, we are uncertain about tourist arrival figures for the next six months. What initiatives are you taking to promote tourism in the state? We are in the process of creating a unique identity for Andhra Pradesh. We don’t have a promotional strategy yet and stakeholders have b een asking for a brand as well as
Once the new policy is in place, our plan is to conduct roadshows across the country and abroad to project A ndh ra Pradesh a s a popular tourist destination. Hyderabad is gradually positioning itself as the MICE capital of India. Have you taken any initiatives to accelerate the MICE segment? We are in the process of registering a society named ‘Visit Hyderabad Society’ which w ill have memb ers f rom t he government and the private industry. It will provide a platform for Hyderabad’s’ service providers to position the city as a preferred MICE destination. Being under one umbrella organisation will help stakeholders promote the city more effectively. We already have the requisite infrastructure like the new airport, accommodation and convention centres. What new tourism products is Andhra Tourism developing? We are venturing into heli-tourism for the first time and will b e offering serv ices between Hyderabad and Nagarjuna Sagar and between Bengaluru and Puttaparthy. This endeavour will be promoted with assistance from the Union gover nment. We are developing a Buddhist t heme park at Nagarjunasagar, a budget hotel at Nizamabad and a star-category hotel at Shilparamam. Several other projects are underway. – MURARI MOHAN JHA
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Encouraged by the increase in the number of tourist arrivals, Sikkim Tourism has initiated a slew of projects to strengthen tourismrelated infrastructure in the state.
Sikkim Tourism diversifies product portfolio; working on 100 tourism projects “We are working on constructing roads, hotels, and also developing a large pool of manpower to promote village tourism, waterbased tourism, adventure sports and eco-tourism. These projects will be completed in the next two years,” SBS Bhaduria Bhaduria, tourism secretary of Sikkim, told T3 T3. 60 wayside facilities will also be developed at major tourist destinations in the state. To achieve timely completion, Sikkim Tourism has been working in close coordination with other government agencies. The state government has adequate funds at its disposal to develop this infrastructure, informed Bhaduria, adding that the Centre had also chipped in with generous financial allocation.
Chardham, Buddha Park to establish Sikkim as a religious destination
temples, known as the twelve lingas, dedicated to him. Ancillar y infrastr ucture like While the primary focus residences for devotees, Paykong Airport will be is on infrastructure, Sikkim and meditation centres in ready in 2011 Tourism is also diversifying the complex for the its product port folio by comfort and convenience of Finance Commission has developing a large number visitors will also be created. sanctioned Rs. 200 crores of tourism products. “To Apart from t he for a skywalk project promote Sikkim as a Chardham project, Sikkim pilgrims destination, we are Tourism is also developing developing a ‘Chardham’ project at Solophok, another pilgrimage centre, Buddha Park at near Namchi, which will have replicas of the Ravangla; a Culture Centre at Yangang; the temples at the four dhams,” informed Bhaduria. Bhanubhakta Study Centre at Geyzing and the This project envisages a 108-feet-high statue of Tenzing Hillary Park which is being developed a seated Lord Shiva surrounded by the twelve as a tourist spot.
HIGHLIGHTS
100 infrastructure projects to be completed by 2012
Chardham project set to boost religious tourism to Sikkim
Kerala Tourism to woo tourists with serviced villas ‘Kerala Serviced Villas’ is a new initiative to cater to the growing demand for room space in the state.
HIGHLIGHTS
M Sivasankar
Kerala Tourism introduced a new scheme in May that aims to provide travellers the essence and flavour of its homes. Christened ‘Kerala Serviced Villa s,’ t he concept will provide comfortable accommodation of high quality to tourists, and will also supplement
Anita Jose
E M Najeeb
the availability of accommodation in various tourist destinations in the state. As per provisional figures of 2009, about 5.48 lakh foreign tourists visited the state last year, while the domestic visitors figure touched 77.89 lakh. Kerala Tourism is expecting an increase of 10 percent in tourist arrivals in 2010. The number of hotel rooms and supplementary accommodation available in the hotel sector in the state will not be able to cater to the rising demand. “Presently, there is need for another 10,000 quality rooms in the state; the villas will ease the requirement,” said a source from the department. These independent, furnished homes will feature a minimum of one room and a maximum of six rooms or 12 beds, a wellequipped kitchen as well as a cook well versed in Kerala cuisine and a qualified person who can speak English. According to M Sivasankar, director, Kerala Tourism, “The aim is to provide affordable accommodation at various destinations. Apart from providing a clean and affordable place of stay, the villas will offer a never before opportunity to experience authentic Kerala cuisine at its best,” stated the director. He added that several enquiries had come in from Kochi, Thiruvananthapuram,
Pathnamthitta, Wayanad and Idukki. “We are now scrutinising the applications and will grant our sanction only to those who meet the prescribed standards. The process will therefore take a few months,” confirmed the director. Those having independent, furnished and well-maintained homes can avail of this opportunity to be part of this one-of-a-kind ownerfriendly scheme. “The sanction for running ‘Serviced Villas’ will come from an approval committee and the department of tourism will approve the establishment based on the facilities provided. Besides, 10,000 quality rooms there will be an apex committee to are required in the oversee the implementation of the state scheme and to monitor the progress as well as intervene if necessary,” Villas to accommodate informed Sivasankar.
anticipated increase of 10% in tourist arrivals this year. ‘Serviced Villas’ will be given by a committee
Skywalk to give a new dimension to tourism The state government will also develop a skywalk at Bhaleydunga which will be a unique project not only in Sikkim but in the countr y. The project will feature t h ree f inger sha p e d gla ss sk ywa lk s a nd supporting infrastructure like a cable car, tourist complex, accommodation centre, nat ure and spirit ual complex and ot her tou rism a men it ies. T he 13t h Fina nce Commission has already sanctioned Rs 200 crore for this project.
Paykong Airport to become operational next year However, the most signif icant development on the infrastructure front is the construction of Sikkim’s first airport. Paykong Air p ort near Gangtok will b e op erational in 2011, enabling direct air connectivity to the state which should boost tourist numbers to the state,” he added.
ADB gives US$ 20 mn for tourism infrastructure The efforts of Sikkim Tourism were further boosted with the Asian Development Bank granting a sum of US$ 20 million for tourism infrastructure development in the state. With the ADB funding, Sikkim Tourism is planning to construct a training institute at Chemchey and to develop tourism facilities on the Rumtek circuit.
January-May saw over 20% growth in arrivals In terms of tourist arrivals, Sikkim has continuously been witnessing double-digit grow t h. “We received almost six lak h tourists, including 18,000 foreigners, in 2009. Our arrival numbers for the first five months during the current year is up by over 20 percent,” Bhaduria informed. “We expect more than six lakh tourists in 2010, which will be more than Sikkim’s population of 6 – MURARI MOHAN JHA lakhs,” he added.
Homestays remain unthreatened
Though serviced villas increase accommodation options for tourists, they present no threat to t he flourishing segment of homestays. According to Anita Jose Jose, director, Estate Bungalow at Kottayam, homestays are essentially small and very boutique in character necessitating that the owners or their relatives stay on the property. “We are the front runners in experiential tourism as we offer a personalised Kerala experience to our guests. The serviced villas, on the other hand, will be larger and will not require the owner to stay in the house. Thus, there is no comparison of the two products or the experience they offer,” she stated.
Travel agents welcome serviced villas The more the merrier is the general consensus of travel agents and tour operators in Kerala who have welcomed this new move with open arms. Most agents are of the opinion that there will be several takers for this unique offering. “Several tourists from the domestic and international arena enjoy the experience of a homestay vis-a-vis a hotel. However, there are several who find their privacy invaded or would like the option of cooking their own meal. The serviced villas are a perfect answer. I am looking forward to promoting these to my clients,” said E M Najeeb Najeeb, – RAADIA MUKADAM chairman, ATE Group, Kerala.
in brief… Wayanad Monsoon Fest being hosted in Kerela Splash 2010, a cultural event for travel writers, travel operators and leading names in India's travel fraternity is taking place in the hill district of Kerala’s northern district Wayanad, from July 9th to 11th. The event is being organised by the Wayanad Tourism Organization (WTO), during the monsoon period in Kerala. During the three-day event, the regional tourism office has planned for both indoor and outdoor programmes. Keraleeyam, showcasing Kerala art forms by noted artistes artistes,, will be among the indoor activities activities,, while river rafting, crab catching, uriyadi (hitting the mud pot) paddy transplantation and climbing the slippery pole will be among the outdoor activities.
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Tamil Nadu’s new eco tourism policy is expected to facilitate conservation and preservation of the state’s natural resources. It also envisages the involvement of local communities.
Deputy chief minister of Tamil Nadu, M.K. Stalin, releasing the Eco-Tourism Policy in the presence of tourism minister Suresh Rajan in Chennai, as Dr. Irai Anbu, secretary tourism (extreme left) and Dr. Mohandoss, director, tourism Tamil Nadu, look on.
HIGHLIGHTS
Tamil Nadu’s eco tourism policy envisages major role for local communities Released by MK Stalin, the deputy chief minister of the state, the policy provides st rategic direction to engage local communities, tourists, forest officials, the gover nment a nd ot her st a keholders in promoting effective eco-tourism activities. According to Dr V Irai Anbu, Tamil Nadu’s secretary tourism, resources traditionally used by local communities are to be harnessed for eco tourism, wherever required.
Stakeholders required to follow guidelines Tamil Nadu Tourism is leaving no stone unt ur ned to ensure t he success of t his venture. Stakeholders promoting eco tourism will b e required to adhere to r ules and guidelines. Compliance with standards in terms of quality and safety in developing and operating eco-tourism facilities and activities will be given the highest priority. The secretary also informed that the PublicPrivate Partnership model would be encouraged to mobilise investment in infrastructure development. Suitable eco-tourism destinations will be identified and tied up with the existing circuits. A nine-member official committee headed by the chief secretary, will be formed to monitor the implementation and coordinate various stakeholder agencies.
C Nagendra Prasad
Gopinath Parayil
Gopinath Parayil Parayil, founder & chief exe cut ive, Blue Yonder Holid ays, w ho specialises and markets niche packages that promote eco and r ural tourism, is of the opinion that the problem in India has never been about lack of policy. “If planned and implemented thoroughly, after consultation w it h a ll st a keholder s including t he politicians, local governments, the travel industry, communities in destinations and NGOs, t he p olicy w ill h elp augment sustainable tourism in Tamil Nadu,” he says, adding that tourism policies should be more encompassing to adopt a triple bottom line where economic, environmental and sociocultural sustainability is addressed.”
J Sethuraman
Tour operators are optimistic The question is, will the launch of the eco tourism policy ascertain a rise in the number of inb ound tourist s to Tam il Nadu? C. Nagendra Prasad, chairman, Travel express, Chennai, believes that while it may augment domestic tourism it may not immediately boost inbound tourism. “The facilities and infrastructure prevalent in the earmarked destinations to promote eco-tourism at present are not conducive to welcoming an international clientele, thus this move will entice domestic tourists primarily. This may be good news because Indians are warming to the concept of eco-tourism and need to understand its code of ethics,” he states.
Gujarat is hosting the Global Bird Watcher’s Conference in November. 350 species of birds flock to Gujarat from various parts of the world in the winter. In an effort to promote Gujarat as an eco-tourism destination, the conference will be held on 25th, 26th and 27th November 2010. The conference will focus on the preservation of these rare species and their protection from the potential threats they face from the world today.
Kerala Travel Mart 2010 to be held in September
Kerala’s annual international buyer seller meet 2010 will be held from September 23rd to 26th, at the Bolgatty Palace Convention Centre in Kochi. Into its sixth edition, Kerala Travel Mart (KTM) will have 240 stalls, 110 tables and a mooring facility for 16 houseboats. The 2010 edition expects its local sellers to be able to engage about 400 international buyers from countries like Poland, Mexico, South Africa, Malaysia, Singapore, UK, Germany and France, who will be present at the mart.
The announcement of the eco-policy has certainly brightened the spirits of several tour operators in Tamil Nadu. However, Parayil cautions, “Any new policy should understand the need of destinations, its people and the environment. This is what will make the difference. Certainly, such an initiative will encourage more tour operators to develop packages promoting eco-tourism.” Some tour operators are of the opinion that since eco-tourism is closely connected to rural tourism, the policy will also give a fillip to this growing segment in tourism. “The policy promises the involvement of the local community which is great news. This, coupled with some infrastructural development in the near future will help agents develop packages for rural tourism, which is extremely popular with inbound tourists,” says J. Sethuraman, managing director, HiTours Mamalapuram, – RAADIA MUKADAM Chennai.
PERSPECTIVE
in brief… Gujarat to play host to Bird Watchers Conference
Priority will be given to lesser known areas having eco-tourism potential Creating environmental awareness will be undertaken at eco-tourism destinations Educating tourists and locals about conservation techniques is high on the agenda
Dr Donald E Hawkins, Eisenhower Professor of Tourism Policy, School of Business, George Washington University, USA
“Adopt glocalisation and geotourism for sustainable tourism’’ Excerpts from a presentation at the 25th Som Nath Chib Memorial Lecture in New Delhi. By practicing the principles of glocalisation and geotourism, the tourism industry can foster sustainable and responsible tourism. While glocalisation encourages the adoption of global best practices in maintaining as well as marketing destinations at local levels, geotourism adds to sustainability principles and advocates that destinations should remain unspoiled for future generations and revenue earned from tourism should be ploughed back into the conservation of the destination. We need to adopt responsible approaches based on a destinationspecific strategy that enhances the visitor experience, ensures cleanliness of a destination, and promotes the involvement of local communities. This is because the business of tourism is complex and fragmented. During their stay at any destination, a visitor’s quality of experience is affected by many aspects and experiences, including a range of public and private services, community interactions, the environment and hospitality. Therefore, destinations need to deliver wonderful experiences and excellent value to visitors if a destination has to become sustainable. This can be achieved through destination management which calls for a coalition among various stakeholders to work towards a common goal ensuring the viability and integrity of their destination, both for the present and the future. Our strategy should be focussed on wooing people to visit the place and then creating a suitable environment and quality delivery on the ground to ensure that visitors’ exp ect ations are met at the destination. T hese v isitors t hen recommend the destination to others and also become repeat visitors in the future. To maintain the sustainability of the destination, there is a need
to adopt t he principles of glocalisation (t he convergence of globalisation and localisation) which ensures sustained market demand (globally) by protecting the product (locally). While globalisation gives the destination a broader platform, localisation makes a product linguistically and culturally appropriate to the destination. Moreover, the glocalisation paradox can encourage learning from ot hers th rough act ive b enchmarking, and using k nowledge management to improve performance. We can learn the tenets of sustainable tourism from global leaders and competitors and engage local stakeholders in the planning and implementation of tourism policies to create tourism value chains, development policies and competitive strategies to enhance the sustainability of a destination. At the global level, we have UNWTO/ UNEP initiatives to make tourism more sustainable and responsible; the goal at the local level should be for tourism to reduce poverty and contribute positively to economic grow th. This can reduce the ill effects of tourism at destinations. Overall, glocalisation requires holistic management of all aspects of a destination as well as a marketing effort. Also, to make the destination sustainable, the central government should t ra nsfer aut hority and resp onsibility of destination management to subordinate or quasi-indep endent government organisations, or even the private sector at the local levels. Geotourism sustains or enhances the geographical character of a place, its environment, culture, aesthetics, heritage, and the well-being of it s residents. It also helps local communities discover their distinctive tourism assets while providing them with economic incentives for protecting those assets. – MM JHA
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Hotels & Resorts 13
Three-year lock-in period on FDI in hospitality to go The government's newest proposal to release hotel and tourism projects from the three-year lock-in clause on foreign direct investment (FDI) in the hospitality sector has invited a mixed reaction from the industry. While the move has been welcomed, there is a feeling that it will not draw any significant investment into the hospitality sector. “It will not have any real impact because FDI comes in for 5–7 years at least as hotel projects normally take that much time to complete and investors would not have thus withdrawn their investment in that period. What it will do is offer some flexibility to investors,” Manav Thadani Thadani, MD, HVS India, told T3 T3. His argument is fully supported by Ajay Bakaya Bakaya, executive director, Sarovar Hotels and Resort. “The scrapping of the three-year lock-in period will not make much difference. I don’t think it will bring any additional investment into the Indian hotel industry,” he opined. Manav Thadani Vilas Pawar Ajay Bakaya His argument is based on the fact that hospitality projects normally take more than three years for completion, and an come in due to the easing of these norms,” Pawar opined. investor will not wit hdraw invest ment when the project is in However, the general opinion is that the move will give a fillip to the construction stage; before three years it normally is, therefore, the hospitality sector as a lot of realtors will now induct foreign partners into removal of three years cap on FDI does not make much difference for their projects. Players like DLF and Unitech who announced a number foreign investors, he added. of hotel projects which could not take-off due to the slowdown, may now Vilas Pawar, VP, Choice Hotels, however, feels otherwise. “A lot of invite foreign investment to initiate their projects. Thadani, does not investors who have been willing to invest in the Indian hotel sector will think so. “Major realty players who announced a number of hotels are be very keen on investing in India now. We hope that more FDI will now not interested in developing hotel projects. Even international hotel
Domestic and international commitments in India ● The deal between Accor and Interglobe Enterprises to develop 25 ibis hotels is estimated at $200 million and the stake is split 60:40, Interglobe: Accor. ● US-based Bessemer Venture Partners and New Vernon, a private India specific fund from the US, invested approximately $8.5 million in Sarovar Hotels for the development of the Hometel brand in India. ● Warburg Pincus invested approximately $5560 million to acquire a 27% stake in Lemon Tree Hotels. ● Emaar MGF and Whitbread announced a 50:50 joint venture to develop 80 hotels in India and the deal is estimated at $600 million. ● Temasek Holdings acquired a 21.74% stake in GL Hotels, the promoter of InterContinental Marine Drive in Mumbai, for approximately $30 million. ● Credit Suisse invested $50 million in Park Hotels and acquired approximately 15% stake. ● A joint investment in Lemon Tree Hotels by Kotak Realty Fund and Shinsei Bank was pegged at $30 million. ● Goldman Sachs announced in 2008 that it would invest approximately $80 million in a luxury deluxe hotel in Bangalore. Source HVS
cha ins work ing in India th rough management contracts and the franchisee route will not bring in any investment,” he opined. Hotels which are working through management contracts are normally not interested in investing in hotel projects, he explained. According to Pawar, Choice Hotels has been working on a franchisee model and will not bring in any investment as they normally do not invest in hotel development. The move to remove the three-year lock-in period, however, has come with a rider. A project must earmark a minimum 50 percent of built-up space for hotel and tourism activities, including beach resorts, restaurants and tourist complexes, and at least 20 percent for developing hotel rooms to avail the proposed relaxation. It is not that foreign investors have not exhibited confidence in the Indian hotel sector, however, the pace of investment has been very slow. This can be gauged from the fact that the hotel and tourism industry recorded FDI inflows of only $950 million from January 2000 to March 2009, which is miniscule in the light of the huge requirement of rooms in India. As per the m inist r y of Tourism’s estimate, India requires around 150,000 rooms to support its tourism growth. – MURARI MOHAN JHA
appointments ITC Mumbai Dhunji Kavarana has been appointed general manager and area manager, ITC Maratha, Mumbai, after a successful tenure with ITC Maurya, Delhi. A product of IHM Kolkata, Dhunji Kavarana began his career as a hotelier in 1977. He has served in several iconic ITC properties such as ITC Kakatiya, ITC Windsor and ITC Maratha. Kuldeep Bhartee has been appointed general manager, ITC Grand Central. He was earlier general manager ITC Mughal, Agra. He joined ITC Welcomgroup in 2000 after which he moved to Chola Sheraton, Chennai and to Kakatiya, Hyderabad in May 2005 and then on to ITC Sonar, Kolkata in September 2008
Leading Hotels of The World The Leading Hotels Of The World has announced the appointment of R. Narayan as director of sales and marketing in India. He will be in charge to expand Leading Hotels’ sales force in Mumbai and to open a sales office in New Delhi to oversee all market segments.
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Along with 43 other historical monuments, Humayun’s Tomb is getting a facelfit at a cost of Rs 25 crore. It is one of the three World Heritage Sites in Delhi.
Are the recession and unfinished Games projects responsible for low visitor response to Commonwealth Games? The popular perception that Delhi will see a huge influx of tourists during the Commonwealth Games, 2010 is not entirely true going by responses from hotels T3 interviewed recently. While there are enquiries for accommodation during the Games, no advances have come in.
Peter J. Leitgeb
Vilas Pawar
appointments Ramada Hotels Rahul Pahwa has joined as general manager, sales & marketing of Ramada Hotels. Based at Ramada Plaza, New Delhi, Pahwa will be involved in business development, sales, branding and marketing for Ramada Hotels. Prior to his new assignment, he was working as VPhotel sales & allied services for the Kuoni Group.
Best Western India Best Western India has appointed GS Chenny as vice president operations operations. Chenny brings with him 25 years of experience in hotel operations. He has been responsible for re-launching over 12 hotels of the chain.
in brief… Sarovar brings five-star banquet facility to Chandigarh Sarovar Hotels’ newly launched Imperial Rooms are spread over 8,200 sq ft in the heart of Chandigarh’s Industrial Area. The Imperial Ballroom’s pre-function area can accommodate up to 600 guests. Also available are conference and meeting rooms, as well as a modern boardroom with the latest audiovisual equipment to cater to a business traveller. The wide pre-function area is ideal for product previews and launches.
Javed Ali
David Hopcroft
Pradeep Kalra
Sanzeev Bhatia
Experts believe that hotels in host com ing th rough,” Pradeep Kalra Kalra, cities receive about 50 percent of their senior VP-sales & marketing, Sarovar Only 3-4,000 tourists have bookings for an event 5-6 months Hotels and Resorts, told T3 T3. made bookings so far prior. Beijing’s hotels received 60 Choice Hotels has been more Delhi expects 52,951 foreign percent of their bookings three months fortunate, having been booked by the and 139,754 domestic before the 2008 Olympics. Six months Commonwealth Games Committee for b efore, the pace of bookings was the Games. “All our four properties in visitors for the Games so fast t hat Beijing’s tourism Delhi-NCR are sold out during the The Games Travel Committee administ ration opened an online Commonwealth Games 2010. However, has released additional accommodation booking center to help we are still expecting bookings for rooms rooms booked at hotels visitors. Melbourne’s hotels also for the pre-and post-Games period,” said Vilas Pawar notched over 50 p ercent of their Pawar, VP, Choice Hotels. Rajindera Kumar bookings three months prior to the 2006 Commonwealth Kumar, president, FHRAI attributes the delay Games. So far, the response for the Commonwealth in bookings to the lackluster attitude of the Games Travel Games in Delhi has been dismal with only 3,000 rooms Committee. “The Games Travel Committee is yet to adopt booked tentatively, if sources are to be believed. an aggressive approach to reach out to visitors,” he said. “We have been receiving queries for rooms from the One of the reasons he cited is the delay in preparation of domestic and the international markets for the Games. the Games venues. “Delhi should have been ready for the However, bookings are yet to take off,” says Peter J. Leitgeb Leitgeb, Games at least a-year-and-a-half b efore. However, president & CEO, The Claridges Hotels & Resort s. construction at various venues is still going on. Hence, Seconding his statement, David Hopcroft Hopcroft, general manager, foreign tourists are not very enthusiastic about making a Shangri-La’s Eros Hotel informs, “We have some requests booking,” Kumar said. Also, with the Commonwealth but, as of now, nothing tangible is assured,” Hopcraft Games Organising Committee still busy getting the added. The Metropolitan Hotel also does not have any venues ready, they have not been able to focus on wooing firm bookings. ““There are some queries for the Games but visitors for the Games. Even, domestic travellers are not we are yet to freeze them,” Sanzeev Bhatia Bhatia, executive showing much interest, Kumar rued. This is perhaps assistant manager, The Metropolitan Hotel, said. because the Games Travel Committee is yet to introduce The Games Travel Office confirms that only about 3packages for domestic travellers for the Games. 4,000 tourists have made bookings to visit India during Feeling that ITDC’s hotels, Ashok, Janpath and Samrat, the period of the Games. The response is far below the designated ‘family hotels’ for the Games, would not be able expectations of the Commonwealth Games Organising to cater to the requirement, the Commonwealth Games Committee which had expected a requirement of 40,190 Committee had booked additional hotels in Delhi too for hotel rooms in different categories, to host an estimated the period. However, these hotels are yet to receive concrete bookings yet. “We offered our rooms at very reasonable 1.93 lakh tourists (52,951 foreign and 139,754 domestic), rates to the Games Committee in support of the Games. in addition to participating athletes and their families. However, we are yet to see bookings,” Javed Ali Ali, VP and Hoteliers attribute the delay in b ookings to the general manager, Radisson Hotel, said. economic recession which has made travellers conscious The alarming news is that the Games Travel Office, about spending on travel. “Most foreign countries from which has blocked rooms in some hotels in Delhi, has now where visitors were expected have still not come out of released a number of them. “This is because they are not the recession. And those that are coming are looking for very confident about arrivals,” a source unwilling to be budget accommodation. This is the reason five-star named told T3. hotels in Delhi have not received bookings for the Games According to Kumar, hoteliers will receive the usual period yet,” Hopcraft opined. business in October due to the fact that it will be the peak However, hotels in the 3- and 4-star categories in season. “We are not confident about hotels notching a Delhi have a similar story to tell. Sarovar Hotels is waiting substantial increase in business due to the Commonwealth for bookings to start. “We are expecting good business – MURARI MOHAN JHA Games though,” he averred. for the Games period but have not seen any bookings
HIGHLIGHTS
Rajindera Kumar
JULY 2010 ◆ TRAVEL TRENDS TODAY
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Timeshare industry notching 20 percent annual growth Propelled by a robust economy and domestic tourism, timeshare or vacation ownership in India has shown consistent growth in the last few years, as well as great potential for the future. “The timeshare indust r y in India has grown at a compounded annual growth rate of 20 percent since the mid-1990s. Currently, there are about 250,000 households owning timeshare and this figure has been increasing at a rapid pace over the last few years,” BS Rathor Rathor, chair ma n, All India Res ort Development Association (AIRDA), told T3 T3. His st atement is supporte d by Ramesh Ramanathan Ramanathan, MD of Mahindra Holidays & Resorts. “Our vacation ownership member base has grown at a compounded annual growth rate of 31 percent over the last six years. As of March 31, 2010, it stood at 109,884 and the room inventory was 1, 476 room across 33 res ort s in India a nd Thailand,” he revealed. According to Rathor, the catalysts for this
HIGHLIGHTS
According to AIRDA, there are 45 vacation ownership companies operating in India BS Rathor Ramesh Ramanathan promoting 80 resorts and 500 0 unit s. “The entire b e caus e t he product vacation ownership offering includes vacation There are 45 vacation memb ership in India is homes, fractiona ls, ownership companies ab out 250,0 0 0. T he dest ination clubs and operating in India average annual addition is condo-hotels. “As t he Vacation ownership in ab out 18,0 0 0 and t he industry matures, these India has emerged as a industry is growing at over product s will be made 15 p ercent on a available depending on recession proof segment comp ounded rate,” consumer need s. India’s timeshare industry adds Ramanathan revealed. Emerging trends will see 18,000 members annually Based on the grow th expa nsion of the pattern of timeshare in the timeshare business model develop ed market s, Rathor opined that t hrough consolidation, acquisitions and timeshare was a diversified market in India investments,” Rathor added. Moreover, the timeshare industry is unique compared to other hospitality segments in that it is less vulnerable to external disturbances because its major market base is the domestic leisure t raveller. Realising that t he vacation ownership market was segmented, Mahindra Holidays launched different kinds of products for different customer s egment s. “We RCI’s points programme is a new addition in timeshare in India. Members will launched Zest, a timeshare offering targetting young couples in 20 0 6 a s well as Club now earn points and be able to redeem them for air tickets, theme parks, car Mahindra Fundays, a point-based vacation rentals and accommodation. ownership offering for the corporate segment, t he sa me year,” Ra manat ha n shared. RCI has announced the points programme through Cambay currency used for reserving the holiday of your choice.” The week’s Ma hindra Holidays ha s already tied Family Holidays Club, which has 10 properties across India under time can be broken down into one night, three nights, five nights up with more than 30 corporate companies the Neesa Leisure brand. RCI’s points programme was launched and seven nights. Therefore, the member does not have to spend an for Fundays. internationally in 2001 and is now being rolled out in the Indian entire week at one place and can break down the stay in smaller parts A major benefit for a timeshare buyer is market through Cambay properties in Udaipur, Jaipur, Gandhinaand save his remaining points. that he owns a one-week holiday for 25 years gar, Ahmedabad, Goa, Kerala and Gurgaon, to begin with. Another added benefit of the points programme is that a mem(or as per agreement) at today’s prices which Points accumulated through stay at Cambay properties can also ber can borrow some points from the following year and can also makes his purchase inflation proof, pointed be utilised to buy other holiday products like air tickets, theme carry forward the remaining points to the next year. The option of out Rathor. “Can one think of anything better park tickets and car rentals; they are also redeemable at RCI’s transferring points to another member and gifting the points to a in terms of pure financial returns?” he asked. properties abroad. Radhika Shastry Shastry, managing director, India, RCI, guest using the guest certificate is also possible now, an option exRamanathan also echoed the same logic. “In explained, “RCI points can simply be defined as a form of holiday – APEKSHA HARIHAR clusive to members in India. timeshare, a member pre-buys the holiday entit lement s, primarily holiday accommodation, for a long period of time, usually 25 years. In a scenario where hotel room rates have been witnessing a 20 percent average annual increase, timeshare results in substantial savings,” he opined. grow th are the expanding ba se of the domestic tourism market, a robust economy, proliferation of nuclear families having higher disposable incomes and the changing trend of holidaying as a conscious lifestyle option. However, timeshare is still in a nascent stage and will require its own gestation period and space to grow in scale and content, he added. When compared to the global vacation ownership market, the penetration of the timeshare industr y in India is still low. Globally, there are over 5,500 resorts in a hundred countries, with the US having the largest share of 29 percent. According to an Ernst & Young report, the global vacation ownership market was estimated at US$ 15 bn in 2007, of which USA and Europe accounted for nearly 85 percent.
RCI launches points programme in India
IN CONVERSATION
– MURARI MOHAN JHA
Starwood targets 100 hotels by 2015 Global hospitality giant Starwood Hotels & Resorts has chalked out a mega expansion plan for the Indian market. HIGHLIGHTS
brands in India and plans to induct another two Star wood Hotels & Resort s Worldwide, which debuted in India in 1973 with its Sheraton Starwood to add 7 hotels – ‘W’ and Element – in the next 2–3 years. “We brand in Mumbai, established its India office in in 2010, 11 hotels in 2011 are in talks with various developers to bring in our five-star brand ‘W’. Our sales team is 2006. Currently, Star wood has 26 hotels in The group is going to looking for the right partner and right location India with over 6,500 rooms in the four- and launch its Aloft brand to launch it in India,” Saliankar informed. Only five-star categor y. “Our aim is to have 100 the super luxury St Regis has not been included next month hotels by 2015, across all our brands. The new in their India portfolio. hotels will be largely dominated by Sheraton, Le Company witnessing To support its expansion, the company Meridien and Westin,” Dhananjay Saliankar Saliankar, 30 percent Y-o-Y has been involved aggressively in a brand regional dire ctor- global sales, India, growth in sales b uilding exercis e t h rough variou s Bangladesh and Maldives, told T3 on t he promotions. “We recently organised a threesidelines of Starwood’s fourth annual expo in city roadshow in New Delhi, Mumbai and Bengaluru in which New Delhi. 36 hotels from Europe, Africa, the Middle East, Australia, “We are adding seven hotels in 2010 itself – two Sheratons, two Indonesia and South East Asia participated,” he said, adding Four Points, two Alofts and one Westin. The Sheratons will come that the company’s global marketing blitz is scheduled for up in Udaipur and Bengaluru, the Aloft s in Chennai and September this year. During this two weeks blitz in the metros Bengaluru, Four Points in Pune and Visakhapatnam and the and secondary cities of India, Starwood’s focus will be to draw Westin in Gurgaon,” he revealed. The Alofts in Chennai and new cor p orate account s to ex pa nd t heir cus tomer ba s e, Bengaluru will open in July and August, respectively; the others Saliankar informed. Starwood is also expanding its India sales are slated to open before the end of the year taking their hotel tally team to support its growth strategy. “Our sales are growing on in the country to 33 by December 2010. The group will add 11 a 30 percent Y–o–Y, and, with a rebound in business travel after more hotels in 2011, five Sheratons, two Le Meridiens, two the recession, we are expecting sales to grow by 30 percent in Westins, an Aloft and a Four Points. 2010 as well,” he stated. – MURARI MOHAN JHA With Aloft, the company has introduced five of its nine hotel
appointments Novotel Mumbai Juhu Beach Xavier Cappelut has been appointed general manager at the Novotel Mumbai Juhu Beach – the flagship property of the Novotel brand in India. Cappelut brings with him 18 years of expertise in the hospitality sector and an astute knowledge of the Asian markets having shouldered responsibilities in various roles across Accor’s brands, Sofitel and Novotel, in Vietnam and Indonesia.
ITC Maurya Ranvir Bhandari has been appointed vice president, North and the general manager of Maurya New Delhi. He joined ITC Welcomgroup in 2002 as area manager East and general manager of ITC Sonar Bangla, Kolkata. He started his career with The Oberoi Hotels and worked in various senior capacities at different Oberoi properties.
16 Hotels & Resorts In Bengaluru, scaling ARRs have led to a boom in the alternate accommodation segment that the organised sector refers to as serviced apartments.
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TRAVEL TRENDS TODAY ◆ JULY 2010
Omer Bin Jung
Reji Thomas
Suresh P Charles
Keshav Baljee
Service apartments witness success; offer more for less homely ambience. “To Charles CEO, IBC Hotels begin with, this demand Rising hotel rates nudged & Resorts. Service apart ment s was ext remely the service apartments have created their niche advantageous for hotels as segment forward a nd are here to st ay, t hey starte d look ing at “We complete... and especially in Bengaluru, as proact ive yield the city is frequented by management, rate don’t compete with s everal long stay ing cont racting a nd m icro hotels” guests from Europe and segment planning. Short-stay guests are t he USA, says Keshav However, with hotels out leaning toward this Baljee, president and copricing themselves, many accommodation option promoter of Royal Orchid of the IT/ITES companies Hotels Limited (ROHL). opted to move to serviced “For the financial year ended March 2009, apartments,” quips Reji Thomas Thomas, resident t he hospit ality indust r y in Bengalur u director, Halcyon. witnessed occupancy erosion and thus rate Reduced budgets increased corrections across the board. This gave the business for service apartments premium service apartments an opportunity While travel was cut drastically at most to tap into short-stay as well. Though the companies in 2009, at others employees were s erv ice apart ment s s egment also saw a advised to stay at more economical options marginal dip, by and large, this industry is like s erviced apart ment s which, t hus, booming here, especially the branded service benefitted marginally from the recession. apartments,” he says. “More corporates started to come to us last Service apartments do not pose a year because of reduced budgets. We offered threat to hotels luxurious 1/2/3/4 bed room apartments at a Vineet Verma, chief executive officer, Brigade price they could afford. These are particularly Hospitality Services, says that it is a complete popular with long-stay guests,” says Suresh P
HIGHLIGHTS
2009 saw a number of players like The Oakwood, Accor and The Royal Orchid group enter this domain joining others like Shilton Suites, Orchard Suites, Brigade Homestead, IBC Hotels and Halcyon which have been here for some time. More recently, international groups like Marriott and Shangri-La have tied up wit h local players to build serv ice apart ment s in t he city a s well. Some multinational companies have also set up an in-house 500-room hotel complex for its clients, taking the concept a step further. The service apartment sector is gaining prominence in the city as it is an economical option for most big cor p orates. The occupancy level in t his segment ra nges between 80-90 per cent. “We offer state-ofthe-art facilities at extremely competitive rates which has the corporate sector making a beeline for us,” explains Omer Bin Jung Jung, managing director, Prestige Leisure Resorts, owner of Oakwood apartments. The growing economy and, especially the growth of the IT/ITES segment, created a new feeder market in this segment, that of long-staying guests. This requirement was answered by the service apart ment segment a s it proved more economical than hotels and gave guests a
Vineet Verma
misconception that service apartments pose some competition to the hotel industry in the city. “Bengaluru draws long-staying visitors from Europe and the USA. Such guests often stay for several months at a stretch and are thus more comfortable in service apartments. So, we complete the hospitality industry and are not competing with star hotels,” he avers. Echoing in agreement, Omer Bin Jung points out that with the recession on its way out, the IT sector has picked up again, resulting in the rise of an expat influx into Bengaluru. “We w ill b enefit a s well placed exe cut ives t ravelling on medium- and long-st ay assignments will seek secure branded service apartment s. The fact that we also offer incubation offices is another differentiator.”
Emerging trends in the business T he downt ur n in t he IT indust r y, the mainstay of the service apartments industry, had a t wo-pronged effect. “A lot of the smaller players with smaller inventories in the service apartments business shut shop and disappeared; some were furnished guest houses at b est. 20 09 saw the ent r y of international players like Oakwood Suites and t he Accor group which als o introduced competition among the ones that stayed on,” states Reji Thomas. Interestingly, with most of the newer service apartments offering similar facilities as hotels and also offering the additional advantage of larger living spaces, even shortst ay guest s are b eing drawn to t his accommodation option. – RAADIA MUKADAM
Monsoon becomes lucrative for Kerala’s hotels Business in the monsoon season indicates that it has evolved from being a deterrent to an opportunity. Hotels in Kerala are certain of growth in this segment in the coming years.
N.C. Somaiah Priti Chand Rajagopal Iyer add s t hat t he s out her n is grow ing is t he large states act as big fe eder number of expats from 30 percent annual market s a nd Mum ba i the Middle East during revenue from shows b etter num b ers Ram z an and Eid, monsoon t ha n D elhi. “T he local primarily b e caus e t he corporate segment from room rates are extremely Domestic and MICE within Kerala itself is quite low during this period. dominate bookings buoya nt at t his t ime,” To draw the incentives Indoor activities are reveals Paul. segment, Uday Samudra important in this Hoteliers attribute the is conducting road shows, season increasing lucrativeness of FAM tours for major t he mons oon s ea son cor p orate hous es and largely to the number of synergising with airlines. initiatives floated to subvert the traditional lull Many hoteliers b elieve that t he famous in business at this time. “We are popular Ayurveda spas of Kerala are a great plus to tap among domestic agents due to the products, t he leisure and the corp orate incentives pricing and facilities we offer,” says Rajagopal segment. “The wellness packages for up to Iyer Iyer, cor p orate director, Uday Samudra even 14 days are very popular. We provide Leisure Beach Hotel. lower rates for extended stays such as these,” According to Chand, another segment that says Somaiah. Other attractions include the
HIGHLIGHTS
“It used to be a filler business in Kerala, contributing five-eight percent room nights in 2006, 2007 and 2008 but has emerged as a major segment today,” says N.C. Somaiah Somaiah, genera l manager, T he Le ela Kempinski Kovala m Beach, Kerala. Most hotels acknowledge that, approximately, 30 percent of the total annual revenue is contributed by t he mons oon p eriod. At Uday Sa mudra Leisure Beach Resort, Kovalam, Kerala, bookings for July and August are 70-80 percent more than last year. “The on-going monsoon look s ex t remely p osit ive in comparison to the economic meltdown last year,” agrees Priti Chand Chand, assistant vice president, PR & Communication, Zuri Group. According to Peter Paul Paul, executive director, Thomas Hotels, the monsoon could have done better had it not b een for the high air fares from some part s of the countr y which are an obstacle to the growth of this segment. “The package cost from Delhi, for instance, is very high. At that rate, people could take a short-haul outbound holiday instead, especially with the entr y of Air Asia,” says Paul. Hoteliers underline that bookings are dominated by domestic tourists which they see as the best segment to bank upon at this time. “The monsoon season is dominated by the domestic leisure market and the MICE segment. They contribute substantially to a hotel’s bottom line,” says Somaiah. Paul
multiple programmes organised by hotels for wives of corporates attending a conference. “While a serious conference is going on, there is a n act ivity coordinator to engage t he spouses on sightseeing trips, spa, ayurveda treatments and beauty therapies,” says Paul. To make sure that the monsoon does not damp en t he guest’s holiday, indoor entertainment is imperative. “We have set up a Kerala Village showcasing our local culture,” says Chand. Some other activities are free of cost. In the case of The Leela, a daily activity calendar is made which includes showcasing the cultural heritage of the state and cookery classes for ladies. “Activities related to current world events like the FIFA 2010 World Cup are also organised regularly,” says Somaiah. T homa s Hotels arranges for f ishing at waterfront restaurants, Karaoke sessions and – APEKSHA HARIHAR also boat rides.
12 Zuri hotels by 2015; will venture into managment as well Aditya Kamani, Bobby to his friends, family and colleagues, is the managing director of the Bengaluru-based Zuri Group Global. A hotelier, health freak, an avid traveller; a voracious reader, and an ardent horseman, this 28-year-old is a business management graduate from King’s College, UK. He put the latter to use at the Zuri Group Global’s offices in Kenya in 2000, a stint that was followed by an internship with the hospitality division of Knight Frank in London. Between 2000 and 2008, the Zuri Group was operational in India under the name Phoenix Group Global and was involved in rose farming, trading and real estate, but not in hotels. “It was natural for me to enter the family business; my focus was to take it to the next level,” says Kamani. After joining the business in 2002, he decided to enter the hospitality industry by purchasing the groups first hotel, The Liner in Liverpool in the UK, setting the stage for a new chapter in the growth of the group; today, the company has six hotels in its portfolio. “Soon after I became a part of the group, we entered into a franchise agreement with the Carlson Group of Hotels for Zuri Whitesands in Goa in 2002. I was encouraged by the response and set up our second hotel, the Diani Reef Resort in Mombasa two years later,” he recounts. This was followed by the Radis-
son Kumarakom in 2006, rechristened Zuri-Kumarakom after the new branding, and Country Inns and Suites Goa in 2007 which is now The Retreat by Zuri-Goa. In 2008, the group went solo and established the Zuri brand. “Our first hotel under Zuri was the business hotel, Zuri Whitefield in Bengaluru. Thereafter, it was in the natural scheme of things to bring all our hotels under the parent brand; the exercise was accomplished in 2009,” shares Kamani. All the other divisions of the family business were brought under one umbrella, Zuri Group Global, this year. “The future looks extremely exciting,” he exults. Raring to go, Bobby confesses that while growing up he learned that patience was a virtue; in the real world however, he muses, a hint of impatience is not a bad idea. According to him, this quality sets the ball rolling for innovative thinking. He believes it is this mantra – impatience et al – that led Zuri to achieve what it has within a short timeframe. Bobby is confident that, in all likelihood, Zuri Group Global will add six more hotels by 2015 to their existing portfolio of six properties of which four are in India. An additional 15 hotels will be operational under management contracts, an area they haven’t – RAADIA MUKADAM ventured into thus far.
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Hotels & Resorts 17
UK’s Travel UNI markets Mahindra Homestays Mahindra Homestays has collaborate with Travel Uni in the UK, a training company Japa Ghosh with a web portal, to update agents about the latest products, destinations and resorts that have hit the market. Mahindra Homestays is a fairly new product that was launched in November 2008. The company signed up with Travel Uni in the same year in an effort to reach the trade in the UK and introduce a new staying option for their clients to India. Travel Uni familiarises UK agents with the different kinds of homestay experiences Mahindra offers which range from stays in heritage homes and havelis to urban and r ural establishment. “Most people in the UK will not be able to gauge the standard and experience of these homestays. Therefore, we post a detailed quality report of these homes with pictures and write-ups on the site,” says Japa Ghosh Ghosh, head of marketing, Mahindra Homestays. As they are familiar with the bed and breakfast style of accommodation, it is easier to get the British to opt for similar stays during their visit to India, he adds. The French and Americans will be targeted soon.
HIGHLIGHTS
JULY 2010 ◆ TRAVEL TRENDS TODAY
Company expects 25-35% bookings from UK in 2010 Domestic bookings coming online High expectations from Commonwealth Games 2010
Mahindra Homestays recorded that 35 percent of their inbound customers were from the UK, and 65 percent from India in 2009. Of the 35 percent, 5-6 percent came through travel agents. Accordng to Ghosh, the response from the trade is taking time mainly because Mahindra Homestays was launched concurrent to the economic crisis hitt ing t he West a nd 9/11 att ack s in Mumbai; secondly, any new product takes time to gain visibility. Ghosh is certain that 2010 will see atleast 25–30 percent of their bookings through agents in the UK. Travel Uni provides the training to agents free of cost. Currently, the programmes are limited to agents in the UK, Ireland, Canada and America only. In India, the bookings are being made online or through call centers. “The target audience is responding very well through the online medium,” Ghosh says. Mahindra Homestays has a portfolio of 20 homes and 100 rooms across the city that it will market for the Commonwealth Games 2010 in Delhi. “We are a part of the accommodation committee of the Games and have b een re ceiving b ookings from Januar y-Febr uar y this year,” Ghosh informs. – APEKSHA HARIHAR
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18 Airlines and Airports With T3 has arrived the era of modern airports in the country. T3 has set a new benchmark for upcoming infrastructure in India. Against the usual time of sixty months, this modern masterpiece has been completed in a record 37 months. That T3 is a milestone for the nation was evident from the fact that both the prime minister as well as the chairperson of the UPA government were present at the inauguration.
TRAVEL TRENDS TODAY ◆ JULY 2010
Built at a cost of Rs 12,000 crore, Terminal 3 boasts of being the eighth largest passenger terminal in the world. It is equipped to handle 34 million passengers annually. Minister Praful Patel surveys the glorious new edifice.
PM inaugurates Terminal 3; 35 non-metro airports by next year public private partnership said: “T his is a most model in the execution of impressive structure, it is T3 will have 168 check-in large infrastructure evident global standards of counters and 78 aerobridges project s. “It proves our excellence have b een among other facilities capacity to coordinate achieved here.” She Aviation sector to absorb across agencies and declared that quality was investment of US$ 120bn governments and work as a not somet hing to b e united team. I am told that reserved for prestigious by 2020 over 58 department s of projects only and should Patel seeks Govt’s support government were involved become ‘part and parcel’ for Navi Mumbai airport in the construction of this of our design process for terminal, apart from other all public project s, stakeholders such as ground handling agencies including housing and other services. She also and airlines,” he added. expressed satisfaction with not only the The prime minister averred that while world-class facilities the terminal offers to India’s air p ort s must meet t he highest pa ssengers, but also that it meet s t he standards of efficiency and safety, they must requirements of passengers with special be receptive to the comfort of passengers. needs and addresses environmental concerns. “While they should employ the most modern Speaking on the occasion, Patel said that of technologies, they should also exude it rarely happens that the same minister who cultural warmth,” he added. Singh suggested presides over the bhoomipujan of a project, that all concerned agencies now focus on also presides over its inauguration! He said improving passenger connectivity between that he was happy to have presided over both. the city and the airport to fully leverage the “The new terminal shows that India has immense potential of this new terminal. arrived on the international scene and, by Praising the structure of T3, Sonia Gandhi next year, 35 non-metro airports will b e
HIGHLIGHTS
The opening of T3, a milestone in the Indian aviation industry, saw the presence of Prime Minis ter Manmohan Singh UPA chair p erson Sonia Gandhi Gandhi, civil aviation minister Praful Patel Patel, Delhi chief minister Sheila Dikshit Dikshit, GMR chairman G M Rao Rao, as well a s ot her cabinet ministers, senior bureaucrats and industrialists. “The commissioning of this ter minal w ill b e a sig n if ica nt s t ep for ward in developing D elhi a s a vit al hub. It w ill encourage feeder t raff ic from t he nonmet ro air p ort s b eing develop ed by the A i r p o r t s Aut hority of I nd ia,” Singh announced, adding that a good airport was a sig n of t h e new I n dia com m itt e d to joining the ranks of modern industrialised nations. According to him, India’s aviation sector has the potential to absorb up to a US$ 120 billion investment by 2020. “Our regulatory and policy framework needs to b e a ligne d w it h t he ne ed s of th e civ il av iation indus t r y to encourage s erious investment in the sector. Our government is working to achieve these goals,” he stated. The project also proves the success of the
Go Air reports continued cheer in the lCC Zone Go Air has upgraded its aircraft to category 3B and also trained its pilots for the same to avoid any kind of delays or cancellation of flights in the fog of winter or the monsoon. Go Air currently has eight aircraft and plans business class launched in October 2008, to add t wo more in September 2010. The which features an eight-seat configuration carrier also plans to introduce new stations. and offers wider leg space and empty middle Rakesh Tiwari Tiwari, vice president, commercial seats, is doing well, Tiwari informed. Leisure operations, Go Air, told T3 in a recent travel, however, remains a challenge for the interview: “All our routes are doing well. We company. recorded 86 percent load factor in May 2010 Asked if the airline had any plans to go and an 80 percent average during the last international, Tiwari shared that Go Air was year.” He added that Go Air also had the extra taking a conservative stand despite good advantage of a monopoly on the Mumbai– loads. “The domestic market looks more Srinagar route as they have a direct flight. lucrative a nd the inter national market is Due to the sky rocketing prices of tickets highly competitive, we will focus only on the Rakesh Tiwari on domestic flight s, corporate incentive domestic market at the moment,” he said. business is moving outside India. Go Air is focusing on Most of Go Air’s tickets are booked online, divided drawing this segment back and, according to Tiwari, there equally bet ween OTAs and the airline’s website. “We has already been an increase in this segment of business for receive 60 percent business from B2C portals like Make My Go Air. Even the airline is keen to cater to the corporate Trip, Yatra.com etc., and other online travel agents; 30 segment’s time constraints by ensuring on-time service even percent comes from our website and call centre,” Tiwari in rough weather conditions. “We have upgraded our flights informed. He attributes the high contribution from OTAs to category 3B which means that the flights will be more and travel agents to the fact that Go Air pays the highest eff icient in t he winter fog a nd t here w ill b e fewer commissions. “We are currently paying 6.5 percent for cancellations during the monsoon. We have trained our generating Rs 5 lakh worth of business,” Tiwari revealed. pilots for the same,” said Tiwari. Go Business, Go Air’s – APEKSHA HARIHAR
upgraded by the Airport Authority of India,” Patel infor med. He also sought t he government’s support to build a new airport in Mumbai. “Mumbai is our financial capital. It needs a second airport urgently because of increasing traffic. Its current airport capacity is coming to saturation point. We need equal support from the government for the second airport in Mumbai as was offered for the Delhi airport,” Patel said. A proud GM Rao, GMR Group’s chairman,’stated that the new terminal T3 symbolised the aspirations of a new and vibrant India. “It demonstrates the abilities of our planners, designers, engine ers and contractors. And, as an engine for growth, it opens immense possibilities for the economic development of this region,” he added. Developed by GMR-led Delhi International Airport Ltd (DIAL), the swanky new worldclass airport is expected to handle 34 million passengers annually. Besides three functional runways, T3 will have 168 check-in counters, 78 aerobridges, 97 travelators and a multi-level air-conditioned car park to accommodate – MURARI MOHAN JHA 4,300 cars.
in brief… Jet Airways Konnect introduces daily, all-economy services Jet Airways Konnect has launched flights to Ranchi from Kolkata, offering guests from the Jharkhand capital enhanced connectivity to Mumbai and Delhi effective June 23, 2010. Jet Airways Konnect’s flight 9W 2856 (Kolkata – Ranchi) will depart Kolkata at 1435 hours, and arrive at Ranchi Airport at 1545 hours. The flight 9W 2857 will depart Ranchi at 1615 hours and arrive Kolkata at 1725 hours.
Novotel Hyderabad Airport sets a benchmark Novotel Hyderabad Airport has been declared one of the 10 most entertaining and enticing airport hotels in the world by US-based HotelsCombined.com. HotelsCombined.com has a database of more than 200,000 hotels from 195 countries. Novotel Hyderabad Airport has been awarded for its exceptional recreational facilities.
New tax on domestic and international travel A service tax of 10.3 percent on the gross value of tickets for all classes on domestic flights flights,, and the economy class on international flights, will be levied on tickets sold, issued or re-issued, effective July 1, 2010. All domestic travellers w ill have to bear a will service tax of 10.3 percent on the gross value of the ticket ticket,, or Rs. 103, whichever is lower. On economy class tickets for international travel, a service tax of 10.3 percent on the gross value of the ticket, or Rs. 515, whichever is less, will be levied.
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20 Airlines and Airports
TRAVEL TRENDS TODAY ◆ JULY 2010
HIGHLIGHTS
With business and leisure travel picking up again and travellers preferring to book online, leading OTAs have seen over 50 percent increase in bookings in the first six months of the current year. Keyur Joshi
Sabina Chopra
OTAs witnessed 50% growth during January-June Focus is shifting to hotels; clamber for marketshare and revenue Innovative packages are on offer to woo more customers
Tarique Khatri
International flights, domestic holiday bookings boost OTAs’ figures Ma keMyTrip (MMT), Yat ra.com a nd Cleartrip are reaping the benefit s of the economic recovery. This growth has come primarily from two segments, international flight s a nd domestic holiday b ookings. “Customers who used to purchase domestic tickets earlier have graduated to purchasing international tickets online,” says Tarique Khatri Khatri, VP, business development, Cleartrip. Sabina Chopra Chopra, co-founder and executive VP, operations, Yatra.com, confirms this trend saying that international flights and domestic holidays bookings at Yatra.com saw 10 0 percent growth during January–June this year over last year, leading to 50 percent growth in bookings during H1 2010. Their statements are based on the number of bookings and site visitors per day. While MMT witnessed 50 percent increase in traffic,
the maximum in its histor y for summer, Yatra.com is doing 10,000 bookings per day a nd Cleart rip, 4,0 0 0. All of t hem have considerable marketshare in the US$ 3.5 billion online travel market. While MMT is leading the pack with 48 percent, Yatra and Cleartrip claim to have 30 percent and 10-12 percent marketshare, respectively. Their statistics reveal that air bookings are still dominating the online booking space. “Since 70 percent of our transactions are in the air segment and 90 percent of air transactions are online, our overall transactions are still more skewed towards online compared to our retail outlets which we have in over 15 cities,” Keyur Joshi Joshi, co-founder and COO, MMT, informed. The contribution of air bookings is even higher at Yatra. “80 percent of our overall bookings is for airlines and 20 percent for domestic
holidays,” Chopra shares. For Cleartrip, airline bookings is the winner contributing almost 85 percent of its overall revenue. To further increase marketshare, OTAs have introduced innovative packages in the market. While MMT launched charter flights to Ladakh in May 2010, Yatra.com is offering monsoon packages for Goa and Kerala. Cleartrip has some lucrative offers too. “Book any domestic flight on Cleartrip.com between 16 June and 16 July and you will be eligible for a free ticket on your next flight,” declares Khatri. Cleartrip is also offering an instant cash discount of R s 1,50 0 on holiday packages to Bangkok. All of them are offering discounted packages for the hill stations during the monsoon season. OTAs have also st arted focussing on hotels and are improving processes to draw
hotel reviews from customers. The idea is to increa se t he cont ribut ion of the hotels segment in the overall revenue. Reportedly, cus tomer s prefer b ook ing hotels after reading reviews a nd the site that host s authentic hotel reviews will get the most bookings. “We have been posting customer reviews of specific hotels on our website. We also have our own hotel review team which visits hotels and rates them accordingly,” Joshi said. Launched in 2007, Yatra.com’s subsidiary, raahi.com, offers blogs, photos w it h rat ings a nd com ment s on hotels. Cleartrip identified this as an important aspect of hotel conversion and posts traveller reviews on every hotel. According to Khatri, the hotel reviews on Cleartrip are sourced from TripAdvisor, one of the worlds most – MURARI MOHAN JHA trusted review sites.
IN CONVERSATION
Travelport ramps up its non-air content; launches a new leisure website Kurt Ekert, the new chief commercial officer of global GDS Travelport, which operates Galileo and Worldspan, believes that India is growing faster than the US and the Western European market in the B2B online travel domain. segment. Hotel inventory is building up and it will continue to grow. Moreover, the issue of offline travel agents v/s online travel agents has become an issue of the past; we are now seeing a convergence between them. We see offline is adopting online technology and online players are opening retail shops. Travelport recently launched a new leisure portal for travel agents. How is it going to help bookings? The new website known as Travelport Leisure, is a great way for us to offer additional inventory and content to our customers. Over time, we will integrate that into the current
in brief… Tripadvisor join hands with Yatra.com TripAdvisor and Yatra.com recently announced an alliance which will see content collaboration in the Indian online travel space. The alliance will allow Yatra.com’s customers access to unbiased hotel reviews posted by travellers on TripAdvisor, including those posted on its India website, www.tripadvisor.in. This will enable travellers to make the best possible choice with regard to hotels, based on their needs.
Yatra launches ‘Go See the World’ campaign In its endeavour to offer the best deal in every travel category, Yatra.com, launched a sleek advertisement campaign ‘Go See the World’ targetting young international travellers between the age groups of 21 and 30. A series of five TVCs are being aired on HBO, Star Movies, CNN IBN, CNBC Network 18, Star News, Sony Pictures, Times Now, National Geographic, Times Now, Discovery Channel and NDTV 24x7. The advertising campaign communicates the story of a 29-year-old to who Yatra.com offers a complete travel solution at the best possible price.
shopping path or booking and marketing capabilities Travelport has 38% path. This will create an which will bring the marketshare in India opportunity for our relevance and clarity of customers to have access to google-like search Travelport Leisure was a lot more inventory and advertising to the travel launched to offer a wide make a lot more money agent’s desktop. range of inventory Small travel agents do t han they would not find the services of ot her wise. It’s a ver y ‘Universal desktop’ to GDSs very cost effective. exciting development. provide sales and Do you have any specific From a strategic marketing platform for solutions for this? p erspective, it really suppliers diversifies our product I would disagree with offerings. Apart from Galileo Leisure’s existing your st atement. We offer ma ssive hotel content which includes Gullivers Travel opportunities for smaller travel agents to sell Associates’ 35,000 hotels, Travelport Leisure non-air categories like hotels, tours etc. will also give agents access to new content (which are lucrative). We have over 60,000 from a range of well-known, market-leading B2B customers ranging f rom ver y large leisure suppliers. These include HotelClub by companies to smaller agencies. In India too, Orbitz, Kuoni Connect, Hostelworld.com, and we have a lot of smaller agencies from various Cars by TUI. cities that are using our products and selling What technological innovations are you inventories. bringing about at Travelport? What are the emerging trends in the GDS market and what is your marketshare? We expect a massive game change in the industry with our ‘universal desktop’ which The GDS marketplace has become very will allow agents access to multiple inventory competitive. We continue to innovate and sources through a single, fully-integrated introduce customer-friendly technology to graphical user interface. enable agents to upscale and cross sell This new innovation will accelerate the move inventories. From a trends perspective, the from a distribution vehicle to a strategic sale and emerging growth in India and China is far marketing platform for airlines, hotels, car rental greater than in the US and Western Europe. companies and other travel providers. As you From a travel perspective, we are very focussed know, Travelport is a B2B company, so our on investment in markets like India and will customers are travel agents. We make sure that continue to explore our growth here. From a we have technology which enables pre-seamless technological perspective, we are building tools connectivity. For our customers, we become a for the local markets to offer easy options to our hyper market where every travel-related product customers. We are also looking to consolidate is available. The other aspect we have focussed non-air inventory. We have above 30 percent on is consumerising the inter face for our marketshare globally and 38 percent – MURARI MOHAN JHA customers. Travelport is also developing sales marketshare in India.
HIGHLIGHTS
Where does India stand in your global scheme of things? India has a burgeoning middle class and only about one percent of the Indian population travels outside the country. The growth opportunity is massive and we are very excited to be partnered with mega suppliers as well as mega consumers here. India is one of the fastest growing markets for us. With the Indian online travel market still evolving, what emerging trends do you see here? The market has been growing over the last five years. We also see that a lot of growth has started coming from the non-air content
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Launched in March 2008 in India, US-based travel services provider Expedia is gradually consolidating its position in the Indian online travel market by adding more India-centric content to its inventory. “Our focus in the last three years has been inbound during which we built a st rong inventory of Indian tourism products. Now, we are shifting our focus to t he I ndian outbound and domestic business,” Daniel Lynn Lynn, MD and VP, Expedia Asia Pacific, told T3 T3. He pointed out that of the 10 million Indians that travel abroad every year, only a few made reservations online, leaving huge scope for growth of online travel players in t he I ndia n out b ound segment. “We are positioning ourselves to provide a one-stop solution to all outbound tourists from India, through our site Expedia.co.in,” he said. To further expand its India operations, Exp edia.co.in has decided to make a substantial investment in this market. “We are going to make a multi-million dollar investment in the Indian market to develop our India-centric inventory,” he said. Expedia is
going to invest significantly a chance for Expedia to work in it s Travel Agent Affiliate with new properties and Programme (TAAP) which is strengthen its Indian hotels slated to be launched in mid-July inventory. in the Indian market. A sked how he is Since its launch in the Indian planning to tap the market, Expedia has been individual hotels in India, focussing on developing a strong Lynn said that Expedia had relationship with suppliers enabling a set mechanism in place to them to reach the large numbers collect information about that visit Expedia’s website. indiv idual hotels a nd “We are working closely with develop a comprehensive Daniel Lynn leading local and international data base. “Our team in hotel partners like The Taj, The Oberoi, Lemon India has been focussed mainly on developing Tree, Marriott, Hilton, Radisson, Hyatt and Park an authentic data base of individual hotels Plaza, among others,” he revealed. Lynn would and we have succeeded to a large extent,” he also like to develop a relationship with newer said. Expedia.co.in currently offers 2,500 hotels. “I believe 8,000 new hotel rooms are India n hotels on it s site. It is furt her coming up in Delhi before the Commonwealth developing its portfolio of independent Indian Games,” he said. New room supply also offers partner hotels who want to leverage its global
HIGHLIGHTS
Expedia to focus on outbound and domestic travel in India Expedia plans substantial investment in India Focusses to build strong inventory of individual hotels in India Will launch TAAP in mid-July in the Indian market
reach to att ract high-value inb ound customers, as well as b enef it from it s domestic penetration. Currently, Expedia has a relationship with 120,000 hotels globally. Expedia, which has established relationships with more than 2,500 hotels in India and all domestic airlines, is also in the process of building up its inventory in car rentals, bus and dynamic packaging in India. “We offer an easy option for booking dynamic packages which allows customers to build their own travel itinerary. We are confident that our worldwide air, hotel and package product offers the Indian traveller the best option to book their desired – MM JHA trip,” he added.
Garden Tourism: An extremely niche, but promising segment The growing number of eco conscious travellers and garden festivals has spawned a new segment of travellers. Even though the core source market includes mainly nature enthusiasts and botanists, this segment is coming into its own. Garden Tourism cannot be termed a brand new niche segment for even in inbound tourism’s earliest days, gardens were a part of tourist itineraries. Jammu and Kashmir has beautiful gardens which made for exclusive four-day itineraries for tourists back in the day. Today, the gardens of Delhi, ‘gardencity’ Bengaluru, Chandigarh, Mysore and Kolkata are popular with the tourist keen to visit Lodi Garden and the Mughal Gardens in New Delhi; Vrindavan in Mysore, Lal Baugh in Bengaluru and Howrah’s famous botanical gardens in Kolkata. Awareness about the beauty and often historical relevance of these gardens is also being built through a number of garden festivals and special events like flower shows. “The rise in garden tourism has almost doubled as gardens are b eing constantly promoted t hrough garden festivals,” Maharaj Wahi, chairman, Travel Promotions Bureau, revealed. Launched in 2004, the Garden Tourism Festival is organised by Delhi Tourism every year in the Garden of Five Senses, and a numb er of countries participate in t his festival. Inbound inquiries for this segment have also risen over time. “We get a numb er of enquiries f rom t he UK, US a nd Australia for gardens to be included in itineraries,”says
in brief… Thomas Cook inks deal with Delhi International Airport The seven-year contract will allow Thomas Cook to operate nine 24-hour foreign exchange and travel counters at the newly launched Terminal 3 at Delhi International Airport. Thomas Cook’s one-stop-shop counters will not just offer foreign exchange services but also all its other products and services such as insurance, air & rail tickets, domestic and international travel packages, hotel bookings etc. There are five counters on the departure level; at arrivals there are four counters, two located inside the
Maharaj Wahi
Karan Anand
Neelu Singh
Arun Pai
HIGHLIGHTS
Karan Anand Anand,, head, relationships and exclusively during Janama sht mi,” supplier management, Cox and Kings. explains Neelu Singh, COO, Ezeego1.com. Core source market includes Chandigarh has more t han 2,0 0 0 Garden Tourism is still at a very nascent mainly nature enthusiasts, parks and gardens. The Rock Garden, the stage and travelling only for gardens botanists Cactus Garden (Asia’s largest outdoor to a particular city is still unheard of. landscaped Cacti garden) and the Pinjore However, people have actively started Historical relevance of the Gardens, built by Auranzeb’s brother in incorporating visits to famous gardens in garden and entertainment the 17th century, all of which draw a huge a city. Singh says, “Foreigners usually draws tourists number of tourists. Himachal Pradesh’s include it as a part of their itinerary. apple orchards and cherry gardens have Garden festivals ideal Not many Indians used to want to include also become prime att ractions wit h gardens, but today, famous gardens platform to create North East’s tea gardens even being are included on the itineraries for Indians awareness for gardens as a marketed as exclusive tours, domestically as well.” tourism product and internationally. “We arrange trips for The perspective of Garden Tourism groups from Sweden coming for study in India differs greatly. Most t ravel tours of Indian gardens through the Forest Institute of India. agent s b elieve that combining gardens w ith additional They come once a year, every year for botanical study tours,” amusement activities would attract families. “Gardens alone informs Wahi. are too dull a topic for a v isitor. Garden Tourism ha s Interestingly, religious festivals play an important role. “For prospered anywhere when combined with entertainment,” example, people visit gardens like Vrindavan in Mysore Wahi points out. As the name of his outfit suggests, Arun Pai Pai, the founder of Bangalore Walks, has his clients discover the city through guided walks. One such is the Green Heritage Walk, a guided tour of the famous Lal Baugh in Bengaluru. He points out, “People are focussed and they are interested in knowing about the gardens; entertainment is not on their mind. Investing in quality content is extremely necessary while on a garden tour,” Pai says. While Pai has a point, agents feel that promoting gardens using entertainment as `bait’ would create interest. “Brindavan Gardens in Mysore are popular as they have light and music shows and some customs area, directly opposite the baggage belts, and gardens attract tourists mainly because of their historic the other two in the arrivals lounge (outside the relevance,” points out Anand. customs area). People opting for this segment are usually retired people, botanist s and flower enthusiast s. However, interesting Amadeus boosts Taj Hotels information could attract the regular tourist too. Pai stated, bookings by 30% “India is now dis covering t here are different kind s of Amadeus’ partnership programme with Taj Hotels t raveller s a nd a ver y large dis cer n ing audience t hat Resorts and Palces in 2009 helped Taj Hotels to generate appreciates and loves nature.” a 30 percent increase in hotel bookings from travel Garden Tourism faces a number of challenges and among agents within India, and a 12 percent increase from these is their maintenance. “If the gardens and parks are agents from five markets across the Asia Pacific. This, manicured and maint ained, t his s egment ha s a lot of despite the challenging operating environment in 2009. potential,” Singh remarks. – APEKSHA HARIHAR
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Players in the nascent Indian car rental industry are expecting a double-digit y-o-y growth for the next 2-3 years. “People are looking for a more safe, reliable and convenient car rental experience because of which we see huge grow th potential in this segment,” says Sunil Gupta Gupta, CEO, Avis India. Rajiv K Viz Viz, CEO, Carzonrent, which operates the Hertz car rental service, also sees great scope for branded players in this segment. “Currently, only 10 percent of the car rental market can be termed branded or organised Sunil Gupta Rajiv K Viz leaving a large share for branded players to tap,” he adds. Their optimism with regard to the growth rental services. “Increasingly, customers is based on improved infrastructure and the are demanding safe and reliable services, rapid industrialisation that India is witnessing. m ov ing t h e business toward s brande d “We are getting 50 percent business from players,” he adds. corporates and 50 percent from hotels. We Contrary to belief, the difference in fare exp ect grow t h in b oth segment s as t he between a local taxi operator and a branded economy grows and the number of hotel car rental company is in the range of 15-20 chains increase in India,” Gupta informs. A p ercent a nd it is not jus t t he top- end joint venture of The Oberoi Group (67%) and corporate traveller that is willing to pay this Avis Europe (33%), Avis India has a presence premium to b e safe and have quality car in 17 cities in the country. rent al s erv ices. “Even m edium level Viz points out that there is growing intercorporate travellers and individual business city movement not just in the cor p orate travellers are opting to pay these rates,” Viz s egment but a ls o in t he m id- cor p orate informs. Gupta lists the advantages of car segment, both of which require reliable car rental services over the local taxi operators
from the unorganised sector. “We ensure that the average age of our cars is about 18 months and pay timely road taxes to offer seamless interstate travel. Moreover, our drivers are well versed with routes and are also comfortable in English,” he says. However, both differ on the market size. While Viz estimates that the whole Indian car rental indust r y is worth ab out $1.5 billion, and the organised/branded segment, including the local branded players (taxi operators who have more than 50-60 cars), worth $150 million, Gupta puts the figure at $ 2.2 billion of which t he orga n is e d players have 20 p ercent market share or $ 0. 44 billion. Seeing the increasing demand for cars from organised operators as well as future potential, expansion plans are on the cards for each of them. Avis India, which has a fleet of 1,000 cars, is planning to lease its cars to corporate clients on contract. While the cars are used by the employees of the company as t heir p ersona l vehicle, the purcha s e, maintenance and insurance are all taken care of by the leasing company. By the end of this year, Carzonrent, which has 6,000 cars and a pres ence in 11 cit ies a nd at f ive met ro airports, will introduce its services at five
leisure and five business destinations. Avis India is gearing up for the coming Com monwealt h Games. “We will p ool vehicles f rom other cities to f ulf ill t he increased demand in Delhi during the Games period. We are also in touch with sports department s of various Commonwealt h count ries so that t hey can b ook cars in advance for their travel in Delhi during the Games,” Gupta informs. According to Viz, chauffeur-drive will remain the mainstay in India vis-a-vis selfdrive which is very popular overseas. “We need to sort out inter-state taxes as well as easier insurance norms to make self-drive p opular in I ndia,” Viz opines. Gupta, however, feels that factors like traffic jams and unavailability of parking space in most cities are big deterrents. Players are a ls o improv ing t heir technology to offer more convenient services to customers. Avis India is in the process of integrating new software into its booking system to enable customers to book their choice of cars worldwide. Carzonrent is al read y prov iding unique cor p orate customer login web pages which enables clients to book and also retrieve invoices for – MURARI MOHAN JHA services used.
Kesari taps pilgrim tours segment, finds large audience Kesari innovated to launch religious tours in September 2009. Today, the concept is extremely successful attracting not only seniors but also youngsters and architecture students keen to study the architecture of our temples.
Sangeeta Patil
“O ur pilgrimage tours have b e en designe d keeping in mind the religious needs of people in I ndia a nd t heir dema nd for t h e b est spirit ua l ex p erience w it h a n aes t hetic touch,” says Sangita Patil Patil, director, Kesari Tours. Therefore, the pilgrimage tours cover sites of religious significance located in mountains or along rivers or waterfalls. Patil informs that the tours are made more interesting by tour guides, well acquainted with Hinduism, so as to offer tourists a full narration during the tour and an actual visit to the sites of the mythological stories. The existing product s on offer are – Kailash Manas, Vaishnodevi and Chardham. Patil shares that
they have received a great response to all three since t hey were launched in 2009. She attributes t heir p opularity to Kesari’s st ringent focus on offering convenience to the traveller and correct timing. Kesari has taken the initiative to time these tours during the months of June–September thus identifying a great off-season product. “We avoid conducting t hese during festivals so that our tourists have sufficient time for darshan,” says Pat il. Als o, they have a ver y interesting way by approaching religion mixed with infor mat ion. “Our Kur uk shet ra–A m rit s ar Yat ra provides a combined insight into the religious and historical relevance of important places,” says Patil.
in brief… IRCTC announces Chardham Yatra packages The Indian Railway Catering and Tourism Corporation (IRCTC) has announced ‘Chardham Yatra Packages’ especially for domestic travellers planning to visit pilgrimage centres in Uttarakhand. These holiday packages include accommodation in standard hotels, vegetarian meals, transport services and sightseeing of pilgrimage sites.
Goa launches honeymoon segment initiative In a bid to target newly married couples, the Tourism Department of Goa is promoting a special honeymoon package and is reporting a good response already. The package includes a five-night, six-day stay and offers a choice between three hotels – two hotels located off Miramar and Calangute beaches
and one situated alongside Mayem Lake. Apart from lodging and boarding facilities, the package also includes airport, railway station or bus transfers, and sightseeing tours of the main tourist sights in the state.
Amarnath Yatris welcomed by travel trade in Kashmir About 15 unions representing various segments of the travel trade and hospitality industry in Kashmir jointly welcomed pilgrims for the annual Amarnath Yatra on 1st July 2010. The unions included the Travel Agents Society of Kashmir (TASK), and the Travel Agents Association of Kashmir (TAAK). As many as 2.75 lakh pilgrims from across the country have registered themselves either online online,, or through J&K Bank branches across India India,, for the Yatra so far. The Yatra will conclude on 25th August 2010.
Organised players have only 20% share of the car rental market Difference in fare between any local operator and car rental company is 15-20% The concept of self-drive is yet to pick up in India
HIGHLIGHTS
Car rental industry expects 20% annual growth
HIGHLIGHTS
22 Travel Agents & Tour Operators
Huge scope in segment due to religiousness in domestic market Youth being drawn through aligning hiking experiences with religious tours Ideal to tap slow holiday season between June-September
Eager to not restrict themselves to the senior citizens segment only, Kesari is tapping the young generation through a difference in the positioning of the product. “Kailash Manas Sarovar, Chardham, Vaishnodevi are spiritual tours that also provide an excellent opp ort unity for the ult imate t rek king experience,” says Patil, adding that the target audience also encompasses architectural students “Students of architecture are very keen on our tours because it gives them the opportunity to study the architecture of our temples and t he craft smanship,” expains Patil. Kesari is looking forward to drawing a large number of visitors through the newly added Krishna Charitra Yatra. “Shri Krishna Charitra Yatra is a unique package which covers Shri Krishna’s known locations of presence from his birth place to the various stages of his life,” says Patil. The first tour begins in August and Patil claims that while the first tour is 100 percent booked, Kesari has geared itself for another in November owing to this success. Other additions to Kesari’s religious tourism portfolio include the destinations of Saurashtra in Palitana and Devbhoomi in Nepal. “We have planned our it inerar y in such a way t hat b ot h destinat ions ca n be covered in a single journey,” says Patil. Commenting on the scope within the s egm ent, Patil shares, “We have t he opportunity to cover the immense number of ancient and historical destinations all over India. The challenges faced in this segment are not many as India is a ver y religious count r y and ha s a huge s cop e for such – APEKSHA HARIHAR tours.”
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Bollywood Tours to scale up Mumbai’s leisure quotient Even as the city’s inbound stakeholders continue to lament the lack of leisure potential in Mumbai, Bollywood Tourism, a seven-month-old company, has introduced a new product. Bollywood Tourism will run half-day and full-day tours to locations that showcase the Bollywood experience. The company has roped in Reliance’s Big ND studios run by Nitin Desai of Jodhaa Akbar fame, and Balaji Telefilms. To make the exp erience more complete, tourists will have the opportunity to learn the finer art of Bollywood make-up and saree draping from husband-wife/ make-up duo, Bharat and Doris. Tourists will also learn Bollywood dance moves and some acting courtesy an agreement with the Anupam Kher Academy. “For groups of more than twenty, there is the option of also having a Bollywood dance troupe perform at the close of the tour,” said Marianne Parackal Parackal, managing director, Bollywood Tourism. She was making a presentation to press and hotel concierges to announce the launch of packages featuring this tour which will now be distributed through t ravel agents, tour op erators and hotel
in brief… ATOAI and ATTA tie-up The Adventure Tour Operators Association of India (ATOAI), has entered into a partnership with the Adventure Travel Trade Association (ATTA), a Seattle-based global organisation to grow the Indian adventure travel market. ATOAI members will now receive a 40 percent discount to join ATTA, which makes them eligible to receive a US$100 discount to attend its Adventure Travel World Summit, which is set for October 4-7, 2010, in Aviemore, Scotland.
Kuoni Connect enters into partnership with Travelport Kuoni Connect, the unit of Kuoni Destination Management specialised in online distribution, is expanding and diversifying its leisure travel product. Kuoni Connect’s over 15,000 two-star to five-star hotels in more than 1,800 destinations and its full range of destination services such as sightseeing tours, transfers, excursions, packages and concierge services, will become bookable through Travelport Leisure, and will be free of charge for all travel agents, even if they are not subscribed to the global distribution system. It will be rolled out globally this month.
ItzCash and Akbar Travels initiate air ticketing website ItzCash Card and AkbarTravelsOnline.com, have launched an air travel portal, Itzicwtravel.in, dedicated exclusively to air ticket bookings. The website was launched a few weeks ago and has already attracted an average of Rs one lakh transactions per day. ItzCash franchisees will facilitate booking of domestic air travel tickets and the partnership will ensure that customers, especially from tier-3 and tier-4 towns who do not have the facility to book air tickets around their place of residence / office, or an internet facility, can now approach any ItzCash franchisee.
concierge desks. The experience includes a full-day tour for US$ 150 and a half-day tour for US$ 125. The former runs from 8 am until 6:30 pm and consists of a visit to Big ND art studio in Karjat with breakfast enroute, lunch at Four Point s by Sheraton in Vashi and then a trip to Balaji Telefilms’ studio in Film City, Goregaon, where Anupam Harish Kale, director, Bollywood Tourism and Kher’s staff offer acting lessons Marianne Parackal, managing director, Bollywood Tourism are offering a new look at tinseltown. to tourists. The half-day tour starts at noon and includes visits to the Balaji and Karaoke will be part of the onboard studio and to the dance academy. Elaborating entertainment. Clips of movies shot at the on the nitty-gritty, Harish Kale Kale, director, studio will also be shown. For those with a Bollywood Tourism, revealed, “Groups of over technical quest, visits to Whistling Woods eight will be ferried in luxury coaches and post production studio will be arranged. smaller numbers in Innova cars.” Tattoo The company is looking at inbound travel artists, tarot card readers, flute instructors agents and hotel concierges to help them to
make contact with the inbound traveller. Harish Kale, explained, “We’re restricting the product’s marketing to inbound travellers as the logistics and security involved wit h domestic travellers at film locations is much more challenging, considering their emotional connection to Bollywood stars. There is the likelihood of the star getting mobbed on the set.” Fam iliarisation tours for the bigger inbound agents like Sita, Le Passage to India and TCI among others, have already been conducted. The Ministry of Tourism too has offered support and Incredible India offices are pushing the product overseas. Parackal added that the company will be offering 10 percent travel agency commission across the board; for groups of over 15, agents and concierge desk s will b e given net noncommissionable rates where they can add their own commission. “Mumbai’s leisure potential is very limited although its products like Dhobi Talao are ver y unusual. We anticipate t hat t his product w ill add to Mumbai’s leisure portfolio,” she said. The concept has been attempted before considering that Bollywood is an integral part of Mumbai’s DNA. According to Kale, it was not successful before because it was based on contact s wit h big stars which did not necessarily ensure that tourists would be allowed on the sets. “We, on the other hand, have signed agreements with all our partners, thereby assuring tourists of their money’s worth,” Kale explained. – RAYNAH COUTINHO
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Pet Tourism ! Pawsitively emerging as a segment
Anupama Vinayak, international pet travel consultant, launched Pet Vacations in 2008.
Mumbai-based Pet Vacations is the first agency in India to organise travel for owners and their pets. The influence seems to be coming from the West where pets are treated as part of the family. HIGHLIGHTS
Anupama Vinayak Vinayak, inter national p et travel er holiday booking,” she cautions, adding that it rePet Vacations has consultant, Pet Vacations, launched the company in quires knowledge of animals, a keen understanding 2008 realising that ‘pet parents’ would like to take of animal first aid, potential problems during the partnerships with 500 their pets on holiday, given the opportunity. journey, the arrangement of emergency and vet serhotels for pet vacations Though she is unable to quantify the potential of vices in the area etc.. Some pets have special dietary JetPet and Pet Airways are the segment, the increasing willingness by way of requirements if they are diabetic or have heath probexclusive flights for pets in partnerships and tie-ups that Pet Vacations has lems which Pet Vacation arranges for by informing the USA achieved in the accommodations sector has her very the hotel about when the pet will eat and the kind excited. “Initially, resorts and hotels were very of food it will have. Vinayak points out that there is Inbound tourism in this reluctant, some even hostile to such a concept as it some lodging etiquette owners need to be mindful segment has huge potential was alien and unheard of,” Vinayak recounts. of at hotels, like avoiding public areas when with However, the hospitality industry has matured over pets, and they must their pet’s bed linen. time and Pet Vacations has grown the number of partnerships from No wonder then that travelling with pets is not the ideal tour a tour five hotels to 500 in the last two years. operator will want to market which is where Pet Vacations has made a According to Vinayak, this is a niche and, if the details are not taken mark. “There is skepticism among travel agencies to tap this segment care of, the programme can fall flat on its face. “It’s not like any othbecause of all the complicated logistics involved; for example, it is difficult
Diversification is the only way forward for the Indian travel agent They say that behind every successful man there stands a woman. Iqbal Mulla, CMD, Treasure Tourism Corporation Limited, Mumbai, is no exception to this rule, only that in his case, it is his daughter. With her degree in business st udies from Middlesex University, London, Shaista Budere Budere, executive director, Treasure Tourism Corporation, looks demure and unassuming until she starts to speak. This 28-year-old gen-next entrepreneur believes that tourism is an engine for grow th and has focused her creative energies in the last eight years, including the time she spent pursuing her degree in business studies, strategising to ta ke her compa ny for ward. Shaist a successfully married t he wealt h of knowledge she received from her father with her modern exposure and outlook, with the plan to grow the company’s business by 10 - 15 percent’each year. “The global recession was brutal and spared no one. However, I am happy to acknowledge that because we were thinking ahead of time, we were not impacted very massively. We had already begun diversifying our portfolio and broadening our horizon. This strategy stood us in good stead as diversification is the only way forward for the Indian travel agent,” she says. “My father always had a dream to grow our brand and be among the few travel companies in India that makes public offering. I am glad that our efforts in the past few years have paid off and we intend to come out with an IPO before the end of t he year,” she st ates. Trea sure Tours & Travels was
rechristened Treasure Tourism Corporation Limited in March earlier this year. “I believe that the tourism industry is only beginning to take flight and I am thus keen to take our brand global. I want to concentrate on tapping markets hitherto untapped by any other tour operators,” says Shaista. This father–daughter duo complement each other perfectly. “Whilst my father is great at finance and number crunching, marketing and PR, which are endemic to our profession, is right up my alley. I must confess though that growing our inbound portfolio is what drives me the most,” she declares. She shares that whilst she was in the UK for three years, she identified the UK, USA and Scandinavia as potential inbound markets for India and built a substantial database of potential clients. “These are markets for my regular FITs and, when combined with our existing clientele from the Far East, Dubai, East Africa, Kenya and South Africa, our inbound division took wings,” she reveals. As information technology is one of her specialisations, she is currently engaged in constructing the company’s travel portal and online reservation system to market their products globally. “It is easier for the younger generation to use the internet as a prudent marketing device; I have that edge over my father,” she laughs.
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– RAADIA MUKADAM
to often find a pet-friendly taxi or transfer service,” says Vinayak. Pet Vacations is, therefore, ideally suited as it does airline bookings for pets and arranges for pet-friendly taxi services, only from Mumbai though, which is not really a travel agent’s idea of a tour. T he air t ransp ortation s ector is als o substantially pet-friendly. Presently, there are four airlines, namely Jet Airways, Jet Lite, Air India and SpiceJet that allow pets onboard, provided certain guidelines are adhered to. Large pets are flown in the hold and smaller pets, below 9 pounds (4 kilos), can be taken on board in IATA-approved cages, which Pet Vacations provides. Australia and the United States even have independent flights for pets called JetPet and Pet Airways, not feasible in our nascent Indian pet market yet where it will take some time before the concept finds acceptance even with regular airlines. Apart from the airlines, Indian Railways is accommodative of pets too but only in the A/C first class coupés. “One needs to remember that only a few trains have such coupés which should be booked well in advance,” Vinayak advises. Pet Vacations has also b een receiving inbound inquiries from NRIs, PIOs and others travelling to India with their pets. “Recently, we booked a Spanish lady and her cat for a three-month vacation in Shimla,” Vinayak says. The scope for this segment from the West is undeniably big if we can smoothen out – APEKSHA HARIHAR the rough edges.
in brief… Booking portal for guesthouses launched MGH Budget Accommodations recently launched MyGuestHouse.net to offer bookings for guest houses, bed and breakfasts, inns, serviced apartments and motels. The portal catalogues in-depth information, amenities, images and directions to each property. Based on a unique franchisee model, the portal also offers an excellent investment option wherein franchisee holders obtain three separate but simultaneously active revenue generation modules.
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Starwood Expo shows stronger European presence, greater focus on W, Westin brands In its fifth edition, the Starwood Expo showcased 30 properties, up six properties from last year’s 24. The event saw a stronger presence of European properties even as Europe continues to recover from recessionary blues. The Expo showcased Delhi, Bengaluru and Mumbai and saw enthusiastic participation from the travel trade at both the expo and the networking cocktail events in all three cities. This year, the Starwood Expo featured a W cutout to draw more attention to the brand what with the opening of W properties in Hong Kong, Maldives and very soon, the W Retreat Koh Samui. The 2010 edition of the Starwood Expo also had a ‘Heavenly Bed’ installation to draw focus to their Westin brand which is being aggressively rolled out in the country. There are Westins in Hyderabad, Pune and Mumbai; Gurgaon will open soon. – RAYNAH COUTINHO
MoT felicitates young Everest conquerors The Ministry of Tourism recently organised a function at The Ashok, New Delhi to felicitate two young mountaineers Arjun Vajpai and Mamta Sodha who have recently s caled Mount Everest and made India proud. The function was well attended by the leaders of Delhi's travel trade fraternity. Speaking on the occasion, union tourism minister Kumari Selja said that Vajpai’s achievement at the young age of 16 years was commendable. The minister was equally elated about the achievement of Mamta So d ha. Sh e urged s ch ools a nd ot her higher e ducat iona l instit ut ions to have compulsor y programmes in adventure activities for students as such initiatives shaped personality t ra it s like s elf- dis cipline, endura nce, p ers evera nce, s elfconfidence and pride in the nation.
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1. The Starwood delegation including the regional managers and sales personel from Starwood’s domestic and international properties. 2. Travel agents in Mumbai network with the Starwood suppliers at the ITC Grand Central.
InterGlobe Awarded for being the best place to work for
L-R: Anil Parashar, group CFO, InterGlobe Enterprises; Aditya Ghosh, president, IndiGo; Amitabh Bhattachary of Good Places to Work Institute, and Harish Gandhi, group head (HR), InterGlobe, with the award.
InterGlobe Enterprises has been voted as one of ‘India’s Best Companies to Work for the year 2010 in a study done by Great Places to Work Institute, in partnership with The Economic Times. This is the third time InterGlobe has won this award. Speaking on the occasion, Aditya Ghosh Ghosh, president, IndiGo (who is also a member of InterGlobe’s Executive Committee), said: “At IndiGo, our constant endeavour is to create an environment where everyone can push their limits, explore their boundaries and feel good about what they are doing.”
3 1. Union tourism minister, Kumari Selja lighting the inaugural lamp. Also seen in the picture are: L-R: Subhadra Anand, CEO, Save the Children; Sanjay Kothari, additional secretary; EK Bharat Bhushan, additional secretary and financial advsior; Sujit Banerjee, tourism secretary and Rakesh Mathur, member, PATA India chapter. 2. L-R: Kabir Vasudeva, executive director, PATA India Chapter; Harish Sud, secretary general, FHRAI; Rajindera Kumar, president, FHRAI; Vijay Thakur, president, IATO; Radha Bhatia, chairperson, Bird Group and Nandini Verma, VP, corporate affiars, Kingfisher Airlines, sitting in the audience. 3. L-R: Mountaineer Mamta Sodha; SantoshYadav, who climbed Mt Everest in 1992; Kumari Selja and Arjun Vajpai, after the award ceremony
Sahara Star celebrates its Annual Day 2010 Hotel Sahara Star hosted its annual day, christened Sahara Star Utsav, to acknowledge and reward the stupendous efforts and remarkable achievements of all their employees and showered gifts worth a staggering Rs 1 crore on them. To commemorate this momentous occasion, all the employees of the hotel joined hands and organised a memorable evening at Jade Plus, the banquet hall at the hotel. The event was full of fun activities and Live performances, bringing forth the talent of the team, including singing acts, choreographed dances, a fashion show, mimicry acts, antakshari and a lot more, including performances by Heads of Departments and other senior members of the hotel. 1. Sahara Shree Subroto Roy with the staff at the Annual Day celebrations at Hotel Sahara Star. 2. Vivek Kumar, CEO Hotel Sahara Star; a staff member and Subroto Roy pose for the camera. 3. Vivek Kumar and actress Karishma Tanna take the floor. 4. Kishor Joshi, F&B manager, with Subroto Roy. 5. Dancers put their best foot forward. 6. All the winners with Vivek Kumar.
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