Travel News August 2007

Travel and Transportation Infrastructure

MIAL considers a helicopter service from airport to South Mumbai

Aviation Ministry to connect smaller cities?

Cathay Pacific shifts regional base to India

Airports to turn into all-in-one aeropolises

Asian no-frills airlines woo fliers from south India

IRCTC shortlists hospitality partners for developing 100 properties

Railways issues 27,000 frequent travellers card

Indian Railways accounts for 30% of Indian online retail for 2006-07

Rajasthan to have 2nd 'Palace on Wheels'

Incredible India in cruise control

Domina to bring Italian flavour to India

Mahindra Holidays to invest Rs 600 crore for setting up resorts

Oberoi hotel - best in the world

Sector: Aviation

MIAL considers a helicopter service from airport to South Mumbai
August 11, 2007

Mumbai International Airport Pvt. Ltd. (MIAL) is considering a helicopter service from the Mumbai International Airport to South Mumbai. It intends to use the helipad at the Mahalaxmi Racecourse for the services and has sent a written request to the Royal Western India Turf Club (RWITC) for the same. MIAL is also in the process of applying for a 'Non-Scheduled Operator's Permit', the licence for starting air charter operations.

MIAL has also forwarded a copy to Jairaj Pathak, the city's Municipal Commissioner. This is primarily because the racecourse land belongs to the Brihanmumbai Municipal Corporation (BMC) and has been leased to RWITC till 2013.

Source: Travel Biz Monitor

Aviation Ministry to connect smaller cities? 
August 10, 2007

The aviation sector seems ready to spread its wings to smaller cities, with the civil aviation ministry bringing out a new classification for regional airlines that will be given licenses more easily to ply on non-metro routes.

Till now, the aviation boom in the country has been about passengers through airports like major metros like Delhi, Mumbai, Bangalore and Chennai. Airlines use them as hubs, the trunk routes between them make up the bulk of an airline's profitability, but the aviation boom in India has yet eluded the smaller cities. The non-metro towns in the Indian hinterland, but all that might just change, a separate category of airlines with smaller aircraft, called the 'Regional Airlines'.

Having the 'Regional Airlines' to operate from non metro to metro cities, across the country would help connect the non metros to the metros efficiently. This would mean smaller cities will now get fast access to metro hubs as well as put more cities on the aviation map.

And with the government giving incentives to keep the ticket prices low, the idea seems pocket friendly too.

The separate category of regional airlines makes it easier for small operators to get licenses. From regions like the North-East, that have always suffered from a lack of connectivity, to the deserts of Rajasthan, that have made travelling long distances an arduous effort, the concept of regional airlines should help connect the dots across the country.

Source: Times Now

Cathay Pacific shifts regional base to India
July 28, 2007

Cathay Pacific has shifted its regional base from Bahrain to India to handle operations for of India, Middle East, Africa and Pakistan. Tom Wright, General Manager will shift base to Mumbai office from August 1 for Cathay Pacific and Dragon Air operations.

The airline's immediate priority is to increase frequencies between India and Hong Kong. However, this will be possible only after the governments of both the countries hold bilateral talks, which are expected to take place soon, informed Rupert Bray, Outgoing Country Manager, Cathay Pacific.

Also, it wants to introduce flights on the India-China via Hong Kong route before the commencement of Beijing Olympics which is scheduled for 2008. Wright also informed that the airline is on the verge of expanding its fleet with 31 new aircraft by 2010.

To enhance the experience on its flights on the India route, Cathay Pacific is planning to adopt 'Olympus', a product for business and first class passengers that offers luxurious seating due to its hi-tech features, in two years time. The product has already been launched on the airline's global services. It is also considering addition of a fourth 'Premium Economy' class that will be mainly targeted at business travellers who have to pay flight fares from their personal expenditure. Also on the charts is implementing the Pico Cell technology which enables onboard passengers to use SMS facilities, post-testing its efficiency.

Source: Travel Biz Monitor

Airports to turn into all-in-one aeropolises
July 24, 2007

You may not attend a wedding at an Indian airport anytime soon (in 2005, over 450 marriages were solemnised and officiated at Stockholm’s Arlanda airport). But you can look forward to spending an eventful day at an airport without going anywhere near an aircraft — maybe a movie, a piping hot meal or some shopping?

Airports are vying with each other to go beyond flight operations. Call it an aeropolis or aerotropolis — that’s the buzzword in Delhi, Mumbai, Hyderabad, Bangalore and Nagpur. With city centres, plush hotels, convention centres and banks, the airport projects in these centres aim to become self-contained cities.

The airport city theme is gaining ground with greenfield airports at Hyderabad and Bangalore providing enough scope even as the proposed cargo hub at Nagpur plans to include a special economic zone besides logistics facilities and a township.

Not to be left behind, the joint ventures modernising Delhi and Mumbai airports are also planning to host hotels, retail space and entertainment options. A similar attempt is expected by smaller airports as the government goes in for upgrade of 35 non-metro airports.

While the government is expected to invest Rs 12,000 crore in modernising airports over the next five years, current estimates indicate private investors and developers would pump in Rs 24,000 crore.

The Hyderabad and the Mumbai international airports are also scheduled to get luxury hotels, convention centres and speciality restaurants by 2010. The Accor Group, for example, is planning a 309-room business hotel at the Hyderabad airport.

Many new facilities not directly related to air travel can now be seen at airports, added an airport source. “Non-aeronautical revenue as compared to aero is currently 25-35% of the total revenue. But in the years to come, it would increase to 50%, if not more,” KPMG executive director Rajeev B Batra said.

Source: Economic Times

Asian no-frills airlines woo fliers from south India
July 20,2007

South-East Asian airlines are getting more aggressive. Value carriers, such as Nok Air, AirAsia, Tiger Airways and Lion Air, have either started betting big on destinations in south India or are planning to do so. The airlines are not only offering low fares, but also packages such as night stays in Bangkok and Kuala Lumpur to lure travellers.

“South India and south-east Asia have historical affinity. People from south India went to south-east Asia and are living there as citizens of those countries. These people keep visiting India and, hence, there is considerable air traffic on those routes. This offers huge opportunity to value or low-cost carriers from Singapore, Malaysia and Thailand,” said Kapil Kaul, CEO (Indian subcontinent and middle east) of the Centre for Asia Pacific Aviation.

“The air traffic growth between south India and south-east Asia is higher than between north Indian cities and south-east Asian cities. The growth on these route is to the tune of 20%, which is more than the industry average, and the trend is likely to continue,” added Mr Kaul.

In its bid to have a bigger slice of the pie, Singapore-based Tiger Airways plans to link the island nation with Chennai and Kochi from October. The airline would offer a return ticket on these routes for about Rs 10,000, about 50-70% less than the normal fares. Air Asia is also planning to start services between Kuala Lumpur and Kochi and Bangalore. Nok Air passengers get as much as 70% discounts at retail outlets in Thailand.

“The south-east Asian airlines are expanding to South Indian cities as traffic rights to Mumbai and Delhi are not available. These airlines would create a new segment as their fares are normally 15-20% less than normal fares,” said an official of an international low-cost carrier.

Source: Economic Times

Sector: Railways

IRCTC shortlists hospitality partners for developing 100 properties
August 11, 2007

The Indian Railways has generated keen response from major hospitality players for constructing budget hotels across the country. Brands including the Taj, Best Western and Orchid are on Indian Railway Catering and Tourism Corporation (IRCTC)'s list of seven short-listed hotel companies for developing hotels on the railways' surplus land through public private partnership.

IRCTC has earmarked 42,846 hectares of its vacant land at 20 different sites for developing a total of about 100 budget hotels. The sites are located in Mumbai, Delhi, Pune, Agra, Darjeeling and Jaipur among other places. As per estimates, IRCTC will earn about Rs 300 crore through this hospitality venture.

Source: Travel Biz Monitor

Railways issues 27,000 frequent travellers card
July 24, 2007

The Indian Railways has issued more than 27,000 cards till date to train passengers under the Scheme of Frequent Travellers (SOFT).

With a view to reward passengers who travel frequently by train, SOFT has been launched by Indian Railways Catering and Tourism Corporation in collaboration with State Bank of India, an official release on Tuesday said.

To improve patronisation of higher classes where occupancy level is relatively low as compared to Sleeper Class and 3-AC classes, the scheme was launched in February 2006. The scheme is applicable to 1st AC, 2AC and AC chair car classes.

Under the scheme, a passenger who travels frequently by trains has to get himself registered on payment of first year membership fee of Rs 500 after which a card is issued.

The card has to be renewed every year on payment of an annual fee of Rs 300, the release said, adding that such a passenger gets a comlimentary train trip after a certain number of reward points were accumulated.

Source: Economic Times

Indian Railways accounts for 30% of Indian online retail for 2006-07
July 10, 2007

Going online seems like a wiser decision for the Indian Railways as statistics reveal revenues of over Rs 700 crore through e-ticket sales in 2006-07 accounting for 30 per cent of India's online retail which stands at Rs 2,300 crore, according to Internet and Mobile Association of India.

This year's projections currently stand at Rs 1,500 crore. In June, the e-ticketing services of Indian Railways Catering and Tourism Corporation sold tickets worth over Rs 129 crore. On an average, it sells about 40,000 tickets daily through the Internet. On July 3, its online sales touched an all-time high of 44,000 purchases.

The massive jump in sales is putting pressure on the weak internet connectivity of most domestic banks. The corporation is also concerned that online sales may soon plateau off as Internet penetration is poor in non-metro areas. Sales will increase if it can also provide unconfirmed tickets on its website. The railways' e-ticketing has gone global, with travel agents in Sharjah, Nepal and Singapore providing the facility. On the anvil is a tie-up with the posts and telegraphs department. Post offices can then book tickets online.

Source: Travel Biz Monitor

Rajasthan to have 2nd 'Palace on Wheels'
July 7, 2007

Cashing in on the success of The Palace on Wheels luxury train, the Rajasthan government on Saturday announced the launch of second such train in January next year.

"The coaches are ready at the ICF (Integral Coach Factory) in Chennai. But these ones are slightly high on luxury," Rajasthan Tourism Development Corporation Managing Director Rakesh Saini said here. He said the new train will have three cabins merged in one coach to give the feel of a living room to the traveller.

"In the process, the number of people that the train can take has come down from 104 to 85," Saini said and hinted the ticket may be accordingly costlier. "Unlike hotels, in trains we can not build rooms on top of one another. So we have to go high on luxury to enhance earnings," he said.

Besides special suite for small groups and individuals, there will be a board room, conference room and an ayurveda therapy centre, he said. During the peak season from October to March, single occupancy in The Palace of Wheel costs about 560 dollars which comes down to 415 dollars in the off-season from September to April.

The luxury train would connect Jaipur, Jodhpur, Udaipur, Jaisalmer and Bharatpur in Rajasthan.

Source: PTI via Economic Times

Sector: Waterways

Incredible India in cruise control
August 6, 2007

Indian tourism has of late been taking on an endearing vigour which is reflecting the prognosis that World Travel and Tourism Council (WTTC) and World Trade Organisation (WTO) have made on its future prospect.

Cruising was for most part, viewed as an outbound phenomenon in light of the gathering rush of Indian tourists flying to an accessible Far East made for a ready, convertible market for cruise departures from Singapore and Hong Kong.

Given how successfully other countries have developed a captive high yielding domestic tourism segment by focusing on cruise tourism, the Indian government swept itself into emulous mode. With 7,500 km long coastline pierced by 12 ports and 185 minor ports, all functional, this particular transport mode may be spared the aviation ministry's favourite pet headache, infrastructure.

The Ministry of Tourism also recently introduced a slew of incentives aimed at stimulating private sector intent to begin domestic cruises like grants of 20 to 25 per cent of the capital costs of a private operator. The government is currently talking to Asian Development Bank (ADB) with the intention of initiating a line of credit for the private sector and individual states.

According to a study by an industry body, India and China together have 900 million middle-class 'cruise potential population'. Already 50,000 tourists arrived in India on 55 cruise vessels during 2006-'07. Super Star Libra, one of the two cruise liners operating domestic cruises along India's West coast hosted more than 1,60,000 passengers from Mumbai alone in the October - May season of 2006-'07.

The national cruise policy, due for a tentative release by end of this year is expected to bring relief in the form of seamless immigration, lower fuel duties and improved transit infrastructure.

Cruise terminal infrastructure is also being created in Mumbai, Goa and Tuticorin, where currently, provisional terminals have been created with container facilities. Mumbai port recently floated tenders for building a Rs 200-crore new cruise terminal. All of this is expected to result in a consolidated 2010 target of a million domestic and inbound cruise tourists. For 2007-'08 up to 54 cruise companies have sought permissions to berth their ocean liners in Indian ports, which is unprecedented in the Indian context.

Source: Travel Biz Monitor

Sector: Hotels & Restaurants

Domina to bring Italian flavour to India
August 10, 2007

The Domina Hotel Group, Italy’s largest hotel and resort operator, will start operations in India in the next two years.

The group is targeting tier-I and tier-II cities and will bring in its three-, four- and five-star brands – Domina Inn, Domina Hotel and Domina Prestige. It plans to build 30 properties in India in the next five years.

“We are targeting tier-I and tier-II cities such as Kolkata, Chennai, Hyderabad, Bangalore, Lucknow, Chandigarh, Ludhiana, Ahmedabad, Pune, Shantigarh and Indore. We are evaluating several opportunities in these destinations with regard to new development and existing hotels,” said Francois Droulers, vice-president, director development and acquisitions, Domina Hotel Group

Source: Business Standard

Mahindra Holidays to invest Rs 600 crore for setting up resorts
July 13, 2007

Mahindra Holidays and Resorts, India, is investing Rs 600 crore to set up a series of resorts across the country. The major projects include a 55 room resort on an area of seven acre of land at Kumbalgarh in Rajasthan and a 50 room resort on a five acre plot in Uttarakhand, involving an investment of Rs 100 crore. Work on both the projects is scheduled for completion by end 2007.

In a series of five star properties that will be set up by 2008, two resorts will come up in Maharashtra and one each in Himachal Pradesh, Karnataka and Sikkim at an investment of Rs 300 to Rs 350 crore. Also, the company recently acquired a property at Ashtamudi in Kerala for Rs 10 crore and intends to spend an additional Rs 25 crore for its renovation and expansion.

Mahindra Holidays and Resorts will also invest Rs 150 crore in three relatively smaller properties for 'Zest', its short-time holiday product, at Puducherry, Coorg and Yercaud. It has acquired 27 acres of land between Puducherry and Cuddalore for a 125 unit resort, which is expected to become operational by March 2008.

Source: Travel Biz Monitor

Oberoi hotel - best in the world
July 13, 2007

The Oberoi Udaivilas luxury hotel in Udaipur has been ranked the best hotel in the world with an overall score of 94.36 in the prestigious Travel + Leisure World's Best Awards 2007 readers' survey, it was announced Wednesday.

To arrive at the rankings, hotels across the world were evaluated on characteristics ranging from accommodation and service to location.

The survey also ranked Oberoi Amarvilas at Agra as the 10th best hotel in the world and Oberoi Rajvilas at Jaipur one step behind. Nancy Novogrod, editor-in-chief of Travel + Leisure said: "This year's results underline (our) readers' ever-increasing embrace of global travel in their search for distinctive and authentic experiences.

"The extraordinary rise of India among the top hotels and resorts in the world is one sure reflection of this tendency, with Oberoi Udaivilas ranking number one hotel in the world and Oberoi Amarvilas and Oberoi Rajvilas coming in at 10 and 11 overall," she added. Oberoi group chairman P R S Oberoi said: "This is a significant landmark for Indian tourism and will further encourage tourists to visit the country".

The Oberoi group operates 32 properties in five countries.

Travel + Leisure has a circulation of approximately one million. For the survey, a questionnaire developed by the editors of Travel + Leisure in association with Harris Interactive, was made available to subscribers on the Internet during the first quarter of the year.

Respondents reported where they had travelled worldwide and rated only the destinations, properties and companies that were relevant to their recent travel experiences. Respondents were asked to rate hotels, cities, islands, spas, hotel spas, tour operators, safari outfitters, cruise lines, airlines and car rental companies on several characteristics. The final scores are indexed averages of responses concerning applicable characteristics.

Source: Hindustan Times