Travel News September 2007

Support Industries

Spain Tourist Office, India, promotes Andalucia as a tourist destination
Cox & Kings ka Double Dhamaka
Now a Kerala houseboat with swimming pool!

Kuoni Holidays to increase footprint in India
Crimes against tourists alarm tour operators
A marriage of convenience

ITH to promote travel to Chandigarh
ITIL to develop tourism SEZ
Air travel becomes paperless as e-ticketing takes off
International Hospitality Fair 2007 to kick-start on October 8, 2007 at New Delhi
India Workshop 2007':FIT & MICE take centre stage
PATA Gold Award for Kerala Tourism
India's Tourism Finance Plans $100 Million Fund
Travel and tourism to create 7 mn jobs in 10 yrs: study
High rates erode hotel occupancy
Tourism boom brings women empowerment in Goa
Mumbai hotel rates highest in Asia-Pacific region
Travel portals surfing high tides in India
More and more Aussies soaking up 'Incredible India' experience
Southern hospitality, the present and the future
Kerala studies tourism impact
Rising rupee hurts tourism sector
Foreign trips get cheaper as rupee hits 9-year high
Expats to help hospitality cos put best foot forward
Hotels tap local stars for foreign ventures too
AH&LEI ties up with IGNOU for course in international hospitality management

Service providers

Spain Tourist Office, India, promotes Andalucia as a tourist destination
October 13, 2007

The Spain Tourist Office held a business briefing and product presentation titled 'Andalucia: Tourist Destination' yesterday at ITC Maurya, New Delhi, in an endeavour to promote Andalucia as a tourist attraction in India. Ion De La Riva, Ambassador of Spain in India, D Gaspar Zarrias Arevalo, Regional Minister for the Presidency of Andalucia and A Manuel Gutierrez Ruiz, Director, Tourism Andalucia were present at the event.

Represented by TRAC Representation in India, the Spain Tourist Office's presentation highlighted the culture, cuisine, leisure tourism, MICE and golf tourism of Andalucia. Besides, a renowned chef was flown in from Andalucia for churning out Andalucian delicacies. "I have come to New Delhi, which is the heart of the Indian peninsula and Andalucia is the heart of Spain. With half a million tourist rooms, five airports, important ports in Andalucia and 21.5 million tourists visiting the region in 2006, we are now looking forward to increasing the number of Indian inbound by consolidating Andalucia as a tourist destination," said Arevalo.

Source: Travel Biz Monitor

Cox & Kings ka Double Dhamaka
October 2007

Cox & Kings, the oldest established travel company, has launched the Double Dhamaka offer. Two families get to travel to breathtaking destinations of India for the price of one! The prices start from a minimum of Rs. 37,820 for a family of two and another family of two can join them at no extra price. Similarly, a family of three can avail of a fantastic holiday starting at Rs. 48,500 and have another family of three join them at the same price. The packages start from a minimum of six days / five nights stay and are valid till March 31st, 2008.

These six packages have been designed to offer an ultimate holiday experience for families to the exquisite locales of  Kashmir, Himachal, Eastern Himalayas and South India. All this and more at Cox & Kings.

The packages are as follows:
Best of Kashmir (6 days / 5 nights)
Kashmir...paradise on earth, where the white sheet of snow spread far and wide, awaits you. This holiday is made perfect as you tour Srinagar, Sonamarg, Gulmarg, Pahalgam. This package is priced at Rs. 37,820 for four persons (two families of two members each) and Rs. 48,500 for six persons (two families of three members each).

Enchanting Himachal (7 days / 6 nights)
Himachal has many treasures; picturesque Shimla, breathtaking Manali, splendid Panchkula. A perfect holiday for your family at Rs. 45,570 for four persons (two families of two members each) and Rs. 56,730 for six persons (two families of three members each).

Royal Rajasthan (8 days / 7nights)
Enjoy a majestic holiday in Rajasthan as you soak in the glory of Jaipur, Bikaner, Jaisalmer and Jodhpur at just Rs. 59,960 for four persons ((two families of two members each) and Rs. 71,640 for six persons (two families of three members each).

Eastern Himalaya (6 days / 5 nights)
Gangtok, Kalimpong, Darjeeling; visit to these magnificent locales is going to take your breath away. This package is priced at Rs. 43,920 for four persons (two families of two members each) and Rs. 54,240 for six persons (two families of three members each).

Southern Heritage (7 days / 6 nights)
Nestled in the beautiful blue hills of the Nilgiris and the rolling Palani Hills, the delightful hill stations of Ooty, Kodaikanal along with Mysore all combine in making this one of the most desired getaways and a holiday destination for families. This package costs Rs. 51,420 for four persons (two families of two members each) and Rs. 63,540 for six persons (two families of three members each).

Best of Kerala (6 days / 5 nights)
God's own country is going to fulfill your heart's desires. Visits to the eye catching locations of Cochin, Munnar, Thekkady, Kumarakom is truly a dream vacation come true. This beautiful holiday comes to you at a great value for money price of Rs. 55,980 for four persons (two families of two members each) and Rs. 68,140 for six persons (two families of three members each).

The above mentioned tour prices include accommodation, meals as per the itinerary, transfers and sightseeing as per the itinerary and travel insurance for the paid passengers. The price also includes free return air tickets as part of early bird offer on an airline of Cox & Kings choice.

For bookings / details call 1800 22 1235  or 09867565599.

Source: MSN India

Now a Kerala houseboat with swimming pool!
September 28, 2007

Kerala's backwaters is all set to welcome tourists this season with a houseboat that boasts of a swimming pool too.

Tomy Pulikattil, considered by many as a master innovator in the hugely successful houseboat industry, is the inventor of the new houseboat.

"The entire work is over and the boat would be floating in the Alappuzha backwaters this season," Pulikattil said.

The houseboat is 90 feet long and 16 feet wide and has two bedrooms on the ground floor with the pool on the first floor.

"The pool is 12 feet long, eight feet wide and has a depth of four feet. It is fitted with a treatment plant. Even though the pool might look small, it is fitted with a jaccuizi and hence swimming is going to be fun, with water being pumped at high pressure," said Pulikattil.

Pulikattil was a successful timber merchant before he entered the houseboat industry. Among the many innovations credited to him are a houseboat with ayurveda treatment, a boat patterned on a 'naalukettu' , the traditional Keralite home with a courtyard, and an immensely popular conference houseboat with state-of-the-art communication facilities and capable of seating 100 people.

Though Pulikattil refuses to reveal the cost of his latest innovation, he said the tariff for the houseboat would be Rs.12,800 a night. It would cost Rs.1,500 extra on account of the swimming pool.

On an average, a houseboat costs around Rs.2.5 million.

Source: IANS via MSN India

Kuoni Holidays to increase footprint in India
September 27,2007

Kuoni Holidays, apart from consolidating their position in Mumbai, Delhi and Bangalore are expanding their presence in the country and plan to set up offices in cities like Chennai, Hyderabad, Ahmedabad, Ludhiana, Kolkatta etc. Chennai, Ahmedabad and Ludhiana offices are expected to materialise within a year. Kuoni Holidays will also promote exclusive luxury lodges in Africa along with the launch of Top 7 series of packages, which comprise of Christmas and New Year destinations, honeymoon destinations, beaches, castles and villas, spa holidays, golf holidays and wildlife lodges. The launch is expected to take place shortly. The company has also been appointed as the central marketing agency to promote the Golden Holidays of Malaysia Airlines. "The objective is to provide premium luxury packages to our customers with highest quality possible along with value added services," stated Zubin Karkaria, CEO and MD, Kuoni Holidays.

Recently, Kuoni Holidays launched a book on Italy entitled 'Romancing the Peninsula' in association with Italian State Tourism Board and Alitalia. "We are planning to work with German Tourism and French Tourism boards on similar lines and something should materialise soon. The segment of premium holidays is still untapped in India and such association with tourism boards helps in adding value to the destination. We are also looking at adding new destinations like Morocco, Turkey and South America to our profile," informed Karkaria. The average cost of Kuoni Holiday package is higher by 75 per cent as compared to any other holiday brands; due to higher spend per person and the length of stay. Kuoni Holidays registered a growth of over 100 per cent month on month in the first year of the launch. Kuoni Holidays is a part of Kuoni Travel Group (KTG); with KTG being a 100 per cent subsidiary of Switzerland based Kuoni Travel Holdings

Source: Travel Biz Monitor

Crimes against tourists alarm tour operators
September 26, 2007

Upset over the incidents of rape and molestation of foreign tourists, the Indian Association of Tour Operators (IATO) has urged the government to prepare a list of dos and don'ts for foreign tourists and put it up at airports, railway stations and bus stops, and, if need be to print advisories on boarding passes and railway tickets.

"Tourists should be advised to hire guides from accredited groups. There should be special travel guidelines for women travellers. They should be asked not befriend strangers," said Subhash Goyal, IATO president.

The tourism ministry has also written to the Uttar Pradesh government to provide better security to tourists, especially near Taj Mahal, which drew about 13 lakh foreign tourists last year. "Such ugly incidents  not only affect tourism but also eat into the job opportunities which the industry generates," said Goyal.

Sadly, the women foreign tourists DNA spoke to expressed fear about travelling alone in the country. "There seems to be a general feeling among Indian men that a woman from the West is easily available," said Jannelie Brink of Holland.

But even though three guides were arrested in Agra on Monday for raping two Japanese tourists, several women foreign tourists feel safe with their "guides". Brink agrees that the guides hired by reputed places may be safe, but bagpackers should be cautious.

Source: DNA India

A marriage of convenience
September 25,2007

A number of international tourism boards are seeking alliances with matrimonial websites in India to promote themselves as the ideal honeymoon destination.

The India offices of Malaysia Tourism, Australia Tourism, Singapore Tourism and Queensland Tourism would all like Indian newly-weds to give a filip to tourism in their countries and to that end, are talking to Indian matrimonial websites to see whether they can offer honeymoon packages to couples.

Tying up with a matrimonial website gives these tourism boards a focussed audience. Besides, these websites are visited not just by young men and women looking for a partner, but also by their parents and relatives. Thus, these tourism boards get a wider target group. For instance, www.shaadi.com has over 10 million registered members and gets over 300 million page views per month.

Last year, Tourism Australia, joined hands with Shaadi.com for a month-long campaign from December 2006 to January 2007. The website got 600 people expressing interest, of which around 100 honeymooners bought packages. "It was a successful campaign and we are exploring opportunities with other matrimonial websites again this year," says Maggi White, general manager, south east Asia and Gulf Countries.

Also, advertising on matrimonial websites is cost effective. For instance, while Tourism Malaysia would shell out around Rs 10 lakh to advertise in print and Rs 5 lakh for a 10 second prime-time slot on a television channel, advertising on a matrimonial website would cost only Rs 1 lakh. But it's not only honeymoon packages that Indian newly-weds are lapping up. With rising disposable incomes, a lot of couples are opting to get married on foreign shores.

Taking advantage of this, Tourism Malaysia is promoting itself as a wedding destination. It is offering honeymoon packages at anywhere between Rs 70,000 and Rs 3 lakh and wedding packages starting from Rs 50 lakh and going up to Rs 5 crore and more. Says an analyst, "The honeymoon market is one where people have a huge propensity to spend. Since matrimonial websites get hits from all age groups, tourism boards can sell products not only to the target group but also to others."

Paul Buggy, director, Korea, India, Middle East, South Africa and inbound, Tourism Queensland, agrees. "We believe that our presence on a matrimonial website will give us more visibility. Honeymooners being net savvy, an online promotion is generally successful."

In Queensland, the Gold Coast and Cairns are popular honeymoon destinations. A special package for honeymooners includes experiences like a ride on a hot air balloon in Cairns and a journey to the Great Barrier Reef and the Tropical Rainforests.

"Even luxury and exotic options like Hamilton Island and Hayman Islands are also picking up very well. Honeymoon in Queensland is a complete celebration." Though the travel and tour industry has not tracked the growth of India's honeymoon travel market, tourism boards say they get couples not only from the metros but also from smaller towns and cities like Aurangabad, Surat, Ludhiana, Lucknow and Nagpur to name a few. And with the marriage season ready to kick-off this October, the newly-weds are just going to have many more options to chose from.

Source: Business Standard

ITH to promote travel to Chandigarh
September22, 2007

International Travel House (ITH), an associate company of ITC Ltd, will focus on travel destinations in Chandigarh and neighbouring areas in Himachal Pradesh, Punjab and Haryana. ITH brought its sales and marketing teams from across India Saturday to understand the market in Chandigarh and Punjab.

'We want to market this beautiful city to tourists who can also make short trips to nearby areas in Himachal Pradesh, Punjab and Haryana. The city has vast potential for tourism,' ITH managing director Anil Kumar Bhandari said.

ITH, which opened its first branch office for the region here Saturday, will be looking at inbound and outbound tourists from Chandigarh.

'Chandigarh is making progress in several fields - entertainment, information technology, business and health. We foresee a lot of tourism potential here,' Bhandari said. ITH senior vice president Jehangir J Ghadiali said that the tourism scene in the country was set for a change. 'With more hotels being constructed and availability of more rooms, travelling will become cheaper in India,' he said.

ITH, which did a business of Rs.5.81 billion last fiscal, is expecting a growth of 35 percent this year.

'We are offering a one-stop shop for all kinds of travel needs and plans. This is what people want now,' said Bhandari.

Source: IANS Via Yahoo

ITIL to develop tourism SEZ
September

In a bid to tap the booming hospitality and tourism segment, newly formed tourism infrastructure company, Indian Tourism Infrastructure (ITIL) has drawn up ambitious plans. The company plans to create two tourism SEZs in Manadangarh and Sindhudurg in Maharashtra. ITIL has also tied up with three properties in Jammu & Kashmir and will launch its own taxi fleet, apart from tapping the lucrative medical tourism segment. The amount will be raised through an IPO in mid-2008 and will target the US, followed by the UK and Indian markets.

Each SEZ will be spread over 1,000 acres of land and will have an international standard convention centre and 30 hotels with a total of 20,000 rooms. The group has also applied for permission to run a casino. ITIL has also bought 730 acres of land at Lonavala and has drawn up a blueprint to create a second 'Venice' which will be a township with canals, and boats will be the only means of transportation.

The group has tied up with three properties in Jammu & Kashmir under management contract and these will be managed under their hotel brand - ITIL Silver Star Hotel, Srinagar; ITIL Hilltop Hotel, Gulmarg, and ITIL Woodstock Hotel, Pahalgam.

Discussing his expansion plans, Jyotin Doshi, chairman, ITIL says, "We are negotiating with various property owners to develop their properties. We hope to run 40 properties under our brand in a year's time, with three hotels coming up every month." The group is focussing on cities which have good potential to attract the tourists but lack infrastructure. These include Himachal Pradesh, Uttaranchal Kerala, Karnataka, north east India as well as properties in Kashmir.

It also plans to ramp up its taxi cum car rental services and increase the fleet to 1,000 cars. The cars are already plying in Srinagar, Delhi, Bangalore and Kochi. Apart from this, they also plan to create cruise terminals in collaboration with the Gujarat and Maharashtra governments. One of the sites marked out for this project is in Jamnagar. On the anvil are also private helipads and jet strips at four sites in the country which would accommodate a 20 seater plane. With its travel company- Gem Tours and Travels - the company will venture into medical tourism

Source: Indian Express

Travel ecommerce

Air travel becomes paperless as e-ticketing takes off
Sept 15,2007

Airlines in India are in a rush to go paperless. The International Air Transport Association (IATA), a worldwide body representing 240 airlines and 94 per cent of global air traffic, has declared that every ticket issued through its Billing and Settlement Plan - which facilitates transactions between airlines and travel agents - will be electronic by May 31, 2008. Judging by latest trends, airlines in India are quickly on their way to making ticketing fully electronic even before the end of the year.

Electronic ticketing, or 'e-ticketing,' gives travel agents as well as online travel portals direct access to an airline's reservation database. Web ticketing also allows consumers to directly make their reservations through an airline's website from their own homes, without the hassle of dealing with paper coupons or making a trip to the office of an airline or agent. The technology delivers both economic and logistic incentives for consumers; yet, it also brings with it areas of caution that airlines, passengers, agents and airport authorities need to be aware of. Over the last three years, the share of electronic tickets globally has increased from 16 per cent in 2004 to as much as 84 per cent today. In India, only 47 per cent of all bookings were done electronically just 12 months ago. Now, according to IATA, the figure has risen to 80 per cent. "India is well on the way to achieving the 100 per cent target," says Lorne Riley, an IATA representative based in Geneva. "We have no concerns at all regarding next year's deadline, if you look at how India is doing compared to other countries in the region" .

Sharp growth
For state-carrier Indian Airlines, the share of e-ticketing had sharply risen to around 60 per cent of their total reservations since the facility was introduced last year. For private carriers, the trend is all the more evident.

Jet Airways reports more than 80 per cent electronic reservations, while Kingfisher records close to 100 per cent electronic bookings. Indian Airlines' figures are also slated to increase once a revamp of the current reservation system - the system will be integrated with that of Air India following the merger - is completed.

Air Deccan, the first airline in India to establish a completely web-enabled reservation system, records around 40 per cent direct online reservations through its website alone, besides through the travel agent system. According to Pratyasha Singh, an Air Deccan representative, electronic ticketing has played "a significant role" in widening the airline's consumer base. In international sectors out of India, ticketing is largely done electronically, but only through travel agents and not directly through websites. Indian consumers still prefer to go through agents while booking international tickets. For instance, for flights out of India, Singapore Airlines records close to 100 per cent electronic reservations, but only around one per cent is done outside the travel agent system, directly on the web.

The reasons are two-fold: Higher costs involved in international travel make passengers more wary of booking tickets electronically through their credit cards, and credit card limits are another limiting factor. A second reason is the increasingly complicated and long-drawn procedures for acquiring visas. "At the moment, people have not really switched over to the web for international travel," confirms Indumathi Venugopal, director, Pegasus Travels. "While lack of availability is a factor, it is largely due to the complications in international travel such as the process of getting visas from consulates. For instance, for Malaysia there is a need to get immigration clearance even during the process of getting a ticket." The increasing trend of web ticketing has however been significant enough to force travel agents to diversify their business plans. "Travel agents are shifting more to value-added services, like visa application, tourism packages for groups and travel insurance," Ms. Venugopal says. "Agents cannot focus on ticketing alone as they once did."

Security concerns
How will this increasing surge for electronic ticketing ultimately impact air travel for passengers? D. Sudhakara Reddy, president, Air Passengers Association of India, believes that while technology will improve access to travel as well as costs for Indian consumers, there are a number of security issues that are yet to be answered. "It is true that fares are becoming significantly cheaper, especially when you book through the website of an airline," Mr. Reddy says. "There are also a number of search engines like Yatra.com, Makemytrip.com and Sprice.com that list all available fares and save you the hassle of making ten different calls to agents or airlines, though they often charge three to seven per cent extra on the fare." Mr. Reddy however cautions that the benefits of the technology come with certain caveats. He says that there is a need for tighter security systems in Indian airports in verifying purchases of e-tickets, as they are in the West. "For e-tickets, passengers are supposed to carry their identity card with a photograph," Mr. Reddy says. "Many people do not, and I have personally observed that airport security is not checking up on this consistently. You are allowing anybody and everybody to go in, so this is a very dangerous thing."

Source: The Hindu

Events

International Hospitality Fair 2007 to kick-start on October 8, 2007 at New Delhi
October 4, 2007

The International Hospitality Fair (IHF) 2007 organised by the Confederation of Indian Industry (CII) will take place from October 8-11, 2007 at the Pragati Maidan, New Delhi. A B2B event, it will provide industry players with an opportunity to get acquainted with the latest trends in food and beverage, house keeping, hospitality equipment, hotel interiors and technology, with over 80 participants showcasing their offerings at the fair. Other events that will take place alongside the fair include 'Culinary challenge', 'Pastry challenge', 'Think tank for general managers' and a full day seminar on revenue management. Also, there will be interactive sessions on financing, equity and operating options; trained manpower shortage and legal issues in hospitality.

Source: Travel Biz Monitor

India Workshop 2007':FIT & MICE take centre stage
Source: September 27, 2007

Zermatt, a small car-free alpine resort village at the foothills of one of the most photographed mountain in Switzerland, the Matterhorn (4,478 mtrs.) was not only the location of the `India Workshop 2007,' but also the motif of the focus of the workshop, to showcase new destinations and products. The workshop organised by Switzerland Tourism in conjunction with Swiss International Air Lines from September 14-19 witnessed a participation of 30 tour operators and travel agents including Online Travel Agents (OTAs) from across India and more than 20 Swiss suppliers. Zermatt won favour with the Indian participants as an excellent new destination, especially for the FIT market. Overall, the sentiments expressed on the day long workshop and the post workshop FAM trips by the Indian participants were that it was a productive and highly educational event. The post FAM trips covered Interlaken, Luzern, Basel, Engelberg and Zurich.

"The workshop was highly informative and under one roof we got to meet the different vendors. Everyone's perception of Switzerland is Interlaken, Luzern and Zurich. Zermatt in that sense was an excellent choice as the location for the workshop as it is a new destination for the Indian market. It is a wonderful place and will certainly appeal to the FIT segment," stated Vimal Joshi, Manager-North India, Riya Holidays. Echoing similar sentiments Kushal Saraf, Sr. Manager International Products and Operations, Makemytrip said, "Zermatt is not on the radar of Indian operators. It is a wonderful destination with a stunning panorama of snow clad towering mountains and host of activities. If marketed and promoted well it has the potential to become a popular choice of FIT's. The meeting with various suppliers at the workshop was very productive as the interaction will enable us to improve our existing offerings and also add new products. The FAM trip after the workshop was also very helpful as it gave a first hand experience of the destinations and products we sell along with logistics. It will help me explain in a better manner our offerings to the FIT clients." The list of suppliers participating in the workshop included transport companies like Post Bus and Glacier Express, hotels, Zurich Airport, Swiss International Airlines, various regional tourism bodies like Basel, Lausane, Luzern and host of others.

The programme for the workshop took off with a presentation at the Matterhorn Museum followed by cocktails and later dinner at the five-star, Zermatterhof Hotel.

Next day the workshop was held above Zermatt at Reffielberg (2582 mtrs), half way up Gornegrat Mountain. Post workshop dinner was at restaurant at Gornegrat, which presented fabulous views of glaciers and almost all the 37 other 4,000 plus mtrs. peaks apart from Matterhorn, which surround Zermatt. The bonhomie of the dinner spilled over to revelry late into the night at a pub in Zermatt, which saw Federico Sommaruga, Director Russia/CIS, India, GCC and Emerging Markets, Switzerland Tourism hit the dance floor first. Commenting on the workshop Ritu Sharma, Manager-India, Switzerland Tourism said that the focus of the workshop this year was more on the FIT and MICE segments of the Indian market. According to her the objective of the workshop was to get Indian agents to interact with Swiss suppliers and get them exposed to new products. "The workshop is an excellent tool to sell Switzerland and it gives the agents a better product understanding along with a first hand experience. For the past two years we have also been inviting local agents catering to the FIT and MICE segment from smaller cities like Jaipur, Chandigarh etc. and also from cities like Chennai, Bangalore and Hyderabad, which are not on our immediate radar," informed Sharma. With regards to choice of venue for the workshop she explained that they held it at a destination which they wanted to promote and Zermatt according to her has picked up in last couple of years as an FIT destination.

Switzerland Tourism also sees great potential in the Indian MICE segment and is promoting the country as a MICE destination. Guendalina Rampazzi, Product Manager-Meetings & Incentives, Switzerland Convention & Incentive Bureau while admitting that they were not active in the Indian market, said that India offered a great potential in Meetings and Incentives segment and they were doing their research on the market. "We are checking with operators in India what is required and this workshop has been a great platform," stated Rampazzi. According to Sharma, Switzerland is turning into a hotspot for Incentives for India as it has infrastructure, plethora of leisure options and offers value for money as the Swiss Franc is cheaper than the Euro. "This October we are having 800 passengers from India travelling on Incentives," informed Sharma. The workshop, even for a person like Shefali Gupta, Director, Access Worldwide, who has been closely associated with Switzerland, presented some new insights. "The focused interaction with the suppliers always helps and one gets to update product knowledge. Basel was a new destination for me and while it is a popular destination with business travellers, I personally think it can grow into a leisure destination. It borders France and Germany, is easily accessible from Paris and is close to Black Forest region of Germany. Basel also offers great nightlife and shopping and can also work as a MICE destination," stated Gupta.

Source: Travel Biz Monitor

PATA Gold Award for Kerala Tourism
September 18, 2007

Kerala Tourism once again hogged the limelight by bagging two gold awards in the culture and brochure categories respectively, of the prestigious Pacific Asia Travel Association's (PATA) 2007 awards. Aranmula, which won the award in the culture category for its various renowned cultural centres, is among the three villages in India selected for implementing the Endogenous Tourism Project - a joint venture of the United Nations Development Programme (UNDP) and the Union government. The award-winning brochures, a four-set series, showcase the renowned destinations of Kumarakom, Thekkady, Munnar and Wayanad. Designed and conceptualised by Stark Communications, the brochures highlight experiential holidays at these destinations. Kodiyeri Balakrishnan, minister for tourism, attributed these awards to Kerala Tourism's sustainable tourism policy and strong marketing strategies.

The special congratulatory message to the Department of Tourism from PATA lauded the achievement that will "help provide the chance for new ideas and products to stand out and be recognised, thus contributing to the development of the tourism industry."

"These recognitions are a real morale booster for us. This would not only inspire us to perform better but would also set a benchmark for all our future plans and endeavours", said an upbeat Dr Venu V, secretary, Kerala Tourism

Source: Express Travel World

Research and Market reports

India's Tourism Finance Plans $100 Million Fund
October10, 2007

Tourism Finance Corp. of India, which has funded the world's top-rated spa, plans to sell shares and set up a $100 million private equity fund to buy stakes in hotels catering to domestic travelers, the chairman said.

The money for the seven-year fund will be raised from banks and high-net-worth individuals, Archana Capoor, chairman and managing director, said in an interview in New Delhi, where the company is based. Tourism Finance plans to sell new shares to select investors to more than double its equity capital.

A doubling in India's middle class, estimated at 50 million by McKinsey & Co., has in the past decade spurred demand for hotels and resorts, driving an almost threefold rise in Tourism Finance's shares this year. ITC Ltd., the Indian partner of Starwood Hotels & Resorts Worldwide Inc., is expanding its brand of cheaper lodgings to 100 to tap demand in smaller towns. ``The future growth is not in the eight big cities, the growth is in the smaller towns,'' Capoor said yesterday. ``If someone wants to set up a chain of hotels, it's one of the best models. You can't have all your eggs in one basket.''

Shares of Tourism Finance gained 1.45 rupees, or 4.9 percent, to 30.9 rupees on the Bombay Stock Exchange today. Tourism Finance has lent money to IHHR Hospitality Ltd., which operates the Ananda in the Himalayas, rated as the best destination spa this year by the readers of Conde Nast Traveller magazine. The spa resort is located 260 kilometers (162 miles) north of the capital New Delhi.

Hotel Growth
"Tourism is set to grow with economic expansion and hotels are bound to perform better," said K.D. Mehru, vice president, research, at brokerage Darashaw & Co. in Mumbai. "Equity returns will be much higher than interest income." Tourism Finance will invest as much as 500 million rupees ($13 million) in the fund, Capoor said. The company had 663.14 million rupees in cash and short- term investments as of March 31, according to data compiled by Bloomberg. Tourism Finance was set up in 1989 by IFCI Ltd. along with other state-run banks. IFCI, a state-run lender bailed out by the government in 2003 because of bad debt, owns 19 percent of the company. State Bank of India, the nation's biggest, holds 7.4 percent. Life Insurance Corp., the nation's biggest, owns 6.22 percent and Bank of India, the country's seventh-biggest by assets, owns 3.8 percent. The public shareholding is 39.3 percent, according to the company's Web site. Companies and investors may turn to hotels in smaller towns as growth in room rents in the bigger cities is expected to slow.

Luxury Rooms
The number of five-star luxury rooms will increase to 58,000 in the country's 12 biggest cities in five years from 27,500, Crisil Ltd.'s research division estimates. The average occupancy will drop to 64 percent from 75 percent, it said. Room tariffs at luxury hotels will rise at a slower pace to 11,200 rupees a night by 2012 from 8,900 rupees, Crisil said. Five years ago the average room tariff was 3,960 rupees. The tourism industry in India is set to grow an average 7.9 percent between 2008 and 2017, the second-fastest pace after China's 9.1 percent, the London-based World Travel & Tourism Council says on its Web site. The council has forecast investment in travel and tourism in India may increase to $43.9 billion in 2017 from an estimated $18.1 billion this year. Lotus Hotel Investment Fund is aiming to raise $1 billion to build and buy hotels in Asia, some of which will be managed by Carlson Hotels Worldwide, the operator of the Regent and Radisson chains.

Lotus Fund
Lotus seeks to raise the money in the next five weeks, Martin Rinck, president of Carlson Hotels' Asia Pacific unit, said in an interview today. The fastest wage growth in the Asia-Pacific region is giving more middle-class Indians money to spend on leisure. New York-based consulting firm McKinsey & Co. defines members of the middle class as people with annual disposable income of $4,380 to $21,890. Tourism Finance plans to sell new shares to increase its equity capital to as much as 1.5 billion rupees from 670 million rupees, Capoor said. Directors will take a decision on Oct. 22, she said, without giving the number of shares to be sold. ``This will increase our net worth and allow us to lend more to a single entity,'' said Capoor. Tourism Finance can lend a maximum of 20 percent of its net worth to a single entity, as per local rules, she said.

Source: Bloomberg

Travel and tourism to create 7 mn jobs in 10 yrs: study
October7, 2007

With better infrastructure and soaring income levels, the travel and tourism sector in the country is expected to employ about seven million more people over the next 10 years, a recent study has said.

"A revolutionary growth is being witnessed in the Indian travel, tourism, airline and hospitality industries. It will lead to the creation of over seven million new jobs in India in the next 10 years," Elixir Web Solutions' Business Intelligence Team study said.

As many as 41.8 million people are directly or indirectly employed in the tourism sector in India, according to IBEF.

India is the favoured destination for majority of the travellers to South Asia which spells a pulsating future with immense job prospects in the sector.The area is growing at a rate of 10 per cent, double the global growth in the sector, the study said.

"The growth of tourism in South Asia is boosted by India, the destination responsible for half the arrivals to the sub-region," the study said quoting United Nations World Tourism Organisation. "India expects a tourist inflow of around 10 million in 2010 when it will host the Commonwealth Games," Union Tourism Minister Ambika Soni had earlier said. The sector, which is already on an upswing, is set to witness a boom time in the near future. Globally also, job opportunities in the travel and tourism sector would far outnumber those in the software industry over the next few years, the study said.

If the software industry offered jobs to 1,20,000 software professionals every year globally, the travel-tourism and hospitality industry has the potential to generate 5-10 million new jobs every year over the next three years, a worldwide report from Public Relations Society of India said.

Source: PTI via Hindustan Times

High rates erode hotel occupancy
October 3, 2007

Driven by inflation in hotel room rates, the occupancy rate in Delhi, Mumbai, Chennai and Kolkata has declined for the first time in four years, according to a report.

The HVS survey on 'Hotels in India-trends and opportunities' has revealed that the hotel industry overall saw a 12-month average growth of 30 per cent in 2006-07 as opposed to a growth of 23.7 per cent in the previous year.

Whereas, occupancy growth, which had been 2.6 per cent in the previous year, showed a marginal growth of 0.7 per cent in 2006-07.

The continued demand-supply imbalance has led to exponential rate increases resulting in inflated room rates across key markets in the country, some of which currently rank among the most expensive hotel markets in the world.

"Research indicates that the effects of spiralling rates have already been noticed in most markets. For the first time in four years, markets have started showing a decline in occupancy," the survey said.

It said the trend resembles the period starting 1996-97 where occupancies had started to decline but average rates continued to rise for a few years thereafter.

The survey which covered 268 hotels with a total of 34,784 rooms also revealed that the high rates have also resulted in emergence of an unregulated and unorganised hotel/guesthouse sector which is witnessing a boom in cities like Bangalore, Delhi and Pune.

However, despite drop in occupancy for the four major cities in India, there was an across-the-board growth in terms of occupancy for the various market segments.

There are strong demand indicators emerging from Tier - II markets with the three-star segment witnessing highest growth in occupancy at 3.3 per cent, This was followed by the five-star category at 0.9 per cent and the five star - deluxe and four star at 0.3 per cent each.

Source: PTI via Economic Times

Tourism boom brings women empowerment in Goa
September 28, 2007

With sizeable chunk of the Goan population employed directly or indirectly in the tourism industry here, a substantial benefit of this boom is also benefitting women, a top industry offical said.

"Nearly 25 percent of the population in Goa is employed in tourism sector, which includes women too, who reap considerable amount of benefit from the industry," Sanjith Rodrigues, Managing Director, Goa Tourism Development Corporation, said.

"Goa is one amongst the few tourist destinations where women are playing a vital role in tourism development," Rodrigues said in the backdrop of GTDC organized special event at famous Miramar beach titled - "tourism opens door of opportunities for women" to commemorate World Tourism Day.

While many women are directly working for travel industry, men contribute in their own way to make Goan trips a memorable one. "I have tourists from Australia, Canada, London and other European countries seeking my products," stated Theresa D`souza, a small scale entrepreneur.

D`souza, who has her small scale spice unit in Mapusa town, prepares 17 varieties of `masalas` (spices). "It`s not just foreigners, but domestic visitors too who like to purchase these masalas," she said.

Employing six more women in the trade, D`souza supplies her products through various outlets spread across the state. She has won governor`s medal for her products, last year.

Maria Luiza D`mello who runs her venture "Judelia Handicraft" in South Goa is another woman who has been empowered by tourism.

"Foreigners usually prefer to take back handicraft items or embroidery or crochet as a souvenir. The craze is also picking up amongst the domestic tourists and has proven to be beneficial," D`mello said.

Interestingly, besides embroidery and other gift items, baby packages are in high demand with foreign visitors. "We deal in baby package and the demand is huge," she stated. D`mello, who is an active member of All India Women`s Conference, concedes that tourism has brought in positive changes in life of women in Goa.

"Goa is one amongst the few destinations where women are actively involved in the trade. They not only help to cater to the boom but also support their households," Rodrigues added.

Source: Zee News

Mumbai hotel rates highest in Asia-Pacific region

September 24, 2007

Mumbai hotel rates are the highest in the Asia-Pacific regions, as per a Deloitte survey. For the first six months of 2007, average room rates in Mumbai were recorded at USD 253 while rates in Singapore and Phuket stood at USD 160 and USD 149 respectively. Low-Cost Carriers and business as well as leisure travellers have fuelled the demand for hotel accommodation in Asia-Pacific cities, especially metros. On the other hand, the rising real estate prices are restricting construction of budget hotels and allowing only marginal supply of quality rooms as compared to the demand.

While Mumbai which needs a supply of 9,000 to 10,000 rooms to meets the current demand and is likely to see a 20-30 per cent increase in room rates in the next four to five years, cities like Chennai, Bangalore, Hyderabad, Gurgaon and Pune will see occupancy and room rates going down, according to a source from the industry. This would be mainly due to excess of room supply as most developers and hoteliers are setting-up properties in these cities due to availability of cheaper land as compared to cities like Mumbai and New Delhi.

Source: Travel Biz Monitor

Travel portals surfing high tides in India
September 24, 2007

Gone are the days when one had to make several annoying phone calls to an airline company or travel agent to get that one air ticket from Bangalore to Mumbai. Now through online travel portals, within minutes you can book your ticket on your favourite airline and hotel accommodation, all at a surprisingly low cost.

Booking travel tickets and hotels online is not only a convenient option, but an attractive choice with all the goodies that come along with it today. If you are booking tickets through an Online Travel Agent (OTA) like Cleartrip.com you might get a Motorola L6 mobile phone worth Rs 6,020 absolutely free! You can also get lucky by using the site ezeego1.com, where if you book an air ticket you might get the second one free, through their 'Ticket pe, Ticket offer.' Or look at the offer of MakeMyTrip: if you make hotel reservations on the MakeMyTrip.com site you can get cash back for your return train journey. Also while planning a weekend getaway on yet another site, you might land up with a deal that gives you 40 per cent cash back for well-known destinations. While surfing online travel sites you can get entangled through a plethora of holiday packages which include five star hotels, excursions like scuba diving, para-sailing, weekend treks, cruises; all available at your fingertips.

Market scenario
If OTAs are trying to entice travellers with so many freebies the reason is simple: drive traffic online and make money on volume. The Indian Travel and Tourism (T&T) industry has come a long way, adopting the latest technology of online booking; giving more choice and transparency to consumers. According to industry predictions the Indian online travel market will grow from Rs 1200 crore ($295 million) in 2005 to Rs 8000 crore ($2000 million) in 2008.

Growth factors
When an economy grows the travel industry will be the first to improve earnings. With the Indian economy booming the online travel industry is now a burgeoning segment in the travel industry. Growing consumerism among the middle class with higher disposable income and readiness to explore are some of the reasons fuelling growth in this sector. 

The industry also got a boost with the surge in internet users, creating greater awareness among customers. Online bookings offers the customer to take control of their deals, unlike the agent-assisted bookings. Similar to a combo meal in a fast-food joint, these portals also have best fares bundled with hotel bookings and other facilities in package deals.

Of course, the main reason behind the boom is the launch of low cost carriers that has made air travel a big bang activity. The ease of payments using credit cards and efficient systems help customers choose domestic flights across eight airlines, sitting in the comforts of their home. The growth of M-commerce (mobile) is also supporting the rise of the OTAs. Ashwin Damera, Founder & CEO, Travelguru feels, "The two year old online travel industry was essentially driven by airlines offering very low prices, exclusively on the internet. Online travel agents took it to the next level by letting customers compare prices between multiple airlines. This was a clear value addition for customers and has driven growth over the last two years."

Then came innovative travel financing schemes (some time with 0 per cent EMI), offered by credit card companies, such as the 30 per cent cashback promotion with MasterCard, to further propel the growth.

Agrees Sandeep Murthy, CEO, Cleartrip.com, "The travel demand in India has been spurred by many contributing factors; sustained economic growth and heavy infrastructure investment."

Luring travellers
OTAs are extremely innovative in attracting customers. Indiatimes travel, for example, offers auction for its airline tickets where you can grab a deal as cheap as Rs 2,500 for a round trip - Bangalore to Mumbai. "The auction has generated a lot of action and we are seeing four times the growth," says a spokesperson for Indiatimes Travel Portal.

Deep Kalra, Founder & CEO of MakeMyTrip.com feels that the success of online ticketing process kicked-off by Indian Railways nearly 10 years ago, has given tremendous confidence to people to go ahead and explore new ideas. "Also binge travels are on an all-time high. Youngsters are going to Bangkok, Thailand, Malaysia, Singapore easily as cheaper air fares are available. There is growth for both domestic and international travel," says Kalra. The OTAs along with flight bookings offers hotel reviews, ratings, maps, video clippings etc, which helps to create stickiness to the site.

Some of the other services offered are the car rentals, cruises, bus travel and in the future train travel if everything works out. For the convenience of customers OTAs are even giving search options on mobiles and SMS alerts. As soon as a person lands at the airport, for example, he gets a SMS telling him an AC car is available for the full day at Rs 900. Kalra says Makemytrip plans to offer bus travel soon and is looking for a tie-up with the Indian Railways to offer hotel booking with rail travel. Damera's Travelguru, on the other hand is planning to build on its cruises in its itinerary. "The Indian cruise market is quite nascent, but many innovative deals are now being offered with the Star Cruises line this year. We averaged over 2500 bookings in the western and southern zone itself," he said.

Looking ahead
Most OTAs today are seeing their business doubling every month when compared with previous year. MakeMyTrip has grown from Rs 200 crore in the year 2005-06 to Rs 550 crore in 2006-07, nearly a 175 per cent growth. By the year 2008-09 Kalra expects to double the revenue to Rs 2,000 crore.

Giving a glimpse of the future, he adds, "At least five new international airline carriers are set to enter the market in the next one year, which will further boost the services. The hotel industry is set to grow, for instance Bangalore is to add 6,000 hotel rooms and apartments by 2012; 100 per cent more than the current capacity of 2,500 rooms." Travelguru too expects a huge growth in revenue.

Promotional offers
With competition rising each day, the OTAs are bringing out newer exciting offers to woo customers on their site. For instance MakeMyTrip has got an offer where if you are travelling by train, by booking hotel accommodation on the site, MMT will give back money for a one way journey. All the customer has to do is make the bookings and send the train ticket by email. "As a part of our advertising campaign we are piloting retail initiatives through Spencers, Subhiksha and BPCL," reveals Kalra.

Murthy of Cleartrip says, "We currently see demand for domestic products. As a distribution strategy we will also be seriously looking at the retail channel. To start with, we have four branded kiosks at Big Bazaars in Mumbai to gauge consumer reaction for buying travel-related products and service in a hypermarket environment. We are also talking with Future Money to explore options, which would make this synergy a one stop shop for all consumers that want to book their travel plans.

While booking on Travelguru site you might stumble upon offers like book one night in Sri Lanka at a Taj Hotel and get the second night stay free. And as for Indiatimes, they have offers such as free stay on buying air tickets for Spicejet or Indigo or free gifts with all international packages.

So next time you purchase tickets online, you may get lucky with a free family trip to an exotic beach resort in Thailand or get to see the Merlion in Singapore. Surely customers are the biggest beneficiary of the competition among online travel agencies trying to rope in more and more travellers.

Source: Deccan Herald

More and more Aussies soaking up 'Incredible India' experience
September 23,2007

While Australia is becoming a favoured destination for Indians asking 'Where the bloody hell are you?', Aussies are going in steadily large numbers for the 'Incredible India' experience. With only 50,000 Aussies travelling to India in 2003, the number shot up to 106,000 in 2006 and this year has seen an increase of about 18 percent.

'We are hoping to see 130,000 Aussies visiting India by the end of this year,' says the regional director of the Indian Tourism Office in Sydney, Shanker Dhar.

For first-time travellers, the Golden Triangle comprising Delhi, Agra and Rajasthan is a must. But it is the repeat travellers who are venturing to explore other destinations in the north, south and east of the country - Kerala, Bangalore, Kolkata, Darjeeling, Shimla, Dehradun and Amritsar.

While some Australians prefer conducted tours, others are researching and drafting their own itineraries on the internet and choosing various modes of travel from chauffer-driven private cars to taking the train and cashing in on affordable domestic flights.

'Australians do their research well and study about India extensively before travelling. They are well informed and go with an open mind to enjoy the myriad experiences of what they see as an exotic culture,' says Dhar.

'Travellers appreciate the value for money they get in India, which far exceeds competing destinations. Unfortunately, India is no longer an inexpensive destination like Thailand or Vietnam,' Dhar told IANS.

From traditionally being an adventure tourist destination, India has come of age as a family and leisure travel holiday spot. There are Aussies looking for the ultimate 'Monsoon Wedding' style nuptial to business travellers blending pleasure with work.

One of the factors spearheading this growth is the high profile Indian hotel chains and their unique heritage properties. Travel Indochina's senior product manager, Eric Finley, says: 'A significant proportion of my clients are going for the high-end rooms costing over A$500 a night in season. However, some opt for the more reasonably priced modest heritage hotels, but shortage of rooms in the mid-range leisure area is hurting us.'

Travel Indochina excels in tailor-made itineraries for small group journeys as an introduction to what many first time visitors consider a challenging destination.

Finley says: 'We are also seeing many Australian travellers using India as a stopover, either on leisure or business trips, and many of them express their strong desire to return and see more'.

Specialising in seniors' travel, Asia Quest Tours takes approximately 500 tourists to India each year on fully escorted 21- to 28-day tours between September and March. A 21-day tour to India costs about A$5480 all paid for, including air travel and stay in a 3- to 4-star accommodation.

The company's manager Ashwani Bali says: 'I cater to a market where people have time and some money. My clientele is in the age-group of 50 to 80, who are interested in the sights and not shopping.

Tour operators say India has always been an attractive destination, but travellers have been apprehensive about the reliability and quality of the infrastructure.

San Michelle Travel's Philip Boniface says: 'Now the awareness of India as a rising economic power has made people more comfortable in visiting the country.'

The company's motto, Interesting Travel for Interesting People, makes it strive to offer out of the ordinary ideas. Boniface says, 'We offer unique products such as the first permanent deluxe sand dune resort in the middle of the desert with all the frills and fancies of a high quality stay - a comfortable cabin in the midst of rice fields with local villagers, deluxe houseboats on the backwaters of Kerala and next year we will be promoting cruising on the Brahmaputra.'

Travel agents are hoping that India's flagship carrier, Air India, will resume direct flights from Australia by next year.

Adventure World's marketing manager Emi Weir says: 'We are seeing a trend of more exotic destinations becoming more popular in general. This trend is due to the wealth in the 50-plus sector and this demographic with the wealth is well travelled. So they are going to more difficult destinations but are also looking for luxury.'

Exposure to India in the Australian media, growing number of Bollywood films being screened in mainstream cinemas, books by Indian authors gaining popularity, from clothes to cuisine and just about everything Indian is catching the Australians' fancy and they want to see the country for themselves.

For now, the Incredible India brand is catching the attention of Aussie tourists soaking in the sights, sounds, colours and culture and above all the indulgence and pampering offered nowhere else in the world but India.

Source: IANS via Yahoo

Southern hospitality, the present and the future
September 2007

"Bangalore will have 17,300 rooms coming up in the city in the next five years. With a lot of international players coming in, travellers will have more choice," stated JP Menon, general manager, St Mark's Hotel at the Bangalore chapter of The Hotelex India 2007 held at The Windsor Sheraton on August 17, 2007. The topic of discussion was 'Hotel business in South India - is it different from the rest of the world?' with Varun Sharma, general manager, Golden Palms Hotel and Spa, Mohan Kumar, general manager Taj West End and J P Menon, general manager, St Mark's Hotel as the key speakers.

According to Kumar, post-liberalisation, south India saw a huge wave of domestic and international travellers flocking to the region. "Tourism was never important in India in the early years. Pre-liberalisation, tourism in India was totally Delhi centric. Post liberalisation, the burgeoning IT sector in the south led to a great demand for hotel rooms," said Kumar. Chennai, where the automobile sector is booming, is expecting an addition of 3,500 rooms in the next three years and Hyderabad will see around 2,000 rooms being added on to its inventory in the near future. With Kochi growing as an IT and ITES hub, Kerala would also see phenomenal investments taking place in the hospitality sector. Sharma felt that medical tourism was another emerging segment in south India. "South India accounts for 74 per cent of all the medical tourists coming to India, with Karnataka alone registering 8,000 medical tourists. The medical tourists get their treatment done from the best hospitals and stay at luxury hotels. The entire cost of treatment, including travel and accommodation would cost less than what they would have to pay in their respective countries. In the bargain, the local communities also benefit," explained Sharma. Another growing attraction was the emergence of world class spas in Southern India. "People have started considering spas as a necessity more than a luxury. Indian spas are a masterpiece worldwide and south India is a leader here. India has around 45 spas and most of them are located in Kerala," added Sharma.

The rigid inter-state road taxes levied by all the five southern states and the luxury taxes imposed at different level were cited as deterrents to the progress of tourism in the southern states. "We also don't have an organised market to address the media. Are voices are not heard by the government," said Kumar. Though the southern states have the maximum number of hotel management institutes, the talent drain is huge with nearly 60 per cent of students passing out from the institutes going abroad in search of better prospects after a few years in the industry. South India has also done very little to attract MICE customers. "We lag behind in the world-class convention centers which our neighbouring countries like Thailand, Malaysia and Singapore offer," added Kumar. However the fact that south India remains a year- round destination and is a booming market for investors ensures that the region remains in vogue and has the potential to lead the tourism charts.

Source: Express Hospitality

Kerala studies tourism impact
September 20, 2007

Kerala Tourism (KT) has launched a year-long study to find out the impact of tourism on ecology and infrastructure. The study comes in the wake of its initiative to promote eco-tourism in a big way.

The Responsible Tourism (RT) initiative is being implemented on a pilot basis in four destinations -- Kovalam, Kumarakom, Thekkady and Wayanad.

"The state is also set to host the second international conference on responsible tourism in association with the International Centre for Responsible Tourism (ICRT), India," Venu V, secretary, Kerala Tourism, said.

After promoting south Kerala as a tourist destination, KT is now focussing on north Kerala. Branded Wake Up to Malabar, KT is planning to promote the Malabar region comprising Malappuram, Kozhikode, Wayanad, Kannur and Kasargod. "South Kerala has matured as a tourist destination. So, we are now looking at north Kerala," added Venu.

KT has also launched an e-research initiative, Synergy Quest, aimed at collecting feedback from the toursim trade across the world to fine-tune marketing strategies to ensure that every promotional venture gave returns.

"Such initiatives have ensured that the state recorded a 25.89% increase during the first quarter this year over the corresponding quarter in the previous year in foreign tourist arrivals. Domestic tourist arrivals increased 7.95%," Sanjay Kaul, director, Kerala Tourism, said.

Source: Business Standard via MSN India

Rising rupee hurts tourism sector
September 21,2007

The firming up of rupee has caught the travel business on the wrong foot. Even as India becomes a more expensive destination to visit for foreign travellers, the dream international holiday for Indians become more affordable. The erosion of the value of dollar will put the yields of many inbound travel companies under pressure.

Many of them had contracted agreements for group tours to India at rates pegged around the Rs 44 to a dollar level. "The actual realisation for most inbound tour operators will be around 10% less," said Le assage to India managing director Arjun Sharma.

To mitigate the impact of a weak dollar, travel agency associations have already started lobbying with government for sops on the lines of what exporters are gaining.

Tour operators are now pricing their new packages for next year at 20% over and above last year's levels. As the country becomes a more expensive destination to visit, many feel this will soften the arrival numbers. India attracted 4.25 million foreign tourists last year, growing at around 13% annually.

Most hotelliers have insulated themselves to the fluctuations in the currency rates by switching over to Rupee tarrif rates this year. With Rupee breaching the Rs 40-mark, more hotels are slated to hasten their move towards selling their room inventory quoting Rupee rates.

Another fall out is that outbound travel will become more attractive vis-vis domestic travel. "Outbound travel from India will become more affordable, with ground transport, hotel accomodation and shopping becoming marginally cheaper," pointed out Mercury Travels vice chairman Ashwini Kakkar. Airlines may benefit from the dollar rate fluctuations but they are unlikely to pass this on to travellers said tour operators.

Source: Economic Times

Foreign trips get cheaper as rupee hits 9-year high
September21, 2007

The rupee is gaining strength day by day. The currency appreciated further hitting a high of 39.85 against a weakening dollar on the back of fresh capital inflows and weakness in dollar overseas. The strong rupee brings good news for imported products like electronics and for people traveling abroad. But the IT sector and exports have been bearing the brunt.

A strong rupee brings with it a lot of advantages, especially, if you are planning a holiday abroad. Travel agents say that a 4 day trip to South East Asian countries like Singapore or Malaysia could get cheaper by Rs 5,000 to Rs 7000.

"Foreign tourism is booming. And with rupee rising it will turn cheaper,"Veena Patil-Chairman and managing director, Kesari Tours. The rupee is at its strongest against the dollar in about nine-years. Experts are betting on the rupee becoming even stronger in the coming months. Anup Maheshwari, Senior Fund Manager, DSP Merrill Lynch "The long term trend shows that the rupee will appreciate further. Right from 1992-2002 it depreciated against the dollar by about 5 per cent per annum. Since 2002 that trend has flipped over and we expect a 5 per cent appreciation scenario to happen on a per annum basis in the next couple of years.

The rising rupee is also good news for the stock markets. If the rupee continues to gain against the dollar, foreign institutional investors or FIIs will find investing in India even more attractive as their dollar returns will rise even with steady rupee returns.

Source: CNN-IBN

Human Resources

Expats to help hospitality cos put best foot forward
October 4, 2007

Shortage of local talent to run the business has led hotel companies to turn to expatriates, especially from the Gulf. Leading hospitality companies are employing expatriates to man key functions like F&B, front officers and general managers. Recent estimates by HVS International, a hospitality consultancy, says top 12 cities in the country will need around 1.46 lakh fresh employees in the next five years, more than twice the existing requirement. The country has approximately 69,000 employees working for hotels in the branded segment.

Delhi faces a huge shortage of manpower, it requires 28,600 new employees followed by Bangalore at 20,300, Mumbai 18,500 and Hyderabad at 15,900 employees. This additional requirement is across all categories like luxury, first class, mid market and budget hotels. The biggest challenge in the future is to be faced by Pune, Hyderabad and Bangalore where the talent hunt for rivalling sectors is high, say HVS officials.

The shortage of manpower has been created because of the number of hotels that have come up in the last one year, say industry sources. The next few years will see more than 1.01 lakh hotel rooms, of which the star category will account for maximum. The existing supply across top cities in India is around 39,285 rooms. While the hotel projects are in various stages of development, they are expected to enter the market by 2011.

Lack of manpower is forcing many hotels like Royal Orchid, Leela, Sarovar and Kamats to set up in-house management institutes to meet the shortage. The staff turnover in 5-star deluxe hotels in India is 29%, while it is much higher at 32%, 43% and 47% in the case of 4-star, 3-star and 2-star hotels, respectively. Faced with a shortage of trained manpower, Royal Orchid Hotels CMD Chender Baljee said: "We are setting up in-house institutes offering shorter duration courses." Freshers prefer joining BPOs and the retail industry for higher salaries, said The Leela group HR vice-president Mohan Rao.

Source: Economic Times

Hotels tap local stars for foreign ventures too
October 4, 2007

Indian hotel companies have begun sending local employees to man key positions in overseas properties despite the extra cost involved in doing so, hotel executives say. Indian Hotels, part of the Tata group, began this exercise some time ago after it acquired properties in London, New York and Boston. Key functions such as food and beverage (F&B), accounting, revenue management, IT and finance are ones where the group feels Indian expertise or talent is needed.

"It is need based and we sent employees to man key functions according to the requirements," said a source. He added that the group, as a policy, likes to retain employees in all the properties it has acquired so far. It does not like to disturb the existing structure. For instance, it would make little sense to send employees from India to man the front desk of Pierre in New York or act as waiters in Boston's Ritz Carlton. Key functions such as IT or finance is another matter altogether. They do not require much interface with consumers and Indian employees can actually add some value.

The cost involved in such exercise is much more. Indian hotel salaries have skyrocketed in recent years thanks to the boom in the industry and the shortage of talent in the sector. For instance, a chef, working in a premium 150-room hotel in India earns (cost to-the-company) around Rs 60-65 lakh, while in the international markets it would range between Rs 60-80 lakh.

Industry executives say that salaries of hotel staff (particularly in premium hotels) in India have risen 20-25% in the past one year. According to industry sources, salaries of development heads, managerial staff particularly general managers, project heads have jumped in the range of 60-80% followed by food and beverage (F&B) managers which include chefs by 40-50%.

While development heads earn anywhere between a crore to Rs 2 crore, F&B manager (including chefs) salaries range between Rs 60-65 lakh. The shortage of trained manpower and the large scale expansion by hotel majors are reasons for the rising pay packages.

Executive sous chef earned the maximum at Rs 43 lakh (54,000 pounds) followed by fine dining restaurant managers at Rs 41 lakh (50,000 pounds) and front office managers at Rs 37 lakh (44,000 pounds).

In India, as compared to the global markets the payroll costs are low. The payroll cost is 11-14% of the revenue as compared to over 30% in US and Europe and around 20-25% in other South East Asian countries. The additional cost to be incurred by Indian companies when they send executives abroad would lie in areas such as health\life insurance, pension, or the well-being kind such as childcare or home-working options.

These costs add about 15-20% to the cost-to-company package. But hotel companies, especially Indian Hotels do it, as it is an additional incentive for employees.

Source: Economic Times

AH&LEI ties up with IGNOU for course in international hospitality management
October 1-15,2007

American Hotel & Lodging Association - Education Institute (EI-AH&LA) has tied-up with Indira Gandhi National Open University (IGNOU) to launch an under-graduate course in International Hospitality Management.

Speaking of the tie-up, Professor VN Rajsekharan Pillai, VC of IGNOU, said, "This is a step in the right direction. It is truly a global alliance in hospitality education. Industry focused courses and state-of-the-art learning resources developed by AH&LEI, integrated with IGNOU's reputed tourism courses provide India's students the best opportunity to earn a prestigious international degree on Indian soil at a great cost advantage."

Added Pillai, "Professionalism is of great importance for sustained success. Quality education and training hold the key."

Speaking of the alliance, Roy Kennington, CHA, president and COO of AH&LEI, expressed, "We are proud to be associated with India and with IGNOU in particular. India is a powerhouse of human capital and talent. With fast-paced growth and development in every sphere of activity, the travel and tourism sector has taken a quantum leap. Indian hospitality professionals who have been certified and benchmarked with global competencies and skill-sets are sought after universally."

KV Simon, the regional head of AH&LEI, said, "With this timely tie-up, India's growing human resource challenges can be met. This will also benefit Indian hospitality professionals." Beginning with the next batch of IGNOU admission, the program would be available at IGNOU-AH&LEI approved program centers.

Source: Express hospitality