Tourism and Travel Trends from India:

News and views on India's Travel and Hospitality Sector

Weekly News Related to Travel Industry in India

Places in the News

Travel and Transportation Infrastructure

Sector: Aviation

1. Mihin Lanka to fly Chennai, Calicut

Sri Lankan budget airline Mihin Lanka Private Limited plans to operate services from Chennai and Kozhikode.

According to sources from Matheson Keells Air Services Private Limited, the General Sales Agent of Mihin Lanka, Singapore will also be included in the network.

Mihin Lanka already operates services to five destinations, such as Tiruchirapalli, Thiruvananthapuram, Bangkok, Dubai and Male.

The airline now operates with one A320 Airbus and one A321 Airbus aircraft. Plans are afoot to include one Airbus 310 aircraft to its fleet in the near future.

Services to Chennai and Calicut (Kozhikode) would be commissioned in the second phase of expansion of the airline, slated to crystallise in three months, the sources added.

The airline had already commenced Colombo-Tiruchirapalli-Colombo daily services since July 1.

Jul 6, 2007
Source: PTI via Economic Times

2. Kingfisher, Continental Airlines tie-up

Kingfisher Airlines, one of India's leading private carriers on Thursday announced a tie-up with the world's fifth largest carrier, Continental Airlines for providing better customer service to passengers travelling from India to US.

The two airlines would share a comprehensive partnership in areas of frequent flying, airport lounge access and future code sharing to facilitate smooth transfer between the carriers.

"Our partnership with Kingfisher builds upon our increased service between New York and India," Larry Kellner, Continental's chairman and chief executive officer said in a statement.

From October 1, 2007, members of the frequent flyer programmes of the two airlines, Continental's OnePass and Kingfisher's King Club, will be able to earn and redeem miles on all flights operated by the other carrier.

"The relationship will benefit both the airlines as well as our guests. We value our guests who have been loyal and what better way of expressing our gratitude than to offer them miles redemption on the international sectors with the help of Continental," said Vijay Mallya, chairman and CEO, Kingfisher Airlines Ltd.

Kingfisher Airlines currently operates 187 flights a day across 29 key Indian destinations with a growing fleet of 31 brand new aircraft.
Jul 5, 2007
Source: IANS via Economic Times

3. Emirates to increase flights to India

In a bid to strengthen its India operations, Dubai based Emirates Airlines will increase the frequency of its flights to eight Indian cities from 71 a week to 85.

The airline announced that it would introduce a third-daily service to Mumbai and a second-daily service to Chennai in October. It would also add three additional flights each to Cochin and Hyderabad over this year, the announcement said.

"Asia's fastest growing free market economy, India, is expanding its links with the Gulf and forging ahead with joint, multibillion dollar projects in tourism, commerce and infrastructure."

"Having fuelled strong economic and trade ties between the Middle East and India since the start of its services in 1985, Emirates is well-poised to support India's rapid growth in the 21st century with its efficient, reliable and increased air links," said Nabil Sultan, Emirates' senior vice-president commercial operations, West Asia and Indian Ocean.

As part of the expansion drive, the airline will use modern, wide-bodied Airbus A330-200 and Boeing 777 aircraft in two and three-class configurations, Khaleej Times reported.

"The airline has noticed a steadily growing market demand, prompting us to provide greater capacity through frequency increases and aircraft upgrades," Nabil Sultan said.
Jul 4, 2007
Source: IANS via Economic Times

4. Tiger Airways to start flights to India in Oct

Tiger Airways will begin flying to India in October with one way fares excluding taxes starting from less than $39, the Singapore budget carrier said on Tuesday.

The airline, partly owned by Singapore Airlines (SIA), will fly to Chennai four times a week from October 28 and will operate three flights weekly to Kochi starting October 30, it said in a statement.

"This is another milestone moment for Tiger Airways," said Tony Davis, chief executive officer of Tiger Airways.

The carrier announced in June it had received a permit from India to operate flights between Singapore and Indian destinations.

Tiger Airways said it had been granted rights to fly from the city-state to six destinations in India including Chennai, Goa and Kolkata.

Tiger, which began flying in 2004, connects Singapore with destinations throughout Southeast Asia and with China.

It also flies to Perth and Darwin in Australia. The budget carrier is owned by four shareholders, including SIA which has a 49 per cent stake and state-linked Singapore investment firm Temasek Holdings with 11 per cent.
Jul 3, 2007
Source: Economic Times

Sector: Railways

1. IRCTC to introduce Cell Kitchens at stations

Indian Railways is seeking a major revenue windfall with the addition of an extra coach on all Rajdhani trains, as well as Shatabdis and other trains subsequently. This objective is being achieved through a new initiative by Indian Railway Catering and Tourism Corporation (IRCTC) called Cell Kitchens, which is still within the tender process. Cell Kitchens will replace existing kitchens at railways stations, which provide food items onboard all trains. The Cell Kitchen is essentially a centralised kitchen catering in bulk food. Food will be uploaded at the stations into hot plates section in every compartment, therefore doing away with the need for a dedicated pantry car.

The Cell Kitchens will be set up strategically, depending on the trains' routes and schedules. The Cell Kitchen project has been designed by Radhakrishna Hospitality Service (RKHS) for IRCTC and Indian Railways will run a pilot project on Rajdhani trains involving Mumbai, Delhi, Kolkata and Chennai by the end of the year. This will be followed by a series of roll outs that will include more cities and more train services in time.

"With the introduction of Cell Kitchens, the pantry car on the train will be replaced with one more coach of AC First Class, AC II-tier, AC III-tier, or sleeper class coach. A new coach can boost the revenue during the peak season and even otherwise. To begin with, a pilot project will be run on Rajdhani routes connecting metropolitan stations. An additional coach provides huge business justifying the introduction of Cell Kitchens," stated Rajendra Shrivastva, Deputy General Manager, Western Zone, IRCTC.

Currently, there are 18 Rajdhani trains plying and the introduction of one new coach will earn the Indian Railways an additional revenue amounting to Rs 91,93,950 (for AC First Class coach), Rs 17,32,320 (for AC II-tier coach) and Rs 19,37,520 (AC III-tier coach). According to Shrivastava, initially the Cell Kitchens will be set up in metros and then will be introduced on stations on other routes covered by Rajdhani and other trains
Jul 7, 2007
Source: Travel Biz Monitor

2. Rajasthan to have 2nd 'Palace on Wheels'

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.

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

"In Rajasthan, the heritage tracks have proved to be a tremendous success. So we are alway looking for new tracks and train circuits. Soon we would be world's largest heritage train circuit state," Saini 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
Jul 7, 2007
Source: PTI via Economic Times

Sector: Hotels

1. Ansal Properties to set up 30 hotels

Ansal Properties and Infrastructure Ltd. (APIL) the New Delhi based real estate developer, is in the process of forming a special purpose vehicle (SPV) for its foray in the hospitality sector. The company is planning to set up around 30 hotels over the next 10 years. The company proposes to hold about 80 per cent equity in the proposed SPV and the balance 20 per cent will be held by Ambience Hospitality Management Pvt. Ltd., a company owned by Vipin Luthra, an entrepreneur in the hospitality business.

The SPV will set up hotels in the five-star and four-star categories, including palace, business and leisure hotels, golf resorts, spas, clubs and serviced apartments. The SPV proposes to own and manage the palace resorts, golf resorts and clubs under its own brand and will enter into discussions with leading international hotel chains for possible management and branding tie-ups for its business and leisure hotels.

Among the first hotels/resorts to be set up will be a palace hotel in Jodhpur, Rajasthan and a golf resort in Lucknow, Uttar Pradesh, both of which will operate in the luxury segment. APIL intends to invest around Rs 2,000 crore in the hospitality business over the next few years
Jul 5, 2007
Source: Travel Biz Monitor

2. Marriott International to More than Triple Hotel Portfolio in India by Year-End 2010

The Marriott International (NYSE:MAR) hotel brands portfolio in India will more than triple by year-end 2010, the company announced here today.

Over the next 36 months, the Marriott International hotel portfolio in India will grow to encompass 21 properties; six lodging brands ranging from the luxury to the upper-moderate tier; and 5,524 rooms.
Jul 3, 2007
Source: NDTV Profit

Niche Tourism

Medical

1. Medicity to come up in Lucknow
Close on the heels of DLF's tie-up with Fortis Healthcare, Ansal Properties and Infrastructure (API) has signed an agreement with Fortis Healthcare for setting up a medicity at Sushant Golf City in Lucknow district of Uttar Pradesh. The New Delhi-based companies have made a total investment of about Rs 500 crore for the project and are looking to complete it within seven years.

The proposed medicity, to be spread over 52 acre of land, will have an 800-bed ultra-modern hospital along with medical, dental and nursing colleges and other facilities for paramedical and technical training. Fortis also has plans to set up facilities for teaching at the medicity

Jul 5, 2007
Source: Travel Biz Monitor

Spiritual & religious

1. Thai Airways plans flights to pilgrimage destinations in India

Thai Airways plans to target a few more Indian cities like Gaya, Varanasi and Ahmedabad as a part of its expansion plans. The airline is also planning to start flights from India to Chinmai, a small town in Thailand, which is an unexplored and niche destination. Manchester, Berlin and some cities in Japan and China are among the airline's global expansion plans. The airline plans to buy Boeing 777 and six A380's and has already placed orders for an A330-300, which will be delivered in 2008.

"Gaya is a frequently visited Buddhist destination in India and Thai Airways is waiting for government approvals to start flights. People in Thailand are very keen on visiting Gaya as is a holy destination for the natives," comments Yutthanai Piamprom, General Manager - Mumbai, Thai Airways. The airline has operated full-scheduled charter flights to Gaya and Varanasi earlier. These flights are mostly operated in winter with two to three flights in a month.

Thai Airways presently operates to six destinations in India including Delhi, Mumbai, Kolkata, Chennai, Hyderabad and Bangalore. The airline plans to refurbish old aircrafts and hence has also placed orders for a number of new ones. It is also making an effort to promote Thailand as a MICE destination and increase the number of business travel there. The airline works with eight to ten major tour operators in India and a number of travel agents who promote Thailand. They also have a dedicated Agent Education Tour, which is organised two to three times a year. The airline has witnessed a 20 to 25 per cent increase in the number of passengers as a result of these Agent Education Tours.

Jul 7, 2007
Source: Travel Biz Monitor

Rural
Wine
Heritage

Adventure

1. MTDC to start training centre for scuba diving at Tarkarli

After the successful launch of Konkan Diving Dreams, Maharashtra's first underwater adventure sport attraction at Tarkarli in Sindhudurg district, the Maharashtra Tourism Development Corporation (MTDC), now plans a full-fledged training centre for scuba diving at the same venue. An investment of Rs 5.5 crore has been made for the project and the centre is expected to start operations by November 2007.

"The scuba training course will be a four-day one, of which two days would be allotted for indoor training in the swimming pool and the other two days at the main site. We've not decided the cost for the course, but it should be around Rs 14,000, '' says Abhay Yawalkar, Director of Tourism, Government of Maharashtra and Joint Managing Director, MTDC. MTDC charges Rs 150 for 20 minutes of snorkeling.

The MTDC will train 22 local boys, who will then take over as guides. The site is equipped with aero-speed boats, motor boats, wet suits, cameras and other expensive equipment. Marine biologist Dr Saren Kulkarni is the consultant for the project. "The region covering Tarkarli, Vengurla rocks and Sindhudurg Fort is rich in marine life, flora, fauna and corals," offers Yawalkar.

MTDC has also recently launched two new houseboats on the backwaters of Karli River. Hiranyakshi is a luxury houseboat with two rooms with a sun deck and Karli is a standard houseboat offering two air conditioned rooms.
Jul 3, 2007
Source: Travel Biz Monitor

Education

Nature tourism

1. SITA India to promote coastal tourism

SITA India, a division of Kuoni Destination Management, plans to promote coastal tourism in South India, with focus on Goa, Karnataka and Kerala. "We want to focus on the North Karnataka region as the infrastructure has improved tremendously. We want to cover regions, such as Belgaum, Bellary, Bijapur and so on," says Ayappa Somaiah, Deputy General Manager, SITA - Bangalore. They are keen to promote destinations, such as Gokarna in Karnataka and Kovalam in Kerala, which already have a good tourist infrastructure.

SITA South, focusing on promoting destinations in the South, started off two years ago and is doing well in Karnataka, Kerala and Tamil Nadu. It has however not taken off in Andhra Pradesh, which is still a nascent market. "The southern region is emerging as a destination to reckon with in India. SITA is considering setting up an office in Hyderabad," says Somaiah. Currently, they have offices in Chennai, Kochi, Thiruvananthapuram and Bangalore. For the year 2006-'07, SITA South registered a turnover of Rs 12 crore.

SITA has tie-ups with inbound charter operators from Europe, such as Jewel in the Crown, First Choice and Aurinkomatkat. Its charter division handles nearly 30,000 clients into Goa and Kerala each year. They cater to inbound traffic from Russia, UK and France. Several business delegations from China, Far East and Middle East also use their charter services.
Jul 3, 2007
Source: Travel Biz Monitor

Luxury & rejuvenation ( ayurveda, spas, holistic healing, cruises, customized travel)

1. Take a champagne shower...it’s your holiday

Want to do a Charlie and make a bar, probably with your name on it, in one of those Swiss chocolate factories, or go to wineries in France and indulge in wine-tasting and maybe, make some too? Or back home, trek around the coffee estates in Coorg, roast beans and powder them; or indulge in a champagne shower and follow by “wine treatment” in a spa in Nashik!

These are the latest add-ons that are part of the theme-based travel packages that target the increasingly inquisitive creamy layer of Indian travellers. While adventure, health and pilgrimage tourism have been talked about for sometime now, the tours of wine yards, tea gardens and coffee estates are the latest theme flavours. One might also add an under-water walk in Malaysia or a self-drive tour of Europe.

Or simply include all these along with a rose-petal bath to make a honeymoon package. “Indians are travelling more and demands are increasing. While generally people would go for group tours, the elite clientele go for a customised, tailor-made travel schedule,” said Nishant Kashikar, senior general manager, marketing, Kuoni Holidays.

Little wonder that even a grape-squashing session, squeezed into a tour to France, comes with an extra premium. More exclusive is making that favourite Toblerone bar at a Swiss factory that can cost Rs 16,000! A Korean cultural tour, offered by Cox&Kings, costs Rs 1.5 lakh for a 10-day tour. But this hasn’t stopped the Indian corporate to award its employees and clients with some wine toursim. Nalini Gupta, head of Thomas Cook’s travel business, points out that a prominent name from India took 500 farmers from Maharashtra to South Africa for classes in wine-making.

The more economical Indians though are doing the same in the wineries of Maharashtra. Chateau Indage, the country’s largest wine manufacturer, offers tours on its vineyards, including dining at a wine bar restaurant on the Pune-Nashik highway. Wine tourism is also gaining popularity in Karnataka’s Krishna Valley. The southern state also conducts coffee tourism.

Planters in Chikmagalur host tourists in their bunglows and teach them how coffee beans are cured and processed. Interestingly, legend has it that the first coffee beans in the hills of Coorg were brought by a local king from Mecca during a pilgrimage. One of the latest to join the bandwagon is the Darjeeling Tea Association, which is helping the government to develop Tea Tourism Circuit in North Bengal. Even spiritual tourism is finding new centres. “The chardhams are the all-time favourites with more than 11 lakh Indian going there every year. Now new pilgrim centres like Puttaprati, Tirupati and Bodh Gaya are also making a mark,” said Mr. Anil Rai, senior general manager, SOTC, Holidays Of India.
Jul 3, 2007
Source: Economic Times

Others

Policy

1. Uttaranchal Tourism in revamp mood

Uttaranchal Tourism is set to revamp itself in a big way to attract more tourists. "While existing properties will be upgraded, the state government is also looking at sites for setting up new hotels and resorts for the budget tourists," says Prakash Pant, Tourism Minister, Uttaranchal. He adds that the state is keen for active participation from the private sector in setting up hotels, resorts and ropeways. The government will give away 10 acres of land to private players on a lease of 30 years for tourism development projects.

The Emmar Group has agreed to construct a 165-room hotel with a health club. It will also construct a convention hall with a capacity of over 600 visitors. The cost of setting up the hotel is expected to be around Rs 75 crore. There are around 130 tourist bungalows with a combined bed capacity of 6,000, under the control of public sector undertakings like the Garwal Mandal Vikas Nigam and the Kumaon Mandal Vikas Nigam. Pant says that the government would be allocating funds for refurbishing these rooms. Locals are also being encouraged to set up home stays.

Pant has also stressed on the need to have better rail, road and air connectivity. Ongoing infrastructure projects include upgrading existing airports. There are also plans to launch helicopter services to promote adventure and destination tourism. The state tourism board hopes to achieve a 25 per cent growth in tourist arrivals this year. Last year, 1.94 crore tourists visited the state
Jul 3, 2007
Source: Travel Biz Monitor

2. A tourism infrastructure fund on cards

India may soon have its first tourism infrastructure development fund. Some reputed financial institutions including the Asian Development Bank (ADB) are behind the process of creating the fund, pegged to be more than $1.5 billion, sources close to the development told SundayET.

Once the fund is created, infrastructure companies would be roped in to build roads, power stations, sewage etc in the country’s leading tourist destinations. At present, many renowned tourist sites don’t have these basic infrastructure facilities. When contacted, an ADB spokesperson in India said, “We have no details with us. It’s at a very initial stage.”

ADB, however, has similar experience in funding tourism infrastructure in countries like Vietnam. In fact, Australia too had earlier created such funds for developing infrastructure in tourist destinations. It’s expected that leading global financial firms, which have professional fund managers with a knowledge on tourism, may also join the fund.

“Though no clear roadmap has been laid for creating such a fund, talks are on,” a senior ministry of tourism official said. In fact, the proposed fund will encourage infrastructure companies willing to get involved in road and power projects in tourist destinations.

N D Mehra, director (commercial), DS Constructions, said it was imperative to create better infrastructure and provide greater connectivity to tourist destinations. “A tourism infrastructure fund is a welcome step as this would enable established and experienced players like us to selectively bid for projects,” he said.

He, however, added that in India, tourist destinations are seasonal in nature and do not attract great amount of traffic throughout the year. He added, “hence, to enable public-private partnership (PPP) in the tourism infrastructure projects, companies would require viability gap funding or subsidy from the client to ensure viability.”
Jul 1, 2007
Source: Economic Times

Travel and Tourism Support Industries …and much more

Service providers

1. EU law hits Indian duty-free shops

Business at India’s duty-free outlets, one of the cheapest in the world, has been hit as more than a dozen airlines are not allowing passengers to carry items like liquor and perfume in their hand baggage. This follows a decision by the European Union (EU), the US and Canada to bar transit passengers from carrying these items at their airports.

The situation has reached such a pass that the EU has said that the bar on liquid items — including gels — in hand baggage can be lifted only if each airport in a country obtains a certification from the European authorities.

Each airports needs to apply for clearance which would be provided only after a EU security team inspects the security systems at that airport, airport sources said. The Indian duty-free industry was hoping that the EU bar would be lifted soon but the situation seems to be getting more complicated.

In the light of the recent security scares at UK airports, there seems to be no sign of the regulations getting liberalised. This has skewed the balance against Indian duty-free as passengers travelling from the country are forced to do their purchases at airports located in other countries. Business at the departure outlets is stagnating at Rs 250 crore, not growing in line with the buoyancy in passenger traffic.

Sources said the European Commission has passed a legislation for recognition of the security channels of third country airports. This would help in checking confiscation of liquids and gels from transit passengers at airports in the EU, the Commission has said.

The legislation provides for a secure framework for the Commission to approve security channels operated by non-EU countries on an airport-by-airport, or country-by-country basis and this approvals process is expected to begin shortly after various internal procedures are put into place.

The Indian duty-free industry feels the EC stipulation European duty-free industry at the cost of others like India, Dubai, Sri Lanka and Thailand where goods are far cheaper. The issue has already been brought to the notice of the authorities concerned.

Singapore’s Changi airport likely to be the first to be recognised as safe by security officials in terms of airport retail that could be allowed transit at EU airports. EC officials have visited the airport and reports say that they have expressed the view that Changi meets all of the International Civil Aviation Organisation (ICAO) requirements related to a secure airport retail supply chain.
Jul 7, 2007
Source: Economic Times

2. Carlson takes control of Indian ops from AFL

Corporate travel major Carlson Wagonlit Travel has gained majority control of its India operations by buying 26% stake from Indian JV partner, Cyrus Guzder-promoted AFL Pvt Limited, for an undisclosed amount. The 76:24 Indian JV CWT India now plans to take the inorganic route to ramp up India operations.

There would be no change in the management structure with Praveen Gandhi as CEO of India operations, while Mr Guzder would remain chairman of the board for CWT India. “This move will pave the way for integrating the India operations with our global network,” Carlson Wagonlit Travel president & CEO Hubert Joly told ET. Carlson Wagonlit Travel, with presence in 150 countries, is the world’s second largest travel management company. It recorded sales of $20.5 billion in 2006. CWT has been in India for over 10 years, beginning with a partnership with Mr Guzdar, which was subsequently transformed into a 50:50 JV in 2000.

Mr Joly said India operations, with a sales turnover of over Rs 1,300 crore in 2006, is one of the fastest growing globally, along with China. “Our India business has grown over 30% year-on-year over the past three years,” he said.

For the first time, CWT has started looking for acquisitions in India. “Through acquisitions we would like to go to places and markets that we currently do not reach. Also, they should help bring quality business,” Mr Joly said, explaining the logic behind the group’s plan to take the M&A route in India after over 10 years of presence here.

Executives indicated the company is actively looking at growing its presence in meetings, incentives, conferences and exhibitions (MICE) space. Globally, CWT has made nine acquisitions in the corporate travel space in the past three years.

Global corporate travel spend is valued at around $350 billion, which is growing at 5-6% annually. Indian corporate travel market is pegged at around Rs 12,000 crore, with business growing 15% annually. CWT India has around 12% share of the highly fragmented Indian corporate travel market, which is dominated by small operators. A consolidation process is currently on with corporate travel companies, such as CWT, American Express and Flight Center, gaining ground over the years and having over 40% share of the Indian market.
Jul 7, 2007
Source: PTI via Economic Times

3. Balmer & Lawrie launches online extension

Balmer and Lawrie Tours Division is setting up its own portal within three months and will become an Online Travel Agent (OTA). Keeping in consideration the drastic cut down on agents commission and anticipating a further decline, Balmer and Lawrie views the OTA route as one that will boost their earnings as part of a strategy that also include the possible acquisition of another tour company.

With the airlines drastically reducing the agents' commission from eight to five per cent, the Tours Division of Balmer and Lawrie planned to bring up their own portal. J G Arora, General Manager, Balmer Lawrie Tours Division, said, "In today's market, where the airlines have drastically cut down the agents commission; creating volume is essential for making a base for earnings. Hence we are creating our own portal." Amadeus, which has been working with Balmer and Lawrie for a long time, is helping them create the portal. The company has an annual turnover of Rs 800 crore and has offices at all major business centers across India and will now integrate the website into the brick and mortar infrastructure.

The website will not be like the regular OTA websites, where the travel agents can login and access the inventories of the portal. It is specifically Balmer Lawrie's portal, which will be open only for their customers and not to other travel agent. All of Balmer and Lawrie's products including MICE, 'Meet & Greet' service, hotel accommodation, car rentals and the like will be offered online as well. Notably, LCC inventory will also be available. At time of going to print, the company had finalised contracts with three car rental companies and was in further talks with another five.
Jul 5, 2007
Source: Travel Biz Monitor

4. Thomas Cook focuses on Tier II towns

Cashing in on the tourism boom, the integrated services provider - Thomas Cook (India) 100% Holidays - introduced a franchisee programme called Thomas Cook Gold Circle in Tier-II cities.

Replete with its network of offices the franchisee programme aims to deliver quality services and entire range of its products and services to the travellers, thereby strengthening the company's penetration in Tier-II cities.

"Now the travellers in the Tier-II cities can enjoy the Thomas Cook experience. With the Gold Circle we will be able to cater to the needs of larger number of travellers across India. This partnership programme presents a unique opportunity to partner with the best in the industry and reap the benefits of the proven business model of 'Integrated Travel Service Provider', said Madhavan Menon, managing director Thomas Cook (India).

The company plans to open thirty five Gold Circle franchisee outlets across India by the year end. The franchisee outlets will come up in Nagpur, Bhavnagar, Surat, Ahmedabad, Noida, Greater Noida, Karnal and other cities of Punjab, Haryana and Kerala.

This would help synergise their business prowess. While the franchisees will be responsible for providing fully furnished retail outlets in prime locations, as per the specifications of Thomas Cook India, they will in turn benefit by knowledge sharing.
July 5, 2007
Source: The Times of India

5. Kuoni acquires 80% in Russian travel co

Swiss travel major Kuoni Travel Holding has acquired a majority stake in high-end Russian travel company UTE Megapolus Group.

The acquisition is in line with the group’s strategy to expand into high-growth specialist sectors, the company said. In India, the acquisition will help Kuoni India, a 100% subsidiary of the international major, to tap the growing outbound Russian tourist market.

Kuoni’s inbound division in India already works with UTE, which brings in about 5,000 charter travellers into Goa every year. Globally, Kuoni has bought 80% in UTE Megapolus, with the remaining staying with the shareholders.

Speaking to ET, Zubin Karkaria, CEO, Kuoni India, said Russia is one of the major emerging markets for outbound tourists and national tourist offices from all over the world are competing for a share of the high-spending tourists. “The profile of the traditional Russian tourist coming to India has changed over the years. While a decade ago, most of these tourists were in the low-budget category, there has been a marked shift in recent years,” he said. Russians are emerging as high-spending luxury tourists.

UTE is headquartered in Moscow with 200 employees. In 2006, it had a turnover of 51 million Swiss francs, and is one of Russia’s leading providers of ski vacation products for the Alpine region.

The buyout is the most recent of a series of acquisitions in the travel industry in Europe that are leading to consolidation of the business in the hands of a few players with a presence across the world. Commenting on the plans to draw from the synergies, Himmat Anand, chief operating officer of Kuoni destination management, says the idea is to move to the sophisticated Russian traveller, instead of the charter single-destination tourist.

Apart from this, there is also a growing incentive-travel market in Russia that is waiting to be tapped, he said. The new linkages with UTE will help break into this market.

In the recent past, several Indian hotel groups have included Russia in their global roadshows, in an attempt to target the high-end Russian traveller. They are competing with hotels in the Middle and Far East, which are also targeting high-spending Russians.
Jul 3, 2007
Source: Economic Times

Travel ecommerce

1. "Travel 2.0" new search engine for India

Travenues, a "travel 2.0" technology start-up based in Gurgaon recently launched iXiGO a travel search engine for Indian online and mobile consumers. Conceived a year ago, iXiGO is backed by a team of US-returned IIT graduates and entrepreneurs. A German national is also part of the founding team that has rich travel technology experience. iXiGO claims to simplify the travel search experience by looking across all possible sources of travel deals and content and provides up-do-date, real-time pricing and availability information with ticketing and fulfilment directly on the vendor's portal. It provides a platform for searching and comparing airfare information and deals from multiple airlines and online travel agencies and shall soon cover hotels. iXiGO displays tax-inclusive fares directly from the airline portals.

"Online Travel needs to evolve to the next level in India, and with the arrival of iXiGO, Indian consumers shall be free from the pains of non-transparent pricing, slow search results and barely-usable interfaces. Travel 2.0 has arrived," said Aloke Bajpai, Founder and CEO of iXiGO. According to Bajpai, iXiGO aims to differentiate its offering from other online travel portals. He further added, "We don't sell tickets. We tell you where you can buy them and then give you a direct checkout on the provider's website. We are thus driven totally by the needs of our users, and we will keep innovating in travel search technology to help travellers find the best deals online.
Jul 7, 2007
Source: Travel Biz Monitor

Events

Research and Market reports

1. By 2020, Mumbai will need third airport

According to a recent study by Centre for Asia Pacific Aviation (CAPA), by 2020, Mumbai will need a third airport. Nine other cities, namely Delhi, Bangalore, Hyderabad, Kolkata, Chennai, Pune, Nagpur, Ahmedabad and Amritsar will require a second airport. The report says that around USD 30 billion will have to be invested to develop the various airports in the country. That apart, KN Shrivastava, Joint Secretary, Civil Aviation, had said that Airports Authority of India (AAI) and private developers will make an investment of USD nine billion in the next four-and a-half years.

Mumbai and Delhi airports, being modernised by the private sector, handle more than 20 million passengers per annum and will be saturated by 2010, when passenger traffic touches 25-30 million in Mumbai and 30-40 million in Delhi, the study has found. The existing airports in Bangalore and Hyderabad will be saturated in 2008, when the traffic will touch 10 million. That is when the two Greenfield airports in these cities are expected to be operational. Kolkata Airport, which handles more than five million passengers, will need a second airport by 2010.

Jul 5, 2007
Source: Travel Biz Monitor

Human Resources & Training

Travel Characteristics of Indians