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. Indian airports' tariff second highest in Asia

The rates charged by Indian airports are the second highest among the Asian and Gulf airports, next only to Hong Kong, which offers world-class facilities. While most international airports follow the non-aeronautical charges pattern to subsidise on their aeronautical charges, Indian airports follow a different pattern. Their charges include landing, navigational, route and facilitation and parking charges, which makes them 60 to 70 per cent more costly than their Asian as well as certain European counterparts.

While it would cost USD 203 for handling a small Airbus A320 aircraft for a three hour turn around at the Kuala Lumpur airport, the same would cost USD 1,060 at an Indian airport. For a Boeing B747 jumbo jet, Indian airports charge USD 3,471 for a three hour turnaround as against Singapore's airport charges that are 40 per cent lower at USD 2,476. The Dubai airport charges USD 1,341 to handle an Airbus A340 plane but Indian airports charge USD 3,282 for the same.

Apart from the cost differences arising due to adoption of aeronautical and non-aeronautical modules, there are certain other discrepancies that are responsible for making flight operations at Indian airports a costly affair. One among this is that international flights have to pay 33 per cent more tariff than domestic flights landing at the same airport in India which is an uncommon practice elsewhere. Albert Tjoeng, Spokesperson-Asia, International Air Transport Association (IATA) assigned the high rates at Indian airports to the fact that India imposes excessive overflight charges at seven profitable airports to cross - subsidise the other non-profitable airports. He also said that such a policy does not comply with the International Civil Aviation Organisation (ICAO) charges priniciples. As per ICAO, the airport charges should be equitable in cost allocation to ensure there are no cross subsidies between users. All these factors result in a major flaw for attracting more flights to India when one measures the facilities provided at Indian airports in comparison with those at Singapore or Hong Kong in return for the tariff charged by the authorities.
Jun 13, 2007
Source: Travel Biz Monitor

2. Jet Airways to start its Mumbai-Newark flight from August 5

Jet Airways will start its first flight to the US with a service between Mumbai and Newark with a stopover at Brussels, starting from August 5. A Boeing 7770300ER will be used on the new route. The airline is expecting the Brussels stopover to prove more profitable venture than a direct non-stop flight to Newark. The airline has also signed a MoU with Brussels Airlines to facilitate convenient connections to other European destinations like Stockholm, Oslo, Birmingham, Geneva and Madrid.

Jet is also planning to start daily flights on the New Delhi - Toronto via Brussels from September 2007. In the near future, Jet hopes to extend its services to 25 destinations across Europe. Air India's direct flights to the US are scheduled to start just four days prior to the launch of Jet's Mumbai-Newark services
Jun 13, 2007
Source: Travel Biz Monitor

3. Emirates to fly to Ahmedabad

Emirates is all set to launch its services to Ahmedabad, as well as increase the frequency of its flights from other cities. This October, the Dubai-based airline will have six flights a week connecting Dubai and Ahmedabad. Emirates' announcement is part of its latest flight expansion plans to India. Emirates will start two additional weekly flights to Mumbai from October, which would take total flights to Mumbai from 19 to 21. The number of flights to Chennai will be increased from eight to 14 by winter. Flights from Kochi will be increased from seven to 10 from August and Hyderabad will have 11 flights a week from October. With all these expansions, the total number of weekly flights total to India will increase from 71 to 91.
Jun 12, 2007
Source: Travel Biz Monitor

4. Air ticketing: Refund blues after cancellation

Be sure of your travel plans before booking an air ticket, especially if you intend to use your credit card for the transaction. A Pune consumer, who cancelled his air ticket in March, is still waiting for his refund amount to roll back into his credit card.

Another Mumbai consumer got the amount reversed two months after cancellation. In such a scenario, other than losing a certain amount in cancellation charges, the consumer also ends up paying unnecessary higher credit card charges.

Consumer organisations say most complaints against airlines are over delayed refunds, followed by lost and damaged baggage, and delayed flights.

According to the refund policies of most airlines, the ticket amount minus cancellation charges gets reversed to the credit card account in seven to 15 working days. (It is known that many low-cost airlines such as GoAir, SpiceJet and IndiGo do not refund the cancelled ticket amount. Instead, it is converted into a credit shell, after deducting cancellation charges. The consumer can access this amount for future travel).

Delayed refund, however, remains a common complaint. Says V M Oza, honorary director, complaints, at Ahmedabad’s Consumer Education & Research Centre, “Refund should not take more than a week. After consumers come to us, they receive it only after one or two follow-ups. This should not be the case.’’

Such a delay appears all the more unfair in case the flight itself gets cancelled. “This also takes time. Sometimes airlines delay the refund saying they need to verify their records,’’ says H K Awasti of Delhi’s Consumer Voice.

However, a spokesperson for Air Deccan says such a delay could happen due to no fault of the airline. “What also happens is, the refund may have gone from our end, but it doesn’t reflect in the consumer’s credit cardstatement.’’ Consumer organisations also point out that the concept of compensation for loss of time, money and mental distress is almost unheard of in India.

A Mumbai consumer who had planned a train trip to coincide with his flight arrival time, got a rude shock at the airport when he found that flights to the sector had been discontinued. He was not informed about the change, although he had provided his cellphone number while booking the tickets. While he got the refund—and that too after three months of constant follow-ups—he is still fighting for compensation for the obvious slip-up. He ended up spending a considerable sum to pick up new tickets at stack rate to rush to his destination.

Airlines & cancellation policies:

GoAir: Changes in travel bookings allowed till two hours before departure time. Cancellation charge: Rs 750. The balance amount is converted into a credit shell, which remains valid for six months

IndiGo: Cancellation charge: Rs 750. The balance amount is converted into a credit account, which remains valid for a year

SpiceJet: Cancellation charge: Rs 750. The balance amount is converted into a credit account, which remains valid for a year

Air Deccan: No-cancellation policy.

Kingfisher: Cancellation allowed till one hour before departure time. Cancellation charge: Rs 750. The amount gets refunded within 7 working days.

Indian Airlines: Refund for tickets issued against credit cards are made by Indian Airlines offices through credit slips only. The amount is credited to the account by the credit card organisation subsequently.

Jet Airways: Cancellation allowed till one hour before departure time. Cancellation charge: Rs 750. The amount gets refunded within 15 working days.

Jul 13, 2007
Source: Economic Times

Sector: Railways

1. Indian Railways accounts for 30 per cent of Indian online retail for 2006-07

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

This year's projections currently stand at Rs 1,500 crore. In June, the e-ticketing services of Indian Railways Catering and Tourism Corporation sold tickets worth over Rs 129 crore. On an average, it sells about 40,000 tickets daily through the Internet. On July 3, its online sales touched an all-time high of 44,000 purchases. "We have sold tickets worth Rs 319 crore already, and estimate that by the close of the financial year, our ticketing business would have crossed Rs 1,500 crore," a railway official said.

The massive jump in sales is putting pressure on the weak internet connectivity of most domestic banks. "On an average, only about 71 per cent of all transactions are successful mainly due to the poor online infrastructure of banks," the official said. The corporation is also concerned that online sales may soon plateau off as Internet penetration is poor in non-metro areas. Sales will increase if it can also provide unconfirmed tickets on its website. The railways' e-ticketing has gone global, with travel agents in Sharjah, Nepal and Singapore providing the facility. On the anvil is a tie-up with the posts and telegraphs department. Post offices can then book tickets online.
Jul 10, 2007
Source: Travel Biz Monitor

Sector: Hotels

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

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

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

Jul 13, 2007
Source: Travel Biz Monitor

2. Oberoi hotel best in the world

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

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

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

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

The Oberoi group operates 32 properties in five countries.

Travel + Leisure has a circulation of approximately one million.

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

Respondents reported where they had travelled worldwide and rated only the destinations, properties and companies that were relevant to their recent travel experiences.

Respondents were asked to rate hotels, cities, islands, spas, hotel spas, tour operators, safari outfitters, cruise lines, airlines and car rental companies on several characteristics. The final scores are indexed averages of responses concerning applicable characteristics.
Jul 13, 2007
Source: Hindustan Times

2. Carlson Hotels-Plan India join hands to help underprivileged children
Carlson Hotels Worldwide today announced its collaborative initiative with Plan India, a non-government organization working for children in adverse circumstances.  The hotel group has associated itself with the NGO to work towards ensuring basic rights to the underprivileged and needy children in the society.

As per the initiative, Rs40 at every guest check out would be contributed to the Plan India mission. The partnership involves all Radisson Hotels & Resorts and Country Inns & Suites by Carlson properties of the Carlson group in India. 

The joint effort initially will focus on four projects of Plan India that work to ensure rights of children. The program focus on working towards preventing instances of child labour. The initiatives supported by the Carlson-Plan partnership include enabling children living on platforms to live with dignity covering the Hazrat Nizamuddin, Faridabad, Agra and Mathura platforms; a literacy initiative for children in a community living at Port of Mumbai; a night shelter for working and street children in Varanasi and a project undertaken in fishing communities of 217 villages in Andhra Pradesh to educate and provide vocational training to the children.

Continuing with its long tradition of working for underprivileged children, Carlson Hotels has tied up with Plan India, affiliated to Plan International, a global organization working for the upliftment of underprivileged children since 1937. Said K.B Kachru, Executive Vice-President - South Asia, Carlson Hotels Worldwide, "We wanted an organization that would complement our vision and global presence. An association with an international organization like Plan will help us to achieve our goal of making a difference in the lives of these underprivileged children." He also added his desire to take up more such initiatives in the future.

Plan India also believes that the initiative will help both the organizations to unite their efforts towards working for a common cause. Said Govind Nihalani, Film producer and Chairman, Plan India, "It is a great example set by Carlson and we hope that more such initiatives are undertaken in the corporate world." Noted film actor, Anil Kapoor who was present on the occasion as the Goodwill Ambassador of Plan India also appreciated the support, "I am extremely delighted to be a part of this great initiative of Carlson Hotels as a part of its social responsibility in securing the future of deprived children."

Carlson Hotels Worldwide is the co-founder of the World Childhood Foundation, established by Her Majesty Queen Silvia of Sweden. The foundation sponsors projects around the world for the betterment of children. Carlson was also the first North American travel and hospitality company to sign "the code", formally known as "The Code of Conduct to Protect Children Against Sexual Exploitation in Travel and Tourism," which is an international set of guidelines by which travel and tourism companies have pledged to operate in order to end the commercial sex trade in children.
Jul 11, 2007
Source: Indian infoline

3. Dawnay Day gets aggressive in India

With an overall committed investment of USD 1.2 billion for India, Dawnay Day International is steadily growing its presence in the Indian hospitality market. While work on the properties at Pune, Jaipur and Ahmedabad is on, the company is looking to acquire land at Hyderabad and Bangalore. DDHI will soon be sealing its land acquisition deals in Bangalore, Hyderabad and Chennai. It is also scouting around for land in Mumbai and Delhi.

Raman Mohan, Senior Vice President , Sales and Marketing, Dawnay Day Hotels India Pvt Ltd said, "We have recently appointed Smallwood, Reynolds, Stewart, Stewart (SRSS) as our principal architects. Total Integrated Design (TID) is the interior design consultant. We have also appointed the India office of Cushman & Wakefield as Project Managers for DDHI Hotel sites which are currently under construction."

With a clear focus of setting up four-star premium properties in India, DDHI will set its rates within the bracket of Rs 5,000 to 6,000 a night. A brand for DDHI hotels is being conceptualised at the moment and will be launched by the end of 2007. This brand will have a global flavour and will be in line with the existing brands of Dawnay Day Hotels.

Says Mohan, "Technology will be the key focus in all our properties across India. On the marketing and promotional front, we would look at tie-ups with online travel agents as well as use the cross-over selling approach through varied verticals."

The properties will offer food courts. Plans are also being worked out to offer fine dining options at select properties.
Jul 10, 2007
Source: Travel Biz Monitor

3. Panoramic Universal to launch four hotels in India by 2009
Panoramic Universal Limited, a mid-segment global hospitality player, plans to introduce four hotels in Thane, Durgapur, Hyderabad and Pune by 2009. The India-based group has hotels in India, US and New Zealand and is in the process of doubling its existing portfolio of 900 rooms over the next three years.

The upcoming property at Thane, to be named United Inn, is a four-star hotel-cum-recreation club, offering 48 rooms, multi-cuisine restaurant with 150 covers and conference and banquet hall with a capacity for 600-1,000 guests. With an investment of Rs 40 crore, the project is scheduled to be ready by April 2008. The project at Durgapur in West Bengal will be a three-star hotel offering 100 rooms at an investment of Rs 20 crore, while the one in Hyderabad will be a four-star hotel offering 90 rooms at an investment of Rs 40 crores.

In Pune, the group has plans to set up a budget hotel as well as a five-star-cum-service-apartment. "The market for five-star hotels in a city like Pune may soon saturate, but service apartments are financially a more viable option. That's the reason we're looking into developing service apartments for the city," says Sudhir Moravekar, Chairman, Panoramic Universal.

The group is also looking to come up with full service hotels in the US and develop United Inn as a brand. "We will initially develop hotels in the four-star and five-star categories with a Pan Indian presence and will then look into budget and boutique hotels across the country," offers Moravekar. Currently, the group is also in talks with international players for co-branding prospects in India. "In the future, we will also look at entering into management contracts," he adds.

The group, which already owns and operates three mid-segment hotels namely, Graciano Cottages in Goa, Hotel Sai Sahavas in Shirdi and Hotel Sagar Kinara in Malvan and a lounge bar-cum-discotheque called Area 51 in Pune, will also look into acquisitions in the travel sector. "We want to create an integrated hospitality group by the next decade. We will look at launching our travel services, portals and services centre for our clients," says Moravekar.
Jul 8, 2007
Source: Travel Biz Monitor

Niche Tourism

Medical

1. India set for medical tourism drive
Indian corporate hospitals are set to boost the country`s medical tourism drive by tapping insured overseas patients. Tanzania is one of the countries which send their patients to India for medical treatment.

Tanzania has, for many years, depended much on Indian hospitals especially in heart surgeries and tackling other complex diseases.

However, the number of Tanzanians being sent to India is a drop in the ocean compared with that of people from other nations.

It is estimated that for consecutive three years, Tanzania had sent more than 200 patients for heart surgeries alone. Last year, some 1.5 million foreigners flocked to India for treatment.

In an interview with The Guardian yesterday, Chairman of Regency Medical Center and a member of Lions Club, Dr. Rajni Kanabar said through Lions Club, Tanzania used to send more people in India.

He said India is one of the leading countries specializing in this area heart surgery.

"The cost to treat one patient in India is about 2.1m/- that caters for heart surgery, upkeep allowances, accommodation, air tickets for almost one month while in India.

The Lions Club is coordinating the whole process to make sure a patient is treated," he said.

He added: "We always appeal to well-wishers to contribute and assist those patients."

Dr. Kanabar said India was at third rank in providing improved healthcare services, especially on heart surgeries.

India is geared to expend its scope of health care delivery so as to meet its targets of using medical tourism market for economic gain.

" The next phase of globalization of healthcare services will be the treatment of insured patients across the world. Market forces will themselves ensure that a large number of insured patients come to Indian hospitals.

The key would be to provide top quality healthcare services at low cost. Insurance companies are accountable for the safety of their patients and they would not send them to any hospital if the quality is not world class, no matter how low the cost is, " says Wockhardt Hospital CEO Vishal Bali.

Industry officials say Indian hospitals have been lobbying to treat insured patients for some years now. But deteriorating financial condition of national health services of many western countries and also the need to care for uninsured patients will compel insurance companies to look at Indian hospitals.

There are an estimated 71 million underinsured or uninsured population in the US alone. Says Escorts Heart Institute executive director (medical services) Dr Kler: "Most of the health services in insurance driven countries are bleeding and evaluating hospitals in India as an alternative.

" This is a big opportunity for the Indian healthcare industry and Indian corporate hospitals should make a co-coordinated effort to tap the insured patients segment."

US-based cancer care and research company International Oncology is planning to set up high-end cancer hospitals in India to target foreign patients from the US and Europe.

To tap the insured patients, the company is planning to tie up with health insurance companies in the US to provide discounts to patients who would come for treatment in its Indian hospitals.

International Oncology CEO Pradeep Jaisingh said: "We already see emergence of insurance products that will offer premium discount to people opting for India option for their treatments."

To cut down costs, the National Health Services in the UK is already exploring outsourcing radiology work to Indian hospitals.

Industry officials feel that once a precedent is set for outsourcing, it is only natural that other segment like pathology tests and treatment would follow to cut down cost. Many other national health services are projected to go bankrupt in the next decade or so.

At present, Indias medical tourism industry is estimated to be around USD450 million and may reach USD2.2 billion a year by 2012.

Over 1.5 million foreign patients visited India for medical procedures last year and are growing by 15% a year.

But most foreign patients come to India because they are not insured or can`t wait for delayed appointments.

Artemis Hospitals CEO Dr Kushagra Katariya, however, pointed out that while insurance companies would be naturally attracted to low-cost treatment in India, hospitals need to further improve soft-skills such as attitude, transparency of treatment and communication to compete with hospitals in South-East Asian countries.

Wockhardt and Fortis Healthcare are in the empanelled list for emergency treatment of insurance majors such Cigna. However, the treatments are restricted to expats or those patients who are on travel to India.
Jul 11, 2007
Source: Guardian

Spiritual & religious
Rural
Wine
Heritage

Adventure

1. Experiencing the Adventure: A New Tourism Facet

The adventure tourism segment in India has evolved over the years, from a nascent one just a few years ago, to a segment that is pegged at Rs 300 crore and growing. The terminology is no more 'adventure' but takes on new avtars such as 'activity-based tourism' or in recent times, 'experiential tours'. The well travelled customer now wants to experience the destination and the activity offerings and is not content with just a `look and feel' factor. From being a state specific focus to getting global recognition is a feat by itself. In the past months, this segment got special focus at ITB Berlin 2007 and is the topic of discussion by many a tourism boards, be it domestic or international

As per an analysis by PHDCCI, revenues generated by the adventure tourism sector are expected to reach USD 20 billion by 2010. It is also termed as one of the fastest growing sectors in India as it registered a growth of over 20 per cent last year and is currently valued at over Rs 400 crore. With this growth figure, the segment is certainly in the spotlight with the Ministry of Tourism (MoT) and various state tourism boards. Soft adventure is rapidly gaining popularity in India and according to the Adventure Tour Operators Association of India (ATOAI), there are a number of tour operators who have made this niche segment as their sole business and their numbers are proliferating by the day.

Eye On India
As per recent developments, the Andhra Pradesh Tourism Development Corporation (APTDC) has decided to introduce paragliding, rock climbing, rappelling and river crossing at the Araku valley from this year for a short period. As per official sources from APTDC, "The department will invest around Rs 7 lakh for the adventure tourism promotion activities in addition to providing all the logistic support for adventure tourists including river crossing at the perennial nala at Araku valley. If the response is positive, we will consider continuing with these activities."

If one has to just evaluate the adventure offering in India, it spans activities such as white water river rafting, trekking and mountaineering, wildlife safari and desert safari, skiing, hot air ballooning, paragliding, scuba diving etc. These activities are now being promoted aggressively not just by travel agents alone but are being focused upon as new options by inbound tour operators. Adventure tourism is also considered a profitable option for these tour operators as clients are willing to pay top dollar for the tour operator's expertise and the activity. According to Akshay Kumar, General Manager, Operations, Mercury Himalayan Explorations (MHE), while Indians are slowly taking to adventure activities, the segment has a huge potential in inbound travel. Though seasonal and not high volume, it is a segment with high yield.

Another player is Countryside Outdoor Programme Pvt. Ltd that conducts adventure holidays and outdoor management development programmes and is foraying into wildlife tourism, following a demand from its regular clientele. The company plans to organise tours to sanctuaries like Kaziranga National Park in Assam, Corbett Tiger Reserve in Uttaranchal and Bandhavgarh Tiger Reserve in Madhya Pradesh. The company is planning to approach these national parks for permits to operate jeep safaris. It is hopeful of starting the wildlife packages from January 2008.

Apart from just single tour operators, big players like Kuoni Destination Management (KDM) are also focusing on this evolving segment. Rolf Schafroth, CEO, KDM in a recent interview mentioned about the company's focus on adventure tourism. He said, "Given the fragmented nature of adventure sports market in India, the company is in talks with two companies-one which specialises in organising safari tours and another which focuses on mountaineering, trekking and river rafting. Adventure sports would be an extension of our leisure business."

Apart from the industry, even states like Rajasthan, Kerala, Goa, Himachal Pradesh are looking at adventure tourism to add on to the bouquet of offerings and attract more international and domestic tourists. The Himachal Pradesh Tourism Development Corporation (HPTDC) organises the pre-World Cup for paragliding at the Bir and Billing area of Kangra district. The Himalayan range in the state offers a number of trekking trails of various grades and peaks for mountaineering enthusiasts. HPTDC also promotes white water rafting, trekking, horse riding, and water sports at the Maharana Ranjit Sagar Dam and the Pong Dam. Religious tourism and adventure tourism is the mainstay of Uttaranchal and Jammu and Kashmir.

Similarly states like Karnataka, Madhya Pradesh and even Goa (water sports) are focusing on adventure tourism. Madhya Pradesh has got international recognition for its national parks and wildlife sanctuaries, especially the Kanha and Bandhavgarh Tiger Reserves, and is now also focusing on promoting adventure water sports in the state. Northeastern states and emerging state of Jharkhand also offer great potential for adventure tourism. Rajasthan is also tapping into the niche adventure tourism segment and has undertaken several initiatives for the same.

"Rajasthan has been the destination of choice for both foreign and domestic tourists. While people have been visiting the state to view its rich heritage and culture, we also want to make it the destination of choice for adventure tourism in India. We already have facilities existing for various activities like camel safaris, jeep safaris, horse and elephant polo etc. and now we want to establish the state as a hub for hot air ballooning," stated Vinod Zutshi, Secretary Tourism, Government of Rajasthan.

The Experiential Factor
While our Indian counterparts would like to still focus on the term 'adventure tourism', internationally, tourism boards have gone a step ahead and coined a new term - 'Experiential Tourism'. According to a global report, trips involving activities such as bungee jumping, white water rafting and mountain biking will soon make up 30 to 40 per cent of tourism expenditures worldwide. This will basically cater to well travelled tourists who are looking at understanding the offering of the destination and experiencing it. South Africa and Kenya have taken the lead in offering safaris and experiencing the wild.

Other regions such as Australia, Malaysia, Dubai and even France are getting on to the adventure tourism bandwagon. Says Manoharan, Director, Tourism Malaysia, "We are now offering repeat travellers new options going beyond Kuala Lumpur, Langkawi, Genting. We are now focusing on destinations such as Kota Kinabalu and the Sabah and Sarawak region, which is rich in nature, adventure and eco-tourism. Though a niche segment, the offerings are very unique." The activities offered in Kota Kinabalu include air trekking, shark feeding, eagle feeding, a lot of rain forest region to explore and much more.

"From an Australian viewpoint, there has been a shift towards FIT travel and Indians want to try out more activity-based tourism," stated Maggie White, Regional Manager, South and South-East Asia, Tourism Australia (TA). Interestingly enough, Indian tourists are also taking scenic flights in seaplanes over the Sydney Harbour and beaches or soaking in the sights from a hot air balloon. "It is more about gaining a wholesome experience of the destination rather than just the adventure factor. We believe that the younger segment of Indian travellers are willing to try out more activities and will get much further in the next five years," adds White.

Dubai on the other hand has introduced the Indian outbound to sporting activities like scuba diving and deep sea fishing. The Department of Tourism and Commerce Marketing (DTCM) is also promoting adventure tourism to Indians through offerings such as the Wild Wadi, host of water sports and the desert safaris. If this is not enough, France intends to offer tourists winter adventure tourism. Says Sheetal Wadhwa Munshaw, Manager - Marketing (India), French Tourist Office, "Indians are beginning to take off on holidays centred on rafting, golfing, water sports. All these are easily available in France."

Getting to the Next Level
Adventure tourism or Experiential tourism segment in India is emerging and fast. It is no longer limited to trekking or climbing in the Himalayas. The offerings are unique and more explorative. However, today the industry has come of age and offers a variety of adventure travel options and India is a very economical destination. In the recent past, even the hospitality sector has realised the potential of this segment, especially wildlife tourism and is building jungle lodges and resorts to cash in on this trend. India has about 80 National Parks, 441 Sanctuaries and 15 Project Tiger Reserves. Sarovar Hotels Resorts are among the major players, who recently made a foray into this segment and have opened a wildlife resort near Corbett National Park. Taj Group with its tie-up with Conservation Corporation Africa (CC Africa) and Cigen Corporation, a part of the Chaudhury Group, have expanded into this segment. Jungle Lodges & Resorts (JLR), a unit of Karnataka Government's tourism department, has taken lead in wildlife tourism and has established ten resorts in the state. Even global players like Abercrombie & Kent have evinced interest in the Indian adventure market. All these are positive signals for a growing industry that has a target to reach by 2010
Jul 9, 2007
Source: Travel Biz Monitor

Education

Nature tourism

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

Others

1. Pains & gains

Bollywood has always found its muse in the monsoons with the rain-drenched dance sequence emerging as one of its most enduring symbols. Even global Indian movie director and producer Mira Nair has immortalised the Indian rainy season in her highly-acclaimed movie — Monsoon Wedding. But for India Inc, the monsoons bring mixed fortunes and it’s not always party time during the rains.

Often different companies are seeing opportunity in adversity and turning the rains into a season of hardsell. How else does one explain the dhamaka sales in various segments such as apparel and shoes or the exotic monsoon packages from tour operators?

The tourism industry, in fact, has been going all out to woo domestic travellers during the monsoons with packages such as Ayurvedic vacations to rejuvenate the body and soul. In fact, during the monsoons holiday packages are available at all-time low rates and without advance reservations. International tourists, especially from the Middle East/ Gulf countries also visit India in large numbers during the rains.

Besides, there has been an increase in travel overseas by couples without kids (DINKS) during the monsoon as well as old people travelling abroad to visit friends and relatives. “Additionally we have the marriage season in North India so there’s a crowd of honeymooners to destinations in Europe, Mauritius, etc,” says a Thomas Cook spokesperson.

The popular destinations that have emerged for monsoon tourism are Kerala, Goa, Madhya Pradesh, Sikkim and Meghalaya — which have started cashing in on the ‘monsoon tourism’ trend. Says Tarun Thakral CEO, Le Meridien Group:

“Traditionally, the monsoon has not been the most exciting of seasons for the tourism sector, a time when occupancy rates have gone down as a slipover from the lean summer curve, both for inbound and domestic tourists. But increasingly, the sector has been looking to increase occupancy in this season, and devising appropriate strategies.” Travel companies such as Cox & Kings have started offering monsoon packages with cost anything between 5% to 8% less than other seasons to attract more customers. Quite a few companies too opt for incentive tours during the monsoons.

Of course, not everyone is excited about the rains. For the aviation industry, for instance, there’s no silver lining to the dark clouds. “This happens everywhere in the world. If not monsoon, then there are ice-storms or typhoons which affect normal functioning of an airline,” says Bruce Ashby, CEO, Indigo Airlines.

Traditionally, monsoons have been a lean season for the aviation industry. General movement of passengers reduces post summer-holidays season and only ‘must travel’ kind of passengers fly. However, the budget airlines are now trying to cash in on the lean season.

“Low-frill airlines have brought a major change in the age-old trend. They tend to reduce their fares further in the Monsoon season. Paid accommodation is much cheaper and together with low-fares it gives opportunities to a new category of passengers, who have evolved lately to fly (e.g. pensioners, religious tourists, college students). Our good loads on Goa, Jammu and Varanasi flights are the perfect example of this trend,” says a Spicejet official.

India’s big boom sector — organised retail — is also trying to figure out a monsoon strategy. Says Jitu Mehta, President, Spencer’s Retail: “The impact for us is no different from any other traditional retail business. The key issue is infrastructure management by local civic bodies. For instance, Kolkata gets flooded with the slightest amount of rain. We still try to ensure that maximum number of stock keeping units (SKUs) are available on the shelves. Monsoons are not unforeseen events and have their own cycle. However, as matter of corporate policy, we do not take advantage of monsoons as we witnessed in traditional trade last year in Mumbai where they artificially jacked up prices of essential items like sugar, fruits and vegetables etc. We maintained our normal prices.”

Different industries have different strategies when it comes to monsoon marketing. In the white goods category, for instance, washing machine sales go up. Explains Girish Rao, vice-president for sales and marketing, LG Electronics: “During the monsoon the immediate product category that sees a spurt in sales is the washing machine. Otherwise we don’t see any specific growth across product categories related to monsoons as such. But in the north a lot of marriages take place around that time and that perhaps increases the sales of entry level products like colour TVs and refrigerators.”

Again there’s an increase in demand in the pre-monsoon season for tyres that can handle wet conditions. “We have recently run a tactical promotion before monsoons, wherein Puma merchandise was given along with purchase of four Goodyear tubeless tyres, to boost sales for the monsoon. We also offer a host of tyre models, which set industry standards for driving in wet road conditions. One of these is the Goodyear Excellence series doing duty in luxury models. In addition to the Excellence range, we are also offering the Eagle F1 range that has won several international industry awards for best handling in wet conditions,” says Mahesh Krishnan, sales & marketing director, Goodyear India.

Meanwhile, marketing guru and CMD, Samsika Marketing Consultants, Jagdeep Kapoor, has an interesting theory on the monsoons. He has worked out a concept, which he calls the Rain Game. He has three categories, namely inside, beside and outside. The companies in the inside category thrive on monsoons such as makers of raincoats, gumboots and umbrellas. The beside category includes pharma companies, hospitals, tyre companies and road construction companies. The last category or outside is most interesting and looks at youth-oriented companies that go on marketing binges at the college festivals that take place during the monsoons. “The monsoon also heralds the season for festivals. For instance, during the Janmasthami festival in Mumbai, MNCs sponsor the teams who break the matka,” Kapoor says
Jul 8,2007
Source: Economic Times

Policy

Travel and Tourism Support Industries …and much more

Service providers

1. NZONE takes a dive into Indian market
Established skydiving tourism operator NZONE has been strapping people to its belly and jumping out of planes for 17 years, but an enterprise trip to India is opening up a whole new market. The traditional customer is aged between 18 and 35 and comes from Australia, Britain, parts of Europe, and the United States.

But sales manager Ben Chapman said the customer base was broadening and more people in their 40s, 50s and 60s were jumping. The company's oldest skydiver was 96 and the youngest only 6.

NZONE had about 12,000 customers a year at its Queenstown centre and about 3000 in Rotorua. An increasing number came from India. "They are the rich, they're the elite, so there's very much a, 'I wear these clothes, I drive this car, I travel to places like New Zealand and I partake in these activities'," Chapman says. "It is a bit of a status thing."
In March, the company joined a week-long Tourism New Zealand enterprise mission to India, during which they held meetings with 14 key travel industry companies and gave presentations to about another 100 firms in Delhi and Mumbai.

The reception was exceptional, Chapman said. "Obviously, we're well established in New Zealand and we are a product that, for our core markets, is maturing. In India it's a very new product."

NZONE's Indian market was still small but growing - up about 46 per cent between May 2005 and May last year. "It's made us realise that even though we have a company that's 17 years old, there are still new markets that have really no concept of our product. With the right education and information they will want to experience it." According to Statistics New Zealand, 21,038 people visited New Zealand from India during the year ended May, still a relatively small number but an increase of 11.5 per cent on the previous year.

"Because those 20,000 people only deal with a select number of travel trade [companies] that deal with New Zealand, their awareness is high and so we expect significant growth within that market in terms of share going forward," Chapman said. The family summer season for Indian travellers was between March and May, Chapman said. "May is our down time so we've suddenly got a significant increase in business in a time that we're normally quiet," he said. "It does make a huge difference for us." Tourism New Zealand's contacts were invaluable, and working with the international marketing body was as good as having staff in India, Chapman said. "The scenario is relatively simple: when you pull up in Auckland to an office, it's well signposted and you walk in the door to reception and go to the person you're supposed to meet," he said. "But in India, you walk down an alley, through a door and up three flights of rickety stairs and suddenly you're in an office of 20 people."
Jul 9, 2007
Source: New Zealand herald

2. Equino Fun Holidays ties-up with Kingfisher Airlines
Equino Fun Holidays, a subsidiary of Travel Port Pvt. Ltd., tied-up with Kingfisher Airlines last month to promote monsoon packages to Kerala and Goa. The company has tied-up with Kingfisher Airlines as it has a clientele with a high-end profile, which is the preferred target audience of the tour operator.
Jul 9, 2007
Source: Travel Biz Monitor

3. L'orient Travels looks at specific tours for inbound visitors
Mumbai-based L'orient Travels is aggressively promoting inbound tourism with a host of products that is marketed to the US, Canada and Germany markets, specifically to a mature audience of over 40 years of age. "We are constantly in the process to make our tours more specific to the target audience. Besides, right now, we are concentrating on increasing our customer base as well as the number of fixed departures," says Hector D'souza, President L`orient Travels.

Inbound tours organised are mainly for 25-30 days. The longest all-India tour is 55-day tour covering approximately 18 to 20 destinations. L'orient Travels' main focus is on cultural and soft adventure tours like rafting, trekking, jeep safari and, to an extent, wild life. Adding further, D'souza says, "In the coming months, we plan to come up with Big Five, a tour that will take the tourists to five wildlife destinations in India to see the animal attractions. Musical and dance tours will take tourists to destinations, where music and dance is very prominent. Pilgrim's Progress is a yoga tour coming up in February '08, wherein the tourists will be taken from Mumbai to Pune, Goa, Bangalore, Kerala and back to Mumbai in 15 days.

Glimpses of India, is a 15-day tour, which takes the tourists through the circuit covering Rajasthan, Uttaranchal with a stopover at Delhi, Sikkim, Andhra Pradesh, Kerala and Mumbai. L`orient Travels are also tourism partners for Stuttgart tourism, Germany, where they closely work with the tourism board to promote outbound tourism to their destinations in Germany.
Jul 9, 2007
Source: Travel Biz Monitor

4. Travelguru adds service apartments to its portfolio

Travelguru is entering in to the serviced apartment segment with an initial focus on Delhi, Mumbai, Chennai and Bangalore markets. "We currently have a total of 75 apartments listed, with 45 apartments listed from Bangalore. The count is going up daily and the segment constitutes about seven per cent of our entire business," stated Ashwin Damera, CEO and Co-Founder, Travelguru. It has also forged an exclusive tie-up with Air Deccan to offer budget hotels corresponding to the ticket fares. According to Damera, the company currently does not have any plans to set up offline strategies
Jul 9, 2007
Source: Travel Biz Monitor

Travel ecommerce

1. Online future of travel

For the new age traveller, the internet is increasingly becoming the most convenient source for planning a trip. Online travel portals and direct selling by airline websites are the new aids to plan a journey, says Gour Kanjilal, Executive Director, Indian Association of Tour Operators (IATO). According to a recent report from Jupiter Research US Travel Forecast (2006-2011), online travel revenues in America will reach USD 128 billion by 2011, accounting for nearly 30 per cent of all travel booked online.

In India, too, the growth is expected to be impressive, almost USD two billion by 2008. With technology taking over, the conventional travel agent will become just a facilitator or provider of tailor-made packages. The airline industry in India is booming, too. Over 7.5 million Indians travelled overseas in 2006. India's domestic air travel has grown to 25.5 million passengers. Most airlines, too, are introducing e-tickets and promoting online booking and sales. Indeed, the future of travel is online
Jul 8, 2007
Source: Travel Biz Monitor

Events

Research and Market reports

2. India Expects Travel and Tourism to Contribute Rs8,500 Billion to GDP by 2020

Research and Markets (http://www.researchandmarkets.com/reports/c61966) has announced the addition of Travel and Tourism in India to their offering. The ‘Travel and Tourism in India’ report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest market size data (1999-2004), allowing you to identify the sectors driving growth. It identifies the leading companies and offers strategic analysis of key factors influencing the market - be they new legislative, technology or pricing issues.

Background information on disposable income, annual leave and holiday taking habits is also included. Forecasts to 2009 illustrate how the market is set to change. Sector coverage includes travel accommodation, transportation, car rental, retail travel and tourist attraction markets.

Outlook well on way to growth
By 2020, the government of India expects travel and tourism to contribute Rs8,500 billion to GDP, almost four times the value in 2005. With successive governments committed to reform, a strong manufacturing sector and a private sector that already has a critical mass that is needed to drive growth, it is unlikely that the strong growth in GDP is likely to be reversed. The rising middle class is also becoming increasingly affluent, mobile, Internet savvy and more sophisticated in terms of what is demanded in terms of tourism products and services, and more importantly the price they are willing to pay for it.

A boom is expected in travel accommodation, as more serviced apartments, budget hotels (2-star category) and highway motels are established. Significant changes are expected in travel retail, with the arrival of more international players, such as Le Passage and Cox & Kings, particularly in outbound travel. British company Cox & Kings plans to relocate its corporate headquarters from London to Mumbai as a result of its being bought out by its Indian arm in late 2005. Global interest also includes the American millionaire Alfred Ford with plans to set up a Himalayan ski resort. Internet intermediaries are expected to expand significantly and grow the market without significantly adding to volume growth. Rural tourism and medical tourism for inbound tourists will also give rise to new products and services in this sector.

Until recently, not much emphasis had been given to the maintenance and development of the historical and heritage sites in India, which resulted in a large number of tourists staying away from these. However, the Indian government’s increasing investment in the upgrading and modernisation of infrastructure will translate into better facilities, amenities and access to the leading tourist attractions and sites.
Jul 8, 2007
Source: Business Wire

Human Resources & Training

Travel Characteristics of Indians

1. Bollywood can take Indians to Russia

Shooting of a couple of Bollywood movies in Russian locations could open the former communist nation to Indian tourists and boost bilateral people-to-people exchanges, a senior government official said at a recent Indo-Russian business meet.

"Shooting of a couple of Bollywood movies with mega stars in Russian locations could open the country for the Indian tourists willing to lavishly spend on foreign travels," India's Commerce Secretary G K Pillai said here earlier this week addressing a joint Indo-Russian business seminar organised by Moscow-based Indian Business Alliance and the Centre of Strategic Research, a Kremlin-linked think-tank.

Pillai said rich Indian tourists had opened Australia and New Zealand as attractive tourism destinations after filming of popular Bollywood movies these countries.

Last year over 45,000 Indians had visited Russia, of which only 4,000 were tourists, while among the 59 thousand Russian visitors to India there were 35 thousand tourists, mostly to Goa, although it is much bellow the potential of tourism in both countries, industry representatives said.

India and Russia view tourism as one of the promising areas of cooperation as part of the drive to boost their economic interaction and trade to the level of 10 billion dollars by 2020.
July 12, 2007
Source: PTI via Economic Times

2. Germany beckons Indians

Germany is more affordable than people think — be it in terms of shopping, accommodation or tourist packages. It is cheaper to shop here than in Dubai or Singapore, says the German National Tourist Board.

Going beyond the legend of “German efficiency and German engineering” and moving away from this image of a highly industrialised nation, the country is seeking to lure tourists to the “leisure and holiday destination.” Germany is sought to be projected as a lot more than Lufthansa, Mercedes-Benz, Volkswagen, or Nivea – brands that have endeared themselves to the world with trust and reputation built over the years.
The special targets are Indians, who have taken to tourism and shopping in a big way: the expanding middle class loves to splurge.

And it is in this pie that Germany is trying to put its finger on and extract a share by offering convenient air connections and hotel accommodation ranging from €40 a night to €250 in cities. With 32 UNESCO world heritage sites, travel marts, trade fairs, 680 international golf courses, 6,000 museums, palaces and castles, Germany is touting itself as the “heart of Europe.”

“China and India remain the most important sources for us. The World Travel and Tourism Council has labelled India one of the fastest growing nations in the world for travel. India has the potential travellers who would like to go out and spend money on travel, holiday and leisure. This is apart from a large segment of business travellers from India,” Horst Lommatzsch, Destination Manager, GNTB, told Indian journalists here.

From 280,000 overnight stays so far this year, GNTB is aiming for 61 million stays in all the 16 States by 2015. While admitting that Germany is far behind its European neighbours like France, U.K., and Switzerland in realising and banking upon the potential of leisure travellers and holiday-makers, he said his country has a first-class transport infrastructure of expressways, high-speed trains and swanky airports, scenic beauty, rich art and culture, theme marketing and of events round the year.

GNTB set up an office in Delhi last year. In September, it will host promotional events in Delhi and Mumbai. The official said the FIFA World Cup had helped create excitement among travellers. “While Europe accounts for 74 per cent of tourists to our country, Asia accounts for about 10 per cent. We want to ... shift our focus to Asia, India in particular.”
Jul 10, 2007
Source: The Hindu