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

1. Goa expects to touch 25 lakh tourist mark this season
Goa expects to achieve a milestone in the tourist inflow this season by touching the 25 lakh mark, for the first time in the history of the coastal state.

In terms of tourist arrival, the state is rapidly growing at a pace of 10-20 per cent annually besides welcoming 24 lakh odd visitors last year.

"This season, the figure will touch the record 25 lakh figure, which will be the highest for the state till date ... at least 10 per cent increase in foreign arrivals is expected this season," Ralf D'souza, Chairman Travel and Tourism organisation of Goa (TTAG), said.

Goa, famous for its 105-km-long sandy and pristine beaches, also created a record of sorts when it attracted sizeable foreign and domestic tourists during off-peak monsoon season.

Officially, the tourist season began this week and the first chartered flight will touch Goa airport sometimes next week.

While domestic tourist influx cannot be projected accurately, industry experts feel that the chartered flights will spiral to 750 mark this time.

"Last year, total 725 chartered flights arrived. This year, there will be a slight increase in the figures," D'souza said.

However, the chartered flight growth in the state is marred by the constraints on Goa airport. "There are limited slots available and we have to share the airport with Indian navy and domestic flights," the TTAG President stated.
September 27, 2007
Source: Times of India

Travel and Transportation Infrastructure

Sector: Aviation

1. Aurangabad airport to be refurbished under Ajanta-Ellora Tourism & Development Project

Maharashtra Tourism Development Corporation (MTDC) along with Airports Authority of India (AAI), are developing the Aurangabad airport under the Ajanta-Ellora Tourism and Development Project. Under the development of the Aurangabad airport, new construction of passenger facilities like new passenger terminal and ancillary support facilities are being developed. Other facilities included in the development plan of the project will be constructing a new apron of 500 x 400 metres and also a taxiway for the aircraft. This project is the part of phase two of the Ajanta-Elora tourism and Development Project with an investment of about Rs 700 million. This development is expected to be completed by the mid 2009.

MTDC is the controlling agency in this project whereas AAI is the implementing agency for the project. Japan Bank for International Corporation (JBIC) has given the soft loan to Government of India through Ministry of Tourism (MoT). "Ajanta-Ellora in Aurangabad is a world heritage site, and the development of the airport will not just increase the number of tourist arrivals but also further strengthen the tourism sector in Maharashtra. We will also develop other required facilities like lounges, coffee shops, waiting rooms, restaurants etc. for the regular travellers and the tourists at the airport," informed Abhay Yawalkar, Joint Managing Director, MTDC.

According to sources in the industry the Aurangabad airport is expected to start international operations in one or two year's time. The current airport handles approximately 2,345 passengers per week. The phase one of this project covered conservation and restoration of the Ajanta-Ellora Caves, afforestation, and improvement of road, water supply and signages. On the airport development front, the first phase entailed strengthening and extension of the existing runway from 6,000 feet to 7,000 feet, installation of Instrument Landing System (ILS) and other navigational systems, air conditioning of the departure lounge, as well as construction of the boundary wall. "For the development of the tourism sector, we have set up a tourist centre called, `Ajanta Visitor Centre' wherein information on the tourists circuits, hotels etc. will be provided to the tourists," added Yawalkar. The phase one of the project was started in 2001, while phase two kick started in 2005.
September 26, 2007
Source: Travel Biz Monitor

2. Finnair on cloud nine over India business prospect

Finnair, the official carrier of Finland, took 19 years to start 25 weekly flights out of China but less than nine months to operate 12 flights a week from India. The logic is simple. With all the big IT players of India in Finland and growing Finnish business presence in India, corporate travel is on a high.

Alongside, for the first time, this eastern Scandinavian nation is keen to project its brand ambassador – Santa Claus – in India. Besides, domestic tour operators too are now drawing up special tour packages for ‘winter tourism’ to Finland.

“In 2006, Finland had more than 45,000 over nights (tourists who stay for one or more nights) from India, up 40% from the previous year,” says Taina Tornstrom, director – Indian sub-continent, Finnair. “It takes 6.5 hours to fly to Helsinki from Delhi, and the Helsinki airport has also been voted as the best European airport, which works in our favour,” says Ms Tornstrom.

According to her, in roughly two years, the fleet would be doubled and the airline would make forays into Bangalore and Chennai. Interestingly, this would augur well for the Finnish Nokia, the world’s largest handset maker, since it has its Indian plant in Sriperumbudur near Chennai.

“Finland has started its promotions and fam trips this year. It also recently showcased vegetarian food that the destination offers. By next winter, it will gain popularity among Indians,” says Arup Sen, executive director of Cox & Kings. The package for three nights costs Rs 22,000 (including accommodation, meals and sight seeing) and Rs 50,000-60,000, if you include airfare. Of course, the prices don’t include taxes.

“With increased air connectivity, Finland is now gaining popularity. Passengers are not just using Finland as a transit hub but many leisure travellers are also going there. The number of corporate travellers is also picking pace. The cost is in line with other European countries,” says Nalini Gupta, head-travel business, Thomas Cook.

Raj Travel too has tossed up two winter packages to Finland this year – a seven-night and five-night extravaganza to rope in leisure tourists. “Asia accounts for roughly 30% of the overall revenues of Finnair,” says Ms Tornstrom, adding that owing to current demand, more capacity building is on the cards.
September 23, 2007
Source: Economic Times

Sector: Hotels and Restaurants

1. Kumarakom Lake Resort to develop property in Karnataka

Kerala-based Kumarakom Lake Resort, owned by the Paul John Enterprises, is planning to extend its footprints to Karnataka and is developing a property near Domlur, close to the Bangalore International Airport. It will be a five-star leisure hotel and will have 51 luxury suites and is slated to become operational by this year-end, according to Shelly Thayil, General Manager, Kumarakom Lake Resort. The promotion and marketing of the upcoming property will be done in association with the Leela Group, which also manages the marketing of the existing property.

Commenting on the company's business strategy, Thayil said, "Bangalore has a lot of tourism potential and currently there is a huge shortage of rooms in the city. We are trying to capitalise on this opportunity by developing a world-class hotel. The Domlur property will cater to travellers looking for luxury accommodation in the city.
September 29, 2007
Source: Travel Biz Monitor

Niche Tourism

Medical Tourism

1. Go Goa, for healthcare

A little late in the day perhaps, but Goa is finally gearing up to join the private healthcare wave running through the rest of India. Despite attracting a large number of tourists from the world over, the healthcare system in Goa never developed to a level where it could provide specialty care to residents or tourists.

But now, some private players are eyeing the state and even the government seems to have become proactive in this regard.

Wockhardt, for instance, has been treating patients from Goa at its hospitals in Mumbai and Bangalore for many years. Vishal Bali, CEO, Wockhardt, says, “Traditionally, for speciality treatments like neuro or cardiac care, patients from Goa went outside the state.”

Wockhardt’s decision to enter Goa came after the realisation that residents of the state who sought healthcare outside were familiar with the brand and would relate it with a Wockhardt institute within Goa. The company has already started work on its specialty hospital in Goa.

A huge impetus in this direction, however, comes from the state itself. The government of Goa recently signed an agreement with the India Infrastructure Initiative Trust (III), run by IDFC and Feedback Ventures, to set up through public-private partnership, a super-specialty block within the Goa Medical College.

There are many reasons for this initiative. Besides the growing demand for tertiary care in the state, the government of Goa faced another problem — that of the depleting state mediclaim fund. In a policy that is unique only to Goa, the state government provides its residents with mediclaim. Private hospitals are finally entering the tourist paradise.

However, increasing lifestyle-related diseases that led to the demand for tertiary care pushed a large number of patients outside Goa. This translated into huge mediclaims by the residents, but the money, instead of remaining within the state went to hospitals in other states.

Says Suresh Kumar, COO, III, “Last year we proposed a PPP to the government and they liked the idea. Now that the agreement has been signed, we will start looking for a strategic partner that will set-up the specialty block.”

The proposed 250-bed tertiary care block will see an investment of Rs 100 crore from the chosen partner, with the government providing the land. Kumar is not worried about the success or profitability of such hospitals in the state. 

“Currently the state is spending close to Rs 20 crore per annum on patients going outside for treatment. So, there is huge demand and opportunity here.” Cardiac, pediatric, neuro and nephrology are the proposed specialties, but the private partner will be free to add more.

A huge segment of the earnings, of course, will also be contributed by overseas patients and tourists who may require treatment. No wonder then that South-based Manipal Health Systems, which had stayed away from the city till now is also preparing for a grand entry.

Says R Basil, CEO, Manipal Health Systems, “We will set up hospitals in Bangalore of course, but we are also setting up a 250-bed facility in Goa since there is huge opportunity there.” Adds Bali, “The criteria is not international patients, at least at the moment, since the domestic demand is very high.” 
September 28, 2007
Source: Business Standard via MSN India

Policy

Travel and Tourism Support Industries …and much more

Service providers

1. Now a Kerala houseboat with swimming pool!

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.
September 28, 2007
Source: IANS via MSN India

2. India Workshop 2007':FIT & MICE take centre stage

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.
September 27, 2007
Source: Travel Biz Monitor

3. Kuoni Holidays to increase footprint in India

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
September 27, 2007
Source: Travel Biz Monitor

4. Crimes against tourists alarm tour operators

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.
September 26, 2007
Source: DNA India

5. A marriage of convenience

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.
September 25, 2007
Source: Business Standard

Research and Market reports

1. Tourism boom brings women empowerment in Goa

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.
September 28, 2007
Source: Zee News

2. Mumbai hotel rates highest in Asia-Pacific region

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.
September 24, 2007
Source: Travel Biz Monitor

3. Travel portals surfing high tides in India
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.
September 24, 2007
Source: Deccan Herald

4. More and more Aussies soaking up 'Incredible India' experience
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.
September 23, 2007
Source: IANS via Yahoo

Travel Characteristics of Indians