TravTalk

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A DDP PUBLICATION

Pages: 52 (Excluding cover)

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Vol. XXIV No. 15; August 1 st fortnight issue 2012

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e-Visa for SAARC countries

Subodh Kant Sahai, Union Minister for Tourism, emphasised on doubling the tourist inflow within the SAARC region through outbound exchange, Visa-on-Arrival facility or an e-Visa facility among other initiatives. explores further on the initiatives. TT B UREAU

S

Subodh Kant Sahai

TRAVTALK

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travtalkindia.com

AUGUST 1 ST FORTNIGHT ISSUE 2012

peaking on the sidelines of the recently concluded SAARC Tour Operators Conclave, Sahai said, “Unlike the success European countries had attained in promoting tourism, we, in the SAARC region, have been left far behind. One of the chief reasons behind such status had

With rising importance of tourism world over, it becomes easier to seek new initiatives from the government been the low priority attached to tourism as a socio-political agenda. Fortunately, things have changed for good.”

“With rising importance of tourism world over, it becomes easier to seek new initiatives from Government. Global research shows that

the tourism sector has the ability to serve as the vehicle of employment creation amid the dampened economic global environment. The fact that over 75 per cent of the workforce engaged in tourism are women and all manpower is below the age of 25 years, tourism is the best bet for stimulating sustainable economic growth and development,” he added. Contd. on page 50

Union Minister for Tourism

Thank you for choosing Kerala

conducted a survey on the ‘most popular and tourist-friendly state in India’. Our industry chose Kerala and bestowed the state with this title.

It is a great honour that Kerala has been selected as the most popular and tourist-friendly state in India. The award is a recognition of our efforts; a re-affirmation of our values and beliefs. As a state that caters to the new-age traveller, Kerala has always reinvented and redefined itself to suit his changing profiles and demands. Winning this has reinforced our commitment towards our guests as well as to a sustainable tourism industry. With a new tourism policy in place and responsible tourism at the helm, I am sure Kerala Tourism will set new standards of excellence in the coming days.

A P Anilkumar Minister for Tourism Government of Kerala

Independence Day gift?

S

ources say that the Expressway might be an Independence Day gift to the nation. The delayed opening of the Expressway may well be worth the while, especially as the route promises to have all the frills of a modern, plush road. For the fast commuters, there would be fast food options and fuel dispensing machines on the way, till the time petrol pumps don’t come up. The speed limit is fixed at 100-km for cars and 80-km for others. Only time will tell how the experiment in Expressway in this sector shapes up but yes the people at large and the tourism industry in particular are waiting eagerly for the formal opening – sooner than later.



BULLETIN

Pushing deadline for ‘payments’ In the latest update on the weekly settlement programme, TAAI and TAFI made an avid appeal to the airlines to continue the existing fortnightly payment system till June 30, 2013 and not until November 1, 2012. weekly credit period from the last day of sale.

A N I TA J A I N

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uring the 35 th Agency Programme Joint Committee (APJC) India meeting in New Delhi, both the associations have put the above request and has received votes from all airlines except Lufthansa. The request will be sent to Passenger Agency (PA) Conference for their approval which is scheduled in October 2012 in Abu Dhabi. If approved, the conclusions at APJC India will be implemented. As per the request: 1. The current system of fortnightly settlement should continue till June 30, 2013

Talking about the request for postponing the implementation of weekly settlement programme, Ajay Prakash, President, TAFI, said,

Ajay Prakash

Iqbal Mulla

President TAFI

President TAAI

2. Effective July 1, 2013 till June 30, 2014; the settlement cycle will be a 10-day cycle with two-week credit period from the last day of sale 3. Effective July 1, 2014 till June 30, 2015; the

settlement cycle will be a weekly cycle with two-week credit period from the last day of sale 4. Effective July 1, 2015, the settlement cycle will be a weekly cycle with

“The one-year period will not only make the implementation smoother for travel agents, but also for the travellers. Both the parties will have time to adjust to the Contd. on page 8


STATISTICS VIEWPOINT

Luxury on the rise

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n a bid to explore the luxury travel segment, a think tank of global leaders from the luxury travel sector put together a report that highlighted the trends in luxury travel around the world. The consensus of this think tank was that 2012 is the year which will set the trend for future growth in this sector. After the recession of 2008-9, 2011 was the year that showed some signs of stability and 2012 was touted as a year of real growth. While the US and UK market buckled under pressure, the recession did not affect India and China the way it had influenced the Western world. Both the Eastern economies still experienced significant growth and domestic consumption helped their respective markets. In India, the market for luxury goods and services has increased rapidly in recent times. According to a survey conducted by the Confederation of Indian Industries (CII) and A T Kearney, demand for luxury products in 2010 grew by 29%, the luxury service sector (which includes travel) grew by 22% and luxury assets rose by over 13%. The report also revealed that in 2010 the Indian luxury market grew by 20% to value at US$ 5.8b. This growth is likely to continue in the near future. By 2015, the size of the luxury market in India is estimated to reach US$ 14.7b. Meanwhile Indians are also one of the youngest among Asia’s wealthy, with an average of 39 years, after China at 36 years and Indonesia at 38 years. The growth in Indian affluence will be propelled by smaller cities which are the new pockets of wealth. In the next five years, TierII cities like Chandigarh, Jalandhar, Ludhiana, Pune, Hyderabad will be in demand for luxury products a nd services. These towns are all centres of export, manufacturing or software. Significantly, the description of luxury travel during the second recessionary wave has shifted to customised, bespoke or deeply personal. The luxury client today wants experiences that are inherently great and authentic; experiences that are more about something genuine and less about amenities. Travel should be a memorable experience, not compartmentalised in art, food, shopping history or craft. An evolved luxury traveller is moving away from meaningless commodity, flaunting wealth and extravagance.

Vikramajit Chairman SanJeet Publisher Rupali Narasimhan Editorial Director Deepa Sethi Editor

Editorial Ratan Kr Paul Vivek Sethi Megha Paul Anita Jain Devika Jeet News-Editor Peden Doma Bhutia Desk-Editor Archana Sharma Sub-Editor Raina Mandal

Advertising Gunjan Sabikhi General Manager Karishma Khanna Sr. Manager Marketing Geetika Pathak Manager Advertising Amit Sarkar Asst. Manager Marketing Advertising (Mumbai) Suchita Saran Branch Manager Harshal Ashar Deputy General Manager

Falling Rupee pulls down aviation According to an Aviation Report by Kotak Institutional Equities, FY 2013 will help the aviation sector find its bearings but the depreciating rupee will remain a concern. Excerpts: T T B U R E AU

Jet gains as Kingfisher reduces capacity

A

fter a disastrous FY 2012, the aviation sector seems to be finding its bearings as the yield environment has turned strong with Kingfisher reducing capacity and oil prices have corrected by 20 per cent over the past two months. The depreciating Rupee remains the only impediment to return to profitability. Any appreciation of the Rupee can provide the next leg of outperformance for the sector. Kotak Institutional Equities feels that the yield environment should remain strong, given outlook for flattish (yearover-year) industry capacity in FY 2013.

Trend in monthly market shares for domestic airlines (%)

SpiceJet Jet Airways JetLite Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12

13.6 14.2 14 13.7 13.4 13.9 16.1 15.5 16.8 16.3 15.9 17.1 17.7

17.5 18.5 17.8 18.3 18.2 18.1 17.6 19.8 20.5 20.9 22 21.9 21.4

Kingfisher

GoAir

20 20 19.8 19.3 18.8 18.4 16.7 14 12.1 11.3 9.7 6.4 5.4

6.4 6.6 6.1 6 5.3 5.4 6.2 6.2 5.7 5.8 6.5 7.5 7.3

7.3 7.6 7.7 8.2 8.1 8.3 7.2 7.3 7.1 7.9 7.8 7.3 6.8

IndiGo Air India 19.7 19.9 19.6 19.2 18.7 19.9 19.6 19.8 20.4 20.8 21.3 21.9 23.8

15.4 13.2 14.9 15.2 17.4 16 16.6 17.4 17.4 17.1 16.8 17.9 17.6

Source: DGCA, Kotak Institutional Equities

contribute to 70 per cent of the cost of running an airline. The Rupee depreciation has turned an inflationary environment (rising oil prices) into a hyper-inflationary one, leading to continued losses even as the yield environment turned positive (at the start of 4Q FY 12). Additionally, there are signals that the industry, which had a rough 2011-12, may finally take off in the current financial year. Coupled with better yield environment and correction

Source: DGCA, Kotak Institutional Equities

In the first quarter of FY13, yields have risen 13 per cent from average levels of 4Q FY 12. Yield environment has strengthened with rationalisation of capacity in the sector as Kingfisher reduced capacity. In April, industry capacity grew only

Outlook The yield environment should remain strong, given outlook for flattish (yearover-year) industry capacity in FY 2013 The Rupee depreciation has turned an inflationary environment (rising oil prices) into a hyperinflationary one, leading to continued losses even as the yield environment turned positive (at the start of 4Q FY 12)

(Mumbai) Rishika Karra Sales Coordinator Advertisement Designers Vikas Mandotia Nitin Kumar Design: Nityanand Misra Sudhir Mudgal Photographer Simran Kaur Production: Anil Kharbanda Circulation: Ashok Rana

PLF rebounds for SpiceJet in April

Monthly trend in PLF for domestic airlines (%)

SpiceJet Jet Airways JetLite Kingfisher GoAir Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12

71.7 82.7 79 69.1 66 65 78 76.9 82 75.6 73.1 73 80

66 79.8 78 74.1 72.1 70.1 70.8 76 78.5 76.8 78.8 75.8 77.3

72.1 84.3 83.3 78 73.9 72.2 74.1 79.7 82.5 80.1 80.4 74.1 76.8

79.8 88.4 86.5 79.8 75.9 74.5 79.3 79.6 78.3 70.2 80.4 69.5 77

78 87 80.1 73 65 67 76.1 79 77 77.4 83 80.2 80.8

IndiGo Air India 78.6 89.4 87.3 77.9 73.2 72.8 84.2 88.7 90.4 85.9 82.8 76.5 82

68.1 78.1 73 73.6 72.8 69.8 72 76 77.3 71.2 69.7 68.9 70.5

Source: DGCA, Kotak Institutional Equities

1 per cent (YoY). With the exception of SpiceJet and IndiGo, no industry major will add significant capacity.

TRAVTALK is a publication of DDP Publications Private Limited. All information in TRAVTALK is derived from sources, which we consider reliable and a sincere effort is made to report accurate information. It is passed on to our readers without any responsibility on our part. The publisher regret that he cannot accept liability for errors and omissions contained in this publication, however caused. Similarly, opinions/views expressed by third parties in abstract and/or in interviews are not necessarily shared by TRAVTALK. However, we wish to advice our readers that one or more recognised authorities may hold different views than those reported. Material used in this publication is intended for information purpose only. Readers are advised to seek specific

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Jet Airways will reduce its narrow-body fleet by 4-6 aircraft in FY 2013E. The US Dollar-denominated costs

The publisher assumes no responsibility for returning any material solicited or unsolicited nor is he responsible for material lost or damaged. This publication is not meant to be an endorsement of any specific product or services offered. The publisher reserves the right to refuse, withdraw, amend or otherwise deal with all advertisements without explanation. All advertisements must comply with the Indian and International Advertisements Code. The publisher will not be liable for any damage or loss caused by delayed publication, error or failure of an advertisement to appear.

in oil prices by around 20 per cent, any appreciation in the Rupee is likely to push the sector to outperform.

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EXHIBITIONS

AUGUST 1 ST FORTNIGHT ISSUE 2012

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First time booth allocation meet in India

Fitur 2013 India bookings kickoff on a sound note

India is the biggest participant from the Asia Pacific region at Fitur and therefore the Indian stakeholders should go well-prepared. T T B U R E AU

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he 33rd edition of Fitur in 2013 is scheduled from January 30 - February 03, 2013. It promises to be an exciting show, as the India Pavilion will get a more strategic position. “India is the biggest participant from the Asia Pacific region in Fitur, which is the most profitable exhibition from the perspective of ratio of attendance to cost.

The Indian Pavilion at the Fitur 2013 edition has been reallocated a special position that will ensure enhanced traffic. Further, with 80 per cent of bookings completed among the existing exhibitors already at this point for the 2013 edition, it’s a good sign. Also, the Ministry of Tourism has expressed its desire to conduct a special conference at Fitur,” said Ana Larranaga, Managing Director, Fitur, who was in New Delhi for a ‘first time’ booth allocation meet with various Indian stakeholders. “The Indian stakeholders can very well prepare themselves beforehand to leverage maximum advantages of the online system to pre-schedule their meetings with corporate visitors and exhibitors,” she added. In 2012, confirming the trend towards recovery in the industry, 9,506 exhibiting companies from 167 countries, 1,19,322 trade participants and 91,555 people from the general public, had met during FITUR to transform leisure into business and business into development. The number of foreign companies taking part at the event increased by up to 20 per cent. Elaborating further on various other platforms, Lourdes Sierra, Commercial Manager, Fitur, highlighted Fitur Green, which will be conducted in collaboration with UNWTO, is focussed on energy service providers, offering companies the opportunity to increase their energy savings; whereas, FiturTech will help increase awareness among professionals regarding the most updated tools that can help boost their businesses. “On the emerging trends, one needs to realise

that the ongoing economic environment necessitates the fact that the travel trade sells closer to the vacation season, as the travel decisions are now made mostly at the last moment. The packages

and attractions need to convince the buyer of a holistic experience, delivering complete value-formoney and time. This is true, for luxury products, also.” She added,

“People are willing to spend the money but need to see a value in it.”

Ana Larranaga

Lourdes Sierra

Managing Director, Fitur

Commercial Manager, Fitur


ANALYSIS

‘India a big source market’ The maiden conclave of tour operators from the South Asian Association for Regional Cooperation (SAARC) countries demonstrated the interest of the SAARC nations in doing business in India. gives details. M E G H A PAU L

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he first conclave of tour operators from SAARC countries exhibited the untapped potential of the region. The exclusive B2B (business-to-business) sessions that were held during the meet enabled the operators to explore business possibilities. According to Damcho Rinzin, Marketing & Media Officer, Marketing and Promotion Division, Tourism Council of Bhutan, India is one of the main source

Rinzin feels, “Bhutanese travel to India quite frequently. Hence, Bhutan is also a small but growing market for India, in terms of tourism.” The country is making attempts to woo B2B participation from India. He further informs, “We are targetting the B2B segment that is promoting the Buddhist circuit in India. They could send more tourists to Bhutan to explore the Buddhist circuit of the region.” Being a short-haul destination has helped Maldives to attract Indian outbound trav-

haul market. It can contribute to achieve our target of one million tourists by 2012-end.” Hasan Mansur, President, Tour Operators Association of Bangladesh, opines, “The challenge lies in making tourism barrier-free between India and Bangladesh. We should aim to develop a SAARC visa facility on the same lines of the Schengen Visa in Europe that allows entry into all the Euro Zone countries.” Giving more information, Mansur states, “A cell has been formed in the Bangladesh

Damcho Rinzin

Mohamed Adam

Hasan Mansur

Marketing & Media Officer, Marketing and Promotion Division, Tourism Council of Bhutan

Acting Managing Director Maldives Marketing & PR Corporation

President Tour Operators Association of Bangladesh

We are targetting the B2B segment that is promoting the Buddhist circuit in India

India is a potential market for the Maldives with easy access and non-visa restrictions

markets for Bhutan. “Last year in 2011, Bhutan had 53,223 regional tourists and these figures comprise mainly of the Indian tourists with few tourist arrivals from Maldives and Bangladesh as well. We club them as regional figures for arrivals from India, Maldives and Bangladesh as they don’t have to pay the minimum daily tariff, which denotes that they do not require a visa to visit Bhutan,” he reveals.

ellers. Regarding the current situation and ongoing challenges, Mohamed Adam, Acting Managing Director, Maldives Marketing & PR Corporation confirms, “India is the leading market for the Maldives among the SAARC countries and it generated over 30,000 tourists last year. We do believe that India is a potential market for the Maldives with easy access, non-visa restrictions and has advantages of being a short-

The challenge lies in making tourism barrierfree between India and Bangladesh Tourism Board (BTB) to look at ‘On-Arrival Visa’ issue. The procedure to grant permission to tourists to visit certain areas of the country will also be standardised.” He adds, “Bangladeshis visit India frequently and thus, Bangladesh is an important source market to India.” He urged the B2B segment from India to participate in the upcoming Bangladesh Travel & Tourism Fair (BTTF) 2012 in October.

TAFI’s new team in Karnataka

The Travel Agents Federation of India (TAFI), Karnataka Chapter, has announced a new team of office bearers to take charge for the term 2012-14. This includes Sanjay Kumar Gupta as Chairman, B A Amarnath as Secretary, Anita Kamath as Treasurer and Shanthi Sony and Jimmy Alexander as Committee Members.


MOT

AUGUST 1 ST FORTNIGHT ISSUE 2012

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‘Wellness tourism is USP of India tourism’ Quality of service involved with tourism plays an important role in the process of delivery of the products. Hence, MOT, in association with NABH, had organised three workshops to encourage the wellness centres to adopt NABH wellness accreditations… T T B U R E AU

T

he Indian systems of healing are world renowned and have potential of fostering India as a global wellness destination. The Ministry of Tourism has also taken many remarkable strides in promoting the wellness potential of destination. “India has good potential for Health Tourism and the same is yet to be fully

Subodh Kant Sahai Union Tourism Minister

India has always been known for its rich heritage of wellness traditions and has enormous possibilities to offer to wellness seekers exploited. India has always been known for its rich heritage of wellness traditions and has enormous possibilities to offer to wellness seekers. The Ministry of Tourism has identified ‘Wellness Tourism’ as one of the Niche Tourism Product,” said Subodh Kant Sahai, Union Tourism Minister. He was speaking on the occasion of handing over of National Accreditation Board for Hospital & Healthcare Providers (NABH) certificate to ‘R’ Spa, Radisson Blu Hotel, New Delhi on July 20, 2012. “The Indian system of healing with Yoga has been well highlighted in the Incredible India campaigns of the Ministry of Tourism. In fact, wellness as such has become a unique selling point of Indian tourism,” he added. In line with the objective of realising the true

potential of wellness tourism in India, the Ministry of Tourism will support Global Spa & Wellness Summit 2013. The Global Spa & Wellness

Summit has chosen India as the host country for its annual conference in 2013. The Global Spa & Wellness Summit is an international organisa-

tion that brings together leaders and visionaries to positively impact and shape the future of the global spa and wellness industries. “Quality of service involved

with tourism plays an important role in the process of delivery of the products. The guidelines for Accreditation of Wellness Centers have been developed by the

National Accreditation Board for Hospital & Healthcare Providers (NABH) and were released during a national level workshop,” said Sahai.


8 TRAVTALK

MOT

AUGUST 1 ST FORTNIGHT ISSUE 2012

Weekly payments Contd. from page 3

shorter credit time and thus, help the industry as a whole.” Travel fraternity has a time frame of one year wherein moving forward, the weekly settlement plan will be implemented in phases. However, Iqbal Mulla, President, TAAI says, “During the APJC India meetings, airlines understood and respected our concerns and agreed to postpone the weekly settlement scheme except one airline.

We are sure that we will receive an approval at PA Conference in October and would successfully defer the November 2012 deadline further. However, in two years time (till 2014), we will constantly hold our talks with airlines and try to keep the twoweek credit period for a longer time.”

Processing fee introduced Effective July 16, Air India and Jet Airways reduced agency commission from 3% to 1%. Due to the fierce opposition by TAAI and TAFI, the airlines have agreed to remunerate in the form of processing fee which will be paid to agents over and above the 1% agency commission. However, there might be a few rate-parity issues with airline website/sales offices. According to the processing fee list sent by AI, the fee on domestic tickets for economy class is ` 225 and business class is ` 325. On international tickets (short haul), the fee will be ` 775 on Economy Class, ` 1,300 on Business Class and ` 3,250 on First Class. The fee for distant destinations (US, Europe) will be ` 1,625 on Economy Class, ` 3,250 on Business Class and ` 6,500 on First Class tickets. Jet Airways too will levy similar fees.

MOT tees off golf caddy training As reiterated on July 4, 2012, the Ministry launches the golf caddy training as part of the Hunar Se Rozgar Tak (HSRT) scheme. This extends the scope for skill development through new related segments. pitality sector. Golf Caddy training initiative, in partnership with WGAI, is a step in this direction, presently on a pilot test basis that will gradually be rolled out to other parts of the country,” said Sanjay Kothari, Special Secretary, Ministry of Tourism.

T T B U R E AU

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he Ministry of Tourism, in pursuit of ushering the employment generation potential of tourism launched Golf Caddy training programme on July 16, 2012, on a pilot test basis. It has partnered the Women’s Golf Association of India (WGAI) in this initiative. The DLF Golf Club has volunteered to train the women Golf Assistants, while the Qutub Golf Club will be training the men who are aspiring to become Golf Assistants in Delhi and NCR. “As announced at the recently held one-day workshop on the Hunar Se Rozgar Tak Yojna on July 04, 2012, we are now extending its scope for skill development to enhance employment generation among the semi-skilled, unskilled and working professionals in the travel and hos-

Sanjay Kothari Special Secretary Ministry of Tourism

We will soon launch a rafting training programme in J&K and are keen on rolling out further training projects

“The Ministry of Tourism had launched HSRT scheme in 2009-10. Initially, the initiative covered only two trades, namely Food Production and Food & Beverage Services. Segments namely Housekeeping, Bakery, and tourist transport drivers were added later. We will soon launch a rafting training programme in J&K and are keen on rolling out further training projects to revive the languishing skills of heritage conservation, stone masonry and cover as many new related segments essential to enhance tourists’ experience,” he added.

The objective of the Caddy Training project is to identify prospective candidates to be trained as golf assistants, wherein the shortlisted candidates will undergo an extensive and detailed training programme of six weeks on various aspects of golf. The training module would focus more towards practical learning about the game of golf along with some necessary theoretical classes, to enable quicker and stronger understanding about the sport to the aspiring golf assistants. It will help create a pool of certified Golf Assistants, who can assist national and international golfers during golf tours in India.

Aims and Objectives The objective of the Caddy Training project is to identify prospective candidates to be trained as golf assistants





12 TRAVTALK

OPINION

AUGUST 1 ST FORTNIGHT ISSUE 2012

LEADERS TALK

‘London Dreams’ come true for The Lalit The Lalit Suri Hospitality Group is investing about £28 million (` 244 crore) in its third overseas project in London. Jyotsna Suri, Chairperson & Managing Director, The Lalit Suri Hospitality Group, outlines the company’s strategies… T T B U R E AU

Your opinion about the company’s recent acquisition of a property in London? We had been looking for a property in London for almost last six years but could not find one which would suit our investment potential. The company acquired the property for £15 million (around ` 129 crore) in an auction in 2012 and will invest another £12-13 million (around ` 112 crore) to restore the 70-room hotel, which will be positioned as a high-end boutique hotel in the four-star category. Located in the heart of London near the city’s famous Tower Bridge, the group has bought the heritage building — St Olave’s — from Berkeley Homes. St Olave’s was a grammar school earlier. The company will start the

restoration and development work to set up this luxury boutique hotel by early 2013. We plan to make the hotel – The Lalit London -- operational by the end of 2014. The group would own and manage the London property and would tweak its product to suit the local tastes and preferences, including an al fresco restaurant, smoking zones, ayurvedic spa, gym and meeting rooms.

Your expectations on performing in such a competitive market when it becomes operational? According to our feasibility study, London has had an average hotel occupancy of 85 per cent in the past 1012 years. Despite the slowdown in western countries, the city has not shown any drop in the occupancy. Also,

Jyotsna Suri Chairperson & Managing Director The Lalit Suri Hospitality Group

we are entering a high-end boutique segment, where there aren’t many properties like this in London. We wanted to have a small high-end property where investment is not so high and which would start giving us higher returns quickly. Thus, the company

expects to achieve breakeven within three years of the London hotel becoming operational, with an average room rate of £158-250 and an expected occupancy of 85 per cent for its rooms.

tip of the iceberg in the tourism and hospitality industry, although the London property will be up and running by 2014.

Your other plans in the overseas and domestic market?

The group will develop four luxury hotels and 25 mid-market hotels in India over the next three to five years. Overall, we are looking at investing about ` 1,200 crore over the next three years. Our focus is on developing our properties in India. We are entering the mid-market segment with 25 hotels under our new brand Lalit Traveller in the next five years. We are coming up with a Lalit Traveller property in Jaipur this month. We are looking at properties in Amritsar, Pune and Dehradun by 2014 for the same brand. The mid-

Other than in London, we are not looking at overseas expansion for the time being. We have invested in Dubai and Thailand as well. Both these projects are stuck due to political and financial reasons and the company does not plan to develop them for now. I am a firm believer of the scope of Domestic Tourism. Hence, The Lalit Suri Hospitality Group is completely focussed on the Indian market as we believe we have not even touched the

What is on the anvil in the domestic market?

level segment will entail commissioning properties beyond the metros with a focus on business and religious travellers. The group is also foraying simultaneously in the high-end luxury segment in India and will open new properties in Chandigarh — The Lalit Chandigarh and Kolkata — The Lalit Great Eastern Kolkata, by the beginning of the next fiscal and subsequently open a luxury property in Ahmedabad. The Company will fund the expansion through a mix of internal accruals and loans from banks. We already have sanctions and we draw money as and when we need. The Group will have total inventory of 3,600 rooms with 45 properties in the next five years as against prevailing 1,796 rooms from 17 properties.


NTO

AUGUST 1 ST FORTNIGHT ISSUE 2012

TRAVTALK

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Booming economies, higher frequency of flights, rising affluence – these are just some of the reasons that encourage a bigger appetite for travel to and in Asia. Despite the challenging economies in Europe and America and the last year’s natural disasters in Japan and Thailand, Asia is on course to become the largest region for air transport, travel destination, business travel, utilisation of ancillary revenue models and mobile usage.

TravelRave returns with key anchor events

A

ccording to the United Nation World Tourism Organisation, Asia-Pacific is expected to receive an estimated 397 million tourists by 2020, with an annual growth rate

of over five per cent, compared to the world average of 4.1 per cent. In Singapore, this trend is evidently forming with 13.2 million visitor arrival recorded for 2011. Also, 76 per cent of the total international visitor arrivals came from Asia. At this year’s TravelRave, key anchor events such as Web in Travel, Aviation Outlook Asia, ITB Asia, Asia Travel Leaders. Summit and Singapore Experience Awards will explore the opportunities that come along with this growth and will also find out how Asia can continue to flourish in the travel industry.

The big MAC With the rising middle affluent consumer class, comes an emerging segment that has piqued the interest of many – the Mass Affluent Consumer (MAC)

market. According to BCG Research, MAC segment is estimated to grow by 20 per cent annually to account for annual tourism spending of US$ 430 billion by 2020. MAC households a is poised for an 18 per cent growth annually, from 160 million

in 2010 to 369 million in 2015. And, within the MAC market are primarily sophisticated travellers who prefer to go for experience-based travel with a higher propensity to spend than save and are heavily influenced by brands. This demographic also represents travellers who are well-versed with research and usage of online channels in various stages of their travel purchases, much like the average Chinese traveller who visits 15 research websites before making a travel purchase. And that is why travel agents, airlines and travel trade providers in general need to be in tune with what the latest technology has to offer. The role that technology plays in today’s travel market will grow to shape the future of the industry in a big way, covering more than what it already has for the MAC segment. Asian travellers

are moving faster, ahead of the rest, taking mobile on a different stage, moving beyond the desktop offerings. This means, bookings are made via smartphones instead of the computers, leaving a handful of people visiting the travel agencies

and tour operators to confirm their holiday packages.

What makes Asia tick? So what do travel agents do in light of this trend? It is timely for the industry to come together, gain a deeper understanding of Asia and collaboratively discuss how to unlock the potential for Asia to further catalyse business opportunities for Asia’s travel and tourism industry. Operating for the third year, TravelRave 2012 will explore Asia’s potentials by providing a comprehensive platform for the travel trade professionals to share their ideas, visions and actions with regard to the various trends. The participation rate has seen a 15 per cent growth from 2010 to 2011, with last year’s edition seeing some 9,500

attendees and 10 world class events. Bringing thought leadership and key players across all spectrum of the travel industry, TravelRave bridges and generates stronger opportunities for industry leaders to tap the

growing markets and elevate Asia’s presence in the travel industry. The 2012 installment aims to create a stronger impact, generating more opportunities for attendees through insightful content and meaningful networking session along with conferences that cover the following:

The Pacific Tourism Destination Investment Conference will cover the subjects of tourism infrastructure development and hotel investment opportunities across Asia. The conference is set to create an array of thought-provoking programmes that will draw innovative insight into this market and mark out unprecedented opportunities for business growth and development The Aviation Outlook, hosted by Terrapinn, has a track record of continuously bringing together key stakeholders in the aviation industry. This year, more than 300 CEOs and seniorlevel executives will take part in strategic discussions on new market opportunities, technology implementation, revenue optimisation and productivity to maintain Asia’s position as the world’s fastest growing aviation market. Web in Travel gathers high-level professionals from the travel industry’s Asian travel distribution, marketing and technology sector. The event attracts top speakers, industry veterans, investors, entrepreneurs, marketing experts and next generation leaders wanting to influence the future of the travel industry in Asia. With Asia being primed for growth in the travel industry, it is essential to be in the centre of what’s hot and move along with the trade’s direction to harness the vast growth

potential presented in the region. Get the latest updates on the line-ups leading to the event, from www.travelrave.sg or via Twitter; @TravelRaveSG.

About TravelRave TravelRave, Asia's mega travel and tourism festival, showcases worldclass business events for tourism leaders and professionals from across the travel eco-system to maximise business opportunities and acquire in-depth knowledge on industry insights, best practices and innovations. Leveraging the buzz and dynamism of the Asian travel and tourism industry, TravelRave sets the stage for collaboration and enables the industry to harness the vast growth potential presented in the region.

About the Singapore Tourism Board The Singapore Tourism Board (STB) is a leading economic development agency in tourism, one of Singapore’s key service sectors. Known for partnership, innovation and excellence, the Board champions tourism and builds it into a key economic driver for Singapore. STB aims to differentiate and market Singapore as a must-visit destination offering enriching experiences through the ‘YourSingapore’ brand. For more information, please visit www.stb.gov.sg and www.yoursingapore.com.


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STATES

Odisha gears up for MICE tourism With provisions for varied conferencing and incentive opportunities, the State is leaving no stone unturned in promoting itself as a prominent MICE destination. Hotels and resorts are also available at economical prices. T T B U R E AU

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e it wildlife sanctuaries, temples and monuments, fairs, festivals and culture, Odisha is truly endowed with abundant gifts from nature. And all these are complimented by the state-of-theart conferencing facilities in the state. The State is leaving no stone unturned in promoting itself as a prominent MICE destination on India’s

map. Odisha has varied conferencing and incentive opportunities. The availability of quality hotels and resorts at economical prices has made Bhubaneswar and Puri popular choices for events and conferences in Odisha. Add to that pre-and post-convention tour activity options such as heritage, art and culture, shopping and ecotours to Chilika have helped

Mandap in Mayfair Lagoon, Bhubaneswar

make the state’s MICE programme successful. Major hotels in Puri for MICE are Toshali Sands Ethnic Village Resort, a 4-star property at Konark Marine drive and Mayfair Resorts, a 3-star property in Puri. In Bhubaneswar, some leading 5-star properties are Trident, Mayfair Lagoon and Swosti Plaza (a 4-star property). Toshali Group is also constructing a 5star property in Bhubaneswar, dedicated for conferences and exhibitions, which will be ready by next year. If you are planning an adventure or ecotourism based incentive programme for the delegates then Odisha has the capability to mesmerise you with a plethora of options such as waterfalls (Khandadhar and others), Chilika

Lemon Grass Restaurant in Mayfair Lagoon, Bhubaneswar

Lake (for bird watching, dolphin viewing and water sports), Nandan Kanan Zoological park known for White Tigers and Lion safari and much more. Delegates can also be entertained with cultural dance and music shows. Be it food, accommodation, travel, shopping, etc., Odisha provides value-for-money services and products. This Indian state is the proud

host to cultural and religious events like the Konark festival, Kalinga Utsav, Rath Yatra, Bali Yatra and more. Here you can shop for ethnic handicrafts, textiles and intricate silver jewellery. Odisha is adorned with ancient heritage temples and monuments (of Hinduism, Buddhism and Jainism) such as Lingaraj Temple, Konark, Jagannath Puri,

Jain Caves in Bhubaneswar and Buddhist sites of Ratnagiri and Lalitgiri. The best time to travel Odisha is between OctoberApril. During monsoon, it rains heavily and most of the rivers overflow their banks. Also during May-August, the Bay of Bengal is prone to cyclones which affect the coastal districts by heavy storm and rain.


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Generous state funding for Tourism Gujarat The State allocates US$ 72m for tourism projects which also includes US$ 21m approved by the Planning Commission in 2012-13. speaks to Sanjay Kaul, Commissioner & MD, Tourism Corporation of Gujarat for more details. T T B U R E AU

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o boost the budding sector of tourism, the state government of Gujarat has recently announced to spend ` 400 crore on tourism infrastructure development and promotion in 2012-13. The amount includes ` 120 crore as grant which has been approved by the Planning Commission for the current fiscal. Over and above ` 120 crore, the

Sanjay Kaul Commissioner and MD Tourism Corporation of Gujarat

We will invest US$ 72m in projects which will further boost the tourist figures and enhance the travel experience in the state Planning Commission has also approved ` 1,200 crore to develop and promote coastal tourism in Gujarat over the next five years. According to Kaul, the budget allocation of ` 400 crore would be utilised for developmental activities at tourist destinations and to improve infrastructure at key tourist locations. However, the

Soon training programmes on Gujarat Gujarat Tourism department has appointed a Gujarat Tourism Service Providers Promoter (GTSPP) for Indian and overseas markets to develop original training content for travel service providers. GTSPP will be an academic and training body which will conduct train-the-trainer module campaign across all major cities in India by the end of this year. It will also award certificates to the participating travel service providers.

corporation is currently in process of planning a concrete strategy for spending the allocated budget fund in calculative manner. He said, “Gujarat has really pushed the tourism sector in past three to four

years and have successfully managed to pull the tourist crowd (both domestic and inbound). After having Amitabh Bachchan as our Brand Ambassador, featuring him in ‘Khushboo Gujarat Ki’ campaign, we

have established the brand Gujarat in not only India but overseas markets as well. The promotional campaign has reaped rich dividends with tourist count shooting up from 1.70 crore in 200910 to 2.23 crore in 2011-12.

We are expecting to welcome over 2.5 crore tourists in 2012-13. We will invest ` 400 crore in projects which will further boost the tourist figures and enhance the travel experience in the State.”

Gujarat Tourism is making every effort to maintain the momentum with promotion for upcoming events like Saputara Monsoon Festival, Taranetar Fair, Navratri Festival and Rann Utsav in India and abroad.


STATES

Smartphones as ‘guides’ A host of mobile-based services and IT-enabled projects will help travellers in Kerala to explore the state without guides. The WAP site will also provide facilities to travellers connected through smartphones… T T B U R E AU

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he next time you go to visit Kerala, you might just replace your guide with your smartphone. In an effort to bolster its identity as a tech-savvy state, AP Anilkumar, Minister for Tourism, Goverment of Kerala on July 10, launched a host of

AP Anilkumar Minister for Tourism Goverment of Kerala

mobile-based services and ITenabled projects to serve as guides to tourists. The new set of products – mobile website, WAP guide, applications for Android and IOS and Bluetooth Kiosks – will help enhance the travel experience of visitors to God’s Own Country. Speaking at the launch function in Thiruvananthapuram, Kumar said, “Kerala is the first state in the country to adopt such mobile-based services for the benefit of the tourism industry.” Commenting further on the integration of technology in the state’s tourism promotion, he pointed out, “The Government is trying to spur

the growth of the tourism industry in line with the changes around. We are trying to translate these advances in technology to make a tourist-stay more pleasant and make their lives simpler during the travel.” Providing information on the new set of products, he said,

“The new set of products will provide all necessary information to tourists at their fingertips. This kind of technology will drive the growth of the industry and open new marketing avenues, apart from giving valuable information.” These products will help travellers to explore the destinations in the state without external guides. The WAP site will also provide all facilities, currently available for the state tourism website, to travellers connected through their smartphones. The newly launched WAP guide can replace the conventional tourist guides. This will save money for the tourists, while easing the communication problems also, to a large extent. The two mobile apps cater to the need of IOS and

Android, currently, the most sought after mobile operating systems. The mobile apps offer extremely useful facilities. `What’s near me’ or `Around me’ is an example. The smartphone identifies the location and shows the tourists things in and around the destination. Likewise, features like `Places of Interest’ or `Tourist Guide’ are an option that offers the tourists the interesting travel spots within Kerala. There is a tour planner too. A travel plan is being prepared exclusively for tourists, based on the timings, locations and interests. Another feature is the continuous tourism updates in line with the information on the tourism website and events. There is also share option where the traveller can share pictures and messages with the dear ones in real time. Kerala Tourism will also be setting up Bluetooth Kiosks at key places like international airports in various states to provide comprehensive information about Kerala and its tourism to the tourists.

Tech Savvy Kerala The newly launched WAP guide can replace the conventional tourist guides The mobile apps offer extremely useful facilities The smartphone identifies the location and shows the tourists things in and around the destination

US$ 74.8m loan for North East states Asian Development Bank (ADB) and the Government of India have signed a US$ 74.8 million loan to improve connectivity in the North Eastern region of India. Expected to be executed in two tranches, the loan is part of the first tranche of the North Eastern

State Roads Investment Programme, a US$ 200 million multi-tranche finance facility (MFF). The programme involves improvement, upgrade and construction of roads in six states - Assam, Manipur, Meghalaya, Mizoram, Sikkim and Tripura. The sig-

natories to the loan were Venu Rajamony, Joint Secretary (Multilateral Institutions), Department of Economic Affairs, Ministry of Finance, on behalf of the Indian government and Hun Kim, Country Director, India, on behalf of ADB.

Mantra flies from Amritsar to Chandigarh Mantra Regional Airline took off on July 23, 2012, with everyday flights connecting Amritsar and Chandigarh. Mantra has

two 17-seater Beechcraft 1900D aircraft. This makes every seat on the aircraft a window-cum-aisle seat.

With further expansion on the cards, the airline foresees Jammu and Dharamshala entering its fold shortly.


AVIATION

Seaplane services in Kerala Two major events – KTM 2012 and Emerging Kerala – will coincide with the launch of the first seaplane service. A N I TA J A I N

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nder the destination improvement programme, Kerala government has decided, in principle, to implement the seaplane project aimed at boosting tourism in the state. The state planning commission has set aside ` 12

handled from three centres Thiruvananthapuram, Kochi and Kozhikode. The seaplane services would be tourismoriented and is intended to carry high-end tourists to backwater resorts and tourist spots of intermediate distance quickly and comfortably.

KTM 2012 gets bigger The 7th edition of Kerala Travel Mart 2012 will be held from September 27-30, 2012 at Le Meridien Convention Centre, Cochin. This year, there will be 108 tables, 296 modules and 12 houseboats parking bays will be organised. About 1410 buyers have already registered for the mart, out of which 435 are international and 975 are domestic. For the first time, buyer and sellers can pre-fix appointments online for better networking opportunities. The tourism department is investing ` 2 crore for this mart. crore for Kerala State Industrial Development Corporation to develop infrastructure for seaplane services. The service is expected to commence from Kochi by September, coinciding with two major events – Emerging Kerala Global Connect Programme (September 12-14, 2012) and Kerala Travel Mart (September 27-30, 2012). Services to and between tourism destinations such as Poonthura, Akathumuri, Munnar, Thekkady, Ponnani and Guruavayoor would be

According to E M Najeeb, Chairman & MD, Airtravel Enterprise Group of Companies, Kerala Government, in association with private players, has played a vital role in making Brand Kerala an international product. He informed that apart from formalising a new tourism policy this year, the State Government has also increased the tourism budget allocation from ` 100 crore in 2011-12 to ` 130 crore for 2012-13 and doubled marketing budget from ` 25 crore to ` 50 crore for this year.

E M Najeeb Chairman & MD Airtravel Enterprise Group of Companies

“Kerala will have sea plane services wherein each district in the state will also have an airstrip. This means, a total of over 20 airstrips across the state apart from two international airports (soon to be five in total). This will not only enhance the inter-connectivity in the state but will also help travel suppliers to promote Kerala in a better way.” The State is also in process of introducing Kerala Convention & Promotion Bureau in few months to underline the potential of Kerala as MICE destination.

ANA connects Delhi-Narita ANA will launch daily direct connections between Delhi and Narita from October 28, 2012. will soon be conducting familiarisation trips for travel operators and agents,” he added.

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he ticket sales and reservations for the DelhiNarita flight have commenced from July 12, 2012. The flight will depart from Delhi at 0125 hrs and reach Narita at 1250 hrs. In the return leg, the flight will depart from Narita at 1720 hrs and reach Delhi at 0020 hrs + 1 local time. The equipment to be used will be Boeing 767-300ER with 35 seats in Business Class and 167 in Economy Class. Talking about the launch, Kenji Sugino, General Manager, All Nippon Airways – India said, “This was a very strategic move to further strengthen India-Japan ties, as this coincides with the 60th year of diplomatic relations between the two countries.”

Kenji Sugino General Manager All Nippon Airways–India

“I want to make group tours to Japan at the same price as Singapore tours. Focussing on the same, we are working closely with the Japan National Tourism Organisation (JNTO) and hope that Japan will finally be recognised as one of the top tour destinations from India. In association with JNTO, we

ANA already has daily ex-Mumbai flights to Narita. Delhi will be their second destination of flights from India. With this new connection, there will be 14 flights per week flying from India to Japan. The airline also hopes to commence services from Bengaluru and Chennai soon. ANA is Japan’s largest airline group and ninth largest airline in terms of revenues.

USP Delhi will be their second destination of flights from India With this new connection, there will be 14 flights per week flying from India to Japan The airline also hopes to commence services from Bengaluru and Chennai soon


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in India for booth allocation Fitur thinking out-of-the-box, did things in an innovative way… It came to India for the first time to allocate booth space personally for all stall holders. catches the glimpses of the well-attended event recently organised at Le Meridien in New Delhi.

Expedia & Thomas Cook together for visa assistance Expedia.co.in recently announced its tie-up with Thomas Cook Visa & Passport Services, a business division of Thomas Cook (India), the largest integrated travel and travel related financial services company in India, to provide a range of visa assistance services to its customers.

Expedia India has waived the visa processing charge for its customers booking international flights and packages. Thomas Cook Visa & Passport Services will provide end to end visa related services to Expedia India’s customers via an XML based web services. Clients booking via

Expedia India will get end to end 24x7 visa assistance services, pan India and the added ability to create and retrieve their visa application online. Vikram Malhi, Country head, Expedia India said, “India is one of the fastest growing outbound market

and we wanted to simplify the visa procedure for our consumers planning international travel. At Expedia, we are committed to create a localised product and it will be our constant endeavour to wow the Indian consumer by making their travel simpler.” “Thomas Cook has the

best experience in visa services and unmatched credibility in the market, therefore we decided to partner with them,” he added. Commenting on the occasion, Madhavan Menon, Managing Director, Thomas Cook (India) said, “Thomas Cook India’s partnership with

Expedia India is yet another initiative in addressing customer needs via our unparalleled travel expertise and innovative product-service range. Our unique visa services portfolio is an ideal fit with Expedia India’s online offering and we are delighted to partner with them.”




HOTELS

‘Domestic’ in demand WelcomHeritage, with heritage hotels and resorts in India including over 40 hotels across 13 states, is focussing on domestic travellers as this segment is now in demand. cuits. “We have seen radical growth this year as we are witnessing increase in domestic travellers in comparison to foreign tourists,” he adds.

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ach palace, fort, haveli and resort under the portfolio of WelcomHeritage Hotel has a unique experience to offer. The hotels offer a wide range of facilities for business congregation ranging from complexes of traditional events, venues for meetings to the well planned conferences. The room inventory of WelcomHeritage Hotels varies from six rooms to 70 rooms. A gathering of 20 to 500 Pax could be easily accommodated at the hotels. Talking about the USP of its properties, Sunil Sikka, Head - Marketing Business Development, WelcomHeritage Hotels says, “Culture and heritage have always been and will remain the biggest attraction for tourism and these days, the travellers are looking for offbeat destinations. Our hotels

Regarding the growth of the B2B channels, Sikka feels,

Sunil Sikka Head - Marketing Business Development WelcomHeritage Hotels

provide unique and picturesque appeal to the guests. Besides that, in most of the hotels, the owner themselves are involved in all activities of the hotel. Moreover, these hotels are tourism centric and promote India as a tourist destination.” According to Sikka, the Group is planning to open hotels in the coming years, especially in Gujarat and trying to fill the gap in the cir-

“The everincreasing share of online platforms and travel operators are equally important for us. We keep a close tab on all new activities under both the zones. Also, on regular basis, we communicate various promotions to the portals and likewise, we maintain a regular communication with all travel agents. We try to promote all our destinations through regular meetings and correspondences with both agents.”

IHG changes India strategy InterContinental Hotel Group (IHG) has shifted its business model from franchisee to a 100% management control over operations. It is also launching Holiday Inn Express. If you look at domestic trips, over 800 million domestic trips were taken in 2011 in India and there is a clear gap that exists in the mid-market segment.

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rom being a franchisee model, IHG has shifted to 100 per cent management control over operations. Talking about what prompted this strategic decision, Chris Moloney, Chief Operating Officer, South West Asia, IHG elaborates, “Across India, we have hotels under both management and franchise agreements. We also have a joint venture partnership with Duet India Hotels Group (DIHL) to develop 19 new Holiday Inn Express hotels. We’re focussed on high quality growth, which means that all potential new hotels go through a rigorous process to ensure that we will be able to deliver the appropriate level of service and brand standards for our hotel guests. We constantly evaluate business opportunities to ensure they will drive growth and value for shareholders, owners and guests with the right brands and in the right markets.” Believing the management model is the way forward, he points out, “We have established mutually beneficial

Chris Moloney Chief Operating Officer South West Asia, IHG

partnerships with owners in the region. We believe the biggest opportunity lies in signing further management contracts.” The hospitality chain is focussed on expanding Holiday Inn and introducing the Holiday Inn Express brand in the country. According to Moloney, the chain sees a strong local demand for branded hotels that people know and trust. “The number of mid-scale hotels in India is currently just 15 per cent of its 1,17,800 hotel rooms and it is here that we foresee incredible headroom for growth.

Given the increasing demand for mid-scale hotel rooms, we’re currently focussed on expanding Holiday Inn and introducing the Holiday Inn Express brand,” he says. The Group currently has 38 Holiday Inn and Holiday Inn Express hotels in the pipeline, accounting for 80 per cent of their development pipeline in the country. “Both Holiday Inn and Holiday Inn Express fits this market perfectly and addresses the current gap in the need for international standard, value and convenience-based hotels. Out of our current development pipeline of 47 hotels, the majority will be the Holiday Inn properties,” he adds.



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Now pay ` 200 to book Jet tickets online At a time when India’s airline passengers are slapped with ADF (Airport Development Fee), UDF (User Development Fee), AFC (Airline Fuel Charge), ACC (Airline Congestion Charge), service tax, etc over and above the airfare, Jet Airways has introduced yet another fee, ‘Convenience fee’ for booking tickets online…. T T B U R E AU

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he airline has introduced ‘Convenience Fee’ (code OB on GDS) on all tickets booked on its website for Jet Airways and Jet Konnect flights. The fee amount ranges from ` 100 for domestic and ` 200 for international travel per passenger in Economy Class and ` 200 for Domestic and ` 400 for international Business Class bookings.

Manish Dureja Vice President – Marketing Jet Airways

These charges are nonrefundable and applicable to every passenger even though the tickets might have been booked in a group, as in the case of a family. Additionally, the airline is looking at other ways to increase its ancillary revenue and rescue itself by boosting

Indian aviation sector is passing through a tough phase. To be profitable, we have to reduce cost and increase revenue the bottom lines. Currently, the airline earns around US$ 3.5 per passenger through ancillary revenue. It plans to increase and take this to USS 10 in a year’s time. Manish Dureja, Vice President – Marketing, Jet Airways said, “Flexibility in increasing the revenue on the airfare side is limited, thus our focus is now on ancillary revenues. At present, ancillary revenue forms only three per cent of the total revenue of the airline. We have learnt lessons from telecom business. The prepaid model has been extremely successful because consumers want to pay

for the services which they want to use and not what the brand has to offer. We are constantly taking initiatives that give brands and consumers added

experiences. We also rebranded Jet Cafe to Sky Cafe introducing a large menu and options for consumers. Our sales through cafe have doubled since then.”

Jet Airways is also giving marketers an opportunity to sample their products and several innovations are being planned. “It is not that these revenues are going to be big

in numbers. But the Indian aviation sector is passing through a tough phase. To be profitable, we have to reduce cost and increase revenue. While everybody is focussing

to increase revenues through increase in the ticket prices, we are saying can we think out of the box and create avenues for partnerships,” shared Dureja.


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Wanted Independent aviation regulator Looking at the unstable ground for Indian aviation, CAPA highlights the urgent need for an independent regulator to ensure safety in Indian aviation and help save India’s international image. Excerpts: T T B U R E AU

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he unexpected removal of Bharat Bhushan, head of the Indian aviation regulator, the Directorate General of Civil Aviation

(DGCA), became a reflective of a poor overall approach to managing the sector. This damages India’s international image at a time when global sentiment on the India story, particularly on

and expertise, the regulator became weak and over-burdened. The business and general aviation sector had particularly poor safety and security oversight.

Upping numbers Indian aviation could witness transformational growth over the next decade. CAPA projects that total airport passenger traffic could increase from approximately 160 million in 2011 to 450 million by 2020, making India the third largest aviation market in the world behind the US and China. But if this is to occur, and to occur safely, the establishment of a strong and independent regulator is essential. Firstly, the ambit of the DGCA should be redefined to focus solely on safety; it should be unburdened from the current broad range of responsibilities that also encompass commercial matters which distract from the core mission. If India is to achieve its safety objectives, technical regulation of the aviation sector must be independent, transparent and skilled. There must be a common purpose between the Ministry and the DGCA which has not always been the case, creating an environment which facilitates collaboration with industry.

Kapil Kaul CEO - South Asia CAPA

governance issues, is already in decline. The root of the problems at the DGCA, in fact, goes back several years. During the period of rapid growth between 2004 and 2008, the DGCA was neglected and was not equipped with the resources to handle the demands placed upon it. Without the requisite manpower, and more importantly without the technical skills

In the last two years alone domestic traffic has grown by 36 per cent and international by 19 per cent. However there has been virtually no increase in resources at the DGCA, so under-staffing is once again a major concern. Long term institutional strengthening of the organisation should be the highest priority as this has traditionally been the DGCA’s weakness.

Need of the hour The DGCA needs to conduct an updated assessment of its resource requirements to handle the current size of the industry, as well as developing a structured plan to keep pace with the projected rapid growth over the next decade, rather than constantly play catch-up in response to crises. CAPA is of the opinion that the weakness of the DGCA is one of the most critical issues for the industry in FY13. Safety is paramount and without an independent and capable regulator, India will not be able to achieve the standards which it must aim for. It is disappointing to note that the focus on safety which emerged in the aftermath of the Mangalore accident in 2010 has faded. In fact, the Civil Aviation Safety Advisory Council has not met for the last 12 months. A concerted effort to restructure the DGCA appears to be on hold pending the establishment of a new unified and independent regulator in the form of an Indian Civil Aviation Authority. However, these plans are moving slowly and it could take another 12-18 months before the authority is functioning. Addressing the skills deficit at the DGCA cannot wait until then and urgent measures need to be taken in the interim. However, the regulator cannot take sole responsibility. Industry also needs to play a greater role through self-regulation, which is currently not happening to the level required.



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OTOAI conducts 1 members meet st

With an attendance of more than 250 members and special invitees, dignitaries from diplomatic missions, guests from various tourism boards and national tourism offices, airlines, hotels and media partners, the Outbound Tour Operators Association of India (OTOAI) conducted its 1st members meet on July 6, 2012 at the Sheraton Hotel, Saket, New Delhi.

Contd. on page 32


NTO

Bollywood ‘Cocktail’ in SA In 2011, 90,367 Indians visited South Africa which marks a 26.2% jump in Indian arrivals compared to 2010. Now, the Tourism Board is cashing in on Bollywood Tourism. cent jump as compared to 2010. Keeping the growth potential in mind, we will continue investing in training our trade partners to create profitable partnerships.”

VIVEK SETHI

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ately, on the lines of ongoing trend to cash in on the Bollywood bandwagon to promote the destination, South African Tourism in collaboration with Illuminati Films, launched an exclusive TVC campaign to promote tourism to South Africa. “We are really excited to be associated with ‘Cocktail’. The movie showcases the star cast having a fun-filled holiday in South Africa and it blends perfectly with our positioning as being an exhilarating, funfilled and memorable holiday destination. This association gives us an unprecedented opportunity to showcase South Africa on the Bollywood stage and reach out to the vast section of movie going audience.” The South African Tourism completed Module III of its classroom training session ‘Learn South Africa’ for its travel partners from June 12 – July 28, 2012. Commenting on the exciting module of Learn South Africa, Hanneli Slabber, Country Manager, South African Tourism said,

Hanneli Slabber Country Manager South African Tourism

We have been receiving a huge number of tourists from India, making this country one of our core focus markets for growth “Over the years, we have been receiving huge number of tourists from India, making this country one of our core focus markets for growth. As you might be aware, in 2011, 90,367 Indians visited South Africa which is a 26.2 per

“The ‘Learn South Africa’ training programme was launched in 2010 with the objective to enhance knowledge of frontline staff about South Africa. The success and feedback received over the past two years encouraged South African Tourism to further improve the method of training and also extend the training programme to 30 cities across India this year compared to 14 cities last year,” she added. Earlier in 2012, South African Tourism undertook their 8th Annual Roadshow in 5 Indian cities, namely, Mumbai, Bengaluru, Chennai, Delhi and Pune, where more than 1,000 Indian trade partners participated across the five cities. Going forward, in September 2012, South African Tourism, India, will undertake its second Annual Trade Roadshow across 4 cities including Mumbai, Delhi, Ahmedabad and Kolkata.

Ajit Singh says DGCA to be replaced Ajit Singh, Union Minister for Civil Aviation recently said the Ministry is looking to replace the Directorate General of Civil Aviation with

Ajit Singh Union Minister for Civil Aviation

a new regulatory body. He also spoke about the need to restrengthen the DGCA.

“We want to replace DGCA with a Civil Aviation Authority and for that we will look to introduce a new bill in the winter session of Parliament,” Singh said. He added, “The current regulatory authority needs to

be revamped, needs to be strengthened.” Recently, the then Director General of Civil Aviation was, without warning, removed from his post. Bharat Bhushan, the aviation regulator, had been given an extension in his job only the month before. Bhushan, known as an upright officer, had cracked down on the aviation industry in a number of matters including the fake pilots scam, safety issues and fare gouging.

Maldives office in India Maldives Tourism has appointed OM Tourism as its Marketing and PR office for Indian market. The company will be responsible for promoting Maldives in the Indian market in conjunction with both the travel trade and media fraternity. Mohamed Adam, MD (Acting), Maldives Marketing and PR Corporation said, “We are pleased to have appointed OM Tourism as the representative in the Indian market,

considering its expertise in the India market.” Sanjay Sondhi, President, OM Tourism said, “We are delighted to work as India office for this tropical beach destination. Maldives is a unique destination which is every Indian traveller’s dream destination. With its unique and natural pristine beauty, it can charm one and all. We will do our best to showcase and promote the destination to the Indian travellers.”

Nurturing Nature Atlantis, The Palm is nurturing nature with the newest additions of tiny little Seahorses to The Lost Chambers Family. These rare, newborns, will assist in the repopulation of this species once released into the Arabian Gulf.


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India on Bhutan radar

Training for fun@Disney

Druk Air connects Paro-Mumbai from September India is the fastest growing overseas market

After PATA’s Annual Adventure Travel & Responsible Tourism Hong Kong Disneyland has now started training the Conference, Bhutan aims at tapping the Indian market. agents in a more exciting and interactive manner. T T B U R E AU

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hutan’s flag carrier Druk Air is launching bi-weekly services between Paro and Mumbai in September. Says Damcho Rinzin, Marketing & Media Officer, Marketing and Promotion Division, Tourism Council of Bhutan, “Mumbai has been chosen to connect with Paro as it is a key hub for domestic and international air traffic in India. With this new flight, Druk Air will be able to tap demand from the western region of India.” Prior to this, Bhutan will also conduct roadshows in Mumbai, Pune and Ahmedabad to target the western region market. “We would invite around 100 Indian outbound tour operators for the purpose,” he added. Bhutan adopted a ‘high end, low volume’ tourism policy when the nation first opened its borders

Damcho Rinzin Mktg & Media Officer, Mktg and Promotion Division, Tourism Council of Bhutan

to foreigners in 1974. That year, the number of foreign tourist arrivals in Bhutan was just 300. In 2011, Bhutan welcomed around 64,000 people. Under the existing Bhutan tourism procedure, every foreign tourist needs to pay a minimum daily tariff of $250 during high season and $200 in regular season to the Bhutan government in advance. After completion of the trip, the government keeps a royalty fee of $65 and $50 per head per day in reg-

ular season, respectively. The balance is given to the concerned tour operator as reimbursement of his expenditure to arrange logistics for the tourist. A proposal is under consideration to increase the royalty. However, this will not affect India in any way as this system is not applicable for tourists from SAARC countries. They are not categorised as foreign tourists in Bhutan. But, according to Rinzin, the tour operators can cash in on this advantage. “Bhutan has seen a steady increase in the number of Indian arrivals for the last three years. In fact, one fourth of the visitors to Bhutan last year were Indians and hopefully this trend will continue.

Bhutan will never be a mass destination. Our target will always be the high-end visitors from India,” he claimed.

A N I TA J A I N

trade audience. Travel agents from India also participated in this interactive educational session and after followingup with the feedback on this pilot webinar session, we will organise more such sessions this year,” informed Ho. Ho informed that India is indeed the top fastest growing market for Disneyland. She said,

“T

o sell an exciting destination, we need to be passionate about our product and make our brand promoters (travel trade) feel the same passion and excitement while they sell it to the clients,” says Aliana Ho, Vice President – Asia Pacific Regional Sales and Travel Operations, The Walt Disney Company (Asia Pacific). The Hong Kong Disneyland was launched in 2005 and since then has been working closely with tour operators from India by educating them in traditional way – offline trainings. However, it has now started to make the education more exciting, interactive and skillful for agents. Through game shows, quiz, promotional incentive programmes and recently added webinar, it is making the product education more interesting for

Aliana Ho Vice President – Asia Pacific Regional Sales and Travel Operations

travel agents. Through these webinars, travel agents (including frontline staff) were able to access precise product information and experience the second themed park area – Grizzly Gulch from their desks. “Over 5,000 agents across the world participated in the webinars organised in July this year, allowing us to drive awareness of our new product ‘Grizzly Gulch’ to a considerably wider travel

“India is one of our core markets which is very important for Disneyland parks based in Hong Kong, Paris, California and Orlando. With improving air connectivity and visa free entry, Hong Kong is becoming a preferred destination for Indian travellers. We will continue investing in this market with special attention on our trade partners.”



30 TRAVTALK

NTO

AUGUST 1 ST FORTNIGHT ISSUE 2012

BAOA demands rollback of penalties Aircraft Business Operator’s Association (BAOA) has expressed a strong objection to the outrageously high penalties levied by Mumbai International Airport Limited (MIAL) on General Aviation aircraft parking, effective from July 1. The penalty charges range between ` 1,000-15,000 per hour compared to ` 20 to ` 70 per metric tonne per hour charged by The Airports Authority of India (AAI) previously. These penalties are applicable on private aircraft registered outside Mumbai and parked at the Domestic Airport beyond an agreed number of days. Speaking on the issue, Rohit Kapur, President, BAOA said, “To restrict the movement of aircraft by levying such penalties is completely unacceptable, illegal, and beyond the purview of Private Airport Developers. An aircraft registered in India can be used anywhere in the country and its movement cannot be restricted to limited airports.” “It’s the Government’s

duty to create requisite infrastructure for the aircraft to operate. If the present infrastructure is falling short, it does not give any agency the right to penalise the operators. The business aviation sector for many years, now, has been urging the Government to create the needed infrastructure in terms of parking space, separate terminals and hangar. But the requests have been to no avail,” he added. Capt. Karan Singh, Managing Director, BAOA, said, “Aircraft need heavy maintenance throughout the year. Some of the oldest MROs in the country have operated at the Mumbai airport for over 50 years. Aircraft from all over the country come to the 2 MROs at Mumbai airport. Moreover, most of the pilots’ availability is also based in Mumbai to fly the sophisticated machines.” Kapur added, “Create infrastructure and not penalties. Mumbai is the commercial capital of India and one of the busiest airports for business and private aviation.”

Canada aims big from smaller cities Canada has been witnessing a surge of Indian visitor arrivals and has recorded a growth rate of 24.53 per cent in April 2012. This year, the destination is expanding its focus on Tier-II and Tier-III Indian cities. Speaking about special initiatives being taken by the Tourism Board, Singh informed,

RA I N A M A N DA L

I

ndia is a strong source market for Canada. This is evident from the fact that Canada witnessed an increase of 18.2 per cent in 2010 over 2009 in visitor arrivals from India and 9.08 per cent in 2011 compared to 2010. When asked about the factors leading to this growth, Tina Singh, Assistant Vice President, Canadian Tourism Commission (CTC), Representative - India said, “Our constant endeavour to promote the destination among the travel trade has been one of the main reasons for witnessing such immense growth.” She added, “We anticipate a continous higher growth in 2012 and the trend of early bookings with agents is clearly evident to that.” CTC values the travel trade and understands that

Tina Singh Assistant Vice President Canadian Tourism Commission Representative - India

agents in India act as influencers to the travellers. Joint marketing promotions, agent familiarisation trips, various sales missions, certifications & trainings such as the Canada Specialist Programme (CSP) along with annual tradeshows such as Focus Canada India, Rendez-vous Canada among others, also play a significant role in the progress of the destination.

“This year, we are focussing our expansion to Indian cities such as Jaipur, Lucknow, Ludhiana, Chandigarh, Amritsar, Bengaluru, Pune, Ahmedabad, Chennai and Hyderabad.” Adding to that, she said, “CTC is all geared up to acquaint the Indian travel trade with the Signature Experiences Collection® (SEC), once-in-a-lifetime travel experiences found in Canada.” Designed to promote Canada as a destination that provides an opportunity to explore

larger than life experiences, SEC promotes all kinds of destinations ensuring it reaches the maximum number of travel agents and their clients. Singh added that Indian travellers are more attracted to Ontario, Quebec, Alberta and British Columbia when they visit Canada. One of the most popular itineraries amongst the Indians in Western Canada is cruising accompanied by a trip to the Rockies and long stays at the Fairmont Hotels.

Growth Chart 2011

2012

%YoY

Jan

6,501

6,754

3.9

Feb

5,415

6,268

15.8

Mar

6,848

8,449

23.4

Apr

9,469 11,792

24.53



32 TRAVTALK

AUGUST 1 ST FORTNIGHT ISSUE 2012

ASSOCIATIONS

Lack of clarity on service tax plagues agents The primary reason behind service tax-related uncertainties is lack of debate with the industry on such provisions and zero effort being put to educate all industry stakeholders on its pros and cons. various industries. Moreover, the system of having a negative-list of goods and services that are exempted from service tax, while on all other products and services shall

VIVEK SETHI

T

he new service tax regime, it seems, has stirred up the hornet’s nest, as all the leading travel trade associations seek further clarification and consult experts on its various ramifications. The Outbound Tour Operators Association of India (OTOAI) is working hard, to bring on a common platform, all the leading travel trade associations and also to create a panel of experts to bring clarity on the various uncertainties created by the new service tax regime announced in the Union Budget for 2012-13.

Guldeep Singh Sahni President OTOAI

“The travel trade continues to have many sleepless nights due to lack of clarity. The government should take a lenient view of the uncertainty that prevails across the

uncertainties is lack of debate with industry on such provisions. Moreover, the Government should have spent reasonable time to educate all industry stakeholders

The tax code should be such that all IATA and non-IATA companies, should be able to decipher the tax collections and submission procedures easily attract service tax, has not taken off well. The primary reason behind such

on its pros and cons,” said Guldeep Singh Sahni, President, OTOAI.

Further, educating on the aspects pertaining to the outbound tour operations that need to be clarified, Sahni said, “The point of service needs a lot of clarification. Most of the services that an outbound tour operators book are consumed in a foreign country like hotel accommodation, transfers, sightseeing and shopping. With what rational can the Government tax such tours, when the foreign government has the sovereign right to levy tax on such services?” “The multiplicity of taxation should also be

OTOAI gets together for a cause Contd. from page 26

addressed comprehensively. The ‘JN’ tax that the airlines levy on the air ticket to passengers, agents and the sub-agents also collect the service tax from passengers, which leads to multiplicity of taxation. Here, the Code of Conduct to collect service should be so clear that everyone understands it easily. Our industries mostly consist of small and medium companies. The tax code should be such that the IATA companies and the non-IATA companies should be able to decipher the tax collections and submission procedures easily,” added Sahni.


NEWS Just 2 steps for hotel booking T T B U R E AU

T

he recently launched hotel booking portal GRNConnect.com, being offered by Aman Travels, has a complete pack of latest features which makes hotel booking simple. Moreover, on offer are an unbelievable number of hotel accommodations, transfer facilities and sightseeing options. As per Shivali Khosla, Executive Director, Aman Travels, “GRNConnect.com is a next generation version of the earlier portal globalresnetwork.com, a hotel booking system, which offers an inventory of over 1,50,000 hotels, 7,500 transfers and 70,000 sight seeing options, coming from all top suppliers of the world.” The system also has XML connectivity which can get integrated with any website. “The access to our entire range of products will be available through a sin-

Shivali Khosla Executive Director Aman Travels

gle platform. It saves the hassle of contracting with various suppliers and providing separate bank guarantees to each. Our new e–advantage package has some very exciting features to make the booker glued to the system,” she added. Khosla believes that initially, every business needs investment and travel technology is an absolute transformation from the traditional method to an altogether new method of business, which will surely need funds in the initial stages. This fund deployment should be considered as an investment and not the expenditure. “Technology plays a vital role in the travel and hospitality sector and it has fundamentally changed the way business takes place in the industry. The mobile technology is going to be the next boom in the industry. Japan has already transformed to the mode of mobile technology and the rest of the world is following at a fast pace,” she adds.

AUGUST 1 ST FORTNIGHT ISSUE 2012

TRAVTALK

WTM 2012 expands LGBT offering To meet the B2B needs, WTM 2012 is looking forward to deliver world-class lesbian gay bisexual transgender (LGBT) marketing solutions. T T B U R E AU

W

TM, with Out Now, the leading marketing organisation to reach the LGBT segment, is expanding its partnership to unveil the world’s largest LGBT research programme. The first ever LGBT tourism research data

will help number of new markets including Israel, South Korea and Turkey. “With the new Out Now Business Class initiatives, we are confident of strengthening the leadership role that we have been able to deliver to the industry for more than half a decade now.”

‘LGBT tourism remains one of the key growth sectors for travel. With the help of Out Now, we are looking forward to continue to deliver world-class LGBT marketing

solutions to meet the B2B needs of the global tourism industry.” We are looking forward very much to to deliver continuing world-class LGBT marketing solutions to meet the B2B needs of the global tourism industry said Fiona Jeffery, Chairman, WTM.

Fiona Jeffery Chairman WTM

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34 TRAVTALK

AUGUST 1 ST FORTNIGHT ISSUE 2012

RAILWAYS

Rail luxury back on track The Indian Railway Catering and Tourism Corporation Ltd (IRCTC) has now added shorter itineraries and new destinations for the Maharajas’ Express. T T B U R E AU

T

he Maharajas’ Express is sure living up to its name and providing a royal treat to its passengers. Besides dishing out the regular itinerary, the IRCTC has now added

shorter itineraries and new destinations for the super luxury train. Responding to passenger feedback and in a move designed to make the train more attractive, IRCTC has announced new itineraries,

routes and pricing for the Maharajas’ Express. While the train so far had only been operating on eight-day itineraries which of course was expensive too, for the coming season, the train will be operating on five new

itineraries on four routes, which would include two itineraries of four days each with a view to meeting the long-felt demand for a shorter itinerary. These shorter itineraries which include popular

routes are expected to be in great demand especially amongst the Indian tourists.

Besides, Agra, Delhi, Ranthambore, Jaipur, Bikaner, Jodhpur, Udaipur, Mumbai, Fatehpur Sikri, Gwalior, Orchha/Khajurao, Varanasi and Lucknow, the train would now be touching new destinations like UNESCO world heritage site

A new entry level price of US$ 3,580 has been offered for the four day itinerary of The Maharajas’ Express Pradip Kundu Joint GM - PR IRCTC

of Ajanta Caves, Balasinor (third largest Jurassic Park in the world), and have a number of new/ improved experiences to make the packages more attractive. “A new entry level price of US$ 3,580 has been offered for the four day itinerary (Deluxe Cabin- for a 4 day itinerary). On like-tolike basis the prices have been reduced from US$ 7,160 to US$ 6,360 for an eight day journey in Deluxe Cabin. The highest price will be US$ 22,000 per person for Presidential Suite for an 8-day itinerary,” says Pradip Kundu,Joint General Manager PR, IRCTC. Also, the Supreme Court of India, vide its judgment dated July 5, 2012, dismissed the Special Leave Petition filed by M/s Cox & Kings against orders of the Division Bench of the Honorable High Court of Delhi in the matter of the Maharajas’ ‘Express. The Division Bench of the High Court of Delhi had, vide its order dated January 6, 2012 upheld the right of IRCTC, the full owner of the train, to operate the train without any obstruction from Cox and Kings. With this, IRCTC expects to make the venture achieve break even in the first full year of operations under its control.



36 TRAVTALK

AUGUST 1 ST FORTNIGHT ISSUE 2012

ANALYSIS

Promoting homestays is a challenge Homestays are becoming increasingly popular in India, but the promotion of these places is still in its nascent stage. finds out the roadblocks in promoting these establishments. PEDEN DOMA BHUTIA

‘T

astes like home-cooked home’, ‘We provide a home-like atmosphere’. These are some of the marketing taglines that hotels and resorts flaunt while selling themselves to potential guests. But today, when you travel, you can actually stay at someone’s ‘home’,

at, from the most palatial of houses to some very modest ones, all of which offer a slice of Indian hospitality at its best. Says Vimla Dorairaju, Business Head, Mahindra Homestays, “The response to Mahindra Homestays has been excellent. On a scale of 10, the response has been above 8.9 across all sectors.

Subhash Verma

Vimla Dorairaju

President ADTOI

Business Head Mahindra Homestays

In India, the homestay sector is still operating in a nascent stage and tying up with tour operators for B&Bs is not very profitable

only that the host may be a total stranger. Though comparatively new, the homestay concept, more popularly known as bed and breakfast, is slowly picking up in India. Offering an affordable option to experience India, these places offer a plethora of choices to stay

We have been growing every year by 30% or so. When we started, we had 9-10% occupancy

When we started, we had reservations about Indians taking it up, but we have been pleasantly surprised by the response. We have been growing every year by 30% or so. When we started, we had 9-10% occupancy. In the last three years, it has doubled up and now we have 2025% occupancy.”

But in spite of all this, the sector still lags behind. Being a secondary source of income for most people, the homestay sector so far is not very organised, except a few instances. Abhishek Biswal, CEO India, Tripvillas.com, Asia’s leading vacation rental site, says that owners need to show more interest in showcasing their properties, “When it comes to promotion of homestays in India, we are lagging behind in the owner’s interest. If you compare the way in which owners, elsewhere, in the world, showcases their properties on websites or any other promotion material, you’ll find that homestay owners in India are still lagging behind. Also, owners are a little wary about the screening of guests.” Subhash Verma, President, Association of

tion on an individual level will turn out to be very expensive. In India, the homestay sector is still operating in a very nascent stage and tying up with tour operators for B&Bs that operate with 2-3 rooms is not very profitable for either.” Mallikka Zafar, CEO, Unique India Tours, who

Tying up with travel agents could be a significant source of revenue for homestays Mallikka Zafar, CEO, Unique India Tours offers her guests three options of stay – homestay, budget and luxury – on some of her tours, agrees that promotion is a major roadblock in popularising this sector.

When it comes to promotion of homestays in India, we are lagging behind in the interest of owners Abhishek Biswal, CEO, Tripvillas.com Domestic Travel Operators in India (ADTOI), agrees that promotion is a major impediment and adds, “The Ministry of Tourism had started approving some establishments as B&B and I was part of the panel that approved 96 such B&Bs, of which there were also some places that were letting out only 2 or 3 rooms. When it was time to promote these places, most of the people were of the idea that the Ministry would help them in promoting their establishments. In Delhi and NCR, most of the B&Bs still operate individually so promo-

However, Verma agrees that ignorance is an issue. “These people do not have a proper channel to contact tour operators, some do approach tour operators, but that is on a more personal level than professional. In India, it is a very recent development and it will take some time for this sector to get organised. Some of them

“The promotion of homestays is still at a very nascent stage. Tying up with travel agents could be a significant source of revenue for homestays, but since these places have limited rooms they have to shut their doors to other potential guests once the rooms fill up,” says Zafar. However, she is positive that the sector will continue to grow and will become a significant player in the hospitality industry. And if the way in which Mahindra Homestays is functioning is anything to go by, then the homestay sector could sure replicate this.

are approaching online sites that are also promoting hotels, but there is no organised marketing happening here,” he says. Dorairaju too agrees that awareness is an issue for this sector. “The challenge of making people aware is a major disadvantage. People don’t really know what to expect out of homestays. There is a homestay for everyone, but not everyone knows about it. While some people may tie-up with travel agents, for most it is difficult to do that. And then of course travel agents can only come into the picture when there is a higher return assured. Individuals can either take government help or tie up with someone like Mahindra Homestays. In places like Kerala, Himachal Pradesh and Rajasthan the homestay owners have signed an MoU with the State Governments for joint promotion.” Biswal says that the communication mechanism between owners and guests should be strengthened to make each understand what they can expect from the

other. “These days, there are classified websites where one can enlist one’s property, but these don’t facilitate guest-owner communication. Through our website, we let travellers and owners interact before finalising on a property. Travellers can express interest on a which property after they can then ask questions to the owners. Also, we try and verify whatever is listed by the owners to make sure that the guests do not face problems during their stay and we also have a review system.” With the advent of social media and technology, homestay owners now have a platform to promote themselves in a low cost, albeit effective manner. And why not, after all, there’s no place like ‘home’, right?

Formula to Grow The communication mechanism between owners and guests should be strengthened to make each understand what they can expect from the other With the advent of social media and technology, homestay owners now have a platform to promote themselves in a low cost, albeit effective manner In Delhi and NCR, most of the B&Bs still operate individually so promotion on an individual level will turn out to be very expensive Homestay owners do not have a proper channel to contact tour operators, some do approach tour operators, but that is on a more personal level than professional



38 TRAVTALK

AUGUST 1 ST FORTNIGHT ISSUE 2012

DESTINATION

Rail Europe’s passage to Scandinavia

It is hard to comprehend the beauty of discovering Europe through the most spectacular rail rides. Offering an extensive train network across Europe, this time Rail Europe 4A chose to showcase its products in Scandinavia. M E G H A PAU L

T

FROM

he joint venture between the French and Swiss national railways (SNCF & SBB) is known for distributing and selling the greatest selection of European rail products, from passes point-to-point to

S C A N D I N AV I A

tickets as well as reservations and travel packages to Scandinavia. The train and bus journeys present a perfect window into Scandinavia to explore the undulated beauty of its changing topography.

Helsinki A lot of Helsinki’s history was shaped at the island fortress of Suomenlinna. As Finland was under Swedish rule for a long time, this fortress was founded by the Swedes in 1748 to protect the city against the Russians. One can take the Baltic ferries to

reach this fortress. What is interesting is that this World Heritage Listed fortress is a living history, apart from several museums, living amid the ruins are the local inhabitants. Hewn into solid rock in the middle of an ordinary residential square, The Church in the Rock (or

Temppeliaukio Church) is another major attraction of the city.

Turku Founded on an island on the estuary of Aurajoki River, the Turku Castle has now been rented to Turku City for the use of the Museum Centre of Turku. Thus, from being an administrative castle of the Swedish Crown, it is now a flourishing cultural and architectural heritage.

Stockholm The land of the Nobel Prize has so much of antiquity to offer. One can walk the cobblestoned streets of Old Town in Gamla Stan. The Royal Palace, gothic churches and excellent cafés in Swedish style are a must to watch out for. The literature enthusiasts and fans of Swedish author Stieg Larsson’s book ‘The Girl With the Dragon Tattoo’ and the other books in the ‘Millennium’ trilogy can take the Millennium walking tour as well.

Gothenburg World-class seafood, world-class restaurants and a coastline to die for, Gothenburg is situat-

ed on the west coast of Sweden. One of the major claims to fame of this city is the Volvo company, which was founded here.

Oslo The land of the Vikings and trolls has a lot in store for the discerned travellers. The city is a perfect destination for those interested in the arts. Don’t miss the original works of the famous Norwegian painter Edvard Munch and Oslo City Hall where the Nobel Peace Prize is given.

Bergen Experience the Norwegian State Railways’ network (NSB) that covers more than 3,000 kilometres to Bergen. Criss-crossing the wild mountains of Myrdal in Western Norway, the Flam Railways is famed for both its scenic vistas and innovative engineering. The ‘Norway in a nutshell’ tour is that of a lifetime. The 20-km descent is amongst the steepest in the world, twisting through cascading waterfalls, remote Nordic farmhouses, snow-dusted mountain peaks and yawning ravines.



40 TRAVTALK

CSR

AUGUST 1 ST FORTNIGHT ISSUE 2012

GREEN TALK Pledge for ‘fair trade tourism’ Matthias Leisinger, Head - Corporate Responsibility, Kuoni, who was recently in India, caught up with to share his thoughts on the need for all corporates to realise their Corporate Social Responsibility and the future of such initiatives for Kuoni in India. D E E PA S E T H I & V I V E K S E T H I

K

uoni India had always been alive to its corporate social responsibility and the need to give back to the industry and society. It has always played an active role, be it partnering with the Mumbai Police for the launch of Tourism Police, the cause of women empowerment, promoting sustainable development or child protection.

As per Matthias Leisinger, Head - Corporate Responsibility, Kuoni, India has done an impressive job on the corporate social responsibility front including women empowerment and code on protection of child rights in tourism, which had also been recognised by the Ministry of Tourism in the form of National Tourism Awards for Kuoni.

Leisinger said, “I have been with Kuoni since 2003 and can confidently say that we value our corporate social responsibility commit-

work hand-in-hand with NGOs and other organisations to support sustainable tourism projects in rural areas. This, in turn, brings about an alternative earning potential for Kuoni

We aim to make travel as meaningful as possible in social, ecological and economic terms. The aim is to strengthen the positive side of tourism ments. We aim to make travel as meaningful as possible in social, ecological and economic terms. The aim is to strengthen the positive side of tourism and integrate social, ethical and environmental issues with business, minimising its negative effect on destinations and the people. We

with new products to sell. So our work is advantageous for both.” “I am very happy at the achievements Kuoni India had registered in the recent past. We have signed the Code of Conduct and have also taken measures towards staff education, stakeholder involvement,

Matthias Leisinger Head of Corporate Responsibility Kuoni

capacity building and training of suppliers – bringing out an annual report on the CSR work we have done. Going forward, we would like to announce many new initiatives in India that will focus on integrating environment-friendly practices in business, mirroring our initiatives underway in Kenya and South Africa to name a few,” he added.

He said, “Empirical research shows that travellers’ satisfaction levels are high, when service providers ensure their compliance to environmental protection and child-friendly safeguards. Our sustainability commitments are also part of our supply chain management. We align with only those B2B partners, be it hotels, resorts or other value chains in travel and tourism industry, who have a clean and transparent record of honouring their commitment towards the environment and needs of Responsible Tourism covering aspects of child right protection and women empowerment.” On the importance of giving back to the tourism sector and society, Leisinger shared that a top down approach is important. All big players should willingly volunteer to own their com-

mitments by having a contract clause that includes green activities and human rights by practising energy efficient functionality, conserving water and contributing in every manner that helps the environment and humanity through ‘fair trade tourism’. However, the role of medium and small players can’t be negated, who should also contribute with similar zest to the best of their capacity.

A Big Idea A top down approach is important. All big players should willingly volunteer to own their commitments by having a contract clause that includes green activities and human rights by practising energy efficient functionality and conserving water



ANALYSIS

AUGUST 1 ST FORTNIGHT ISSUE 2012

Zip Zap Zoom Expressway The impending opening of the Yamuna Expressway holds much promise for the travel trade. However, the question being asked is that ‘Why is it not being opened officially when it is ready and is being used only through issue of permits?’ No one has an answer, even as all stakeholders are looking forward to this plush road. A N I L M AT H U R

A

few vital and time-bound measures have to be taken for attaining the set goals. For one, politics has to be kept out and the Yamuna

He revealed that more Jaypee Delcourt properties will come up along the Expressway, in addition to a 611-room hotel in Noida. Arjun Sharma, Managing Director, LPTI, points out,

lates on the point that, “The Expressway has opened doors for many other developments in the area like the Night Safari at the Mursheedpur forest, which will be the first in India and fourth in the

Arjun Sharma

S M Azmat

Suraj Jha

Managing Director LPTI

Senior Joint President Jaypee Group

General Manager Radisson Blu Hotel Greater Noida

Expressway will open doors for developments like the Night Safari which will be the first in India

The smooth 90minute drive to Agra will give a wonderful experience to domestic and international travellers

The new facility will be used more by SUVs and Coaches for group, FIT and incentive movements

come up in Agra and more chains are coming up. It is ironical that a world-famous city like Agra has no flights. This must change. Suraj Jha, General Manager, Radisson Blu Hotel Greater Noida, confidently states, “Travel in the Golden Triangle will never be the same again, thanks to the opening of the Yamuna Expressway.” He feels that the new facility will be more used by the SUVs and Coaches, for group, FIT and Incentive movements. The better connectivity will also boost special packages for the business, leisure and MICE market. Jha is designing innovative packages to cater to the expected increase in corporate, MICE and auto-related events. “The Test Track for cars and the Expressway are excellent ways of promoting leisure and incentive travel,” he feels. He plans to tie-up with properties in Agra and Delhi to offer attractive packages, so that overnight stays also increase. “We want

Need of the hour Arun Dang, Director, The Grand Hotel Agra, feels that the suggested airport near Mathura, at Baldev, would be a great help, especially in boosting the interest of and catering to the large number of NRIs, who would like to come for pilgrimage and spiritual trips to Vrindavan and Mathura, apart Arun Dang Director from coming to see the Taj. “In The Grand Hotel Agra the past, the room capacity was very low in Agra but as the capacity increased, so has In the past, the the traffic. There is no need to room capacity fear better connectivity and greater capacity,” says Dang, was very low in who has been active in the Agra but as the vibrant Tourism Guild of Agra also. But industry veterans like capacity Gupta and Dang feel that certain things need to be sorted increased, so out before the full benefits of has the traffic the Yamuna Expressway can be reaped. For one, the issue of toll tax and barriers on the way must be simplified, so that the time gained on the actual driving should not be lost at the barriers. Secondly, the procedure of viewing the Taj by Night must be streamlined, as the present system of taking a pass to view one day in advance just does not make any sense. to increase the size of the cake,” he quips.

Expressway should be thrown open for the public as soon as possible and the new regime in UP should show an enlightened approach in this case, especially, since the plush road is already being used through issue of permits. Elaborating on the benefits of the Expressway, SM Senior Joint Azmat, President, Jaypee Group, who has been closely involved with the developments in the area, points out that foreseeing the emergence of Greater Noida as the next hub, Jaypee Hotels developed the luxurious Jaypee Greens Golf and Spa Resort and the Jaypee Delcourt. He stated, “Apart from the boost to tourism and hospitality developments in Greater Noida, the smooth 90-minute drive to Agra will make for a wonderful experience, both for the domestic and international travellers.” The rise of Sports Tourism, seen in recent months, will get a further boost by the splendid facilities created at Greater Noida.

“Since the Taj Mahal continues to be the most popular and the most visited tourist destination in India, its ever increasing popularity has resulted in heavy vehicular traffic on the existing Delhi-Agra NH2. Apart from reducing the travel time, the Yamuna Expressway will also ease the traffic that one has to face on NH2 and will provide a safer and uninterrupted movement for travellers from Delhi and western UP.” Significantly, he adds that the Expressway is expected to boost the socio-economic development of areas like Aligarh, Mathura and Agra. Interestingly, Sharma articu-

world, after Singapore, China and Thailand.” Sunil Gupta, Director, Travel Bureau, feels, “That better connectivity, as the new Expressway will provide, always helps, just like during the introduction of Shatabdi trains.” But he, like Azmat, feels that a Civil Airport must be made available in Agra. Gupta suggests that till a new airport is built, the existing Air Force should have a dedicated civil corridor. Gupta, who is a major player in the region, points out that in recent months, over 250 new rooms have

Grey areas Some fine tuning and addressing the grey areas is necessary now. For example, a simplified, ideally one-time payment of toll taxes should be devised so that the benefits of speed are not lost and wasted at the barriers. One of the sore points on the NH2 has been the delay at the borders. The growth in villages and

populations along NH2 causes much safety and security issues and these should be addressed now at the Expressway. What will be the policy on letting habitats come up on the route and will trucks be allowed? As it is, a lot more of SUV’s and coach traffic is expected that would cater to the tourist traffic.

Krishna Mohan

Sunil Gupta

Managing Director, Southern Travels

Director Travel Bureau

Time and money will be saved, as Haryana taxes will be avoided and guests can save over 90 min each way

Better connectivity will provide help just like it did during the introduction of Shatabdi trains

Krishna Mohan, Managing Director, Southern Travels is excited at the development. He points out, “There will be a lot of saving on time and money, as the Haryana taxes will be avoided and the guests can save over 90 minutes each way, which can be utilised to see the Taj and other places, like Dayal Bagh and Soami Bagh in Agra, as extra quality time will now be available for the tours.” The impact of the Yamuna Expressway will be felt by hotels in Delhi, Gurgaon, Noida, Greater Noida and Agra and how the market, traveller and the industry handles the situation will be watched with interest.

QUICK READ

India ranks 1st in Sri Lanka

Sri Lanka received a record 4,52,867 foreign tourists in the first half of this year, with India leading the pack with 85,426 tourists. This is an 18.7 per cent growth over the same period last year.

Picture Courtesy: Team-BHP.com

42 TRAVTALK


STATES

US$14.7m bounty for J&K The Centre has sanctioned 14 mega tourism projects worth US$14.7m for Jammu and Kashmir (J&K) during the last three months. T T B U R E AU

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ith the aim of creating tourist-related infrastructure and conserving heritage sites, J&K has received a ` 73.50 crore. This was revealed by the Nawang Rigzin Jora, Minister - Tourism and Culture, Jammu & Kashmir while reviewing the pace of progress of different tourismrelated projects being executed under the Central Financial Assistance. Jora said nine tourism projects worth Rs 38.35 crore are being currently executed in the Kashmir Valley. These projects include conservation of heritage corridor of Jamia

Masjid, Srinagar, construction of TRC at Yousmarg, budgeted accommodation at Aharbal, construction of Kashmir Haat at Chinar Bagh

Nawang Rigzin Jora Minister - Tourism and Culture Jammu & Kashmir

Srinagar, development of picnic spot at Pahalgam, Sarbal

Lake at Verinag. The Minister informed,

“Four tourism projects have been sanctioned for funding for Jammu Division by the Centre, under which another mega heritage conservation project of ` 16.92 crore have been sanctioned for conservation of the Mubarak Mandi heritage palace.”

Maharashtra tops the list Statistics released by MOT for 2011 say Maharashtra tops the list of foreign tourist visits. T T B U R E AU

A

ccording to the latest report from the Union Ministry of Tourism, Maharashtra topped the list in number of foreign tourist visits, followed by Tamil Nadu and New Delhi. While Maharashtra received nearly

2011 S.No. States 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Domestic

4.8 million tourists, Tamil Nadu welcomed 3.4 million people and New Delhi played host to 2.2 million foreigners. The statistics released by the Ministry for 2011 says the number of Foreign Tourist Visits (FTVs) to Indian states/union territories was 19.5 million as compared to 17.9 million in 2010 and 14.4 million in 2009. This year, Foreign the number of FTVs registered a 18.871 growth of 8.85 per 2.646 cent over 2010 as 33.739 compared to a 5.740 growth of 24.6 per 48.154 cent in 2010 over 2.696 2009. It is the third 13.520 consecutive year 1.247 where the number 12.133 of foreign tourist 1.660 visitors has 9.725 increased.

Uttar Pradesh ® 1554.304 Andhra Pradesh 1531.198 Tamil Nadu 1375.130 Karnataka 841.074 Maharashtra 553.335 Madhya Pradesh 441.198 Rajasthan 271.373 Uttarakhand 259.463 West Bengal 222.570 Gujarat 210.175 Bihar 183.975 Delhi * 154.289 21.599 Himachal 146.049 4.845 Pradesh ® d Kerala 93.815 7.330

“Our campaign ‘Maharashtra Unlimited’ has been successful in reach-

ing out to the globe. We lay emphasis on leisure tours, beach tours, rural tourism and heritage tourism among others.

As Maharashtra is an all season-destination our next goal is to reach the topmost slot in the country in terms of domestic tourists’ arrival,” said Chhagan Bhujbal, Minister of Tourism, Maharashtra. The report said, the contribution of top 10 States was about 90.1 per cent to the total number of foreign tourists visits in the country for 2011. The percentage shares of top 5 States were Maharashtra 24.7 per cent, Tamil Nadu 17.3 per cent, Delhi 11.1 per cent, Uttar Pradesh 9.7 per cent and Rajasthan 6.9 per cent.

Highest VoAs for Japan in June 2012 A total number of 864 Visa-on-Arrivals (VoAs) were issued in June this year as compared to 770 VoAs during June 2011 registering a positive growth of 12.2%. During the period January-June 2012, a total number of 6,721 VoAs were issued as compared to 5,774 VoAs during the corresponding period

of 2011, registering a positive growth of 16.4%. The number of VoAs issued under this scheme during June 2012 for nationals of the ten countries was Japan (233), New Zealand (171), Indonesia (152), Singapore (135), Philippines (113), Finland (30), Vietnam (12), Luxembourg (8) Cambodia (5)

and Myanmar (5). The number of VoAs issued under this scheme, during January-June 2012 were Japan (1,625), New Zealand (1,427), Indonesia (1,092), Philippines (944), Singapore (887), Finland (513), Vietnam (88), Cambodia (49), Myanmar (46), Luxembourg (44) and Laos (6).



FAMILY ALBUM

Seasons’ wine & dine for ADTOI

AUGUST 1 ST FORTNIGHT ISSUE 2012

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45

Kerala Tourism Goal

Seasons Hotels recently hosted ADTOI committee members and their families at their property on July 7, 2012 for a night stay that included cocktail, dinner and live entertainment.

‘Shoot the rain’, an annual event conducted by Tourism Professionals Club in Kerala, was a huge success this year. This event organised for members of the industry was sponsored by the Department of Tourism, Government of Kerala. The event, inaugurated by KV Thomas, Cabinet Minister, was well attended.


46 TRAVTALK

AUGUST 1 ST FORTNIGHT ISSUE 2012

FAMILY ALBUM

SAARC Tour Operators Conclave The Ministry of Tourism called the SAARC Tour Operators Conclave in New Delhi on July 6, 2012 to boost tourism exchange. About 45 leading tour operators from India, Maldives, Afghanistan, Bhutan, Nepal, Bangladesh and Sri Lanka participated in the event.

IAAI elects Delhi body

IATA Agents Association of India (IAAI), Delhi chapter recently organised their annual general body meeting and elected the Delhi state committee for the term 2012-1014. The new committee has Surinder Kumar as President, Gurinder Singh Bhatia as Vice President, Jagdeep Bhagat as Secretary and Vikas Arora as Treasurer. Biji Eapen, the National President was also present at the event.



48 TRAVTALK

NEWS

AUGUST 1 ST FORTNIGHT ISSUE 2012

Now Dubai visa online AUGUST 6 7 8 9 10-12 13-14 16-17 21-23 24-26 24-25

Chennai Bengaluru Mumbai New Delhi Vadodara New Delhi Mumbai New Delhi Ahmedabad New Delhi

27 28 29 30-2 31-2 31-6

Chennai Mumbai New Delhi Mumbai Surat Australia

Philippines Tourism Roadshow Philippines Tourism Roadshow Philippines Tourism Roadshow PhilippinesTourism Roadshow Holiday Expo Kiwi Link India B2B Event Kiwi Link India B2B Event IT&CM India’s Convention Travel & Tourism Fair FICCI’s The Great Domestic Tourism Bazaar Multi-city Destination Roadshow Multi-city Destination Roadshow Multi-city Destination Roadshow IATO’s 28th Annual Convention Travel & Tourism Fair Tourism Australia’s India Mega Famil & Workshop

SEPTEMBER 4

New Delhi

4-6

New Delhi

6

Mumbai

6-8 9 11

Goa Mumbai Mumbai

11-13

New Delhi

12-14

Kochi

12-14

Beijing

13

New Delhi

14-16 14-16 18-21 19-20

Pune Mumbai Paris Birmingham

19-22 20-23

Moscow Tokyo

21-23 25-28 26-27 26-28 27-29 27-30

New Delhi Philippines Germany Kazakhstan Poland Kerala

ATOUT for France’s B2B Workshop HAI’s “Managing the Training Function” ATOUT for France’s B2B Workshop 47th FHRAI Annual Convention Travel and Tourism Fair US Travel Association India Mission’s B2B Tabletop Workshop HAI’s “Hotel Opening: Soft & Grand” Emerging Kerala Global Connect The China Incentive, Business Travel & Meetings Exhibition US Travel Association India Mission’s B2B Tabletop Workshop Travel and Tourism Fair India International Travel Mart Top Resa International Group Leisure & Travel Show Luxury Leisure Jata Congress & World Travel Fair India International Travel Mart PATA Travel Mart Business Travel Show Astana Leisure TT Warsaw Tour & Travel Kerala Travel Mart

OCTOBER 2 2-4 3 5 5-7 17-19 18-19 19-21

Melbourne Thailand Sydney Auckland Nagpur Singapore France Canada

20-29 27-30 28-31

Noida China Guwahati

PATA India Roadshow IT&CMA and CTW PATA India Roadshow PATA India Roadshow Holiday Expo ITB Asia MAP Pro Le Monde A Paris The International Tourism & Travel Show India Travel Mart China International Travel Mart Annual Convention of ATOAI

For more information, contact us at: talk@ddppl.com

Travel agents need to register one time and then they can subsequently use their unique login and password to submit their applications. are our client travel agents. I must also share that the Presidents of TAAI and TAFI, India’s two largest Travel Agent bodies, have already signed up with us for the new service.

T T B U R E AU

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ubai Visa Processing Centre (DVPC), part of VFS Global, launched a new service allowing travel agents to submit Dubai visa applications online. Travel agents need to complete a one-time registration with DVPC to get their individual login ids and passwords after which they can simply login on www.dubaivisa.net to submit their customers Dubai visa application. By introducing the online, eco-friendly and paperless service, DVPC is able to provide service to every corner of India, even at locations where their physical presence is absent. According to Pradeep Suvarna, Head – DVPC, VFS Global; the online module

enables DVPC to provide much faster turnaround time in processing the visa. The visa application details reach them the minute the agent clicks the ‘submit’ button, saving processing time; an advantage that the agents can easily pass on to their clients.

Although we expect to cover 50% of the entire Indian travel agent market this year, our ultimate aim stands at 100% enrolments online and bringing real time submissions at finger tips for majority of our travel agents in India.”

He said, “We are upbeat about the new system and so

DVPC will also be taking regular feedback from cus-

Pradeep Suvarna Head – DVPC VFS Global

tomers and will keep upgrading the system to better suit their requirements from time to time. “DVPC’s online module could well be a turning point in the way travel agents apply for visa for their clients. VFS Global already provides online services for visa application as well as appointment and interview scheduling for applicants. Leveraging on our past experience, our expertise in this domain and our latest offerings, we are confident that the other clients would be keen to adopt this success model, and wecould offer similar services for other governments as well. The final decision, however, always remains with our client,” concludes Suvarna.

No smoking for tourists in Goa Manohar Parrikar, Chief Minister, Goa recently informed the Goa assembly that the Government would initiate action against tourists smoking in public places. Replying to a private member resolution, Parrikar said that during his previous tenure, his government had

enacted an anti-smoking law, which had helped reduce public smoking in Goa, which he claimed was the lowest in the Asian sub-continent. He said, “Now, you cannot find a Goan smoking on the road and in public places except tourists, and for that we are in the process to take

action against tourists if found smoking in public places.” Curtorim MLA Aleixo Reginaldo Lourenco, in a private member resolution, said that the government should ban the use of plastic bags all over the state and encourage the usage of jute or biodegradable plastic bags for which a subsidy should be

provided by the government. “Banning of plastic is a central subject and the government should examine it,” said Lourenco. “I will not use the word ‘ban’, but we can say (plastic bags) below 100 microns, which will stop the sale of plastic bags. This will solve our problem,” said Parrikar.

Building the Future of Indian Aviation The Confederation of Indian Industry (CII) organised a conference in New Delhi to discuss the road ahead for Indian aviation. Speakers for this event included Tony Tyler, Director General and CEO, IATA and Naresh Goyal, Chairman, Jet Airways.



COVER STORY

‘Connectivity is a big roadblock’ The maiden SAARC countries’ Tour Operators Conclave convened by MOT emphasised on various strategies to promote tourist destinations and products in the SAARC region. TT B UREAU

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AARC countries should come together on a common platform to promote tourism. This was the agenda of the recently organised SAARC Tour Operators Conclave held on July 6 at Ashoka Hotel in New Delhi. Organised by the Ministry of Tourism, the recently concluded conclave was hosted as the follow-up of action by India since Prime Minister Manmohan Singh made an announcement in Maldives last year. During the 17th SAARC Summit in November last year in the Maldives, he had announced that India would host a conclave of the top tour operators from the SAARC countries in 2012. The conclave was inaugurated by Subodh Kant Sahai, Union Minister for Tourism. The maiden SAARC countries Tour Operators Conclave was attended by over 30 participants from

seven countries of the region (Afghanistan, Bhutan, Sri Lanka, Maldives, Bangladesh, Nepal and India) including policy makers and private stakeholders of the tourism industry. Deliberating on ways to promote travel within the region by removing the current entry barriers, Sahai

Sultan Ahmed Minister of State for Tourism

pointed out, “We must motivate each SAARC country in such a way that tourism becomes the focus of economic and political motto. The SAARC nations have immense growth potential,

which, till date, has not been fully utilised.” Looking at the economic significance of these nations, he further highlighted, “The SAARC region has the potential to steer the economy of the world. Most of the SAARC nations have already realised this potential at individual level but with a concerted effort, the success achieved would be manifold.” To give an impetus to travel within these countries, MOT will hold the International Buddhist Conclave during September 29-30 at Varanasi. India will also host the 25th joint meeting of UNWTO Commissions for Far East and the Pacific and South Asia in April 2013. This meeting is expected to be attended by approximately 100 delegates from 27 countries, which include tourism heads, tourism officials and officials from UNWTO, he added.

Talking about various challenges in boosting tourism within the SAARC countries, Sultan Ahmed, Minister of State for Tourism remarked,

“Connectivity, both air and by road within the region, is a big roadblock. Air connectivity should be improved by adding more flights and making them cost-effective as well. Visa-on-Arrival facilities for travel within the region should also be looked at.” The tourist arrivals from SAARC countries in India have been growing over the number of years. An important source market, India, received 1,013,516 tourists from SAARC region in 2011 as compared to 9,98,179 visitors in 2010.

Tourism means economic growth Contd. from page 1

To strengthen his cause, the Tourism Minister also highlighted the fact that UNWTO and WTTC had called on the leaders to consider Travel and Tourism as an engine for economic growth and stimulating the global economy. The policymakers in India are also open

to the idea of exploring tourism potential to the fullest to herald a new era of faster, sustainable and more inclusive economic growth.

SAARC region, Visa-onArrival facility or an e-visa facility among other initiatives will be steps in the right direction.”

Further, addressing the initiative that will go a long way in promoting outbound exchange within SAARC region, he said, “For doubling the tourist inflow within the

“Looking at the apparent reasons, the said facilities can’t be extended to all the countries in the SAARC region at one go, but some positive steps in this

Showcasing Macau The Macau Government Tourist Office (MGTO) played host to agents from India between July 3-6, 2012. The trip aimed at showcasing the recent developments and allowing the participants a first-hand experience of the destination.

direction can be easily considered,” he added.

Exploring Tourism The policymakers in India are open to the idea of exploring tourism potential to the fullest to herald a new era of faster, sustainable and more inclusive economic growth


OPPORTUNITY / CLIPBOARD

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52 TRAVTALK

MOVEMENTS

AUGUST 1 ST FORTNIGHT ISSUE 2012

WelcomHeritage Hotels New Delhi

The Leela Goa Goa

Emirates Airlines Maharashtra

Rimi Dutta joins WelcomHeritage Hotels as Country HeadSales. In her new role, she will be responsible for the sales of the Brand and creating awareness for WelcomHeritage Hotels. Dutta comes with 9 years of experience in the hospitality industry. Prior to her present venture, she was associated with Swissotel Hotels and Resort. She has also worked with Ananda in the Himalayas, Ramada and The Leela. She pursued her MBA from Indian Institute of Tourism & Travel Management, Gwalior.

Shridhar Nair is appointed as the General Manager for The Leela Goa. Nair has been with The Leela Palaces, Hotels and Resorts for over 15 years. He began his career with The Leela Palaces, Hotels and Resorts as a Management Trainee in 1997 and has worked across the group’s Mumbai, Bengaluru, Kovalam and Goa properties. His most recent position was that of a Resident Manager at The Leela Goa. He is a double graduate in Arts and Hotel Management from Mumbai University and a post graduate diploma holder in Marketing Management.

Vikram Paul has been appointed as the Sales Manager in Maharashtra for Emirates Airlines. In his present profile, he will be responsible for the airline’s sales operations in Maharashtra with special emphasis on enhancing route targets, brand visibility and tactical strategies for business growth. Prior to this, he was associated with Malaysian Airlines and Qatar Airways. Paul comes with a wealth of experience of more than 16 years in the travel and aviation business industry.

Connect World Travel & Tourism LLC Dubai New Delhi

Nidra New Delhi

Delhi

Rajiv Verma has joined Connect World Travel & Tourism LLC

Rahul Verma has been appointed as the General Manager of

Neeraj Newton has been appointed as the Sales Manager

Dubai as ‘Business Head- India & South Asia’ based at New Delhi, India. With more than 20 years of professional experience in diverse aspects of sales, marketing and operations of airline, hospitality, holidays, etc, Verma will be responsible to promote outbound tourism from India & South Asian countries to Dubai, London, Moscow, KIEV & Europe for CWT. Earlier, he has worked with Air New Zealand, Malaysia Airlines, Hyatt group and Dubai-based DMC.

Nidra, New Delhi. Verma has spent 30 years with various hospitality brands across the country. Prior to this, he was working as an Associate Consultant with Hotelconsult. He started his career with Welcomegroup Maurya Sheraton, New Delhi. He is a graduate from Lucknow University with a diploma in hotel management from DIMS, New Delhi; he also holds a degree in advance of hotel management from MDI, New Delhi.

in Delhi for Emirates Airlines. He will be responsible for the airline’s sales & ticketing operations in Delhi with special emphasis on enhancing route targets, brand visibility and tactical strategies for business growth. Newton has worked with travel agencies and airlines for more than six years, managing leisure and corporate sales for different brands across the country.

The Claridges New Delhi

Virgin Atlantic Mumbai

Andhra Pradesh

Vandana Dutta has been appointed as the Director – Business Development for The Claridges, New Delhi. She has over 12 years of experience in Hotel Sales. She was working as Director of Sales for the hotel for past 3 years. In her new role, Dutta will be responsible for all sales and marketing activities, along with responsibility of brand management and positioning of the company as a boutique hotel. She has been associated with properties like Radission Blu Mahipalpur & Le Meridian.

Nutan Sneha is the new Sales Manager for Virgin Atlantic

Mohammed Abdul Safi has been appointed as the Sales

Mumbai. In this role, she will be responsible for growing the airline’s relationship within the travel community as well as driving the corporate sales business in Mumbai. Sneha brings with her nine years of industry experience and strong understanding of the aviation environment. Prior to this appointment, she worked with Cathay Pacific and Thomas Cook (India) and handled the sales portfolio with a focus on the corporate sector.

Manager in Andhra Pradesh for Emirates Airlines. Safi brings in more than 19 years of experience spanning sales, strategic planning and business development for domestic and international airlines. He will be responsible for the airline’s sales operations in the state. In his past stints, he has worked in sales and marketing and also been involved in strategic planning and Business Development.

Guldeep Singh Sahni, President, OTOAI and Managing Director, Weldon Tours & Travels, swears by Indian values, culture and ethos. Unlike any country that gives social security to the elderly, our society offers the best possible mechanism: It teaches us to love our parents. Talking People is a special dedicated corner, created as a sounding board for who’s who of the Indian and International travel industry. With Talking People, it is our endeavour to bring you face-to-face with people. Contributed by: Vivek Sethi & Megha Paul

Guldeep Singh Sahni

Ana Larranaga, Managing Director, Fitur loves travelling, especially when it’s not businessrelated travel and is purely for a holiday.

Ana Larranaga Managing Director Fitur

“I am blessed with a 13 year daughterAndrea and am living in Madrid. I love reading novels on fiction. I also like to read science-oriented books. I love Indian food, especially when it’s not too spicy. I would love to bring my daughter for an India visit,” she adds.

“I believe that all the success we achieve in our life is a result of the blessing of our parents. The failures occur because we had not attended to our responsibilities towards our parents in the best possible manner. Here, we should request for their forgiveness. I want all of us to remember the values that our culture teaches and not give them up under any circumstances,” Sahni says.

President OTOAI

Rajan Bahadur, Regional Director -- Sales & Marketing, Starwood Hotels and Resorts says, “I love to eat a lot and hence, my waistline would keep increasing with every passing meal.” “So to keep myself in shape, I visit the gym frequently. I love jogging and various kinds of sports.” Bahadur has two grown-up kids, who are now more like friends. “I like spending time with them. I don’t like planning for vacations as I feel it should be a spontaneous action. I just head out to the hills looking for wilderness whenever I get time. I love to shoot and hunt and cook, although I wouldn’t deny that I don’t really cook that well.”

Rajan Bahadur Regional Director Sales & Marketing Starwood Hotels and Resorts



Postal Reg. No.: DL(ND)-11/6044/2012-13-14; WPP No.: U(C)-178/2012-14 for posting on 1st-2nd and 15th-16th of the same month at New Delhi P.S.O., RNI No.: 53492/91 Date of Publication:30-07-2012

HIGHLIGHT

5 states in ADB’s funding kitty The technical assistance provided by Asian Development Bank (ADB) is another step in their partnership with India for developing sustainable and socially inclusive tourism in India. In a discussion, Ludwig G Reider, Asia Pacific Projects - Team Leader, ADB reveals the procedure and challenges of funding in India. M E G H A PAU L

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ust recently, the Asian Development Bank (ADB) and the Centre have signed a $74.8 million dollars loan to improve road connectivity

To help develop the country’s tourism sector into a driver of sustainable and inclusive economic growth, ADB is assisting the Centre in preparing a roadmap to develop tourism infrastructure in the next ten years. Elaborating on the process of identification and development of the projects, Reider said, “We emphasise on access and connectivity. The financing is done through

and Sikkim. This is the first phase of funding.” The technical assistance is intended to help the Government achieve its targets of enhancing the performance of the tourism sector in an environmentally and culturally sustainable and socially inclusive manner. This would be reflected in an increase in the number and length of stays of tourists,

ADB & Tourism in India Ludwig G Reider Asia Pacific Projects - Team Leader ADB

The modus of execution is that there is a framework but it is up to the states to raise their hands and say they want to do it. So in the first phase, we have these five states. Between them, we have invested $300 million within the six north eastern states of the country. This will be ADB’s first transport sector project in the North East region to develop and implement road investments.

In 2006, the Government of India had requested assistance from the ADB to meet the large-scale tourism infrastructure requirements of the country. As a first step, the Bank provided a study to assist the government in developing a national tourism infrastructure development roadmap. The study, implemented from May to October 2007, assessed the country’s tourism endowments, market trends, high potential tourism circuits and destinations and their infrastructure requirements over the next 10 years. The technical assistance provided by ADB is a culmination of this study, which is another step in ADB’s partnership with India for developing environmentally sustainable, culturally sensitive and socially inclusive tourism in India. grant allocations made by State and Central Governments and loans by international lending institutions like ADB.” In line with the government’s efforts to facilitate inclusive growth, ADB’s main focus is to fund Humanity-based Tourism, Heritage Tourism and Rural Tourism for Sustainable Tourism, he added. Sharing the plans of the Bank, Reider informed, “At the moment, the Bank has provided funding and loans to Government of India to undertake tourism infrastructure investments in five states – Tamil Nadu, Himachal Pradesh, Uttarakhand, Punjab

more widely distributed income and benefits from tourism and enhanced management of natural and cultural heritage sites of tourism importance. “Hence, this was a 10year roadmap to come up with $6 billion worth of tourism infrastructure, of which about $300 million is in the process of being utilised. The idea is to create clusters along with circuits and then improve tourism holistically. The modus of execution is that there is a framework but it is up to the states to raise their hands and say they want to do it. So in the first phase, we have these five states.

Between them, we have invested $300 million,” he revealed. India’s relative share of tourist arrivals and earnings from tourism remain insignificant in relation to its tourism potential, feels Reider. “Tourism development as a multi-sector activity is undermined by the lack of coordinated effort and limited capacities of a large number of the agencies involved. Despite the recognition at the policy level of the critical role of the private sector in tourism, an enabling framework to mobilise the private sector for tourism infrastructure development, as well as developing complementary facilities, is not yet fully in place. All areas of tourism service provision suffer from a significant shortage of human resources. However, the most critical constraint to harness the tourism potential and sustain marketability of the country’s vast tourism endowments is inadequate infrastructure,” he opined.

Current Challenges According to Reider, the basic connectivity infrastructure (air, road, rail, and water access) outside the main gateways and key destinations is inadequate. Lack of infrastructure is also hindering the diversification of tourism products and contributing to a highly seasonal pattern of tourism with resulting adverse impact on viability of investments by the private sector.


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