Archive for the ‘tourism industry’ Category

New Travel Magazines in India

Monday, February 22nd, 2010

The launch of a few new travel magazines will give Indian travellers a lot more reading options in 2010.

India’s travel magazine space has been dominated by very few players for a long time. One look at the news-stands makes it evident that Outlook Traveller has remained a leading player with very little competition from other players. Yes, there are other magazines that have survived for a long time, but rarely seem to have made a pan-India presence and survived for a long period. There are many other magazines like India Today Travel Plus, Discover India, Incredible India that can be seen on the stands but never really gained popularity as Outlook Traveller did. Many have come and gone too, such as Go Now and Taste and Travel.

If the reaction to Lonely Planet’s recently launched travel magazine is anything to go by, Outlook Traveller may soon have some competition for the top position. I went from news stand to news stand asking for copies of Lonely Planet Magazine, only be told that they are all sold out. It is too early to speak of success, as it could just be an initial curiosity to a new launch from a well known publication. However, LP’s successful launch has indicated that it is going to be a contender for the top position.

Another major publisher that will be entering India soon is Conde Nast Traveller. Conde Nast is one of the reputed publications in the US, and Conde Nast Traveller is one of their popular magazines. CNT is known for its well researched stories that engage the keen reader, which may help it stand a cut above the rest. However, it still needs to be seen how their India edition will be.

At a time when most travel magazines are finding it tough to survive in the US and shutting down (National Geographic Adventure magazine was one of the recent victims), the trend seems to reversing in India. Just when these biggies are arriving in India, I am also seeing more travel related magazine hitting the stands. Among them is a magazine focuses exclusively on historical destinations. There are other magazines that have come out recently with focus on business travellers and Indians travelling abroad. A publishing house based in Delhi I know is on its way to launching a new magazine called Terrascape, which focuses on experiential travel articles.

It seems to be a boom time in Indian Travel Industry.

Recovery in Tourism Industry

Friday, January 22nd, 2010

Looking at visiting crowds and people manning the stalls at the Travel and Trade Fair in Bangalore last week, it doesn’t look like they belong to a recession battered industry. On the contrary, I see enthusiastic faces looking up to a bright year ahead. They seem to have gone through a peak season with full occupancy at best rates they can get.

tourists in india

foreign tourists looking up at a souvenir shop

My thoughts are confirmed when I spoke to an employee of a company that runs a chain of high-end resorts. They just had a great winter, with 100% occupancy in December continuing at 80% levels in January. They were already completely booked for whole of Febraury 2010.

The government and the industry sources echo similar sentiments. The tourism minister Kumari Selja indicates of “tourism in India showing signs of early recovery from the impact of global economic meltdown.” The figures – a 21% jump in international tourist arrival in December against previous year seems to be good indication of a likely revival.

Only a year before, the tourism industry suffered from multiple problems surfacing just before the peak tourist season in winter. The global economic recession had reduced the prospect of enjoying high growth year in tourism. This was complicated further by the terrorist attacks in Mumbai in November 2008 and later in 2009 with the spread of swine flu. There were other incidences too, such as the drowning of more than 40 people in Thekkady, which resulted in sudden drop in visitors to this flagship destination in Kerala. The new visa rules introduced just before the end of the year seemed to threaten long term visitors to the country who stayed for more than 6 months.

2009 was a year when number of foreign tourist arrival shrunk marginally. Between January to November2008, foreign tourist arrival had reduced by 6.3% against the same period in 2007. Yet, total spending from arriving tourists had gone up by 5%, indicating the arrival of more high value tourists or long-stay visitors.

But looking at the occupancy levels in December and with general upbeat mood in the economy, the turnaround in tourism industry may not be very far. While this is just the beginning, a general economic recovery coupled with some large events due in 2010 may help the industry sustain the wave. The Kumbha Mela, which will be on from mid-January to end of April will see a large volume of people travelling domestically, which in turn is likely to attract many international visitors. The commonwealth games scheduled in October may see a surge of inbound travellers in the month preceding and just after the event, helping to keep the occupancy levels high in most parts of North India.

An indication of general economic recovery is coming from IT industry too, one of the largest spenders in travel and entertainment. Large IT companies have increased their hiring and have hiked salaries in the recent months. The financial results and outlook provided by these companies in the current quarter are in indication of good days to come, which in turn may spell good times for travel and entertainment industry.

With all signs looking positive, 2010 may turn out to be a good year for travel.

Creating a tourism and leisure friendly eco-system in India

Sunday, January 3rd, 2010

Seshadri Krishnan, founder and CEO of iVinca shares his views about building a tourist-friendly ecosystem in India.

After spending a week in Singapore and Malaysia for a vacation, I had a unique opportunity to look at how the eco-system is getting nurtured in both the countries. I was constantly thinking about how such an eco-system can be developed in India.

Having worked with many travel and retail companies across the globe, I understand that this is not something which can be done by private enterprises and needs lot of efforts from the government including policies, environment and governance to ensure we attract more tourists in the coming years.

First some facts to set some context –

There lies the story – While we may attract lesser number of tourism, our forex earnings are more than countries like Singapore. While this may also have to do with currency and the purchasing power parity of the host country, it cannot be denied that we have lot more to offer to inbound tourists than many other countries in the world and this industry can really lead the way in terms of being an effective engine for our economic growth. From a current 5-6% of GDP, the share of tourism revenues can easily grow manifold if we have the right infrastructure and eco-system in place.

While it is important to increase the overall number of tourists coming into the country, we also have to take care of various links in the entire eco-system to provide a great experience to our guests. This is far more critical, since as a country we often fail in effective governance and service delivery. However, there are areas of hope. One has to only look at the success of NREGA (National Rural Employment Guarantee Act) to see how service delivery can be enhanced with the intended results. Of course, NREGA has to go miles before achieving the full impact, but it offers some pointers on effective policy framework along with implementation and governance mechanisms.

If I have to offer very clearly defined prescriptive solutions to enhance the overall service quality and experience to our guests,

  • Change in terms of our mindset right from the time they arrive in India (especially at our immigration counters) till they get back to their homeland. We need them and they are our guests. It may sound simple, but we all know how difficult is to bring a change in mindset and attitude.
  • Competent and credible guides who can provide a great experience on the ground. While there are lot of efforts by the government including the campaign by Amir Khan, on ground realities need to change rapidly.
  • Identify school and college students who can accompany credible guides and can be part of providing few services at our various monuments. This will act as a great experience to our young kids both to service our guests as well as to get an exposure to our rich cultural heritage.
  • Identify people who are passionate about our various attractions, be it wildlife, heritage, monuments, temples, etc and make them part of overall experience. This has to be collaborative public-private partnership.
  • Look for places where the destination experience can be totally transformed (Taj Mahal, Mysore Palace, Hampi come to mind) cutting across various aspects – information brochures, highly trained and credible guides, sound and light show, audio visual guides, transportation facilities and more importantly toilet and other sanitation facilities. Even if this is done for few locations to start with, it will be a great way to attract tourists.
  • Build lot of recreation facilities including gift / souvenir shops, shopping centers (of course not too close to the monuments like the Taj fiasco!) etc to sustain the experience
  • Our biggest hurdle is lack of availability of information and poor information dissemination. For example, how many people know ASI recently launched a facility to buy a single ticket for all monuments? How many of us know about the hop-on, hop-off facilities being offered by Tamil Nadu tourism department? Or even, the government of Karnataka have no idea when the great Hampi Utsav will be celebrated? Having access to information with multiple modes of delivery will be the key to ensure it is available everywhere.  Let us ensure that there is adequate availability of brochures, information booklets at various tourism counters across the country and other vantage points.

Some of these ideas can be completely outsourced with a BOT (Build Operate and Transfer) model where a private enterprise take over the entire vicinity to provide transportation facilities, guides, audio/video aids, souvenirs etc..

The more I think about it, the transition from tourism to leisure can be achieved if we have the key pieces of the eco-system – transportation, guides, sanitation facilities and shopping / recreation activities are in place. If you think really deep, you realize this is in the realm of entertainment and infrastructure and we have enough leading companies to look at this area to build a commercially viable business model around an attraction.

If the government is serious and committed about the target of 10 million tourists by 2011, then it has to set the ball rolling with a right policy and governance mechanism in place. If it starts identifying the top 10 destinations in India and look for PPP in these locations, this itself will be a great start.

We at iVinca strongly feel we have so much to offer to our tourists as attractions and we only need to look at how the entire eco-system can be transformed and we will play our part for sure.

What is your take?

Happy holidays and wish you a very happy and enjoyable 2010!

Evolution of Homestays

Saturday, December 12th, 2009

About 15 years ago, looking for accommodation meant finding a hotel to suit your budget. The parameters that you would choose for your stay were limited to the service, location and economics. But for some upmarket hotels, the finding experiences beyond service was not common.

Things started changing when the ‘Great Indian Middle Class’ started evolving and prospering in post-liberalized India. More and more people travelled on leisure and were looking for new experiences. It gave way to development of resorts that provided greater array of services within the walls of their property. But over the years when resorts became common in every city and tourist locations, once again they lacked distinction beyond available facilities and service. A resort to suit a traveller’s budget in Delhi would have little difference from the one in Bangalore. They could not deliver a specialized and localized experience and at the same time manage the facilities available and the level of service demanded by bulk of their clientele.

homestay

A homestay in Coorg

Sometime between 10 to 15 years ago, a new concept was slowly emerging in accommodating travellers. Discerning travellers, primarily visitors from the west who wanted an intimate experience of the local culture and way of life started looking at the possibility of staying in the houses of local people. For this, they were ready to forgo some conveniences offered by a hotel or a resort, such as an always open restaurant, room service or luxuries like swimming pool and gym. They ate with the hosts and took the same food prepared everyday at the hosts’ family. They spent time talking to hosts, learning their way of life and taking their help to discover the destination better. As the this became a trend, an industry of homestays slowly took ground.

The initial years were more of an accident. As Suresh Chengappa, who owns one of the first homestays in Coorg says, they simply welcomed people who came to stay at their place and did not even ask for a payment in return. They had a few foreign travellers coming in and staying in those days. As the word spread about their beautiful place and the friendly family, the number of travellers arriving increased slowly. When this inflow became continuous, they decided to build small rooms around their house and rent them at a nominal cost. What started this way has now become a major revenue earner for the family, which once depended primarily on their coffee estate for a living.

While Chengappa’s homestay was an accident, there were other people who did start small as an experiment. Badal Singh, a friendly man from a small village near Jaisalmer once worked for a professionally run guesthouse. But he thought it should be possible to give a better experience to tourists instead of merely treating them like clients. He quit his job and threw open his house to tourists. But Badal never had any plans to grow this into a professionally run establishment. So he remained small but his house became the favourite hangout of tourists, resulting in more people trying to emulate his model.

As the initial players started seeing their business grow, it resulted in their neighbours trying to adapt the models and open up their homes to tourists. In a place like Coorg, the concept of homestays were initiated by a handful of people like Suresh Chengappa and their neighbour Apparanda Poovanna. But over the years as the number of visitors from Bangalore increased and the demand went up, Kodavas(people of Coorg) with spacious houses started offering accommodation to visitors. Today, you can see a homestay in nearly every village in Coorg.

A similar trend evolved in neighbouring Kerala too. However, homestays in Kerala focused primarily on the premium market segment, while the ones is Coorg varied from budget to mid-range.

Though homestays sprang up in large numbers, they were scattered and disorganized. It seems to have created some challenges and some opportunities. The main challenge was in reaching out to potential guests, as the homestay owners would not have marketing budgets like a larger hotel or resort. It also meant that people who would like to stay in a homestay would find it hard to get contact and other details of the homestay. Because of this, the homestays would not have been able to maximize their utilization in slack seasons.

The opportunity here was for aggregators. Government and NGOs also stepped in with a motive to support local economy and boost cultural tourism.

Some years ago, Rajasthan Tourism compiled a list of homestays in the state, but the effort was not publicized enough to make it a success. Kerala Tourism has gone a step ahead to certify and grade the homestays and have listed the homes on their website, making it easy for travellers to find a homestay in their destination. Some NGOs like Himalayan Homestays are aggregating homestays in the mountain region and marketing them with a motive to sustain local cultures and environment. In recent past, private operators like Mahindra Homestays have sensed the opportunity in bridging the gap and have become an aggregator for select homestays. Together, they are slowly bringing the concept of homestay as a mainstream option for travellers.

What does the future look like? It is evident that homestays are likely to get more organized in the future. As homestays become more common, they may loose the novelty they have today, but would still have the edge of providing an experience more authentic than a hotel or resort. But as the competition increases and provided that homestays are favoured by travellers, it is also possible that accommodations where the homeowners do not live too get passed off as a homestay. Such examples are already seen in a few places, where owners are passing off their second home or an unused house as a homestay even when they do not live there. A simple solution for such confusion is to provide guidelines and certify the homestays. In one such move, the rules laid out by Government of Karnataka to certify a homestay requires that the owners live in the same premises. However, just like a small establishment with a few simple cottage may try to call themselves as a ‘resort’ today, the name ‘homestay’ is likely to get misused. The onus of verification may mostly fall on the travellers themselves.

Online Bus Bookings, A Maturing Industry?

Thursday, October 8th, 2009

No one ever thinks of going to an airline office or a travel agent to book a flight ticket these days. Booking a ticket is a matter of logging on to the airline website or an online travel portal which can provide a consolidated view of multiple airlines. It is almost the same with trains too. Thanks to irctc, a bit revolutionary for a government agency, tickets can be bought sitting at home without worrying about your transaction getting muddled in an unreliable system.

It was never a hard work for airlines or online travel agents (OTA) to facilitate e-ticketing for flights. Airlines have always been tech savvy and own well networked computerized booking systems. It was a matter of taking the next step to modify and expose the ticketing interface to general public. And with no more than a dozen airlines operating in the country, all of them technically able, it wasn’t an impossible task for OTAs to provide consolidating listing and booking facilities. It was a similar story with the railways too. They had a computerized reservation system much before internet bookings became popular. And Indian Railways being the only operator in the country, question of consolidation did not exist.

But it is a different story when it comes to buses. The number of bus companies operating from every city is so large that consolidation will be a mammoth effort. Most operators are small in size, having a handful of buses, who never considered investing on IT. It is not even a viable option for small companies. So even if someone did try to consolidate and sell tickets online, it would be hard to get access to real time data from vendors and send out booking information to them as it happens. No wonder it took a long time for bus ticketing to go online.

The first effort at online bus ticketing was made by RedBus, a Bangalore based company. Based in Bangalore, they started providing e-ticketing services for select bus companies connecting major cities in the south. While Redbus started their efforts in south and slowly expanded to other parts of the country, ticketvala, another startup based in Delhi worked their inventories in the other direction. Today, both companies have a fairly good inventory and cover most major cities in the country. Considering the difficulties involved in consolidating a large number of vendors, it is not surprising that more players, like in airline bookings, haven’t joined the foray.

I was speaking to Haranath Lokanadham, the CEO of ticketvala.com, who explained me the difficulties involved in bringing vendors on board. It wasn’t just about travelling all over the country to meet vendors and sign them up. Integration was always a challenge, especially with mid-sized vendors who already had a computerized booking system. Sometimes they had to speak to bus companies who had never used computers and had little know how about how internet could change the business. Besides big cities, they even went to smaller towns(where computer penetration and literacy was very low) and got bus companies to sign up. But Lokanadham now proudly says you can book a ticket from anywhere between Thiruvananthapuram and Delhi. The same would be true with RedBus as well.

Just when RedBus and Ticketvala were taking bus bookings online, most medium to large size bus companies started getting tech-savvy as well. Companies with large fleets started implementing their own systems, enabling customers to book tickets online on their websites. In Bangalore, many well known travel companies such as VRL, KPN, Sharma Transport now facilitate e-ticket bookings from their website.

The laggards here are the state owned transport companies. Karnataka’s KSRTC was much ahead of time when they announced e-ticket bookings a few years ago, but their website suffered from excessive downtime, poor usability and reliability issues. KSRTC was probably too fast to introduce the system. When the booking system was live, their conductors were not even notified to honour e-tickets, which resulted in confusions in the initial days. While the web based reservation system used by KSRTC’s agents is on par with any good booking site, the website thrown open to general public still suffers from reliability and usability issues.

State governments have so far been slow in implementing online reservation system. While Himachal Pradesh Government’s HRTC has an online ticketing system, it is surprising to see a largely tourist friendly state like Rajasthan lacking one. Karnataka is the only state in the south where the state owned bus company has facilitated online ticket booking.

Even the private operators have not managed tie-ups with government owned bus comapnies. Lokanadham did not have an enthusiastic response when I asked him if ticketvala ever tried to rope in any of the state owned corporations. It is these state transport buses that have a wide network, and brining them online should result in a great improvement and ease in booking bus tickets. Until that happens, e-ticketing for buses beyond metros and large cities will still be a distant dream.