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The state is currently inthe process of formu-lating a plan to devel-

op tourist facilities, infra-structure and seaplane serv-

ices along the Karnatakacoast. This information wasrevealed by CD Dyavaiah,Managing Director, KSTDC.

Dyavaiah said, “KSTDCplans to devel-op these facili-ties on a PublicPrivatePartnership(PPP) basis.Once the policyis finalised overthe next coupleof months, wewill be in a

position to reveal moredetails.”

Dyavaiah also said thatKSTDC was keen to launchintra-state air services. Hesaid that KSTDC had invitedexpressions of interest fromprivate players to launchthese services but that it wasyet in the planning phase.

“This will boost tourismin the state and we are work-ing on a strategy to ensurethe long-term sustainabilityof the service.”

Positioning Karnataka asa culture and heritage desti-nation for the domestic seg-ment, the state plans to pro-mote Hampi, Mysore andGokarna to attract touristsfrom all over the country.Further, state tourism devel-opment corporation alsoplans to conduct roadshowslater this year in Delhi,Mumbai and Kolkata, according to Dyavaiah.

Ditching the tradition-al form of associa-tion, TAAI has

evolved as one voice of indus-try and working towards the20 million arrivals target for2020. During its 61st annualconvention in Bengaluru,TAAI is highlighting the keytrends of global travel indus-try and preparing the Indiantrade to adopt the same.Welcoming the delegates atthe India Travel Congress,Iqbal Mulla, President, TAAIsaid, “For the next two days,delegates will not only learnabout various innovativestrategies to induct in theirbusiness models, but will alsomeet the who’s who of theindustry.”

Talking about the themefor this year – ‘Connect, Co-operate and Collaborate’;Mulla said, “With the boom intourism industry (domestic,inbound and outbound), trav-el agents need to evolve theirrevenue models and meet theincreasing needs of demand-ing travellers. Thus, thetheme ‘Connect, Co-operateand Collaborate’ is apt for thecurrent market conditions. Ina bid to assist the Indian trav-el trade; TAAI, as an associa-tion, has evolved by involving

agents and for next two days,it will drill the message inand provide guidelines tosurvive in the future.”

Over the next two days,TAAI will ensure that dele-gates receive knowledgefrom the experts of the indus-try. Delegates will also get anopportunity to meet

exhibitors in ITTE (IndiaTravel & Tourism Expo)2013, wherein more than 30exhibitors are showcasingtheir product lines. Accordingto Mulla, the exhibitors areoffering products which offeralternate revenue streams fortravel agent’s business. Hesaid, “Be it agency commis-

sion or passport/visa making;travel agents can no morerely on these services to sus-tain in business. Agents needto evolve in the businessmodels by diversifying theirrevenue streams. To helpthem to grow; TAAI as anassociation is undertakingvarious initiatives that will behighlighted during the next

two days. All a travel agenthas to do is identify thepotential, analyse their spe-cialisation and target theright audience.”

Over the years, TAAIhas asserted itself with air-lines and lobbied with gov-ernment to win its members

and industry at large positivetraction on many contentiousissues. Mulla informed fur-ther that travel agents haveto be alert and regularlyupdate themselves on variousproducts and destinations tokeep pace with the advancesin the industry. They need tomeet the challenges of time,adopt new technology anddeploy it in the business,increase segments of serviceand efficiency in businesswhile keeping costs undercontrol. Alongside, they needto keep their eyes open to beready for the global trendstaking place in developedmarkets which will sooncome to Indian shores. “TAAIas an association has alwaysfocussed on these challengesand have successfully trainedand educated its members toevolve by involving themwith latest trends, productsand destinations throughworkshops, training and pro-grammes,” adds Mulla.

TAAI is workingtowards improving tourismnot only on domestic levelbut inbound as well. Throughits international conventionsannually in different coun-tries, it gives an opportunityto its members to networkwith the local suppliers of

Over the next two days, TAAI will ensure that the industry experts sharetheir knowledge with the delegates. The latter will also get an opportunityto meet exhibitors in ITTE (India Travel & Tourism Expo) 2013, wheremore than 30 exhibitors are showcasing their product lines.

TAAI-2013: Making biz better

AN I TA JA I N

Travel agents need tomeet the challenges

of time, adopt newtechnology and deploy itin their business, increasesegments of service andefficiency in business while keeping costsunder control

Iqbal MullaPresident, TAAI

To leverage over 300 kilometres ofits virgin coastline, the KarnatakaState Tourism DevelopmentCorporation (KSTDC) plans on developing coastal tourism.

Go for coastal tourism

Contd. on page 15

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CD DyavaiahManaging Director KSTDC

Contd. on page 15

AGENTS TA A I D A I LY 2 0 1 3 – D A Y 1 TRAVTALK 3

Conceived with a vision tobridge the complex trav-

el visa process and thus, lib-erating clients from all visahassles, Udaan India isIndia’s leading visa-facilita-tion company.

Recalling the growth ofthe company; Rajan Dua,Managing Director and Co-Founder, Udaan India,remarks, “When we startedin 1992, there were fewagents, and visa facilitationand outsourcing was neglect-ed. Thus, there was a needfor a reliable visa agency withprompt services.”

The erstwhile SitaTravels, which is now Kuoni,had their own visa section inDelhi and every branch wouldsend their documents here.Sita was the first agency whichoutsourced its visa require-ments to Udaan. “The trend ofvisa outsourcing started fromthere, and then we handledCox and Kings, Thomas Cook,

etc,” he adds. The companyhas six offices now – Delhi,Gurgaon, Mumbai, Chennai,Bengaluru and Kolkata. Theagenda is to reach out to Tier-II and III cities by unveilingcollection centres here, Duainforms. Going forward, thecompany is also looking at tap-ping the Nepal, Sri Lanka

and Dubai markets aswell.Envisioning the impact oftechnology in everyday lives,Udaan India was the first com-pany to launch its visa portalin the year 2000. “This gaveus a leading edge over all othervisa facilitators and madeUdaan India a leader in thetravel industry. With this inno-

vation, we pioneered theonline Visa Tracking System,”Dua confirms. According toDua, the main USP of the website is the information itshares with the agents. “InUdaan India.com domain, wehave information for any consulate in India. For instance- if there is an Embassy of Iran

in Hyderabad, you will find it in our portal. We havealso worked out requirementsfor Indian nationals for various visas. For example – afirst-time traveller might notknow how to pen a coveringletter. We have created a format for this as well,” hepoints out.

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With six offices spanning India, Udaan India is providing visa facilitation services to travel agents, travel management companies, corporates, and individual travellers.

Giving wings to visa facilitation

A first-timetraveller might not know how to pena covering letter.We have createda format for this as well

Rajan DuaManaging Director and Co-Founder,Udaan India

� Envisioning the impactof technology ineveryday lives, UdaanIndia was the firstcompany to launch itsvisa por tal in the year 2000

Fast Fact

4 TRAVTALK TA A I D A I LY 2 0 1 3 – D A Y 1

Like the evolving hotelindustry in India, The

Suryaa New Delhi hasevolved in its 31 years ofoperations. According to LuvMalhotra, Joint ManagingDirector, The Suryaa NewDelhi; what keeps the hotelgoing is the brilliant networkof its repeat clientele.

Talking about the USPof the property, he opines,“Most hotel companies arefollowing the asset-lightstrategy in India. This meansthey are hotel managementcompanies and the primaryservice is client servicing.The larger the company’sspread, the cheaper is thecost of getting clients. We arean asset heavy company. Thisis a very different model. Webuild the hotel, we own andoperate it and run the showourselves. Our single greatestsuccess has been our repeatclientele for over 30 years

and the new clients they get.This makes us more success-ful than many new brands inthe country.”

Being in the vicinity ofwell-established hospitals,the boom in medical tourismin India has also helped thehotel garner business. “Themedical tourism boom isencouraging hospitals andhoteliers to strike alliances.Medical tourism in the coun-try got a boost early 2000onwards. We tied up withEscorts to provide them hos-pitality services. The idea isto have rooms tailor-madefor these patients. The hotelhas about five rooms espe-cially for post-op recovery,”he informs. Regarding thenew initiatives taken in thelast six months at the hotel;Pankaj Mathur, GM, TheSuryaa New Delhi, says, “Inthe last six months, we haverolled out a one-point contactprogramme in the property.It is an international pro-

gramme. All guest calls inthe room land at one place.

It is like the helpdesk and iscalled the Suryaa Service. All

calls here get a call-back.This has been a big advan-tage. It was launched threemonths back, and since thenwe have seen a drop in com-plaints by 50 per cent. Weare also working on rebrand-ing the property. The Suryaais an iconic property. Wehave redone the tagline --‘Service so memorable’. Nowwe are trying to internalisethe caption and look at all service touch-points to make all services ‘so memorable’. ”

The hotel has alsoadded to the product mix by

creating a sky-lounge. “Wehave renovated our earlierrestaurants Le Cafe andSeven. This will now belaunched as one big restau-rant called Essence by nextmonth,” he adds. In the lastsix months, the property per-formed decently well, thanksto F1 and the upcoming wed-dings and MICE events.“With more hotels comingup, there has been anincrease in supply.Consequently, the ADRshave dropped. But being inthe heart of the city, we havenot seen a decrease in occu-pancy,” he reveals.

Unlike other hotel chains, The Suryaa New Delhi has adopted an asset-heavy model, and has proven thatthis strategy works in retaining its clientele and attracting new ones.

Following the road less taken successfully

ME G H A PAU L

We are workingon rebrandingthe property. We have redone thetagline – ‘Service somemorable’

Our singlegreatestsuccess hasbeen our repeatclientele for over30 years andthe new clientsthey get

Luv MalhotraJoint Managing DirectorThe Suryaa New Delhi

Pankaj MathurGeneral ManagerThe Suryaa New Delhi

The HR advantageThough the industry has been growing at a fast pace,

hotel management graduates opt to join other sectors likeaviation and catering services where they are paid higher.In this current scenario where retaining the workforce inthe hotel industry is a problem and attrition levels are high,The Suryaa is an exception. Almost 50 per cent of the hotelstaff has been here for over 20 years, claims the GM.“Recently, the hotel has also rolled out a training and leadership programme based on soft skills,” he says.

Aerocity’s first hotel, JWMariott has opened its

doors to the public after get-ting approval from the secu-rity agencies. With a capacityof 523 rooms, the hotel hasbeen launched partially with300 rooms for now. Policeclearance for 105 rooms ispending while 118 roomsincluding the presidentialsuite are still under construc-tion. The 523-room hotelowned by Asian Hotels (West)has been ready for operationsince April this year.

According to SushilGupta, Chairman &Managing Director, AsianHotels (West), the project wasdelayed by almost ninemonths after completionbecause of security-relatedapprovals and had incurred acost escalation of 20 per cent

in the process. The ` 900-crore hotel is the first JWMarriott in the Delhi NCR andthe fifth in whole of India.

Simon F Cooper,President & ManagingDirector – Asia Pacific,Marriott International, point-ed out, “We have over 100

hotels across the world nearairports, including the US,Hong Kong and London.Airport location is thus, notaccidental. It is great to be in

the Aerocitybetween Delhiand Gurgaon.However, wehave neverbeen held backfrom openingdue to securityissues. Theserequirements

were not unreasonable butthey were unanticipated.”

The luxury hotel is bet-ting big on its location nearthe airport and Gurgaon todrive up occupancies. “Thehotel is designed to attractluxury business travellersand MICE traffic. It has a total

of 2,302 squaremetres of meet-ing space witheight meetingrooms spreadacross two lev-els. Thisincludes thelargest pillar-less ball room inthe capital in1,210 sqmetres. Out of

the 523 rooms, 313 areDeluxe Rooms, 180 ExecutiveRooms, 29 Junior Suites andone Presidential Suite,” BalanParavantavida, GeneralManager, JW Marriott HotelNew Delhi Aerocity stated.“We have all required securi-ty precautions in place.People are now showingactive interest in the hoteland bookings are on. At themoment we are registeringbetween 25-30 per centoccupancy,” he added.

A new jewel in AerocityWith a capacity of 523 rooms, JW Mariott has beenlaunched partially with 300 rooms for now with the restunder construction and pending clearance.

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HOTELS

“Condor Air Services isexcited about the

commencement of doubledaily services between Delhiand Guangzhou, effective

November 13,” said SeemaSabharwal, GeneralManager, Condor AirServices GSA, ChinaSouthern Airlines. Theseven evening departureswill be from Delhi at 2325

hrs, providing a seamlessconnectivity for travel toChina, Japan, Korea, Taiwanand Southeast Asia. Thenoon departures from Delhiwill be at 1245 hrs, offeringconnectivity to Australia,New Zealand and USA. “Weare very happy to announcedouble daily flights fromDelhi to Guangzhou. India is an important and poten-tial market to ChinaSouthern Airlines,” addedChen Yong Guang, GeneralManager, China SouthernAirlines.

Currently, the airlineoperates more than 500 pas-senger and cargo aircraft.The fleet is ranked first inAsia and fifth among the 240airlines in IATA (in terms of fleet size).

The route network ofChina’s largest airline makestravel more convenient tomore than 80 large and medium-sized cities acrossmainland China and morethan 30 cities in Europe,America, Oceania, the MiddleEast, Southwest Asia, South Asia, Japan & SouthKorea, Hong Kong andTaiwan (China).

China Southern Airlines introduced 14 flights a weekbetween Delhi and Guangzhou from November 13,2013. The flights will be operated by Boeing 757s.

Double daily to Guangzhou

Condor AirServices isexcited about thecommencementof double dailyservicesbetween Delhiand Guangzhou

We are veryhappy toannounce ourdouble daily flights from New Delhi to Guangzhou

Chen Yong GuangGeneral Manager, China Southern Airlines

Seema SabharwalGeneral Manager, Condor Air ServicesGSA, China Southern Airlines

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6 TRAVTALK TA A I D A I LY 2 0 1 3 – D A Y 1

Indian outbound travellers have evolved. Repeat travellers are now keen to venture further and explore new,unknown destinations. With maturing tastes and preferences, they’re no longer satisfied with standardchecklist holidays, but seeking experiential and engaging ones. These travellers are also willing to exploretheir favourite holiday destinations more than once in search of newer experiences and routes.

Charting evolution of Indian travellers

Romit Theophilus, Director, Sales &Marketing, German National Tourist Office,feels the Indian outbound traveller has nowmatured enough to move away from theconventional, and travel to off-the-beatentrack destinations. He/she wants to expe-rience more than the regular sights and is increasingly optingfor experiences such as discovering Germany’s wine trails andother destinations. Indian honeymooners have been spottedon a hiking trip in Bavaria, and they are now taking the 300-feet base jump from the Alexanderplatz in Berlin, whichwas made famous by Shah Rukh Khan in Don 2.

Tailor-made travel will hold thegreatest appeal Medha Sampat, Representative,

Argentina Tourism, feels that Argentinawhich is a relatively new destination forthe Indian market, is an absolute wonderfor leisure travellers, allowing them tocreate unique itineraries and discover theunexplored. Argentina offers them achance to discover a new destination andgreat experiences, ranging from buzzing urban cities, to themajestic glaciers, to the energetic Iguazu Falls – identifiedas one of the seven natural wonders of the world – to thebeautiful wine regions in Mendoza, San Juan and Salta,among others.

Indians keen to discover new areasMohit Batra, Representative,Scandinavian Tourism, stated that mostIndians travelling to Norway wish toexperience the fjords and get close tonature. They opt for cruise options thatmake detours within the fjords and allowdocking of the boats to enable passengersto go hiking or walking. Increasing num-bers of Indians are now inclined towards wildlife safaris, see-ing sea eagles and whales from close range. Travellers toDenmark are seeking ‘active’ holidays that involve excursions.One activity that has interested the young and energetic hasbeen to paddle one’s own kayak through Copenhagen.

Indians love to get close to nature

Hanneli Slabber, Country Manager,South African Tourism, feels Indian trav-ellers’ mindsets have evolved drastically.They’re seeking uniqueness and cus-tomisation in their accommodation,sightseeing tours, cuisine, or experi-ences. High adrenaline adventure isbecoming more popular, including

shark-cage diving, sky-diving, quad-biking, etc. In recenttimes, Indian travellers have also adopted a concept called‘voluntourism’, wherein they opt for volunteering activitieslike animal rescue and rehabilitation work with private gamereserves. Self-drive holidays are becoming more popular.

Seeking uniqueness

Runjuan Tongrut, Director, TourismAuthority of Thailand, sees certain trendsin Indians visiting Thailand. There aremore FITs, and greater preference for lux-ury. Indians now like to experience newactivities such as sailing, yachting, and

island – hopping at places like Phuket, and adventure activitiessuch as treetop flights; elephant safaris; and big bike ridesetc. They’re also venturing further out to discover new des-tinations such as Koh Samet ( East Coast next to Pataya); KohChang ( East Coast); Koh Nangyuan & Koh Tao ( near KohSamui); and Chiangrai ( Northern Chiangmai)

More FITs, and greater preferencefor luxury Beena Menon and Huzan Frazer who

represent Tourism Ireland andTrinidad and Tobago Tourism, feelthat today many travellers prefer tospend more time in a particular destination, exploring and gettingthe feel of a place as a local and not

as a tourist. Road trips are becoming popular and Indians areventuring beyond Dublin to other sites like the Victorian city,Belfast, where they enjoy the Titanic Museum, or indulge inluxury shopping across the streets of Belfast. They’re alsoexploring fascinating landscapes such as the Giant’sCauseway and the Cliffs of Moher.

Brag value of new destinations

Theme-based and experiential travelMS Chawla, MD, Siddharth Travels feels that thetrend in Indian outbound travel is changing fasterthan many people think. Many popular tourist des-tinations in the world are now giving way to less-er-known destinations. Further, Indian travellersare now looking for new experiences during theirinternational holidays. This is leading to an

increasing trend of theme-based and experiential travel as opposedto destination-based travel.

Indians are seasoned tourists nowGunbir Singh, MD, Divine Destination feels thatIndians travelling overseas are maturing into sea-soned tourists, and are today willing to try newdestinations. Having done the normal South EastAsia, European and Australian junkets, the pull isnow on experiential, thematic journeys with a dif-ference. Wine tours, Kenyan safaris, premium car

journeys, Alaskan adventures are now up for grabs.

INDER RAJ AHLUWALIA

NTO

The West Bengal government hasidentified 11 sites for major tourisminfrastructure development with theactive help of private sector across thestate. Few of the chosen destinationsfor tourism development includeGajoldoba, Jharkhali, Western banks of

Hoogly among others. The stategovernment will create thebasic infrastructure like roads,electricity, drinking water, etc.in all these identified sites toattract private investors toinvest in tourism facilities like

hotels, restaurants, andother facilities on a PPPmodel.

This was revealedby Uma Pada Chatterjee,Director, West Bengal Tourism.Instead of viability gap funding(VGF) which is practiced inmany states, the West Bengalgovernment will be investing

on creation of “critical infrastructure”to lure private investors, he added. Theobjective is to showcase the state on itsentirety rather than confining the con-tour to few places like Sunderbans,Darjeeling, and Shantiniketan.

West Bengal to develop 11 tourism sites

8 TRAVTALK TA A I D A I LY 2 0 1 3 – D A Y 1

The Rajasthan-basedShree Tours has har-

nessed many B2B partners tocater to inbound and out-bound space. Today, domestictourists have more resources,less time and demand rela-tively shorter packages withadded variety.

“With over 1 billiondomestic tourists in India, thedomestic segment is veryimportant to do round-the-year business. One needs toacknowledge that today,domestic tourists have gotmore than adequateresources to travel. The onlything that has shrunk is theavailability of time for them,”

said Archana Thanvi,Director, Shree Tours.

Here, Umesh Thanvi,Advisor, Shree Tours adds,“We had been prompt in fig-uring out these changes inthe habits of domestictourists. In fact, we havemade many new itinerarieslooking at these new trendsand expectations of ourdomestic travellers.”

“In our Desert Trianglepackage, one can exploreBikaner, Jodhpur andJaisalmer in 6 nights and 7days. We also offer an exclu-sive Vibrant Colors ofRajasthan package that cov-ers almost all flavours of thestate including desert,

palaces andhill experiencespread over11 nights and12 days. In aDelhi-Agra-Rajasthanpackage, wecover all thesethree attrac-tions for our

domestic tourists in 12 nightsand 13 days. Similarly, wehave devised interesting and

pro-experiential packages forother states like Himachaland Kerala,” he added.

Now, the company is getting its principal agents to realise that it is alsoworth more to serve the unique domestic tourists.

Shree Tours gains domestic edge

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We offer anexclusive VibrantColors ofRajasthanpackage thatcovers almost all flavours of the state

Today, domestictourists havegot more thanadequateresources totravel, but thetime availabilityhas shrunken

Archana ThanviDirectorShree Tours

Umesh ThanviAdvisorShree Tours

JW Marriott takes off at Aerocity

The first hotel at Aerocity, JW Marriot, has officially openedrecently after a delay of about nine months from their originalschedule. The event saw inauguration of the 523-room hotel,which is the fifth in the country by the group

The projects, worth ` 300 crore, deal with beautification andupgradation of tourist amenities across the state. Of these, threemajor projects are in Panaji - the tourism jetty, tourism infor-mation plaza and multi-level car parking facility to the west ofthe old Mandovi bridge.

20 tourism projects in Goa

AGENTS

In which avenues oftourism in India do wesee IFC?

The InternationalFinance Corporation (IFC) isthe private sector develop-ment and investment arm ofthe World Bank Group. Weprovide a variety of invest-ment instruments for privatesector companies (includinghotel investors) and we

advice and partner with gov-ernments - through jointlyfinanced technical assistanceprojects - to implement pos-itive changes to the businessand investment environment.

Please throw light onthe new initiatives byIFC in the country?

We have a specificpractice area focussed ontourism development wherewe are currently working inIndia on three projects:

(1) Buddhist CircuitUpgrading - we are workingwith the State Governmentsof Bihar and Uttar Pradeshand the Ministry of Tourismto develop a very focussedstrategy for upgrading the

Buddhist Circuit experience,improve connectivity andsite-level infrastructure,improve marketing and pro-motion strategies to reachnew markets, and improveoverall coordination and col-laboration of different stake-holders around the circuit,including bringing into thediscussion the monasteriesand their constituents;

(2) Rajasthan tourismdevelopment - IFC is part-nering with the Government

of Rajasthan in the

municipalities of Udaipurand Jodhpur to enhance thetourism experience throughimprovements in the urbanofferings for tourists. Theseinvolve planning and designfor upgrading municipalspaces to include options for private investment in tourism services andattractions;

(3) Odisha tourismdevelopment - IFC is part-nering with the Govt ofOdisha to plan and developits tourism assets.

How are these projects funded?

These projects are notloans provided to the stategovernments. They are jointlyfunded and jointly implement-ed technical assistance agree-ments that are focussed ondelivering specific results thatleverage other investment. Forinstance, on the work with theBuddhist Circuit, the projectidentified approximately US$200 million of infrastructureand tourism developmentimprovements that were sub-mitted to the PlanningCommission for considerationand inclusion in the 12thNational Development Plan. A

part of that isnow beingoperationalisedthrough a pro-posed WorldBank loan toUttar Pradeshto upgradeinfrastructureand urban envi-

ronments in Sarnath andKushinagar.

Which region in Indiahas the maximumgrowth potential interms of tourism infrastructure?

India’s cultural and his-toric heritage are world-classassets that are hugely under-utilised and under-valued.These assets could fuel localeconomic growth andemployment with more

investment in the sites andimproved visitor manage-ment. The same applies fornational parks in India.These have immense poten-tial for the ‘African Safari’type of experience.Authorities are currentlyunclear on how to use theseareas optimally for bothtourism and conservationobjectives. Many parts ofAfrica have very successfultourism and communitydevelopment initiatives inand around its nationalparks. In some cases, this hasled to financial and ecologicalsustainability for some ofthem. The challenge in Indiais the high volume of domes-tic tourism visiting or want-ing to visit these cultural andnatural areas. This can be mitigated with well zoningand effective visitor management.

Could you elaborate on the kind ofprogress that has beenmade in each individ-ual project?

IFC’s tourism work inIndia is too recent. We onlystarted working here in 2012.IFC does not give loans to governments, this is not itsmandate. We are a private sector development institu-tion and any loans that aremade, are made to the pri-vate sector on commercialterms for financially-viableprojects. With respect to ourtourism projects, we do nothave results yet. All our workare in initial stages.

In a freewheeling discussion with , Shaun Mann,Senior Tourism Sector Specialist, International FinanceCorporation (IFC)-South Asia talks about the organi-sation’s work with India’s Ministry of Tourism, stategovernments, and private stakeholders.

The ‘IFC’ touch in tourism

MEGHA PAUL

The states would need to nurture these assetsand create avenues for the state government,private sector, entrepreneurs and mostimportantly, the local community

Shaun Mann, Senior Tourism Sector Specialist,International Finance Corporation (IFC)-South Asia

� IFC is par tnering withthe Government ofRajasthan in themunicipalities ofUdaipur and Jodhpur toenhance the tourismexperience throughimprovements in theurban offerings fortourists

In Aid

INTERVIEW

On the back of weakeningof the rupee, inbound

medical tourism sector hasgot a boost with medical pro-cedures becoming cheaperthan before. According to arecent Associated Chambersof Commerce and Industry ofIndia (ASSOCHAM) study,the inbound medical touristshave shot up by 40 per centover the last six months, withNew Delhi, Hyderabad,Chennai, Bengaluru andMumbai emerging as fron-trunners for this market.

“The weak rupee hasmade complex surgeries 35

to 45 per cent cheaper forpatients from the MiddleEast, Africa and South AsianAssociation for RegionalCooperation countries. Amedical procedure thatwould have cost US$10,000in 2012 is now pricedUS$7,000. Tourists paying inAustralian dollars pay 45 percent less today, while pricesare 30 per cent cheaper thanbefore when paid in euros,”the study states.

Anil K. Maini,Chairman, CII Sub Committeeon Medical Tourism andMedanta’s senior advisor feelsthere are three indispensableplayers that dominate the

medicaltourism sector -- tour opera-tors, hotels andhospitals orintegrated hospitals-cum-hotels. Formedicaltourism to suc-

ceed, a strong consortium oftour operators, hospitals andhotels is a must. “There has

been a rise in medical tourismfrom the inbound tourist inthese few months. However,

this needs to be sustained asthis is just a short-termgrowth. The purpose of thetour operators and agents isto liaise with the insurancecompanies and the medicalpractitioners in the Europeanand American markets, so asto ensure a steady stream ofpatients,” he points out. Thecost of the tour operators canbe as high as 15 to 20 per centof the total cost of the service offered.

He reveals, “CII’s sub-committee on medicaltourism has been working onthis since the last sevenyears. Initially, it wasinvolved in marketing andorganising roadshows inDubai, UK, US and Thailand.But now, it is more focussedon policy matters such asvisa issues and other mattersconcerning medical travel.All the major hospitals arepart of this committee,including Fortis, Apollo and Medanta.”

According to EM Najeeb,Chairman, Kerala Chapter-IATO, Kerala has beenextremely successful in med-ical tourism. The presence ofseveral tourist spots and theancient art of treatments havemade Kerala an importantstate in terms of He says,“From the medical tourist’sperspective, the key driverswhich motivate a patient totravel to India for medical pur-pose are the availability ofhospitals with internationalaccreditations, treatment pro-vided is comparable to anyother destination in developedcountries, English speakingdoctors and good connectivity.Kerala has all of these andthus, has profited in the recenttimes.” However, there are anumber of challenges faced bythis industry ranging fromcompetition from other countries such as Singaporeand Malaysia to unhygienicstandards outside hotels and hospitals.

The weakened rupee has made complex surgeries 35 to 45 per cent cheaper for patients from the MiddleEast, Africa and South Asian Association for Regional Cooperation (SAARC) countries.

`̀ slide boosts inbound medical tourism

The drivers areaccreditedhospitals,English speaking doctorsand goodconnectivity

The rise inmedicaltourism inthese fewmonths needs to besustained

Anil K. MainiChairman, CII Sub Committee on MedicalTourism and Medanta’s senior advisor

EM NajeebChairmanKerala Chapter- IATO, Kerala

1 2 TRAVTALK TA A I D A I LY 2 0 1 3 – D A Y 1

Andhra Pradesh is amongone of the top states that

has developed state-of-the-art infrastructure and ameni-ties. As per Chandana Khan,

Special Chief Secretary,Tourism, AP, “Unlike moststates that are still grapplingwith scarcity of state-of-theart infrastructure, AP hassilently developed adequateinfrastructure and other facil-ities in our state. Forinstance, Hyderabad has thelargest MICE infrastructure,which cities like Delhi andMumbai also lack,” saidKhan.

“The area that we per-haps lack is aggressive pro-motion. Now, with 10-foldincrease in our promotion

budget, we are looking atutilising all possible means topromote our state. One of theareas that will be our keyfocus is the MICE segment,”she added. AP also aims atrealising travellers’ dream tosee Southern India as one

complete product. In thisdirection, it earnestlybelieves that all the southern states should be built on their synergies.

“We had recently con-ducted the second SouthernRetreat of the southern statesat Hyderabad, initiated byWTTC India Initiative. IndianTourism demands all thestakeholders to come togeth-er, cooperate and coordinate.The states play a very impor-tant role in this. It is for us tounderstand the potential thatthese assets can create forthe state’s economy, employ-

ment and overall socio-cul-tural development,” saidKhan. “The states wouldneed to nurture these assetsand create avenues for thestate government, privatesector, entrepreneurs andmost importantly, the local

community to reap sustain-able benefits,” she added.

The most dynamic ini-tiative in the direction ofbringing all the southern

attractions together is the ini-tiation of the Southern ZonalTourism Council (SZTC). “TheSZTC comprising states of AP,Kerala, Karnataka, TamilNadu and the Union Territoryof Puducherry had beenmooted at the previousSouthern Retreat in 2012. K Chiranjeevi, Minister forTourism, in his interactionwith the WTTC-India officebearers had welcomed and approved the idea,” said Khan.

“The setting up of theSZTC will facilitate develop-ment of tourism and tourismproducts of Southern India ina holistic and comprehensivemanner. The development ofIntegrated Tourism Circuitsamong the southern stateswill be the way forward. Theissues of competitive taxation

of tourism products, inter-state taxation, and seamlesstourist movement at entryand exit points of the stateswill also be addressed by thecouncil,” she added.

Moreover, AP is alsokeen to partner its borderstates to step up tourism pro-motion jointly. AndhraPradesh is bordered byMaharashtra, Chhattisgarhand Odisha in the North, theBay of Bengal in the East,Tamil Nadu to the South andKarnataka to the West.

“We have recentlysigned an MoU withMaharashtra. We are also inadvanced deliberations withTamil Nadu. Going forward,we would like to conduct jointpromotions with all ourneighbours and expand our

partnership with otherstates,” said Khan, at thesidelines of the StateMinisters’ Conference in NewDelhi. Moreover AndhraPradesh has also taken stepsto increase its tourism proj-ects through PPP projects.The programme is supportedby the Ministry of Tourismwhich has already sanctioned` 221 crore.

The initiatives includebuilding coastal corridorsalong the Vizag-Bheemunipatnam sea frontand Vizag-Vizianagaram-Srikakulam Regional circuitwith `175 crore investment,and eight new beach proper-ties in Srikakulam,Vizianagaram, East Godavari,West Godavari, Prakasam andNellore districts.

In a freewheeling interaction, learns about various strategic initiatives built around Andhra Pradesh andits keenness to support Southern Zonal Tourism Council (SZTC).

AP for spurt in round-the-year tourism

Hussain Sagar, Hyderabad

Beach properties at:� Srikakulam� Vizianagaram� East Godavari� West Godavari� Prakasam � Nellore

Coastal corridors:� Vizag-

Bheemunipatnamsea front

� Vizag-Vizianagaram-Srikakulam Regionalcircuit

Tourism Infrastructure Investments

The states would need to nurture theseassets and create avenues for the stategovernment, private sector, entrepreneurs

and most importantly, the localcommunity to reap sustainable benefits

Chandana Khan, Special Chief Secretary, Tourism, AP

VI V E K SE T H I

ME G H A PAU L

NEWS

1 4 TRAVTALK TA A I D A I LY 2 0 1 3 – D A Y 1

Mumbai-based World TravelStudio, which was launched

in February this year, is now onthe verge of expansion through itsPreferred Sales Agents (PSAs) net-work, the franchise route and its

own branch offices. At present,World Travel Studio operates fromits head office in Mumbai andplans to add few more offices inthe city at different locations toservice its client base.

On the other hand, WorldTravel Studio will also start

appointing PSAs in metros andmini-metro cities and aims tohave a network base of 50 PSAsby June 2014. The company,which specialises in customisedFIT holidays, currently offers over108 products online and is in theprocess of adding more products

in coming months. It recently tiedup with ICICI Bank as one of thepreferred travel partners andintends to work with other like-minded corporate companies tooffer FIT packages to their clients.

Talking about the year-round performance and the plans

for coming year, HareshKoyande, Founder & ManagingDirector, World Travel Studiosaid, “India, as a travel market,is performing well and withmore airlines expected to operatein Indian skies from next year,India will be a market full ofaction! We performed well in ourfirst year, and hence plan toexpand in our second year. Wewant to first focus on developingthe PSA network. It will give uspresence in new markets withless investment. On the otherhand, travel agents who opt asour PSAs would get excellentassistance in customised FIT hol-idays, competitive rates, fasterrewards and incentives.Moreover, since we are a newcompany, we are ready to exper-iment with strategies, adopttechnology for better interfaceand ready to learn and mouldourselves with new skills, trends, etc.”

The company was initiallylaunched as B2C, and has slowlymoved to the B2B channel aswell. According to Koyande, theB2B market is more exciting and

full of opportunities. “B2B wasalways on the cards as travelagents in mini metros are look-ing for agencies who can dohand-holding for them at foreigndestinations. With our expertteam, we have added the bestlocations and are constantlyadding attractive and excellentproducts on our portal. We willcontinue to focus on B2B and ourexpansion in next year in by2016. By then, we will havestrong presence in all metrocities,” added Koyande.

It aims to appoint 50 PSAs across India by mid-2014, and have a presence in allmetros through branch offices by 2016.

World Travel Studio on expansion path

AN I TA JA I N

Travel agents who opt as our PSAs would get excellentassistance in customised FITholidays, competitive rates, faster

rewards and incentives

Haresh KoyandeFounder & Managing Director

World Travel Studio

The International Air Transport Association(IATA) announced global passenger trafficresults for October 2013. The total revenuepassenger kilometers (RPKs) rose 6.6% com-pared to October 2012, an improvement overthe September increase of 5.2%.

While international passenger demandwas up 6.9% in October this year compared tothe year-ago, the domestic travel demand rose6.0% in October compared to a year-ago,largely driven by strong traffic growth indeveloping markets. IATA stated that India’sairlines experienced double-digit growth astraffic leapt 11.5% in October compared to ayear ago. Airlines have experienced substantialvolatility in traffic and it is likely that theincrease is a result of unusually low volumesa year ago rather than growth in October.Capacity rose 9.4% and load factor climbed1.4 percentage points to 72.1%.The total rev-enue passenger kilometers (RPKs) rose 6.6%compared to October 2012, an improvementover the September increase of 5.2%.

Air traffic in Indiagrows at 11.5% y-o-yin October 2013: IATA

� At present, World TravelStudio operates from itshead office in Mumbai andplans to add few moreoffices in the city at differentlocations to service itsclient base

� The company, whichspecialises in customisedFIT holidays, currentlyoffers over 108 productsonline

Growth Plans

AGENTS

that country. However, withfocus on domestic andinbound tourism; this year,TAAI Convention is plannedin domestic market – inBengaluru, Karnataka. Mulla

said, “India has loads ofpotential as states likeMadhya Pradesh, Gujarat,Tamil Nadu, Karnataka andeven North East region areemerging as new destina-tions apart from the tradi-tional ones like Jammu &Kashmir, Kerala andRajasthan. However, there is

a need to work closely withtravel suppliers as govern-ment agencies can’t assisttravel companies withdetailed information. India isbooming, but travellers areopting for international des-tinations, taking money tooverseas markets whereasIndia has much to offer.Associations, travel suppliersand government agenciesshould work towards improv-ing domestic tourism asIndians are considered as one

of the highest-spending trav-ellers in international mar-kets. Thus, this year our focusis on India, on domestictourism, inbound tourism,especially South India!”

Started in 1951, TAAIhas grown with leaps andbounds, expanding its mem-ber base (both allied andactive) along with buildingreputation on the nationaland international level. Withits first convention in

Mumbai (then Bombay); overthe years, the association hassuccessfully held its conven-tions at various domestic andoverseas venues. Not onlydoes it work as an associationto speak out for its members,but also helps them grow andachieve their business goals.Mulla said, “All the previouspresidents of TAAI were well-known personalities in theIndian travel industry. Withtheir vision and views, TAAIhas come a long way, and we

as a team are working to takeit forward from here. We areworking on our Vision 2020which was announced in2010 along with short-termvisions and aim. Alongside,we are also aiming to achievethe target of 20 milliontourists in India by 2020which the Ministry ofTourism is working upon. Forthis, we are promoting Indiaas a destination in variousinternational markets. Thus,we are promoting the domes-

tic, inbound and outboundtourism for India and I’msure with the support of gov-ernment, various NTOs,STBs, airlines and mostimportantly our members; wewill celebrate our 100thJubilee during 2051.”

So, welcomes thedelegates in Bengaluru – theIT capital of India and wishesa fruitful time for next twodays packed with businessopportunities!

COVER STORY TA A I D A I LY 2 0 1 3 – D A Y 1 TRAVTALK 1 5

Working towards improving tourismContd. from page 1

� Star ted in 1951, TAAIhas grown with leapsand bounds, expandingits member base (bothallied and active) alongwith building reputationon the national andinternational level

Looking Back

MoU signedfor boostingstate tourismKarnataka has alsosigned an MoU withAndhra Pradesh forcross promotion oftourism in both statesearlier this month.

The possibility ofextending Karnataka’sGolden Chariot train toAndhra Pradesh was alsomooted. "We are extremelyhappy to associate withAndhra Pradesh governmentfor this MoU. We are opti-mistic that this will be a stepforward in terms of increas-ing tourism initiatives in bothstates," Dyavaiah said.

Contd. from page 1

In the session dedicated toidentifying challenges and

bottlenecks in tourism sectorduring the Services Conclave,the expert panel identified visaand tax-related issues asprime challenges for inhibitingthe growth of inbound sector.The Conclave was jointlyorganised by Ministry ofCommerce and Industry, andthe CII. The panel unani-mously agreed that foreignarrivals will grow substantial-ly, if two concern areas areaddressed. The panellistsincluded Subhash Goyal,President, IATO; ArjunSharma, Co–Chairman, CIINational Committee onTourism and MD, Le Passageto India and Kapil Chopra,President, The Oberoi Group.It was chaired by GirishShanker, AdditionalSecretary, Ministry ofTourism and MD, ITDC.

Here, Shanker said“Tourism is one of the

fastest-growing sectors glob-ally and in India. In fact, Indiahas registered a highergrowth-rate in foreignarrivals than the global aver-age. In 2013, the growth ratehas moderated a little, but itstill promises to get better.”

“We are hopeful thatthe extension of Visa-on-Arrival facility will enhancethe growth momentum. Arecent UNWTO study onvisa process had also elabo-rated that liberal visa accesscan push growth in foreignarrivals substantially,” hesaid. But, Incredible Indiacan’t tap the global tourismmarket without a detailedplan, opines Goyal. “Theglobal international tourists,travelling across interna-tional borders, are nowabove one billion. India isthe greatest show on earthand deserves a reasonablechunk of the global tourismpie. In this direction, ourtourism industry needslong-term vision. We can do

a similar revo-lution that IThad done in apolicy frame-work that’sconducive togrowth of theprivate sec-tor,” saidGoyal.

“Unfortunately, we areover-regulated and over-taxed than most of the desti-nations that we competewith,” he admitted.Suggesting a way out,Chopra said “Visa policy isthe most crucial aspect.Countries like Dubai,Thailand and evenIndonesia are getting moretourists than India because

of the easy access. Hence,the government should,instead of rolling out VoA toa number of countries,should open them to strate-gic markets first. TheGerman market can be onesuch case study, whererolling out of VoA facilitycan help India even get250,000, arrivals from onesource market, which is

close to half of its totalinbound arrivals.” Sharmasaid, “The organised form ofinbound tourism to India isonly about a million. Indianeeds to address its mostcritical areas, namely, access

to visa. People travel longer to reach China andThailand, bypassing India,

due to ease of visa access.India has to address thisissue and make visa acces-sible and hassle-free. Wealso need to move moreaggressively towards ratio-nalising tax structures, as

today the cumulative inci-dence of tax is about 27-28per cent on a tourist.”

1 6 TRAVTALK TA A I D A I LY 2 0 1 3 – D A Y 1

Acting as a catalyst todevelop and grow the

Indian travel insurance sector,Mumbai-based TrawellTagrecently tied up withAustralia-based Cover More.The re-branded entity‘TrawellTag Cover More’ com-bines TrawellTag’s local mar-ket knowledge and establisheddistribution channel, alongwith Cover More’s globalexpertise and customer-focussed innovation in thetravel insurance and medicalassistance segment. Accordingto Dev Karvat, ManagingDirector, TrawellTag CoverMore; the partnership willacknowledge the challengesfaced by Indian travel agentswhile selling travel insuranceand also build confidenceamong Indian travellers to buyinsurance while travelling.

Karvat informs that thepartnership will be veryrewarding for their distribu-tion partners, travel agentsand travellers in India. He

said, “Currently, the penetra-tion level of travel insurancein India is very low as com-pared to global markets.Close to 20 per cent travellersbuy travel insurance, ofwhich most buy only due tovisa requirements. It’s time

to develop the market, maketravellers understand theneed and benefits of insur-ance while travelling, and onthe other hand make travel

agents aware of the potentialof travel insurance for ancil-lary revenue options.”

Cover More successful-ly developed the Australiantravel insurance market to60-80 per cent in a span ofseven to eight years by

offering innovative travelinsurance products.Following similar strategy,Karvat is confident to devel-op the Indian travel insur-ance market through varietyof travel insurance productswhich will fit into everyneed to different travellers.He adds, “Indians adapt toinnovations and trends at amuch faster rate than manyglobal markets. All we haveto do is make them aware ofthe benefits travel insurancecan offer, especiallyTrawellTag Cover More. It’snot just travel insurance,but much more. It’s like‘travel assistance’ whereinwe are available 24x7 forany help, assistance or sug-gestions for our clients. Forexample, we assist trav-ellers when they lose theirpassport while travelling orif they want to rent a car,

book a meeting room oreven book a restaurantwhile they are not in India.We also provide cover totheir family back homewhen our clients are travel-ling.” In addition, it will alsohave greater focus on claimshandling efficiency and cus-tomer claims experience.

TrawellTag CoverMore offers global assistanceincluding services like onlinetracking of lost luggage,

medical and travel insurance,family protection, conciergeassistance. The company isalso in process of introducingglobal SIM cards soon, whichwill be different from theusual run-of-the-mill. “Weintend to introduce globalSIMs by end of this fiscal,which will not only have bestcalling rates, but also dataservice plans, travel appsand many other options tomake travel more fun and easier.”

The re-branded entity combines TrawellTag’s local market knowledge and established distribution channel,along with Cover More’s global expertise and customer-focussed innovations.

TrawellTag ties up with Cover MoreAN I TA JA I N Know more about Cover More

1. Based in Sydney, Cover More is the market leader inAustralia and the largest pure travel and medical assistancebusiness in Asia. It has operations in Australia, NewZealand, UK, Malaysia and China - and now, withTrawellTag in India.

2. In the past year, Cover More has sold more than US$ 350million of travel insurance throughout Asia and Australia.This is around five times the size of the total Indian travelinsurance market.

It’s not just travel insurance,but much more. It’s like ‘travelassistance’ wherein we areavailable 24x7 for any

help, assistance orsuggestions for our clients

Dev KarvatManaging Director,

TrawellTag Cover More

The CII Services Conclave, organised recently, identified visa liberalisation and rationalisation of taxationas the key to stimulating tourism growth. gives details of the event.

‘A hassle-free visa regime needed’VI V E K SE T H I

We can do asimilar revolution that IT had donein a policyframework that’sconducive to growth of the private sector

India registereda higher growthrate in FTAsthan the globalaverage. It hasmoderated alittle, but it willget better

Girish ShankerAdditional SecretaryMinistry of Tourism and MD, ITDC

Subhash GoyalPresident IATO

People travellonger to reach China andThailand,bypassing India entirelydue to ease of visa access

Rolling out VoAin Germanycan help Indiaget even2,50,000,arrivals fromone sourcemarket

Kapil ChopraPresidentThe Oberoi Group

Arjun SharmaCo–Chairman, CII National Committeeon Tourism and MD, Le Passage to India

AGENTS

1 8 TRAVTALK TA A I D A I LY 2 0 1 3 – D A Y 1

Percentage share of Top 10 Countries for FTAs in India in 2012

Others39.47%

Malaysia2.98%

USA15.81% UK

11.98%Bangladesh

7.40%

Australia3.07%

Japan3.34%

France3.66% Germany

3.88%

Canada3.89%

Sri Lanka4.52%

Share of Top States/UTs of India in Number of Foreign Tourists Visit in 2012

Maharashtra*24.7%

Others9.9%

Himachal Pradesh2.4%

Karnataka2.9%

Tamil Nadu17.2%

Delhi11.3%

Uttar Pradesh9.6%

Rajasthan7.0%

West Bengal5.9%

Bihar5.3%

Kerala3.8%

The Ministry of Tourism has set a target for doubling inbound arrivals and domestic tourist visits during the 12th Plan period. The statistics in the first pie-diagram show the vast opportunitiesIndia has to grow its top 15 markets along with new markets. The second pie-diagram reflects theimmense growth potential that various Indian states and Union territories possess, especially ones like Kerala and Karnataka.

Source: MOT

Tourism in the World: Key Figures9% of GDP-direct,

indirect andinduced impact

1in11jobs

US$1.3trillion inexports

from 25million internationaltourists in 1950 to...

1,035million in2012

5-6billion domestictourists

1.8 billion int’l tourists predicted in 2030

Source: UNWTO

Contd. on page 20

RESEARCH TALK

2 0 TRAVTALK TA A I D A I LY 2 0 1 3 – D A Y 1

Others61.60%

India0.64% Malaysia

2.42%Russia2.48%

UK2.83%

Germany2.94%

Turkey3.45%

Share of Top 10 Countries of the World and India in International Tourism Receipts in 2012

Percentage share of Top 10 Countries of the World and India in International Tourist Arrivals in 2012

1. France 83.0 8.022. USA N.A. –3. China 57.7 5.574. Spain 57.7 5.575. Italy 46.4 4.486. Turkey 35.7 3.457. Germany 30.4 2.948. UK 29.3 2.839. Russia 25.7 2.4810. Malaysia 25.0 2.42 Total of Top 390.9 37.76 Countries India# 6.6 0.64 Others 637.5 61.60 Total 1035.0 100.00

Rank Country Int’l Tourist Percentage Arrivals in mn. (%) share

(P) : Provisional, NA: Not Available# Excludes nationals of the country residing abroadSource: UNWTO Barometer April 2013

Share of Top 10 Countries of the World and India in International

Tourist Arrivals in 2012

1. USA 128.6 11.962. Spain 55.9 5.203. France 53.7 5.004. China 50.0 4.655. Italy 41.2 3.836. Macao (China) N.A. –7. Germany 38.1 3.548. UK 36.4 3.399. Hong Kong China 31.7 2.9510. Australia 31.5 2.93 India 17.7 1.61 Others 590.2 54.94 Total 1075.0 100.00

(P) : Provisional, NA: Not AvailableSource: UNWTO Barometer April 2013

Share of Top 10 Countries of the Worldand India in International Tourism

Receipts 2012

France8.02%

Others54.94%

USA11.96%

Spain5.20% France

5.00%

China4.65%

Italy3.83%

USA China5.57%

Spain5.57%

Italy4.48%

Macao(China)Germany

3.54%

UK3.39%

India1.61

Australia2.93%

Hong Kong2.95%

Rank Country Int’l Tourist Percentage Receipts (P) (%) share (in US$ billion)

Quick Fact

6%Global Tourismcontributesaround 6 percent of theworld’s exports

Source: UNWTO

India as a round-the-year destination

Source: MOT

Going forward, the month-wise tourist arrivals show that India is growing into a round-the-year-destinationas the gap between peak and lean periods narrow down. Towards the end, we draw comparison of theIndia’s potential and its present status in the global tourism market.

Contd. from page 18

RESEARCH TALK

2 2 TRAVTALK TA A I D A I LY 2 0 1 3 – D A Y 1

Cyprus hosts 1st roadshow in DelhiCyprus Tourism Organisation (CTO) recently hosted its first roadshow in India in Delhi. The event showcased the country's tourism productsfor leisure, corporate meetings and incentive travel to woo the Indian travellers. The roadshow was attended by delegates from Cyprus andtheir Indian counterparts from the Indian travel industry.

FAMILY ALBUM

2 4 TRAVTALK TA A I D A I LY 2 0 1 3 – D A Y 1

How would you differ-entiate AirAsia andAirAsia X?

AirAsia focusses on theshort-haul flights- those thatare less than 4 hours. Anyflight that is 4 hours or more- what we call ‘medium andlong-haul’- falls underAirAsia X.

AirAsia X used to fly toNew Delhi?

Yes, we launched flightsto New Delhi in 2010, whichwas a 5-hour flight from KL.But it did not prove to be

profitable for many reasons.There was only one-way traf-fic as most of the ethnicIndians in KL fly to the Southof India rather than theNorth. Secondly, the airporttaxes at New Delhi Airportwere increased astronomical-ly by nearly 200%. Lastly,Malaysia stopped its VoA(Visa-on-Arrival) scheme in2010, which affectedtourism. So now, it’s only

AirAsia that flies to India.They go to 5 short-haul des-tinations - Kolkata, Chennai,Tiruchirapalli, Bengaluru and Kochi.

What about the plans tostart an AirAsia Indiahub?

They are very muchon, and we are all waitinganxiously for it. As youknow, Mittu Chandilya hasalready been named as ourCEO for the India office. Thelicences take time, but oncethe office is launched, it willbe an important factor toestablish the AirAsia brand

in India. It’s all about‘branding’ in this highlycompetitive and ruthlessairline industry.

The airline industry isfacing lot of challenges,isn’t it?

Yes, it’s not easy for anyof us, with volatile curren-cies, increasing fuel prices,bureaucratic and infrastruc-ture constraints, in many new

destinations. But we aregreat believers in ‘focus.’

You recently launched aThai AirAsia X office inBangkok?

Yes, we launched this inOctober, after one year ofworking for it. This will be oursecond hub, after KL, and wehope to start a hub inIndonesia, later. AirAsia hasa strong brand-image inThailand, where it flies to atleast 14 cities, which is whywe thought it would be a goodtime to launch AirAsia Xthere, and start flights to des-tinations like Japan, Korea

and Australia. We always starthubs in countries where wehave a strong brand image.

With huge numbers ofIndian tourists going to Bangkok, will thisbenefit them?

Without a doubt itwould, as multi-destinationtourism has become astrong phenomenon withAsian travellers, including

Indians. In fact, this will bea brand-building image forAirAsia and AirAsia X withthe Indian market. This willbe good when we start a hubin India. India is a veryimportant market for us.After all, it’s almost like acontinent.

China seems a biggermarket for you?

China, like India, is sobig, that AirAsia and AirAsiaX both fly there. The south-ern cities like Kunming areless than 4 hours, while thenorthern cities like Shanghaiare more than 4 hours fromKL, which is why AirAsia Xrecently launched a flight toShanghai. More than a thirdof our business comes fromChina, where we are verywell-established. Europe isin recession, which is whywe are focussing on the AsiaPacific region. We recentlystarted new routes toAdelaide in Australia, Busanin Korea, as also Colombo inSrilanka, and Maldives.

How do you select newroutes?

We try to start 4 newroutes, every year. We usu-ally choose new routes incountries where we expect tohave a strong two-way traf-fic, and where we have astrong presence throughAirAsia. Right now, AirAsia isthe leading low-cost carrierin SE Asia –they have 7flights/ day to Bangkok and 5flights/ day to Bali from KL.

Travellers from India canplease note this!

So, would you say thatyou are piggy-backingon the success ofAirAsia?

We have a symbioticrelationship. We launchedAirAsia X in 2007, because ofthe huge success of AirAsia,which was launched in 2001.They are our feeder carriers.As far as the consumer isconcerned, we are one brandand have one website, whichis a huge benefit.

Are you excited by theformation of ‘Asean’ in2015?

Definitely; in fact withAirAsia being the top-mostlow-cost carrier in SE Asia,we hope to start more hubs,when ‘Asean’ becomes oneunit in 2015. We expect a lotmore intra-Asean travel,more feeder network throughAirAsia, which will have aspill-over effect on us.

Any other benefit foryou?

AirAsia X uses wide-body aircraft, which is notcommon for low-cost carri-ers. That’s why we offer theFlat Bed service, which youdon’t find in low-cost carri-ers. They cost as much as anEconomy ticket in regularairlines. There are otherbenefits that come with itlike free food, increased bag-gage allowance, separatecheck-in etc.

Do you plan to buy newaircraft?

This year, we ordered 7airplanes, and by the end ofthe year, we’ll have 19 more.By 2017, we expect to have32 more wide-body aircraft(Airbus A330 300). Our tar-get is to fly 15 million passen-gers by 2014, after which wemay consider flying to Russia,Turkey and the Middle East.

Would you say that the AirAsia has truly pioneered low-cost trav-el in Asia?

Absolutely. No onebelieved Tony Fernandes’dreams would become a reality, especially his long-haul flights. We have cre-ated a new demand for travel.Today, people wait for our‘sales’ (at least four times ayear), buy up the ticketsimmediately, and then maketheir travel-plans! Our ‘free’tickets are a powerful incen-tive. We have truly democra-tised travel.

In an exclusive interview with , Azran Osman-Rani, CEO of AirAsia X says that the airline has nowcarried more than 10 million passengers across 18 destinations in 9 countries of the Asia-Pacific region.AirAsia X plans to start more routes and buy more planes, according to him.

Air Asia underlines India’s importance

LE K H A SH A N KA R

Azran Osman-RaniCEO of Air Asia

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UNWTO:Exploring tourism communication formatsThe impact of technological

innovation and evolving mediachannels on tourism commu-

nication was the focus of the3rd UNWTO InternationalConference on Tourism and the

Media, part ofan ongoingseries aimed tolend tourism ahigher level ofeditorial recog-nition (2-3December2013, Estoril,Portugal).

Centered around the theme,“How new media is shapingthe news”, the Conferenceaddressed, among others, theissues of tourism in today´smedia coverage, the newmedia environment, the emer-gence of bloggers as influentialnews sources, and the trans-versal impact of technology onall communication formats.

Opening the Conference,UNWTO Secretary-General,

Taleb Rifai, said “while tourismcoverage by mainstream, busi-ness and news agencies isgrowing, there is still muchroom for tourism to havegreater journalistic recognition.New media can bridge this gap.In today´s interconnectedworld, tourism communicationhas evolved from being anexclusive encounter to aninclusive experience.”

“Portugal has made astrategic decision in terms ofpromotion strategy, and that

was to give a higher priority tonew media and online commu-nication as a means to adapt tothe changes occurring in themarkets” said Adolfo MesquidaNunes, Secretary of State forTourism of Portugal. Organisedin cooperation with Turismo dePortugal, the Conference gath-ered key speakers and panel-lists, as well as influentialsocial media players fromBrazil, Kenya and Uruguay.

AVIATION

Taleb RifaiSecretary-General, UNWTO