COMPLETELY OFF TARGET - UNION BUDGET 2022-23 - TRAVELBIZ MONITOR
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R.N.I. No. MAHENG/2007/22231 Reg. No. MCS/180/2019-21 vOL 15 | ISSUE 09 | Pages 24 February, 2022 Price: 40 www.travelbizmonitor.com 1 Union Budget 2022-23 Completely Off Target
Stay Home, Stay Safe, Stay Relevant TravelBiz e-learning Programmes Webinars Virtual Exhibitions Break the Isolation Gear up your Utilise the Stay Use these tools through a Virtual teams for Product at Home time Development to spark New Exhibition, e-learning for Knowledge & Itinerary Ideas, Forge Programme or a Seeking & be Management Connections & live Webinar, and for Future Travel Future Ready. educate. Innovation. Bookings. Webinar Partners e-learning Programme Partners For further information, write to: Ajay Wadode Disha Shah Ghosh ajay.wadode@saffronsynergies.in disha.shah@saffronsynergies.in +91 8087127814/+91 8767031410
TravelBiz Monitor | February, 2022 | 03 India@dctabudhabi.ae #GetawayToAbuDhabi #InAbuDhabi #TheTimeIsNow
For news updates and more information 4 news round up TravelBiz Monitor February, 2022 n log on to www.travelbizmonitor.com daily Body Blow for cruise tourism with the winding up of Genting Hong Kong’s brands TBM Staff | Mumbai before terminating operations here after burning hands with high operational costs and expensive port charges. It, however, gained T he cruise industry globally, and specifically in Asia has been dealt with a body blow with the winding up of Genting Hong Kong that owns the Star Cruises, Dream Cruises and Crystal Cruises popularity in the Asian waters having made the fly-cruise concept an aspiration for Indians with the Star Cruises’ brand ships being home ported in Singapore. Having gained popularity among Asian brands. The company failed to secure funding to pay its debts after the travellers, so much so that India became its number one fly-cruise insolvency of its shipbuilding subsidiary, MV Werften in Germany. source market for the Star brand, Genting Hong Kong launched Separately, Dream Cruises has also filed a winding-up application Dream Cruises as its up-scale brand with much fanfare couple of with the Bermuda Courts. years ago. TravelBiz Monitor contacted India representatives and officials of The fallout of Genting’s closure will have immediate and direct Genting Cruise Lines, however, they refused to comment. impact locally as well as internationally with millions of job losses, curtailing or complete closure of dedicated cruise teams in travel agencies, already embattled with massive loss in business due to the two long years of pandemic. Genting Hong Kong’s Chairman and CEO Lim Kok Thay resigned and its deputy CEO, Au Fook Yew also stepped down, the company informed in a filing to the Hong Kong Stock Exchange last week. Earlier this month, the company had warned that it faces potential cross-default amounting to USD 2.78 billion, following the insolvency of its German shipbuilding subsidiary, MV Werften, after it failed to secure funding for the completion of its Global One mega-liner. Genting Hong Kong is part of a bigger conglomerate that also includes Genting Malaysia and Genting Singapore. Among its assets, the conglomerate owns the Resorts World leisure park chain, which includes those in Singapore, New York City, and the United Kingdom. Cruising in Asia, with sailings out of Singapore was dominated by It also has 30 casinos across the U.K. Genting also owns the Resorts Genting Hong Kong. In fact, it was the Star brand that introduced World theme park in Manila, and Crystal Cruises line which offers a the cruising concept in India in the mid-2000s with Mumbai sailings range of round trips from Miami, Antarctica and Barcelona. National Ropeways Development Programme will boost Alex Cruz may take tourism in the country: Aditya Chamaria, MD, DRIL over as Air India CEO Prasenjit Chakraborty | Mumbai hope that all of these ropeways will be on the TBM Staff | Mumbai Make in India initiative that will boost tourism N irmala Sitharaman, Union Minister while announcing the Budget 2022 mentioned that as a preferred Finance and various Indian industries that make various equipment, construction, material, etc.,” pointed out Chamaria. Aviation veteran Alex Cruz, former chairman and CEO of British Airways, might take over ecologically sustainable alternative He also said that wherever a as Air India CEO soon. Cruz to conventional roads in difficult ropeway is created, it leads to an headed the hilly areas, the National Ropeways influx of tourists. “It is especially British Airways Development Programme will be taken true for temples on hills that require for five years up on the PPP mode. The aim is to people to climb; the traffic increases till 2020, improve connectivity and convenience significantly if a ropeway is built. after leading for commuters, besides promoting The surrounding areas of ropeway Spanish low tourism. see parking facilities, shops come cost airline Hailing the move, Aditya Chamaria, up, and infrastructure improvement. Vueling. MD, Damodar Ropeways & Infra Limited (DRIL), The ropeways set off a chain reaction of overall Cruz quit from his role in British said, “We are happy that the Government has taken development,” said Chamaria. Airways after the airline cut note of the importance of ropeways in commuting The Government’s focus on ropeways in 13,000 jobs in October 2020, and promoting tourism. The announcement of the congested cities where conventional modes of owing to the Covid-19. Later, National Ropeway Programme, where 8 projects transport would not work, speaks volumes about the he stepped down as chairman will be taken up on PPP basis, will help accept government’s futuristic planning for the country. too. An MS in industrial ropeways as a mode of transport.” The Budget’s focus on improving connectivity, engineering from Ohio State Talking to TravelBiz Monitor, he said that the especially through sustainable modes of transport University, the veteran is also a new projects would hopefully come up in the areas such as ropeways, will take India on a path of professor at the IESE Business that were not previously accessible. “If that is the growth, help in increasing tourism and lead to School. However, Tatas haven’t case, there will be a major impact on tourism innovation in the cable car industry. officially commented on Cruz’s depending upon the place’s popularity. We also prasenjit.chakraborty@saffronsynergies.in appointment yet. www.travelbizmonitor.com
TravelBiz Monitor February, 2022 n Spotlight 05 © Emmanuel Virin © Emmanuel Virin Reunion Island TBM Staff | Mumbai R eunion Island ticks all the right checkboxes A Land of Paradise for an island getaway. Breathtaking scenery, a balmy tropical climate year-round, and a friendly population that will be delighted to share Reunion’s fusion cuisine and culture with cari poulet, rougail saucisse: there’s Seychelles as well as Mauritius. from a visit of underground you. And in addition, a range a long list of local delicacies that The music from Maloya is lava caves, to mountain biking, of leisure and outdoor activities you can – and should – savour. The unique to Reunion Island. Sega canyoning, horse riding, or an offered to you to complete your island’s cuisine is a mouthwatering has a distinct resemblance to exciting paragliding experience island experience! blend of Indian, Chinese, African, the ballroom dance genre and is above the lagoon. In Reunion Located east of Madagascar in and European-influenced dishes. usually accompanied by beats from Island, you can experience a wide the Indian Ocean, Reunion Island For an in-depth discovery of the western instruments, including array of outdoor activities in an is undoubtedly one of the most ingredients and spices that go into the guitar and the harmonica. exceptional natural environment. unusual island paradises on the the cuisine, a visit to a farmer’s In contrast, Maloya is a musical Its temperate climate ensures that planet and woos its visitors with its market is recommended. At least expression that is native to the these experiences can be enjoyed charming French way of life. one farmer’s market takes place on island. It is a type of ceremony almost all year round. While the island has an array of the island every day. The two best- dance performed during the night Trek on scenic hiking trails: The factors that contribute to its appeal, known are Saint-Paul on Fridays and usually around a lit bonfire. island has more than 1,000 km of one of its most striking features is and Saturdays, and Le Chaudron Maloya, which combines music, well-signposted paths, and there its cultural and ethnic diversity. (in Saint-Denis) on Wednesdays song and dance, is a tradition that is something to suit all tastes and The unique Creole culture—a and Sundays. The island is also has been passed down for several abilities. Must-trek hikes will take result of ethnic mixing—is a very well-known for its rhum generations on Reunion Island. It you to the summit of the Piton des testament to a culture shaped arrangé which is a combination of was brought by slaves from East Neiges, into the remote, isolated by an amalgamation of Indian, local rum and fruits left to macerate Africa or Madagascar. Since 2009, cirque of Mafate, to Grand Bénare, African, European, Chinese and for 6 months to 2 years. Maloya has been classified as an or to Roche Ecrite. Shorter walks other cultures. Temples, mosques, Music & Dance: Two distinct intangible cultural heritage of are also possible, for example churches and pagodas stand in music forms are known to have humanity by UNESCO. around Grand Etang lake, at Voile unity on the island, and visitors are originated on Reunion Island. Outdoor sports activities: The de la Mariée waterfall, or to the invited to take part in the several Sega and Maloya. Sega is a island is a paradise for those who headland of Cap Jaune. different cultural festivals that music genre typical in Rodriguez, enjoy adventure sports. Choose Saint-Gilles’ Vibrant Night are held through the year. These Life: Don’t leave the island without diverse factors contribute to the experiencing its dynamic night appeal of the island. life. The locals of the island love festivals and celebrations. In the 5 compelling reasons to visit district of Saint Gilles, you will find Gastronomy: The island’s cultural spirited bars and restaurants where diversity can be seen in the you can eat, drink, and dance all delectable gastronomic specialties night. Apart from that, one can also available to visitors. With each enjoy jazz lounges, live bands, and culture ascribing to a particular traditional island performances – set of flavours, each delicacy is all promising a good night out on a representation of the different the town! cultures who reside on the island. For more information Samoussas, bouchons, bonbon on Reunion Island, visit: © Brice Marquis Sebie piment, macatia, gâteau patate, https://en.reunion.fr/ www.travelbizmonitor.com
6 Viewpoint TravelBiz Monitor February, 2022 n Editor-in-Chief & CEO Sheldon Santwan Assistant Editor GIVE THE MAHARAJA A BREAK I t’s time for a fresh start since in present times nostalgia might Prasenjit Chakraborty prasenjit.chakraborty@saffronsynergies.in +91 9819263364 survive in only just one place - the past. Editorial Team There is an expected sense of excitement at the much vaunted Mumbai and awaited change in the ownership and consequent management Chief Sub-Editor: Disha Shah Ghosh in Air India. disha.shah@saffronsynergies.in There is barely a word yet from its new owners on any meaty or Sr.Reporter: Asmita Mukherjee asmita.mukherjee@saffronsynergies.in tectonic shifts from how the company operated so far. Legions of pundits are rushing forth with I-told- Contributors you-so’s, homilies and advice. Let’s also add our two-bit to the mix. Hugh & Colleen Gantzer, Anurag Yadav, The sudden revival of interest in the Maharaja logo is a case in point. Experts aver that it’s a myth to Hector D’souza & Amala Dantas believe that customers are brand agnostic. The old logo, we are told, has history and strength on its side. Marketing Team Mumbai There have been suggestions the Air India brand can be revived in public consciousness by establishing Head - Sales & Marketing a reconnect with nostalgia garnished with more efficient deliveries. There is also an idea doing the rounds Ajay Wadode +91 8087127814 that Tatas can strike an emotional bond with the market if the brand is shown to progressing towards its ajay.wadode@saffronsynergies.in old glory. Indeed, the Maharaja logo does connect, but possibly more so with a much older clientele. Goa Head - Goa It’s a very young world out there. A corpulent moustachioed and turbaned mascot might not be the Harshad R. Bhonsle genie from the magic lamp at this hour to grant any wish. The smartness of the first public contact will +91 8999047490 harshadrbhonsle@gmail.com go much further than nostalgic trips of clever advertising. True, there is a historical connect between the Coordination, Subscription & Database airline, its logo and its owners but the jury is out on whether it will reverberate with a modern clientele. Gauri Sawant: +91 8369080796 There is a steady opinion that ‘the comfort appeal of brands that belonged to a bygone rose-tinted gauri.sawant@saffronsynergies.in age could work’ and that the new owners could build upon that brand essence through a contemporary filter. Perhaps a survey that nails public opinion could better determine the strategy than sepia-tinted reminiscences of old hands. *Responsible for selection of news under the PRB Act Given the surprises Tatas can spring up, who knows all these surveys are already done and dusted and decisions are firmed up? Perhaps a new brand, totally disconnected from the past, is already well on its way. Anurag Yadav Industry Expert Sterling House, 5/7 Sorabji Santuk Lane, Opp.Dr.Cawasji Hormasji Street, Dhobi Talao, Marine Lines (E), Anurag Yadav is a travel author and columnist, writing on hospitality and design. An avid traveller, Mumbai 400 002 he has published five books and divides his time equally between Delhi and London. Tel: 91-22-6101 1700 / 701 Fax: 91-22-6712 1854 The views expressed in the column are of the author, and may or may not be endorsed by the publication. EDITORIAL ADVISORY BOARD Paramjit Bawa Carl Dantas Rakshit Desai Rajiv Duggal Manoj Gursahani T C Guruprasad Zubin Karkaria Dev Karvat Country Manager - India, Chairman Emeritus Managing Director Director President Managing Director & CEO CEO Destination New South Wales ETAA India, Flight Centre Travel Group Travel Specialists LLP Visit USA Committee Board Member, EbixCash VFS Global Group Karvat Group Jehangir Katgara Kapil Kaul Mark Mendes Iqbal Mulla E M Najeeb Ankush Nijhawan Ajay Prakash Sriram Rajmohan CMD CEO - India & Middle East, Industry Consultant Chairman, Treasure Tourism Chairman MD, Nijhawan Group & Chief Executive, Nomad CEO & MD Trail Blazer Tours India Pvt Ltd CAPA Corporation Ltd ATE Group of Companies Co-Founder, TBO Group Travels & President - IIPT India Club7 Holidays Ltd. Naresh Rawal Dhananjay Saliankar Arjun Sharma Vasudha Sondhi Sheema Vohra Kiran Yadav VP - Sales & Marketing Head - Sales & Marketing, Chairman, Le Passage to India Managing Director Managing Director VP Genting Cruise Lines Fortune Hotels & MD Select Group OMPL Group Sartha Global Marketing IIPT India www.travelbizmonitor.com
For news updates and more information log on to www.travelbizmonitor.com daily TravelBiz Monitor February, 2022 n news round up 7 Parliamentary Committee suggests reviewing tax regime to increase India’s share in global tourism TBM Staff | Mumbai recast its website in a more user-friendly that deter inbound tourism and have led to manner. tourist packages being out priced vis-a-vis A Parliamentary Standing Committee has recommended that the tax regime applicable to the travel & tourism sector be “The Ministry should formulate an integrated marketing and promotional strategy to position India as a favoured those in competing tourist destinations of other countries,” it said. The committee further pointed out that reviewed in order to increase the tax structure applicable India’s share in the global to hotel accommodation, air tourism market from the travel, food and beverages present 1.24 per cent to five consumption, not only “leads per cent. to tourist packages being The Committee on over-priced but also obstructs “Promotion of Indian Tourism seamless flow of tourists to in Overseas Markets – Role of our historical sites.” It also Overseas Tourist Offices and noted that despite inbound Indian Embassies”, headed tourism being a major foreign by MP T G Venkatesh, said exchange earner with foreign the Ministry should conduct exchange earnings of INR surveys periodically in 2,11,661 crore in 2019, the important source markets for taxes levied on inbound India to assess the impact of tourism are among the highest the publicity campaigns on the decision of tourism destination in the tourism generating in the country. foreign tourists to visit India, the perception markets overseas and increase India’s share “The committee, therefore, recommends of the foreign tourists about the various of the global tourism market from the present that the tax regime applicable to the travel facilities at tourist destinations, the preference 1.24 per cent to 5 per cent in the years to and tourism sector be reviewed holistically of foreign tourists about the tourism products come.” so that with suitable amendments India can and destinations. “One of the major reasons for India’s inbound convert its comparative natural and economic The committee in its report tabled in tourism remaining grossly under-utilised has advantages into competitive advantages for Parliament on proposed that the Ministry been the high rates and multiplicity of taxes the tourism sector,” it said. Covid booster dose mandatory for entering France, the rule came into effect from February 2 TBM Staff | Mumbai “compelling reason”. This could mean a dying relative, for example, but not for A ccording to international media reports, France will not allow tourists to enter the country if they holidays. Eurostar services have already warned customers, announcing, “If you had ICC appoints Gainwell received their Covid vaccine more than your full vaccine course nine months Sports as hospitality agent nine months ago. However, travellers ago or more and you haven’t had a COVID-19 vaccine for T20 WC Australia booster, you must follow the rules TBM Staff | Mumbai for unvaccinated passengers to enter France.” Simon Calder an eminent G ainwell Sports, part of Kolkata-based Gainwell Travel, has been appointed as the hospitality agent for ICC T20 Cricket World Cup Australia 2022 freelance UK travel with access to premium VIP match tickets for all journalist and matches, including India vs Pakistan on October 23 broadcaster also at Melbourne Cricket Ground. As official hospitality criticised the move. agent, Gainwell Sports will offer food-and-drink- France’s new rule inclusive Match tickets packages at face value with came into effect commissions to travel agents. from February 2. Gainwell Sports is a growing sports travel company However, there is with official Match tickets, inclusive of packages without a recent Covid vaccine can no official confirmation from the France for the world’s biggest sports events, promoted by only enter France if they have a government yet. Gainwell Travel. www.travelbizmonitor.com
8 Perspective TravelBiz Monitor February, 2022 n When was the last time you gazed at the sky? By Dr Nimit Chowdhary, Professor of Tourism, Department of Tourism and Hospitality Management, Jamia Millia Islamia Y es. When was the last time you popular entertainment after dark, often attraction- while access to attractions is spent some time gazing at the lasting until the wee hours of the following available during daytime, say 8.00 am to sky? Remember those childhood day. It includes opportunities for extravaganza 8.00 pm can be extended for visitors until days when we slept on roofs, for visitors during nights with nightclubs, late in the night. Two, the night view of the played and watched stars twinkle for hours. concerts, theatres, cinemas, parties, pubs same heritage asset would render an entirely The natural night sky is our shared universal and bars. It is often a factor for many visitors different experience at night. Therefore, they heritage. Unfortunately, however, our new while choosing a destination. This nocturnal may be offered as an altogether different generations have remained obfuscated from social carousing turned flamboyant with the product. For example, visiting the Taj Mahal it. Darkness is being viewed with scepticism advent of artificial lighting, more so, the at night, especially full moon night, would and fear. For many years we have dispelled domestic and outdoor lighting adding to the be much different from visiting it during darkness with artificial light. Though there sculptural and chromatic value of a place’s the daytime. The Palace Museum in Beijing is little evidence that increased lighting landscape. Undeniably, nightlife contributes offers a lantern festival light show late reduces total crime, bad outdoor lighting can to the development of culture and socio- evening. Many forts and palaces in India decrease safety through easier exposure. political movements and is thus an integral also offer late evening light and sound shows. We are all familiar with the concept of constituent of a place’s personality. Rajasthan started talking about night tourism nightlife, a collective term for available Night as a resource manifests in two a few years back, extending access to Amber products- urban nightlife and the dark fort until late in the evening. In Rajasthan, night sky. Unfortunately, while nightlife for example, while the days are extremely has for quite some time attracted tourism warm during the summer, the evenings are attention, the unsullied dark night sky has particularly cooler and pleasant due to sand missed out. The nightscape is a precious and sandstone. Thus, by opening up at night, natural resource for all life on Earth, which tourism can also be expanded to summers. has inspired science, religion, philosophy, Many resorts in the Thar desert of art, and literature since times immemorial. Rajasthan are now successfully offering Our ancestors have immaculately gazed at night safaris coupled with traditional stars to make sense of times, climate, and entertainment culminating with stargazing. terrestrial movements and even navigate A typical evening after a hot, bright day the globe. may begin with a camel ride to sunset Night sky and terrestrial dynamics have points on the vast serene dunes of the Thar been essential elements of most religions and as the breeze turns chiller. Then, visitors their cultural manifestations. In addition, return to an eco-friendly, makeshift seating they have often been subjects of literary arrangement. The traditional music and expressions- all to remind us of the vital role folk performances entertain them, and the they play in our lives to which we have gotten traditional cuisines are served under the detached in our mundane modern lives. In star-speckled night sky, which adds tints to most spiritual traditions, night skies have the multi-coloured evening on harsh and dry had an important place. As transformational land. Finally, guests retire to makeshift tents tourism gains currency, gazing night sky gazing at stars until they fall asleep. This allows an intimate connection with the nocturnal tourism is also becoming popular world. Unsullied night sky cultivates non- in Gujrat, Punjab and Haryana. conceptual awareness when looking at Several unconventional dark night Dr Nimit Chowdhary is a Professor at nature. The nocturnal landscape thus has a tourism products have potential. For example, spiritual connotation. stargazing, observing, astrophotography, Jamia Millia Islamia, New Delhi. He Locale within the context of the landscape storytelling, night river cruises, dune night has more than 28 years of academic is a trigger for visitor interest. Often a lot of surfing, and other nocturnal activities experience, of which he has been a full community folklore is weaved around the can augment visitors’ spiritual, rural, professor for 15 years in India, China, terrestrial constellation formation. The troika and eco-tourism experiences. Moreover, and Mexico. In addition, he was a visiting of the sky, people and place always provided venturing out at night is rising, particularly faculty at Gotland University (Sweden), a premise for harvesting and production and, among millennials. Therefore, offsetting the University of Girona (Spain), IIM over time, has become the tradition. This is apprehension associated with darkness and Sirmaur, IIQM, and EDII. He is a recipient a cultural manifestation of the nocturnal liveliness of night can contribute to reviving of many academic awards and recognitions landscape. tourism post-COVID-19. who has authored 13 books and more than Another way of looking at night tourism “No sight is more provocative of awe is presenting and making available than is the night sky.” 150 academic papers. He has travelled conventional daytime heritage products ‘The views expressed in the column are of the extensively to around 40 countries and at night. There are two ways of looking author, and may or may not be endorsed by the almost all states. at it. One this enhances the supply of the publication.’ www.travelbizmonitor.com
TravelBiz Monitor February, 2022 n IN CONVERSATION 9 of each of these brands. year. Access to some of the coolest We have always focused on travel experiences available in building the foundation stronger the market. During their travels, rather than chasing expansion our guests experience a seamless at record speed. Over these paper free experience with a years we have established our digital itinerary. name in the luxury travel space To say customers have become to be accredited as preferred more demanding may not be a partners for more than 15+ global correct approach I feel. Everyone hospitality brands like Four has been confined and restricted Season, Marriott, Rosewood, from travelling. Hence, when they Aman, Shangri La, TravellerMade, get a chance to get out they want to name a few. We have also won it to be more meaningful, more some prestigious awards such experience driven. Our designers as best marketing campaign at work endlessly to create their Luxperience in Australia to being wishes into a reality as long as the best honeymoon travel brand demands are reasonable. for last two consecutive years as awarded by WeddingSutra. Q You feel that it is high time for ATD Journeys to scale Q Incustomers, terms of servicing your what are the up. What is your roadmap for this? Over the years we have worked ‘A successful luxury travel brand is all hard to build the foundation and set the brands up. Scaling up a about managing the guests expectations’ luxury travel service business is not an easy task. We have our work cut out to try and fill this space. Technology will play a big ‘‘ It may not be right to Q How is the luxury travel segment evolving especially Q say that customers after the pandemic? It’s about hearing them out, learning The luxury travel segment has have become been leading the recovery in the about their personalities and being more demanding. travel industry ever since the able to custom design something that rules were relaxed in 2020. With Everyone has no commercial flights, people suits their profile. We play the role of been confined and retreated to private jets. Instead a travel atelier for our guests. Through of taking a few rooms, we saw restricted from buyouts of smaller properties and our global exposure we bring in some travelling. Hence, private luxury villas. Long stays became a norm for many. The prominent travel trends year on year. ‘‘ when they get a longingness to travel and not take it for granted made the chase for chance to get out unique experiences even more in they want it to be demand. As things settle down innovations you brought in? role in this and it’s something (hopefully!) we expect some of Do you think customers have we are working on. We had some more meaningful, these trends to continue in the become more demanding now? interesting plans in place for more experience future. We are definitely seeing When someone asks me expansion even pre-covid. We a trend for bucket list trips where what business are you into? I feel it’s time now to execute those driven, says Pritish guests are not shying away from always highlight that we are ideas. Shah, Founder spending big money. in the business of “managing Q company two years down expectations”. Over the years How do you visualise your & CEO, ATD Q You have said that ATD Journeys have achieved we have come to realize that a successful luxury travel brand is the lane? Journeys Pvt Ltd, many milestones since you all about managing the guests We like the Apple business model. in a conversation started your journey in 2013. expectations. It’s about hearing Expensive ticket items and yet Could you elaborate? them out, learning about their they have achieved the volume. with Prasenjit We started ATD in 2013 in Calcutta personalities and being able All our designer journeys are a Chakraborty. and then moved our HO to Mumbai to custom design something high ticket spend. With our focus in 2017. From a singular travel that suits their profile. We play on volume from here on we truly brand we have now expanded the role of a travel atelier for aim to become a global luxury to three luxury brands focusing our guests. Through our global and lifestyle brand in the years on different verticals. We have exposure we bring in some to come. specialists on boarding taking care prominent travel trends year on prasenjit.chakraborty@saffronsynergies.in www.travelbizmonitor.com
10 Travel Monitor TravelBiz Monitor February, 2022 n IATA’s Overview of Air Transport in 2021 The year RPKs recovered to 42% of 2019 levels in 2021 Air cargo remained strong (up 7% vs. 2019) gone by RPKs & CTKs, % ch. vs. the same month in 2019 Full year 2021 vs. saw slow 20% Global CTKs full year 2019: 6.9% resumption of 0% international -20% Domestic RPKs -28.2% travel with -40% Total RPKs -58.4% Asia Pacific -60% -75.5% lagging -80% International RPKs behind all -100% May-20 Aug-20 Nov-20 May-21 Feb-20 Oct-20 Dec-20 Feb-21 Oct-21 Aug-21 Nov-21 Dec-21 Jan-20 Apr-20 Jun-20 Jul-20 Sep-20 Jan-21 Apr-21 Jun-21 Jul-21 Sep-21 Mar-20 Mar-21 regions 2 Source: IATA Monthly Statistics 25 January 2022 with travel restrictions Performance of domestic markets varied Russia the strongest, China impacted by zero-COVID policy in place. However, 60% Domestic RPKs, % change vs. the same month in 2019 Full year 2021 vs. Australia Brazil China Russia US full year 2019: there have 40% 24.2% 20% been no clear 0% -27.2% indications of -20% -23.8% links between -40% -24.4% -60% -62.4% travel -80% restrictions -100% Apr-20 Apr-21 Jan-20 Feb-20 Mar-20 Jun-20 Jul-20 Sep-20 Oct-20 Dec-20 Jan-21 Feb-21 Mar-21 Jun-21 Jul-21 Sep-21 Oct-21 Dec-21 May-20 Aug-20 Nov-20 May-21 Aug-21 Nov-21 and new cases. 3 Source: IATA Monthly Statistics 25 January 2022 TravelBiz Recovery in international travel was slow Monitor Asia Pacific lagged the rest of the industry due to closed borders presents the 20% International RPKs, % change versus the same month in 2019 International 0% Air Transport -20% Africa Asia Pacific Europe Full year 2021 vs. full year 2019: Latin America Middle East North America Association’s -40% -65% (IATA) global -60% -72% overview of -80% -93% 2021. -100% Apr-20 Jan-20 Feb-20 Mar-20 Jun-20 Jul-20 Sep-20 Oct-20 Dec-20 Jan-21 Mar-21 Apr-21 Feb-21 Jun-21 Jul-21 Sep-21 Oct-21 Dec-21 May-20 Aug-20 Nov-20 May-21 Aug-21 Nov-21 4 Source: IATA Monthly Statistics 25 January 2022 www.travelbizmonitor.com
TravelBiz Monitor February, 2022 n Travel Monitor 11 Premium and economy international RPKs recovering at the same rate Premium and economy class international RPKs, % of 2019 levels Int’l RPKs, % of the same month in 2019 45% 40% Premium class Economy class 35% 30% 25% 20% 15% 10% 5% 0% Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 But willingness to travel remains strong 5 Source: IATA Monthly Statistics 25 January 2022 Ticket sales rebounded in South Africa after Omicron restrictions eased 0% Total bookings, % ch in 7-day MA versus 2019 South Africa New COVID cases per million, 7-day MA 500 -10% 450 New COVID cases Bookings -20% 400 -30% 350 -40% 300 -50% 250 -60% 200 -70% 150 -80% 100 -90% 50 -100% 0 15-Nov 17-Nov 19-Nov 21-Nov 23-Nov 25-Nov 27-Nov 29-Nov 1-Dec 3-Dec 5-Dec 7-Dec 9-Dec 11-Dec 13-Dec 15-Dec 17-Dec 19-Dec 21-Dec 23-Dec 25-Dec 27-Dec 29-Dec 31-Dec 2-Jan 4-Jan 6-Jan 8-Jan 10-Jan 12-Jan 14-Jan 16-Jan Bookings date 6 Source: IATA DDS, Our World In Data 25 January 2022 No clear link between new cases and travel restrictions Restrictions often maintained after cases have fallen Travel restrictions, weighted average of regions New COVID cases, 000s 7-day MA 4 - total Peak at 2,200 border closure4 1000 900 3 - closed to 800 some regions 3 700 Global travel restrictions 600 2 - quarantine (LHS) arrivals from2 500 high risk regions 400 Global new COVID cases 300 1 - screening 1 (RHS) 200 100 0 0 - no measures 0 Apr-20 Aug-20 Apr-21 Aug-21 Jan-20 Feb-20 Mar-20 Jul-20 Sep-20 Feb-21 Jul-21 Sep-21 May-20 Oct-20 Dec-20 Jan-21 Mar-21 May-21 Oct-21 Dec-21 Jun-20 Nov-20 Jun-21 Nov-21 7 Source: IATA Economics using data from ECDC, Oxford University 25 January 2022 www.travelbizmonitor.com
12 In Focus TravelBiz Monitor n February, 2022 Union Budget 2022-23 Completely Off Target The Union Budget 2022 is a complete lacklustre one for the travel and tourism industry. Except the extension of ECLGS for MSMEs until 2023, the Budget is virtually silent for the travel & tourism industry. The Economic Survey which was released just one day before the Budget admitted that the travel, tourism and hospitality sector still had a long road to recovery. Naturally, the players of the industry hoped that there will be some tangible direct relief in the Budget. But that hasn’t happen and the Government remains ambivalent. Hence, the stakeholders of the industry reacted sharply. Ajay Prakash, President, TAFI states for hotels and travel-tour operators. We were also expecting We live in hope and die in despair! After to the least that travel and tourism be brought under the concurrent the Union Tourism Minister reported that list for industry status. the industry lost 21.5 million jobs in the first 3 quarters of 2020, after the Economic Aashish Gupta, Consulting CEO, FAITH Survey admitted that the travel, tourism It’s a missed opportunity. The Union and hospitality sector still had a long road Budget provides some relief and medium to recovery, one had hoped that at least after to long term infrastructure measures the tribulations of the last 22 months there to stressed tourism travel & hospitality would be some tangible direct relief, but industry, but there was an immediate that hasn’t happened.Our demand for infrastructure status has fallen opportunity for more direct intervention on deaf years. MoT has an ambitious plan and an audacious vision to support the highly stressed tourism for India@2047. But who will service those anticipated numbers of travel and hospitality companies and their tourists if tourism businesses are driven out of business? employees. Rajiv Mehra, President, IATO Madhavan Menon, MD, Thomas Cook Most disappointingly none of our concerns (India) Limited found mention in the Budget presented. Just The Union Budget has been disappointing. few years ago we were earning huge foreign The Budget made no reference to the exchange for the government and in this hour industry’s recommendations to aid revival, of despair we expected some handholding including rationalization of taxes (a by the government. An extension of the loan complete GST holiday, exemption of TCS under ECLGS has been announced, but it on outbound tours, reduction in indirect is of no use for the inbound tour operators taxes), removal of SIES benefit capping as they are not able to pay EMIs of the loan of INR 5 crore. For a sector that is a key they have already taken. contributor to the GDP and brings in valuable foreign exchange, a stimulus would have created significant value in supporting the Jyoti Mayal, President, TAAI country’s road to recovery and growth. Our trade has been ignored once again. We suffered tremendously due to the Aditya Chamaria, MD, Damodar pandemic and it was expected that the Ropeways & Infra Limited government would at least work towards The Budget’s focus on improving positive upliftment of the travel & tourism connectivity, especially through in India, which they always portray as sustainable modes of transport such as a priority? In our representations to the ropeways, will take India on a path of Finance Minister we had requested for growth, help in increasing tourism and lead GST input credits be made available across to innovation in the cable car industry. www.travelbizmonitor.com
TravelBiz Monitor February, 2022 n In Focus 13 Vishal Suri, Managing Director, Dhruv Shringi, Co-Founder and CEO, SOTC Travel Yatra.com The two noteworthy announcements of We are grateful that the government has issuance of e-passports and the expansion taken relevant measures to revive the of the ECLGS scheme for the hospitality travel and hospitality industry as it is one sector will help boost the travel and tourism of the major contributors to the growth of industry. However, this Union Budget our economy. The extension of ECLGS did not provide the industry the respite services, as well as an increased cover for we anticipated. We hoped this Budget the hospitality sector, will definitely bring would offer incentives to Corporates for in the much-required relief. Yatra.com organising meetings and conference in India through partial or full remains optimistic that the industry will continue to see buoyant tax exemptions. growth driving overall economic growth in the country. Rahi Vaghani, Managing Director, Zubin Saxena, Managing Director and Monteria Resort Pvt. Ltd Vice President Operations, South Asia – We are welcoming the initiatives Radisson Hotel Group announced in the new fiscal Budget. We welcome the Union Budget and the The 400 new Vande Bharat trains and allocation of strategic aid that will enable ropeway projects signify the government’s the speedy recovery of the hospitality commitment towards bettering our tourism sector. The extension of the ECLGS with an infrastructure. The extension of the ECLG increased cover of INR 5 lakh crores for the scheme till 2023 with an additional corpus hospitality sector is a positive move. With of INR 50,000 crore dedicated to hospitality domestic travel picking pace, we believe and related sectors should provide relief to most establishments that the government’s highway expansion plans will facilitate especially the smaller ones. accessibility and strengthen this demand further. Jurgen Bailom, CEO and President, Ronojoy Dutta, Whole Time Director and Waterways Leisure Tourism Pvt Ltd CEO, IndiGo While the travel and tourism industry has We welcome the new incentives of issuing suffered significantly through the pandemic, of E-passport and introduction of digital it has also received an encouraging boost in currency. The government’s relentless focus the form of domestic travel. This momentum on national transportation infrastructure must be retained. Indians are travelling in development with the PM Gatti Shakti India and choosing local destinations. We plan will strengthen the much-needed hope there are mindful considerations in multimodal connectivity. Having said place for the industry overall and especially that, we were expecting tax concession to cruising: which is a fairly new and unique offering in the subcontinent. the aviation industry with cut on ATF excise duty and allocation With a coastline as vast as glorious India’s, cruising could grow by of concessional finance to airlines to help us come out of the leaps and bounds and this dream will be a reality once the government pandemic. further supports its gargantuan potential. Rikant Pittie, Co-founder- EaseMyTrip Shikhar Aggarwal, Joint MD, BLS International travel has been severely International impacted by the pandemic, which is why We would like to applaud the government we are pleased with the introduction of for this progressive announcement today e-passports with embedded chips. This about the introduction of e-Passports using will provide a big boost to travel and add embedded chip to be rolled out in 2022-23. a level of convenience for international A well thought initiative like this will help travelers. Additionally, the expansion of the to boost the overall travel industry and also Emergency Credit Line Guarantee Scheme ease out the process for overseas travel and by Rs 50,000 crore to Rs 5 Lakh crore will augment global mobility. enable the small travel operators and stakeholders within the travel and tourism industry to reel back from the disruptive impact of the Daniel D’souza, President & Country pandemic. Head, SOTC Travel While we are certain that the modern infra Aloke Bajpai, Group CEO & Co-founder, ixigo developments of roads, railways, airports, International travel is likely to recover ports, waterways, and the national ropeway soon despite the progress being slowed project mentioned under the Prime by the current variant. The introduction Minister’s PM Gati Shakti plan will be the of innovative initiatives like e-passports key drivers of domestic tourism economy, will boost security and will enhance the the industry would have benefitted if the convenience of international travelers by government extended more direct and cutting down long queues at immigration immediate support to the sector. We had requested the government counters. This will help support a faster for respite which were unfortunately not addressed and would have revival of international travel in a aided to the revival of the industry. pandemic-driven environment. www.travelbizmonitor.com
14 Sustainability TravelBiz Monitor February, 2022 n Busy Year Ahead By Ansoo Gupta, Founder, OneShoe Trust T he first month of this year has been imperative that the 5 proposed missions can a mixed bag of emotions for Indian percolate down to the smallest businesses. travel & tourism industry. As the 1.National Green Tourism Mission to government was announcing the mainstream sustainability in the tourism new draft policy and incentives to boost sector. The aims of this mission include the sector, the wild spread of Omicron reducing water consumption and waste was curtailing the new year holiday travel generation; ensuring efficient energy plans yet again bringing the businesses to a utilisation; roping in regional bodies for pause once more. However, the future looks implementing tourism projects and thereby promising. As the world heads towards enhancing the incomes of local people as better management of Covid-19 and its many classification of tourist destinations into well as their living standards. variants, the travel & tourism will restart categories, special tourism zones and This focus on ‘local people’ as opposed to with due checks and balances in place and creation of five missions are among the tourist can be the real 2game changer recovery will be rapid. All we must do is be provisions stipulated in the draft of the here. correctly prepared for it. new national policy to ensure sustainable, 2.National Digital Tourism Mission to A mobile app for E-tourist visa, direct air- responsible, and inclusive development of digitalize the sector seeks to empower connectivity with major overseas markets, tourism. All this and more is being done stakeholders in the tourism sector in with a goal of making India a top global utilising digital technologies. As I said destination by 2030. This is a lofty target before, integrating modern technology is but is definitely achievable if we all work critical for every business to be able to scale towards a well-crafted plan. up and to ensure better customer experience At a macro level, the sector has already while running a cost-efficient operation. put forth its suggestions for sops and tax 3.Tourism and Hospitality sector skill breaks such as IT deductions on domestic mission : Given the high employability of travel and tourism spends, allowing for LTA the sector, this Mission on skill development exemption every year etc. to be granted for is to ensure that India has the best trained sector revival. And while the government and qualified manpower to maintain high figures out its way around it, at a micro standards of service level, at our own operations level, two 4.National Mission on Destination elements need careful consideration. As Management Organisations : to focus on always, after a recession, comes a steep ensuring synergy and coordination among period of rapid growth and to make full public and private stakeholders. According use of that, it will be worthwhile for every to the Central Govt, new tourism destinations travel business, big or small, wherever have to be identified and both government they are in the value chain, to diligently agencies as well as private entrepreneurs look into (1) Scaling Up with Technology have to be involved in the process. :Is your operation taking full advantage of 5.National Mission on Tourism MSMEs to modern technologies available in all parts support and facilitate the start-ups, micro, of your business (2) A keen eye towards small and medium enterprises environment protection : Not only are As we move forward, it will be crucial more and more consumers gravitating to see how we are progressing on each. towards greener choices and even willing We can speed up achieving our targets Ansoo Gupta is founder of to pay a little extra for zero-waste holiday by managing the overlaps between the OneShoe Trust which is a , conservation programmes etc, this is missions : for example MSME mission and global advocacy platform for imperative for us if we want to sustain our Green Tourism Mission can achieve great Responsible & Mindful Travels. destinations for a long time. Think of it as results faster when working in synergy. an AMC we should pay for the destinations. I am personally very excited about all Gupta a Science graduate in Just as a factory owner takes care of their these five missions and would like only one Physics and Mathematics with machine’s wear and tear for long-term more to be added significantly: educating a post graduate in business gains, similarly we should do too. travellers on how to travel more responsibly. management and a certification Government’s new draft policy seems to By following these through we are in a good have its heart in the right place and eyes position to really catapult Indian travel and in Data Science & Machine fixed on the right target. However, like all tourism into a new orbit. Learning from HarvardX. plans, the key to success is its execution. What will be crucial is to set the right ‘The views expressed in the column are of the targets which are measurable and that all author, and may or may not be endorsed by the stakeholders can directly contribute to. It is publication.’ www.travelbizmonitor.com
TravelBiz Monitor February, 2022 n Spotlight 15 UK Virtually with VisitBritain TBM Staff | Mumbai W ith the travel restrictions in place until January 2022, VisitBritain in association with TravelBiz Monitor, organised a Virtual FAM for the Indian Travel-Trade bringing the destination virtually closer than ever before. London is the most saleable and the highest visited city in the UK for Indians. With its rich culture, history, heritage and love for sports, India and UK have a lot in common, making attractions such as the ‘Historic Royal Palaces’ and ‘Merlin Entertainment’ some of the most popular activities for Indians. Keeping that in mind, VisitBritain partnered with both these attractions giving the Indian trade a virtual look and feel of Tower of London and Warwick Castle. The VisitBritain team of Mr. Shuja Mehdi, Warwick Castle B2B Manager and Ms. Tishtar Parakh, Travel Trade Executive, welcomed the trade Crown Jewels collection, part of the Royal Kensington Palace, K Hillsborough Castle and in joining the programme, while Ms. Ann Collection, are the most powerful symbols of Gardens representing thousand years of history Wilson, Head of Sales joined by her teammates the British Monarchy and holds deep religious and Britain’s tumultuous past. Ms. Marie-Charles Houston, Sales Manager and Moving on to the second leg of the virtual Mr. Matthew Coulter, Sales Executive led the Fam was where Mr. Gaurav Seth, Head of first leg of the session, showcasing the Tower of Sales, India for Merlin Entertainment gave the London and its hidden gems. trade a taste of the Warwick Castle & Knight’s The Tower of London is a UNESCO World Village, showcasing the global presence of Heritage site which was beautifully showcased Merlin group and an insight to its presence all in a 20 minute video, giving the trade a peak over the UK. into not only the main tower, but also a tour of Warwick Castle is conveniently located at a the secret areas that are not open to general two-hour drive from the City of London, with public. In addition to that, a painting of Jesus options for self-drive, coach tours and train Christ, along with caricatures of Mother visits. Warwick Castle & Knight’s Village is a Mary which was discovered in 1953, during more engaging option for guests. It enjoys 1,100 restoration was also something that the trade years of history, 64 acres of epic grounds, shows got an opportunity to enjoy. Another such area and cultural significance in UK’s history. The and Entertainment, one of the Britain’s finest is the room with the oldest bell that is rung Historic Royal Palaces termed as ‘Place to medieval fortress, palaces to eat and sleep. The even today - every night, which has witnessed Sit and Be Stirred’ include Tower of London, Warwick Castle has the largest collection of the execution of 75 noble men in the past. The Hampton Court Palace, Banqueting House, armoury in the UK in its Great Hall. Its Time Tower offers a 10-mintue immersive multimedia experience capturing the unknown stories of Warwick Castle’s rich and vibrant history. There are two F&B options inside the Castle. At the Conservatory Tea House one can indulge in an afternoon tea, while enjoying the stunning surroundings of the Peacock Garden; as well as a varied list of food options for vegetarian guests as well. Entertainment shows like the Falconer’s Quest, which will be part of ticket cost, twice a day. Other shows include the Bowman Show, War of the Horses and The Castle Dungeon, located between first and second tower, a 15-minute activity, showcasing the darker side of the city and location. The session ended with a Q&A segment where the trade got the chance to interact with the tourism board and the two partners which Tower of London proved to be very fruitful. www.travelbizmonitor.com
16 Spotlight TravelBiz Monitor February, 2022 n Beach. According to Bandara, “Banquets will drive 6% of overall F&B revenue during the year. Compared to 16% in the previous year, this is low. However, overall F&B revenue has increased in the budget and banquets alone by 69%. Local and destination weddings will be the main area of focus during the year. Staycations certainly play a role in inspiring other local guests to want to stay with us and have the same experience.” Couples and families form their biggest chunk of customer segments. Apart from this, the property also receives a lot of travellers from Europe. “We have guests who travel all the way from Russia, UK and Germany to visit us. Our main markets in December were Sri Lanka – 55%, Russia – 11%, UK – 7%, India – 6%, currently in January it’s the CIS Markets (Russia, Ukraine, Kazakhstan) that are having Cinnamon Bentota Beach the bulk of the bookings,” revealed Bandara. It is important to mention here that Cinnamon Bentota Beach is very popular among Indian travellers. The reason behind this, according to targeting Indian weddings Bandara, is its rich culture and history that is displayed almost at every turn, which presents them with more than just a typical hotel stays. “Our Indian guests look for the beach, water sports, Indian cuisine and luxury rooms. It can The rich culture and history that is displayed almost at every turn, makes the also be the experiences we offer to guests,” said Bandara. Experiences at the property include property more than just a typical hotel stay and becoming increasingly popular fun activities for children including water among Indian travellers, writes Prasenjit Chakraborty. sports, curated excursions and specialised C destination dining that feature authentic Sri innamon Bentota Beach, the five- of the most influential Asian architects Lankan cuisine. “Guests are spoiled star resort in Sri Lanka spread over of his generation, the hotel offers a for choice with six specialised an area of 11 acres of land across rich cultural value, a repository restaurants, the highlight being, Bentota Beach enjoys a unique of art, and lavish gardens. Nossa, an all-day dining location, boasting vistas of the Indian Ocean and As it is known that the restaurant which depicts a the Bentara River. The property has 159 rooms pandemic has thrown hawker street, with different with traditional design elements unique to the spanner in the work and due types of cuisine,” he said. destination combined with luxury amenities. to this every hotel and resort Additionally, the seafood Each room offers its own view of the ocean or globally has to redefine their restaurant, Sea-Meats-Spice, vast gardens, and is enhanced by the hotel’s strategy to ensure minimum and Asian restaurant, Zest, signature experiences and services, including a revenue loses. When asked to specialising in Sri Lankan, Indian personal lifestylist for the Suites. comment, with much lesser number and Chinese cuisines, pay tribute Cinnamon Bentota Beach is a luxury, of business events due to Dilan Bandara to dishes from this part of the GM, Cinnamon Bentota Beach upscale beach resort that creates bespoke the pandemic, how are you world. “Meanwhile, Ottimo experiences for the modern traveller. Set in the compensating the decline in MICE revenue? serves a variety of pizzas and pasta together natural beauty between the Bentara River and Dilan Bandara, GM, Cinnamon Bentota Beach, with premium cuts of steak and features a choice Bentota Beach, it is the master of detail, from replied that they will focus on promoting the of Italian wines among many other unique its contemporary architecture and design to its property for weddings. “But now with tourism culinary offerings. Traditional local experiences artful cuisine. Designed by Geoffrey Bawa, one picking up in Sri Lanka, we will continue to are introduced at an in-house Artisan Village focus on this property being a first-choice offering an array of activities such as mask meeting venue for visiting business tourists. We carving, puppetry, coconut leaf art, drumming are still getting a share of local MICE events and Beeralu lessons; all traditional handicrafts and we have a few locked in for February as that are found in this region,” explained well, however international MICE programmes Bandara. are getting postponed. And biggest demand we What about various guidelines that an Indian are seeing so far with international MICE is for tourist needs to keep in mind while visiting Indian Weddings at Bentota,” he pointed out. Sri Lanka and Cinnamon Bentota Beach? As far as attracting guests is concerned, the “Apart from the general COVID19 health and property is focusing on potential wedding parties safety guidelines, we just ask our guests to be to select them as their wedding venue. Besides respectful of the art and history that make this this, they are also targeting travel influencers, hotel unique,” concluded Bandara. bloggers to experience Cinnamon Bentota prasenjit.chakraborty@saffronsynergies.in www.travelbizmonitor.com
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