Friday, January 29, 2010

MakeMyTrip launches Fly Free Domestic Summer Holidays across India

MakeMyTrip, the leader in the Indian online travel space and provider of best-value holidays, has announced its all inclusive summer holiday packages for 2010. These holidays have been created to provide a great degree of flexibility to the traveller, for the first time in the Indian domestic travel space.

Demonstrating high customer focus & understating of modern travel needs, MakeMyTrip Summer Holiday Packages offer industry-first offerings such as:
- Packages inclusive of airfare with a flexibility to travel form 6 major cities across India
- Packages starting from major cities as opposed to traditional departures only from the hub cities of holiday packages
- Daily departures, so that travelers can select date as per convenience

Packages have been created for destinations in Himachal, Ladakh, Kashmir, Uttarakhand, the North-East and South India. Departure hubs include Delhi, Mumbai, Ahmedabad, Kolkata, Bangalore and Chennai. Package cost and itinerary details have been elaborated upon in the annexure.

Elaborating on the new holiday offering, Mr. Keyur Joshi (COO and Co-Founder, MakeMyTrip.com), said, "We have created best-value holidays with elements that have never been offered in the Indian market before. For this, we have utilized our special relationships in the aviation sector as the largest sellers of air tickets in India. We have packaged the best of air and hotel deals to deliver great value & flexibility to Indian travelers.

Mr. Joshi added, "This will change the landscape of the domestic travel industry and how travellers buy holidays in India. MakeMyTrip has always offered greater choice and flexibility to travellers, and we are re-iterating our brand promise with these new products. Our new offering gives customers, the flexibility to choose any departure date against the traditional approach of 4-6 fixed dates of departure.

We will be offering "fly free holiday packages", at no extra cost, from various cities. Now travelers can choose to start their travel from 6 major cities and not pay extra for airfare to reach a fixed hub. For e.g. our flight inclusive Kashmir Package starts from various cities like Mumbai, Ahmedabad, Kolkata, Bangalore, Chennai and Delhi as opposed to traditional fixed itinerary package which would start from only Delhi. Reaching holiday destination by flight not just saves time but also gives an experience to customer to have good time with their family.

SOURCE: Afaqs.com
Date - 28 January 2010
Edition - National

Monday, January 25, 2010

OTAs say Business Outlook for 2010 is Quite Positive

Going by conventional wisdom, the fall in tourism was most evident in the drop in traffic volume of airline companies and receding occupancy of hotels. This would have meant that Online Travel Agency (OTA) business also came under tremendous pressure. However, surprisingly, the OTA fraternity is presenting a contrarian picture. It is the only segment of the travel and tourism sector claiming that 2009 was not as disappointing for them as it is widely believed.

Online booking of travel products is escalating
According to leading players in the OTA segment, their businesses did not have to bear tremendous pressures because the volume of consumers switching over to online tools for their travel related buying is increasing every year. This trend picked up pace about three-tour years ago and has been consistently multiplying ever since. And while the story began with LCCs, consumers are now getting hotel and rail related options also online. "While the US market is clearly the largest online travel market in the world, the 'offline to online shift' has been the fastest ever in the Indian market, with over 40 percent of all air tickets being bought online in under three years. From $295 million in 2005, the market for online travel bookings is estimated to grow to $6 billion by 2010 and OTAs are expected to corner around 23 percent share of the total travel market," says Deep Kalra, founder and CEO of MakeMyTrip.com. According to him, although discretionary travel has been impacted by the economic slowdown, MakeMyTrip (MMT) has witnessed growth in both, the outbound and inbound divisions, of its holiday offerings.

For Travelocity also, 2009 has been a satisfactory year in the business sense. "We started our journey in India by focusing on the two most lucrative segments of travel - outbound and the hotel segment. We have reached a unique leadership position in both these segments in India in 2009," says Himanshu Singh, managing director, Travelocity India. He believes that Travelocity will continue to invest and grow in both of these segments in 2010. "Our expectations are that both these categories will witness tremendous growth at the rate of more than 100 percent in the next three years," states Singh. Hrush Bhatt, founder and director (Product and Strategy), Cleartrip also has no complains with 2009. "We're very happy with the progress our company has made in 2009. January 2009 was our first profitable month and we've maintained that profitability through the year; December has marked twelve straight months of profitability for Cleartrip," reveals Bhatt. Another player in the industry Ezeego1 commenced corporate travel distribution and added a significance client base in 2009. "In 2010, our focus would be on enhancing product offerings as well as to increase sales of non-air products," Neelu Singh, COO, Ezeego1 says.

Diversification of product portfolio is success mantra
Another reason for their success cited by online players is diversification of their product portfolio as a timely response to the crisis. Earlier, OTAs were focused mainly on the air segment; now the scene is gradually changing. After establishing themselves in the air segment, they have started diversifying into non-air segments. "While the initial growth driver for MakeMyTrip was air tickets, we also made efforts to grow the non-air business by offering holidays and online hotel bookings, since real growth and revenue would be achieved only by making inroads in these high margin categories. We have also added rail bookings to our expansive portfolio of online services," informs Kalra. Singh also expresses immense optimism about the growth in the hotel segment. "We expect the non-air segment to contribute about 30 percent of our revenues in 2010," concludes Bhatt. According to Neelu Singh, Ezeego1 has been witnessing a steady increase in the sales of non-air products since the launch of the website. "We have sold destinations online that generally are not sold even in the traditional travel companies," she informs.

Online hotel bookings to be the main locus in 2010
Much along expected lines, OTAs have identified hotels as the next big-ticket segment to draw consumer volume and enhance the baseline of their businesses. However, a major challenge being addressed by OTA payers are structural imbalances that have hampered the growth of online sales of hotels. With increasing competition for airline bookings in the online travel space, players of this faction are now looking to tap the next big segment which is hotel industry. Travelocity, which recently acquired Travelguru, is already looking to strengthen their position in the online hotel bookings segment. OTAs like MakeMyTrip, Cleartrip have also geared up for an improved the share in the pie.

Changing customer mindset
However, the moot question is: why are hotel bookings on the net not as popular as air bookings? Kalra opines that the success of online hotel bookings rests on influencing buying habits and purchasing behavior. "People are used to driving down to destinations, requesting acquaintances in off-station locations to assist with bookings, making the decision in an ad hoc fashion or walking into hotels to book directly. This will change if travelers are made to realize that it is better to take informed decisions by checking hotel pictures, videos and, reviews by other customers," he says. However, Kalra feels that in recent times, online hotel bookings have started picking up with hoteliers realizing the strength of this segment and partnering with OTAs to market their properties. "Initially, hotels - the budget and 2-3 star hotels in particular were oblivious to the internet as a viable distribution channel. However, with occupancies being low, they are realizing that the bookings they get through OTAs is incremental and the internet is a new way in which they can reach out to more customers. As more hotels list themselves on OTA sites and the end customer receives greater choice of offerings ranging from budget home stays to five-star luxury online, the .online side of the hotels business will pick up," he adds.

Travelocity bought Travelguru to complement its online business and help it access more than 4,000 hotels in India. "We have been constantly striving to provide the best of services and product offerings to our customers. We have strengthened our hotel offering after acquiring India's largest hotel distribution, network Travelguru and Desiya.com. We have had reasonably good success with international flights, hotels and dynamic packaging in 2009 and remain confident of the same " growth and success for
2010 as well," reveals Singh. For Cleartrip, the hotel business produced good results in 2009. "We have been much more active in the area of direct hotel contracting in 2009 and we will continue to do the same even more aggressively in 2010. Hoteliers are very excited about the opportunity to work directly with us due to the tool we provide them to manage rates and inventory on our sales channels," states Bhatt.

Analysts believe that the hefty commission which ranges between 9-25 percent charged by OTAs on every hotel bookings is the main deterrent for hoteliers to come forward and offer their inventories to OTAs. Contrary to this, the commission for air bookings is in the single digit. Secondly, the hotel industry is not as organised and it is difficult for OTAs to aggregate a huge inventory. The period till May 2009, there was a sharp decline in the industry, by almost 40-45 percent. The second half of 2009 has seen a considerable rise in business, demonstrating a 10-12 percent growth. However, it is still not enough to make up for the losses witnessed in HI. We are expecting a 5-10 percent year-on-year increase in the coming months and are bullish that businesses are likely to gain in the first quarter of 2010.

JBS: We did not have a good start this year what with the global financial crisis, the terror strikes the outbreak...of swine flu. The first half of the year experienced double-digit dip in arrivals. However, we are very hopeful for the coming year. The economy is picking up, we are seeing interest in India and, of course, we are looking forward to the Commonwealth Games to spur the boom in the industry.

SOURCE: Travel Trends Today
Date - January 2010
Edition - National

Saturday, January 16, 2010

Kumbh, Solar Eclipse bless Travel sector with Maha Gains

The millennium's longest solar eclipse tomorrow that coincides with the Mahakumbh Mela has proved lucky for the travel industry. Hotels and travel companies are cashing with special packages for the domestic tourists who throng Haridwar-Rishikesh circuit for a spiritual dip in the Ganga, as well as the international tourists who are interested in being part of the largest religious and cultural gathering in the world. Meanwhile others like Oberoi Hotels who have a luxury motor vessel at the Kerala Backwaters is organizing a special viewing session in collaboration with a team from Science Popularization Association of Communicators and Educators (SPACE).

The total solar eclipse can only be in India in the states of Kerala and Tamil Nadu. "Mahakumbh typically witnesses an inflow of foreign tourists to experience our culture and heritage.

We are receiving guests from US, UK and mainland Europe," said Leisure Hotels director-marketing Vibhas Prasad. Leisure Hotels is running its luxury tents and a heritage hotel in Haridwar and other spiritual places along the Ganga. He added that the solar eclipse has especially drawn a large number of domestic tourists over the weekend.

The high-end hotels and tents at Haridwar-Rishikesh circuit are available in the range of Rs 15,000- Rs 10,000 for two persons for 2 day/3 nights and usually include meals. While the mid-scale hotels and packages are available in the range Rs 6000-4000 for 2 days. The coming weekend has an especially large influx of tourists and last minute bookings because of the added attraction of the solar eclipse.

The Kumbh Mela, which started on Thursday, will end on April 14th and has seven auspicious bathing dates. Prices are usually hiked by hotels , tent owners and travel companies around these seven days. Added Kuoni India COO-outbound division Kashmira Commissariat, "We are customizing our packages around the solar eclipse which includes other leisure activities at Rishikesh besides the holy dip at the Ganges on Friday and other traditional ceremonies. But an event which happens once in 12 years is not just drawing families and spiritual tourists.

"There are a lot of youngsters as well as couples who are booking for this weekend as well as all through the Kumbh Mela, more out of the spirit of adventure and to experience something new," said Stic Travel Group director Richa Goyal Sikri. Most of these packages have devoted sightseeing for nearby tourist destinations. As per Sarovar Hotels vice president marketing Pradeep Kalra hotels in the region have already increased their rates by nearly 30-50%. A larger number of domestic tourists from Western Indian and Gujarat are expected to trickle in the months of March and April as schools close at that time.

SOURCE: The Economic times
Date - 15 January 2010
Edition - New Delhi

Tuesday, January 12, 2010

MakeMyTrip offers Fly Free Packages to US and Europe

MakeMyTrip, the leader in the Indian online travel space and provider of best-value holidays, has launched maximum-saver US and European holidays for April - September 2010. The packages span the range of value-to-luxury spectrum, covering all categories of holidays. As part of the promotional offering, packages booked till January 26th will exclude the entire airfare component (including taxes) - effectively rendering the to-and-fro air travel as free. This offer does not have any hidden costs. For the first time in India, the Alaskan Cruise has been included in an escorted group package to America. Another attraction is Pike's Peak in Colorado Springs - the world's highest cog railroad. Similarly, escorted group packages to Europe now include first-in-industry highlights like a visit to the Galleria Ferrari - the Ferrari company museum in Italy, and Disneyland, Paris. The Ferrari museum visit offers travelers the opportunity to see vintage cars and even test drive them.

There are four American Holiday packages newly launched between the range of Rs. 1,59,999 to Rs. 3,26,000. This is an all-inclusive cost with no hidden components. The four newly-launched Europe Holiday Packages are in the range of Rs. 59,990 to Rs. 1,99,990.

Elaborating on the new holiday offering, Mr. Anand Kandadai (VP - Outbound Tours, MakeMyTrip.com), said, "The sheer number of holiday offerings in the market can leave a traveler confused about the parameters on which to finalize a holiday. As a trusted service provider, our best-value guarantee assures customers of receiving the fairest deal in the market. Our new range of holidays caters to travelers looking for affordable holidays which do not compromise on any aspect of the holiday experience - comfort, adventure or scale. Each element of the holiday has been designed keeping in mind the needs of different age-groups to ensure relevance for every member of the family."

Mr. Kandadai added, "This initiative is in line with our strategy to expand the international holidays market and make international holidays more accessible to the value-conscious Indian customer. We will support this launch with aggressive on-ground and media marketing. We are offering feature-packed premium holidays accompanied with transparent pricing and real-value offerings."

The marketing activities planned around the launch of these Holiday packages include a comprehensive mix of ATL and BTL promotions. MakeMyTrip will promote these packages through road-shows across 31 locations in India where they have retail presence. The company has earmarked a significant budget to promote these packages through advertising in the print and television media as well as local marketing activities.

SOURCE: Afaqs.com
Date - 11 January 2010
Edition - National

Tuesday, January 5, 2010

Downturn over, Delhiites loosen their purse strings and turn footloose

Bhupeshwar Dayal, 34, a corporate lawyer, calls himself a 'compulsive traveller', — one who cannot do without at least two holidays in a year.

In the past one year, he has had to put his holiday plans on hold, thanks to the economic meltdown that led to a sharp decline in his earnings.

But last month, Dayal finally booked a trip to Munnar in Kerala.

"Last month, I got my first fat cheque after a year. So, the time for 'homecation' is over. This Christmas, I am going to Kerala with my wife; and then I am off to Australia in January," said Dayal.

Neetu Gupta, 35, an IT professional who cancelled a trip to northeast last year, will be spending the New Year's eve in Arunachal Pradesh.

"Although we go on vacations every year, last year we thought it would not be prudent to spend money on travel. But this year, I will fulfill my dream of visiting the North East India," she said.

With the economy showing strong signs of recovery, Delhiites tired of what they call 'homecationing', are going on holidays in droves.

Travel agencies and tour operators say there is a surge in bookings for New Year and Christmas.

"There is a dramatic rise in travel bookings, as compared to the last holiday season in May and June. In fact, the bookings have gone up 45 per cent. Delhi is leading the recovery for us, as a large chunk of our bookings are from Delhi and NCR," said Amit Sabharwal, vice-president, business development, Makemytrip.com.

With the economy showing signs of recovery, Sabharwal said his company had anticipated this demand and pre-committed seats on airlines in October.

Neelu Singh, COO, ezeego1.com, said, "There is about 70 per cent increase in our bookings from Delhi this year. Unlike last year, when people were looking for budget travel, this year people are going for high-value bookings. It's because of the easing of financial worries," she said.

The spurt in bookings has led to the hotels and airlines, which were offering huge discounts until a few months ago, revising their rates.

"Business has improved considerably. In fact, hotel tariffs and airfares have gone up 15-20 per cent in the past one month. As always, Delhi is the hottest destination for inbound tourists, too," said Arjun Sharma, senior vice-president, Indian Association of Tour Operators (IATO), and managing director, Le Passage to India Travels and Tours.

So, where are Delhiites headed? Thailand and Malaysia are the favourite foreign destinations. Within the country, apart from Goa and Kerala, Andaman Islands are on top of the travel itinerary.

SOURCE: Hindustan Times
Date - December 2009
Edition - New Delhi