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

Travel Industry sees Spurt in Traffic during Christmas, New Year

What are your plans for Christmas and New Year this year? Will you be joining the growing number of people who ate taking advantage of the fact that the prices of travel packages for international destinations are either lower or at the same level as last year? Or that a number of new destinations are being promoted for Christmas and New Year, both of which incidentally fall on weekends?

According to Mr J.B. Singh, the President and Chief Executive Officer, Galileo India, there is likely to be a "spurt of 6-8 per cent" in traffic in December this year over the previous year. Industry analysts estimate that there has been a 10-15 per cent increase in the number of people seeking international holiday packages during this year's Christmas and New Year Breaks.

"Outbound is seeing a big change with people going beyond traditional choices like Bangkok and Kuala Lumpur to more exotic locations including Hua Hin in Thailand, Vietnam, Bhutan and Cambodia," Mr Singh adds.

Another package, in the premium luxury range, that seems to be catching the fancy of the Indian market is winter cruises in the Antarctica and South America, Director - Group Business Development, STIC Travel Group, Ms Richa Goyal Sikri, says. Adds the Chief Operating Officer, Ezeego1.com, Ms Neelu Singh, "Apart from traditional tourist destinations like Dubai, Colombo and Malaysia, Cyprus is catching the interest of the Indian traveller." And then there are also the usual destinations with a few more attractions thrown in says Ms Sikri, "There are some really attractive holiday packages available to places like Hong Kong. Now a person can spend two nights and three days in Hong Kong with a tour to Disneyland for Rs 24,000." Analysts also point out that this spurt in traffic could be because of families that have not taken breaks during the year are now taking advantage of Christmas and New Year Vacations falling on weekends.

Besides, according to the Chief Operating Officer, Outbound Division Kuoni India, Ms Kashmira Commissariat, families going on holidays over long weekends is becoming a trend amongst Indians.

Source:
The Hindu Business Line
December 2009
Edition - New Delhi

Dubai Tourism to feel crisis pinch post Festive Season

The impact of the Dubai crisis is expected to cast its spell on tourism fraternity not before January 2010 with airfares and hotel room rates expecting to fall by 10%-15%. However, no significant impact of the crisis will be felt till December since holiday makers have already booked their air travel and hotel accommodation.

Said Rajinder Rai, president, Travel Agents Association of India (TAAI), "Bookings for the Christmas and New Year Holiday Packages are isolated from the crisis since they were done well in advance (in October). The real impact of the crisis will be felt only by January when we expect prices to drop, making Dubai 20% cheaper than what it is today. Till then, we do not see any significant impact on the leisure and business travel or our business."

The average cost of a holiday in Dubai with airfare for two people works out to around Rs 35,000 for three nights/four days.

Neelu Singh, chief operating officer, Ezeego1.com, said, "With more than 100 flights from at least 10 destinations in India, per week, Dubai seems to be a very attractive place for shoppers, and it is a great weekend getaway. Further, the hotel rates in Dubai have come down as they are receiving fewer tourists from their other source markets. This has helped Indian travellers, as they are now getting attractive deals." She added, "Dubai has shown strong growth in terms of tourist traffic and the tourism industry is growing at a rapid pace. We feel that in the next one year, the meeting, incentive, conference and exhibition (MICE) business in Dubai will grow by at least 25%."

An email sent to the department of tourism and commerce marketing (DTCM) in Mumbai went unanswered.

However, SP Jain, chairman, Pride Hotels, and president, Hotel and Restaurant Association of Western India, said, "There will not be any significant rise in outbound traffic to Dubai due to the expected price crash. Indians, at present, see Dubai more as a business destination other than a tourist spot."

Around 4,93,318 Indian travelers visited Dubai in 2008 as compared to 410,821 in 2007, a growth of 20%. According to DTCM figures, there was an increase of 8.3% in the number of hotel guests in 2008 to Dubai compared with the previous year. The guest nights rose by 9.2% in 2008 to touch 22,421,067. However, the average length of stay went down to 2.98 compared with 7.3 in 2007. The total revenues rose 15.1% with the hotel establishments reporting revenues of AED15,268,545.

Similarly, the number of hotel establishment rooms increased by 17.9% to reach 50,457 in 2008.

SOURCE:
The Financial Express
Date - 4 December 2009
Edition - New Delhi