With Indian travellers becoming more discerning and demanding, the idea of selling theme-based packages or niche products has surfaced. The question is, whether this concept will work better in luring domestic travellers over tried and tested pure destination selling. In the second and concluding part of the series, Achal Dhruva explores this growing trend...

The combined ‘War and SARS’ effect has shattered that dream of a ‘phoren’ vacation and most big tour operators have reported a decline of 30-40 per cent in outbound sales, this summer. The travel industry has yet again been buffeted by events beyond their control (Iraq war and the SARS epidemic) but unlike the aftermath of 9/11 and travel advisories against India, this time round the situation could be a ‘boon’ in disguise.

The domestic market, acknowledged for years as ‘a sleeping giant,’ is now taking centre stage. Focus had begun to shift toward this vast potential market and this summer has witnessed concrete steps in tapping this segment.

Travel Corporation of India (TCI) has introduced new packages including one called Valley of Flowers and to Srinagar with stay in house-boats, this summer. Besides this, they are also conducting educational tours (Delhi-Agra-Jaipur) for school children. “Ladakh, Bhutan, Sikkim and Kashmir are eliciting a lot of inquiries this summer,” informed Meher Bhandara, general manager, corporate communications, TCI.

Ladakh is a good example of the shifting focus toward the domestic market. In a bid to further promote tourism, The Travel and Tour Operators Association of Ladakh (TTOAL) has requested the government of India to open new areas like Nyama beyond Mahe Bridge in Chongthang, which has beautiful lakes and sites for camping like Tso-morriri and Pango-tso, two lakes accessible to tourists and major attractions. Hill stations are the most favoured destinations in summer with most tour operators offering packages to Shimla, Kullu-Manali, Nainital, Darjeeling and many more destinations.

In an effort to offer something different, Kesari Tours has introduced the new ‘Southern Hill Stations.’ They also introduced packages to Kailash Mansarovar, last year. “We took two groups of 26 people each and it was very successful. We expect a good response this year for the package and have planned to take three groups this season,” divulged Sudhir Patil, director, Kesari Tours.

Mount Kailash, a pilgrimage destination, is now being marketed by tour operators. Instead of the 14-day walk to Mount Kailash, adventure tour operators like Eco Adventures transport their customers in the comfort of land cruisers to the lake. Medical facilities and doctors are provided for the parikrama of the lake on foot.

According to Col. S S Singh, president, Adventure Tour Operators Association of India (ATOAI) and managing director Eco Adventures, companies like his will enable many more tourists, who otherwise would not make it on foot, to visit Mount Kailash. Eco-Adventures package of 20 days, which includes a trip to Lahsa is priced at Rs 70,000-80,000, with an option of one way transport by helicopter reducing the trip to 15 days. The package is quite popular with Indian tourists according to Singh, proving that this segment has the inclination for holiday with a difference and the disposable income.

While religious tourism has been the mainstay of the domestic segment, more and more tour operators are designing packages merging religious and adventure tourism to provide a more varied experience. “There is fierce competition today and one has to be innovative,” opined Iqbal Mulla, director, Treasure Tours and Travels Pvt Ltd.

Adventure and eco-tourism, are the only two thematic segments, which have managed to make inroads in the country. Adventure tourism is the fastest growing segment world over. While World Travel Mart figures peg the global growth of the segment at 35 per cent compared to 12 per cent for cultural tourism, adventure tourism in India according to ATOAI, registered a growth of over 20 per cent last year and is valued at Rs 300 crore. The growth figure is expected to double this year.

“While, there are no detailed assessments, an estimated 10,000 adventure tour operators operate in India,” informed Singh. He further stated that even the government had realised the potential of adventure tourism as a revenue generating segment and the ministry of tourism is promoting it in a big way. He informed that the government was focusing on certain areas and routes like Manali-Leh Road, Hindustan-Tibet Road, Lahul, Spiti and Kinner areas, setting up and developing infrastructure. An adventure equipment park has also been established in Sikkim to boost adventure tourism in the region.

However, the new buzz word eco-tourism is not only prominent on the agenda of big tour operators but has witnessed a proliferation of companies only dealing in eco-tours. However, according to Ravi Goel, director, Eco Mantra, the term eco-tourism is being bandied about very loosely in the country. “We only indulge in nature tourism. Generally, social, cultural and archeological tourism are also clubbed under eco-tourism. Our tours and packages are not purely leisure but incorporate nature education through games and quizzes. We also conduct adventure activities on the tours but that is a small aspect. We specialise in wildlife sanctuaries and besides fixed intineries, we also do customised tours,” informed Goel.

According to Goel, nature tourism is growing at 35 per cent world over. “India has got nearly 475 national parks. The government should promote nature tourism and market it well, as this is a big prospective market. Our package of five nights and six days priced at Rs 7,500 per person to Coorg is quite popular. We also conduct a lot of treks like Roop Kund, Milam, Harki Dun, Valley of Flowers, Shingloa etc but with emphasis on nature education. In a short span of one year of operations, we have seen increasing demand for our kind of nature tours,” added Goel.

Domestic tourism has also received a boost this summer with the re-introduction of LTC. The scheme introduced by Indian Railways enabling tour operators to do block bookings has also helped to boost domestic tourism. Raj Travels has tied up with Indian Railways and reserved three tier coaches on the Mumbai-Delhi for their weekly departures of packages to Himachal Pradesh and Srinagar, this summer.

According to Lalit Seth, director, Raj Travels, the margins in domestic market is very low. Basically, this particular segment was more volume driven. Further, according to Bhandara, only 10 per cent of her customers demanded customised package though the percentage is increasing every year.

The concept of thematic tours, has certainly arrived in India but is still to make its mark. Mulla stated that while Treasure Tours and Travels has been a pioneer in thematic tours with photography tours, gourmet tours, shopping tours, bicycle tours, fishing tours etc they were all designed for the international clientele. “We have not really tried to tap the domestic segment for these tours. With the domestic segment becoming more aware and discerning, thematic tours is certainly the market of the future,” informed Mulla.

A lot of initiative can be seen in the country as far as thematic tours are concerned. “We have recommended the setting up of an eco-trail, a week long package on Konkan Railway. The journey to Kochi by rail offers a plethora of diverse attractions. This can be a trend-setter of sorts,” informed Singh. Most states, according to Singh, had the potential to develop a certain aspect to promote thematic tours for example Maharashtra can popularise the Mumbai-Goa route with virgin beaches, historic forts and the scenic beauty of Konkan as a great driving experience. However, the general consensus among the travel fraternity is that while thematic will be a major driving force in the domestic market it will take some time before it really takes off.