Emerging Trends And Winning Strategies In Tourism

There is a lot of euphoria going forward into 2004, but Himmat Anand, COO, SITA Inbound, says it needs to be tempered with caution. The trade needs to implement initiatives for sustaining their business in this potential boom

The year 2003 ended on an optimistic note. In my personal opinion, it was a rather over-optimistic note and a hype which may catch us on the wrong foot. Yes, the feel-good factor is certainly there. Yes, India is heading for, as some say, a ‘golden era’ where everything is going just about right for the country - a booming upper middle class, a sensex breaking all barriers, an excellent monsoon and whatever. But let us not forget even for a moment, that the comparisons are being drawn with figures of the previous year which witnessed the lowest arrivals in the last five years. That is why I feel that the current positive sentiment is not a balanced one.

But let me not play spoil sport. For the industry, a lot has been achieved - rationalisation of taxes, opening up of our skies; frequent governmental recognition of the importance of our business; improvement in infrastructure etc. This, along with the increase of some 15 per cent in arrivals, is bringing back the feeling of strength and positive determination which had sunk to its lowest levels in the last two years.

Having said that, let us look at the broader canvas. I believe that the traveller of the future will look for the ‘total experience’. He would want to get involved, to a limited extent, in the local activities which happen in the places he visits. It will be increasingly difficult to sell a destination based just on heritage and monuments - a pitfall we in India must become increasingly aware of. While Culture Tourism will continue to be our back bone, we cannot afford to keep this as our only USP any longer. Many countries with old heritage and culture have developed their tourism product very aggressively in the last two decades, giving us stiff competition. In addition to this, we must also not lose sight of the desires of today’s traveller, who likes to be in control and do things himself. In my opinion, India will not achieve great numbers till such time that we do not create the environment and infrastructure in our cities where tourists can move about freely and safely on their own and plan their own activity. At the same time, I also know that doing this will not be easy and hence my continued apprehension with regard to reaching the five million ‘real tourist’ mark in the near future.

And what is giving rise to this ‘do it myself’ traveller? Most certainly, the Internet which will continue to change the way travel business is transacted. There are many of us who still feel that India is safe from the changing patterns attributed to the Net - I would not be so sure. Also contributing to this rise, are the low cost airlines like Ryan Air who make it possible to fly from London to Rome for some 25 Pounds. Every month we hear of a low cost airline being launched in some part of the world, including India, so do not miss out on the impact that this will have on our business. Both these factors are giving a boost to short haul travel, at the cost of long haul destinations as ours, making it more important for us to market ourselves even more aggressively. Further, let us also keep in mind that some Rs 40,000 crore is being spent on the highway network in the country within this decade. It is not far-fetched to think that the internationally prevalent ‘self-drive’ concept will gain ground in India in that more and more car rental companies will offer services. Travellers will have the option to book a car directly with them and plan their own holiday, rather than taking a package tour. This development of our highways network will also in turn give a fillip to the motel industry, which is already developing in a small way.

So what is the way forward? All international surveys indicate an increasingly high percentage of ageing population worldwide that has both time and disposable income. They are looking for quality and activities which bring them peace of mind and a mix of culture and soft adventure. What better destination than India? Let us create superior infrastructure, package it with yoga, spiritualism, spas and wellness and create a market segment which also boosts the image of India as a whole.

The traveller will get more and more quality conscious, more demanding and price will not be the main consideration. We in the business will have to learn to deliver more than what the client expects - not just as a one-off, but as a habit.

We at SITA Inbound, have broken our whole business into seven Strategic Business Units (SBUs), each one focusing on a geographical area or a product segment. It is primarily because of this, that we have been successful in closing the 2003 calendar year at around Rs 120 crores, inspite of all the problems that India encountered in the initial seven months. We have also identified the following as key growth areas:

1. Festival Based Tourism: Tourists, increasingly, want to participate in local activities. We at SITA will be doing one major event year, starting with Simhastha Kumbh in 2004.

2. Spas and Wellness: Great potential if marketed correctly and not undersold. People are becoming increasingly aware of their body.

3. FIT Travel: Tailor-mades and do it yourself programmes will become popular.

4. Soft Adventure: Must be part of an itinerary. Selling just culture is a sure way to lose your client base.

5. The Net and IT: We give it great importance. IT can change fortunes of the business.

What will 2004 be like? As a destination, we will certainly cross the pre-September 11 figures when India’s inbound segment was at its peak, provided the country remains stable. As SITA’s Inbound Division, we are looking at 35 per cent growth this year, which will take us close to Rs 150 crore, with an objective of reaching the Rs 200 crore mark by 2006. Over optimistic? Going by our market share and booking trends - not really.