Tourism Is Booming, But In India It Is Marred By A Huge Capacity Problem

The Travel Agents Association of India (TAAI) recently held its Annual General Meeting where it elected its new office bearers. C V Prasad, Managing Director, Travel Express Ltd, Hyderabad, was elected as the vice-president of TAAI. He speaks to Express Travel & Tourism about his plans for the travel fraternity.

Where will you guide TAAI from here?

There are very exciting times ahead of us. TAAI will be playing a crucial role in moulding the future of it members than it ever did in the past. Our goal is simple and straight forward - to ensure the long term prosperity of the smallest travel agent in India. We will do whatever it takes to achieve that goal.

Which are the main issues you plan to take up?

The broader picture is that technology is forcing a paradigm shift in the way travel is distributed. The biggest challenge is to stay relevant and continue to add value. The micro issues are many - service tax, airline commissions - the real commission is only about 2 per cent although on paper it is 5 per cent. The emergence of low-cost carriers in both domestic and international segments of business, airline taxes, capacity shortage for inbound and domestic tourism, increasing cost of the domestic tourism product, etc. We need to sit down and prioritise them.

Tourism is booming the world over. Can you comment on your approach route to make tourism sustainable in the country and what can TAAI do in this regard?

Tourism is booming, but in India it is marred by a huge capacity problem. There are simply not enough hotel rooms available in the country and consequently the product has become very expensive. The airfares are under control but land costs and fuel surcharges are soaring.

There is also very little organised effort to promote domestic tourism. In fact neighbouring countries such as Sri Lanka, Singapore, Malaysia, and Nepal are attracting the budget conscious domestic travellers since the domestic tourism product is so expensive. We would like to work more closely with state governments to help develop domestic tourism product and create tourism friendly states.

India has a huge inventory of two and three star rooms in the country. A concerted educational campaign with some kind of incentives is necessary to help these hotels upgrade their offerings. The need is for more clean and hygienic rooms. Hygiene should not be the exclusive preserve of 5-star hotels. We must make it a culture across the entire hospitality and tourism industry.

What are the other concerns you will try to focus on?

We need to strike a fine balance between the day to day issues that are a hassle for the agents and the long-term goals. We cannot loose sight of the long-term goal and need to ensure the long term prosperity of the smallest travel agent in India while negotiating day to day issues.