 "It is raining discounts for holiday makers")
A diamond on every booking for Belgium, early bird discounts and tours at a fixed dollar rate. With rupee sliding each month raising travel costs tour operators are finding innovative ways to lure desi tourists. Industry sources say the promotions will get aggressive in the coming months as tour companies face pressure due to increased competition and pressure on volumes.
While large tour operators like Cox & Kings and Kuoni remain upbeat about the growth in outbound tours there are concerns that rising costs may put a brake on growth. Industry sources say the volume on overseas tours are 8-10% lower than last year.
While Trafalgar Holidays, which expanded its sales network in India last year, is offering 7.5% savings on its autumn and winter tours to Europe, online portal Via.com is promoting its Belgium package with a small size diamond on every booking.
Tajinder Sachdeva, head of leisure tours at the Via.com said, "We have tied up with Flanders Tourism (a region in Belgium). Antwerp is known as diamond capital of the world. We are giving a small size diamond valued Rs 5,000-15,000 to customers as a token gift. So far we have received ten bookings after announcing the package last week.''
"Offering price discounts is common. We could have done the same but we wanted to do something different. So we are giving a token gift,'' he added.
Last year Cox & Kings had done something similar. To boost volumes on its domestic packages it offered one gm gold coin to any one who booked on the Bharat Dekho Gold Rush offer. Ten lucky travellers won a bigger prize. Till late last month (Late July) Cox & Kings was offering customers a choice of an add-on tour to Singapore or Malaysia or a two thre day trip on a cruise ship and regularly offers cash back offers.
In India Cox & Kings, earns 75% of its revenue from leisure and meeting-incentive tours, the balance comes from inbound tourism, corporate business and foreign exchange.
Karan Anand, head-relationships at Cox & Kings said, "It (cash back or free holidays) does not impact our profitability as we negotiate the best possible deal with our suppliers and this is passed on to our customers.''
"There has been growth in double digits, however, I cannot quantify it as we are in the silent period. Promotions and discounts are seasonal and they vary depending on market conditions,'' he added.
Om Prakash, director of Orbit Tours stated the discounts offered to customers are in built in product price. No tour company pays out of its pocket."
According to him, the volume on overseas tours is 8-10% lower this year as tour costs have escalated both due to rupee depreciation and increase in hotel and transportation charges.
Kuoni is offering tours with a fixed exchange rate component to lure holiday makers. Dollar component in a foreign tour varies according to destination and covers hotels, transport, meals and sight seeing costs at the destination.
Vishal Suri, chief executive officer, tour operating, Kuoni, said, "We are offering attractive discounts that will attract travelers to visit countries despite the fall in rupee. This is a book early and save deal, where we are offering the customer a special offer of a fixed ROE of Rs 58 to a US dollar if he books his/her holiday within the limited offer period.
"We believe that the Indian travelers will continue to travel and will plan alternatives holiday options within their budget. Travelers are opting for breaks where price is controllable. We have focused on the value within our propositions & will continue to provide affordable, high quality experiences. There has been considerable demand for domestic and short-haul holidays," he added.
While large tour operators like Cox & Kings and Kuoni remain upbeat about the growth in outbound tours there are concerns that rising costs may put a brake on growth. Industry sources say the volume on overseas tours are 8-10% lower than last year.
While Trafalgar Holidays, which expanded its sales network in India last year, is offering 7.5% savings on its autumn and winter tours to Europe, online portal Via.com is promoting its Belgium package with a small size diamond on every booking.
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"The year-end holiday season is fast trending up all across the world. Travel outbound can be pocket friendly as well due to cheap air tickets compared to peak summer prices,'' said Nicholas Lim, regional director of Trafalgar (Asia).
Tajinder Sachdeva, head of leisure tours at the Via.com said, "We have tied up with Flanders Tourism (a region in Belgium). Antwerp is known as diamond capital of the world. We are giving a small size diamond valued Rs 5,000-15,000 to customers as a token gift. So far we have received ten bookings after announcing the package last week.''
"Offering price discounts is common. We could have done the same but we wanted to do something different. So we are giving a token gift,'' he added.
Last year Cox & Kings had done something similar. To boost volumes on its domestic packages it offered one gm gold coin to any one who booked on the Bharat Dekho Gold Rush offer. Ten lucky travellers won a bigger prize. Till late last month (Late July) Cox & Kings was offering customers a choice of an add-on tour to Singapore or Malaysia or a two thre day trip on a cruise ship and regularly offers cash back offers.
In India Cox & Kings, earns 75% of its revenue from leisure and meeting-incentive tours, the balance comes from inbound tourism, corporate business and foreign exchange.
Karan Anand, head-relationships at Cox & Kings said, "It (cash back or free holidays) does not impact our profitability as we negotiate the best possible deal with our suppliers and this is passed on to our customers.''
"There has been growth in double digits, however, I cannot quantify it as we are in the silent period. Promotions and discounts are seasonal and they vary depending on market conditions,'' he added.
Om Prakash, director of Orbit Tours stated the discounts offered to customers are in built in product price. No tour company pays out of its pocket."
According to him, the volume on overseas tours is 8-10% lower this year as tour costs have escalated both due to rupee depreciation and increase in hotel and transportation charges.
Kuoni is offering tours with a fixed exchange rate component to lure holiday makers. Dollar component in a foreign tour varies according to destination and covers hotels, transport, meals and sight seeing costs at the destination.
Vishal Suri, chief executive officer, tour operating, Kuoni, said, "We are offering attractive discounts that will attract travelers to visit countries despite the fall in rupee. This is a book early and save deal, where we are offering the customer a special offer of a fixed ROE of Rs 58 to a US dollar if he books his/her holiday within the limited offer period.
"We believe that the Indian travelers will continue to travel and will plan alternatives holiday options within their budget. Travelers are opting for breaks where price is controllable. We have focused on the value within our propositions & will continue to provide affordable, high quality experiences. There has been considerable demand for domestic and short-haul holidays," he added.