Don’t miss the latest developments in business and finance.

Tourists get individual

Image
Ravi Teja Sharma New Delhi
Last Updated : Jun 14 2013 | 5:28 PM IST
Group sizes shrink but individuals pay more and stay longer to boot.
 
For years, a major chunk of travel to India happened in groups, sometimes large groups. But not anymore.
 
According to Indian tour operators, the trend is now changing as more and more people are showing an inclination towards doing things on their own. Compare this: Five years ago, a good group size for a tour operator was 20-25 people. Today, this has come down to 15-18 people.
 
"Most group tourists are either the elderly or people with a language problem and, therefore, they prefer to be on their own," says Himmat Anand, chief operating officer, SITA Destination Management. Over the last two years, the group to FIT (foreign individual traveller) ratio for SITA has changed from 85:15 to 65:35.
 
The good part is that an FIT does not want to do the regular stuff "" which in India would mean covering the golden triangle or a trip to Kerala. By the time an FIT lands in India, he has researched extensively on the Internet and knows about exclusive properties and offbeat destinations.
 
"FITs today demand boutique hotels and havelis in Luni near Jodhpur, or Kumbalgarh between Jodhpur and Udaipur. Put simply, they want 'off-the-beaten-track' destinations," explains Anand.
 
According to Anand, these travellers choose to stay longer (two weeks) than regular groups (10-11 days) and like to explore niche tourism segments like spa, ayurveda, soft adventure, rafting, wildlife holidays, rather than just the regular Rajasthan or Kerala itineraries.
 
Sunirmol Ghosh, managing director, Indo Asia Tours, lends a different perspective to this trend. "Practically, it is difficult to get rooms for large groups at our destinations. At another level, it is because people today are much more 'I'-centric, and feel that if they can afford it, then why travel with others," he says.
 
A lot of the FIT business that he handles seeks specialised hotels and wants to spend time with their partners and experience ultimate luxury, which they are ready to pay for.
 
From a 90:10 ratio of group versus FIT, Indo Asia Tours' business has changed to 75:25 ratio and should end this year at 70:30. And most important, the FITs are better in quality and offer better margins.
 
Anand agrees. "FITs pay more. And for that price they seek privacy and that the tour be designed to suit their individual needs," he says. At SITA, FITs pay at least 15 per cent more than group travellers.
 
Besides, the Internet has brought about global connectivity. Its impact being that the Net savvy FITs have started booking directly with hotels. This trend is beginning to alarm tour operators. According to a conservative estimate, Ghosh admits to losing at least 10 per cent business year-on-year to direct business to hotels.
 
At least 20-25 per cent of the FIT business at WelcomHotel Rajputana Palace Sheraton in Jaipur comes directly to the hotel. Sanjay Kirpal, general manager, WelcomHotel Rajputana Palace Sheraton, Jaipur, says that FIT traffic to his hotel has grown by 25 per cent over the last year.
 
"The reduction in group business is also related to the high package prices for groups," he says, adding that FITs pay 35 per cent more for a room as compared to group travellers.
 
In Delhi, for Surya Crowne Plaza, the FIT to group ratio has changed from 90:10 to 65:35 in the last two years. "FIT business has grown by over 100 per cent for us," says its general manager Greesh Bindra.
 
For The Park, New Delhi, there has been a 12 per cent growth in FIT room nights and a 18-20 per cent growth in revenues from FITs, says
 
Rohit Arora, director (leisure sales), The Park. Surprisingly, their business mix is 60 per cent FIT and 40 per cent group travel.
 
Biswajit Chakraborty, general manager, Leela Kovalam, also concedes that web bookings are growing tremendously for the hotel. According to him, the yield from direct business is better as there is no commission involved.
 
Anand, however, dismisses the agents' fears saying that India is not a self-sufficient and 'do-it-on-your-own' travel destination. At least, not yet.

 
 

Also Read

First Published: Nov 29 2006 | 12:00 AM IST

Next Story