Small town India creating waves in cruise industry

When Jagdeep Mahadikar and his wife Nalini wanted to go on a holiday this year, they took a cruise from Singapore, so did Maya and Inderjit Singh. Nothing exceptional about that: Except, Mahadikars are sugar farmers from Sangli while Singhs own an auto spare parts business in Ludhiana.

Going by the figures available from the travel industry, cruises are no longer as tony or upper crust as they were once. The new hunting grounds for cruise companies are cities like Indore, Sangli, Karad, Aurangabad, Guwahati, Lucknow and Raipur which have an emerging population of the 'nouveau riche' with high aspirational values.

As price points drop and awareness and availability of these exotic holiday options increase, more Indians down the pecking order are taking to holidaying on the high seas. While a US or European cruise is likely to cost above a lakh per head, the cheaper cruises out of Singapore are for about a third of the price.

That is what is pushing the market. For instance, as much as 20 per cent of Star Cruise's Indian revenues come from second and third tier cities. Says Naresh Rawal, head of marketing for Star Cruises in India, "It is not that people in these markets did not have money before, rather they are now spending on travel remain one up on the Joneses."

In fact, so large is the Indian contingent from these cities that Star Cruise which offers packages out of Singapore has an exclusive Indian restaurant with Jain meals on the regular menu on board their ship. Nearly 750 Indians take their Singapore based cruises every week.

Says Rawal, "Maximum enquiries we get are from cities like Guwahati, Ludhiana, Sangli and Indore." Star is launching the first domestic cruise in India later this month. The push of out-bound travellers are dropping international air travel rates and increasing seats on airlines flying out of India.

Says Charles Penry GM South Asia Etihad Airlines, "As more seats become available and supply increases, the number of people flying out will also rise."

The cruise is the small but fastest growing segment of the galloping out-bound traffic from India. Globally, the cruise industry is forecast to grow at over 8 per cent this year. In India, it is expected to grow at around 12 per cent.

Says Sheema Vohra of Marriott Global, "As the economy booms and affluence percolates down the line and aspiration levels rise to match the metros, status symbols like holidaying abroad come into greater vogue," adds Gautam Chadha of New Delhi-based Tirun Travels which represents the more up market Royal Caribbean Cruise, "Customers who cruise in Europe and North America are generally top of the rung mature travellers who can afford the more expensive cruises."

These cruises tend to be longer with 7-day packages as opposed to the shorter Singaporean ones.

Over the last one year, operators on the Europe and North America circuit - Norwegian Cruises, Holland America and Princess Cruises - have set up shop in India. This indicates that the industry is bullish on the country.

Says Chadha, "There is so much to see and so many people wanting to see that cruise sales will continue to grow in the foreseeable future." Bon Voyage

The new hunting grounds for cruise companies are cities such as Indore, Sangli, Karad, Aurangabad, Guwahati, Lucknow and Raipur which have an emerging population of the 'nouveau riche' with high aspirational values

While a US or European cruise is likely to cost above a lakh per head, the cheaper cruises out of Singapore are for about a third of the price

Nearly 750 Indians take Singapore cruises every week