Indian biz destinations see dramatic decrease in air ticket and hotel prices
The average ticket price for top corporate travel destinations across Asia Pacific (APAC) region such as Delhi and Mumbai have decreased by as much as 50 per cent, and Bengaluru by 35 per cent, in Q1 2009, as compared to Q1 of 2008, according to a latest study titled 2009 Global Benchmarking Study. The report has been released while evaluating the current economic climate and its impact on travel management trends and the supply environment for corporate travel.

The hotels in the same time period registered a decline in ADR (Average Daily Rates). Delhi has been most severely hit with a 44% decline followed by Mumbai at 38%. The ADR decline in Bengaluru at 15% is less than corresponding ADR decreases in Singapore (35%), Sydney (33%), Melbourne (24%), Shanghai and Tokyo (17% each).

The study also indicates that the rapid growth in air capacity registered in APAC between 2002 and 2008 has now subsided. The study, produced by Egencia, part of Expedia, Inc., focusses on top domestic and international corporate travel markets in Asia-Pacific, North America and Europe.
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ASSOCIATIONS

PATA mulling a restructuring
Pacific Asia Travel Association (PATA) is mulling restructuring by making significant structural changes in its organisational set-up. The current size of around 80 members as Board of Directors is being considered unwieldy and impractical. Therefore, a new body (of much larger size in numbers), acting as a plenary council, will advise the Board on key issues. The recommendations have been drafted by Tim Robinson, member, PATA,  as a part of the detailed review of governance issues, within the association. Greg Duffell, PATA’s newly appointed president and CEO, has confirmed that the board has voted to reduce its size from 80 to 15 to deal with its day-to-day issue. Duffell has said that a new body, a Plenary Council of 80 people, will be created who will focus on the industry issues. According to Dale Lawrence, director-corporate communication, PATA, “The PATA Board of Directors voted unanimously in favour of a recommendation to reduce substantially its size to no more than 15. However, these recommendations are subject to vote by all voting members within the association at an EGM or the next AGM.”
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TAFI confirms its convention dates
The upcoming convention of Travel Agents Federation of India (TAFI) will be organised from October 22-25 at Chiang Mai in Thailand. Pradip Lulla, president, TAFI, while confirming the dates for the forthcoming convention, informed that the TAFI managing committee is meeting at Lavassa to work out the details. Capt Promod Kohli, joint secretary, TAFI and chairman, TAFI Convention Committee, said, “We expect to host about 850 delegates during the four-day event. This is the same number that we hosted in our last convention at Kotakinabalu in Malaysia in 2007.”

Kohli also informed that a choice of about 10 post event familiarisation tour of three nights each would be made available to the delegates in order to gain a first hand experience of the destination.
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TAAI takes up industry issues with finance minister in a crucial pre-budget meeting
“TAAI was invited in a very important pre-budget meeting with the finance minister Pranab Mukherjee to present issues that concerns the travel industry,” informs Rajji Rai, president, TAAI which according to him, is a landmark development.

Sanjay Datta, member-executive committee, TAAI presented a memorandum highlighting the issues of service tax, export industry status to tourism, inter-state vehicle taxation and state luxury taxes for hotels. Dutta informs, “The finance minister has asked TAAI to liase with noted Supreme Court lawyer Lalit Bhasin, who was also present at the meeting representing the service sector, and submit a detailed draft on service tax structure and send it before June 10.” The meeting was attended by minister of states (MOS), revenue; MOS, expenditure; chief economic advisor to the finance minister; secretary finance, revenue, expenditure, disinvestment, IT; chief economic advisor and chairman of CBDT (central board of direct taxes) and CBEC (central board of excise and customs).
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GOVERNMENT

 
Zero commission impasse may see a resolution soon, DGCA seeks clarification from airlines
The office of the director general of civil aviation sent a letter to airlines, asking for their comments by June 10 on three points. The first issue is to make a correct interpretation of the IATA resolution of 810(i) which means providing payment of commission at a rate fixed by the member (means the airlines). Secondly, it says that travel agents should get some remuneration as they are an important element of air transport system, for, they provide services between airlines and pax. Thirdly, in terms of transaction charges being collected by customers, it asked, “Why the customers should be made to pay something which actually should be paid by the airlines?”

DGCA has sent this letter acting on the direction of Karnataka High Court. Confirming this development, Rajji Rai, president, TAAI, informs, “TAAI and TAFI had filed a case in the Karnataka High Court against the airlines’ decision to reduce the commission from 7 to 5 per cent in 2005. The Karnataka High Court had then directed the DGCA to look into the matter.”
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Fortune comes with its 29th hotel, which is its 3rd hotel, in Bengaluru
Fortune Park Hotels Ltd., ITC’s wholly owned subsidiary, opened its 29th hotel, Fortune Park JPCelestial earlier this week. The 130-room property offers 64 standard rooms, 34 Fortune club rooms and 32 suites. The hotel is located close to the popular Bengaluru Race Course about 4-km from MG Road and 1.5-km from the railway station. Facilities include Orchid, a 24 hour multi-cuisine restaurant, the Nevada Bar and a Tea Lounge. The hotel also offers state-of-the-art conference and banquet halls and 4 board rooms and a business centre. Other facilities include a gym, a spa, a beauty salon and a travel desk. Owned by J P Group, Fortune now boasts of three properties in Bengaluru and a total of four properties in Karnataka.
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STATES
 
Uttarakhand to promote community based tourism
Prakash Pant, minister of tourism, government of Uttarakhand, has set plans to take tourism to new heights. Speaking to media, he said, “As part of our plan to promote community-based tourism in the rural areas, we have identified 13 villages across the state, so far. These villages have been equipped with basic amenities, improved pathways, home stays, etc. The department has now started working on special packages and marketing campaigns. These will be undertaken by the state tourism department for their promotion and to attract the high net-worth international foreign tourists.” Elaborating further on the nature of development, Pant informed that these 13 villages include village where Jim Corbett lived. Also, there is a Jim Corbett museum that houses his famous hunting gun among his many other paraphernalia. “We are helping the villagers in developing the village on heritage ways and have also carved out a Corbett trail,” he added.
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WBTDC upgrading 24 of its hotel, including 9, to three star standards
West Bengal Tourism Development Corporation (WBTDC) is currently upgrading 24 of its hotel at an estimated investment of about Rs 30 crore. The work for it is expected to complete by March 2010. “Nine hotels are being upgraded to three star standards, while the remaining 15 are being upgraded and refurbished in terms of services and amenities and not star wise”, informs TVN Rao, managing director, WBTDC. The state tourism department has over 80 hotels of which about 47 are currently operational.
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