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A DDP PUBLICATION Pages: 20<br />
Survival instinct makes<br />
Indian agents strong<br />
There is absolute consensus among the agent fraternity that they should<br />
re-orient themselves as travel consultants rather than functioning as mere<br />
ticketing agents to remain relevant in the changing travel scenario. And,<br />
instead <strong>of</strong> commissions why not charge a service fee? They ask.<br />
T<br />
P. K RISHNA K UMAR<br />
he whole concept <strong>of</strong> travelling<br />
has undergone a sea change<br />
in the last few years. People<br />
are travelling like never before<br />
both internally as well as externally<br />
for different purposes. The factors<br />
contributing to this change<br />
are many and everybody<br />
is aware <strong>of</strong> it.<br />
The <strong>TAFI</strong> convention session<br />
'Travel Agent: the ultimate<br />
solution' would basically<br />
aim at preparing the travel<br />
agents to adapt and change in<br />
accordance to the rapidly<br />
transforming travel scenario.<br />
Nobody speaks about commissions<br />
in the business today.<br />
There are more gruelling<br />
issues which lurk large before<br />
the agents as well as the<br />
industry as a whole. The basic<br />
question is how travel agents<br />
could remain relevant in the<br />
rapidly changing travel scenario?<br />
It is obvious and certain<br />
that the days <strong>of</strong> traditional<br />
ticketing agents are long over.<br />
According to Rani Bachani,<br />
MD, Vice Regal Travel &<br />
Resorts, Kochi, travel agents<br />
have to become travel consultants<br />
to remain relevant in<br />
the changing scenario. "To survive<br />
travel agents must provide<br />
everything under one<br />
ro<strong>of</strong> so that the client can get<br />
things done quickly and efficiently,"<br />
she added. On the other hand, P.<br />
Sampath Kumar, MD, Visa Tours &<br />
Travels strongly believes that the<br />
travel agents will remain relevant as<br />
machine technology cannot replace<br />
human emotions and physical characteristics<br />
<strong>of</strong> an individual. There is<br />
a customer/traveller and a supplier/principal<br />
who demand the services<br />
<strong>of</strong> an intermediary with expertise<br />
to fulfil their needs to make the travel<br />
happen, he asserts. "Now the question<br />
is how we wish to remain relevant<br />
in business and who will be<br />
remunerating us for our expertise<br />
fairly? If it is to be the customer,<br />
we will be 'consultants' only, or if<br />
the principal wishes to have our<br />
Rani Bachani<br />
MD,<br />
Vice Regal Travels & Resorts<br />
“<br />
To survive<br />
travel agents<br />
must provide<br />
everything<br />
under one ro<strong>of</strong>.<br />
”<br />
P Sampath Kumar<br />
MD,<br />
Visa Tours & Travels<br />
“<br />
Online portals<br />
make tall claims<br />
<strong>of</strong> having made<br />
inroads, but will<br />
it sustain?<br />
”<br />
expertise and remunerate us, we<br />
will remain as 'accredited agents',"<br />
Kumar informed.<br />
'Specialisation' is the only way out<br />
for agents to remain relevant in<br />
today's travel scenario, says N Ramji,<br />
director, Travel Masters India. "There<br />
is no place for generalisation. Focus<br />
and specialise in one " Ramji said.<br />
Agents contend that technology<br />
just cannot satisfy the customers'<br />
urge for a personalised care and<br />
service in matters <strong>of</strong> travel.<br />
"Travellers using the net can directly<br />
make his own travel arrangements,<br />
but what he must remember<br />
is that he is on his own if he runs into<br />
trouble. It's just like a car manufacturer<br />
providing parts <strong>of</strong> a car for self<br />
assembly," says Kumar. The<br />
same applies to suppliers<br />
who rely on online travel<br />
portals, he adds, "Online<br />
travel portals make tall<br />
claims <strong>of</strong> having made<br />
inroads, but will it sustain;<br />
especially if the principal<br />
fails to deliver where would<br />
the customer turn to? Are<br />
such entities financially<br />
secure to the customer and<br />
the principal?," Kumar<br />
expressed his doubts.<br />
"Travel agents must be<br />
net savvy and use it to their<br />
advantage. It is necessary<br />
for every travel agent to<br />
sign up with travel portals<br />
who <strong>of</strong>fer b2b services. An<br />
agent can get the best rates<br />
for his clients as well as earn<br />
good commissions with the<br />
help <strong>of</strong> travel portals," she<br />
asserted. Expressing similar<br />
views, Kumar said, "As<br />
qualified and experienced<br />
travel pr<strong>of</strong>essionals we have<br />
learnt to use current technology<br />
to our advantage.<br />
But, whether we need to<br />
be on the net to conduct our<br />
business, only time will tell.<br />
While there is a lot <strong>of</strong> talk about<br />
online travel portals and own websites<br />
by principals, nearly 70 per cent<br />
<strong>of</strong> all the international and domestic<br />
air travel is still done by agents in<br />
this country. But things are fast<br />
evolving and travel agents are to be<br />
prepared to face the challenges.<br />
Contd. on page 4 !<br />
What future do you<br />
forsee for<br />
medical/adventure<br />
tourism in India?<br />
TRAVTALK asks travel agents their<br />
views on the future <strong>of</strong> medical<br />
and adventure tourism in India.<br />
K AVYA C HAWLA<br />
E.M Najeeb, chairman<br />
& MD, Air Travel<br />
Enterprises<br />
Medical tourists to India<br />
are growing by more than<br />
20 per cent a year and in<br />
terms <strong>of</strong> revenue earned it<br />
would be second only to IT<br />
by 2012. A joint study by<br />
CII and Mc Kinsey and Co<br />
shows that India can rake<br />
E.M Najeeb<br />
in additional revenue <strong>of</strong><br />
over 2 billion dollars by<br />
2012. India is even moving into a new area <strong>of</strong> 'medical<br />
outsourcing'; here subcontractors aim to provide<br />
services to the overburdened<br />
medical care systems<br />
in western countries.<br />
India is ideal to be<br />
developed as an adventure<br />
tourism destination. But we<br />
need to develop all facilities<br />
for it in global standards<br />
including the safety and<br />
security facilities.<br />
Mandeep Singh Soin<br />
Mandeep Singh Soin,<br />
MD, Ibex Exhibitions<br />
Adventure tourism I<br />
will say has a bright future with a storm every now<br />
and then, but we are used to having storms and braving<br />
them. The MOT has shown great support and certain<br />
procedures for climbing<br />
mountains have been<br />
streamlined for foreigners.<br />
Communications as in<br />
use <strong>of</strong> satellite phone and<br />
GPS s are not <strong>of</strong>ficially<br />
allowed and this impacts on<br />
the safety <strong>of</strong> the clients.<br />
This is an area <strong>of</strong> concern<br />
and we have had a few<br />
round <strong>of</strong> discussions with<br />
the ministry <strong>of</strong> home affairs. Ajeet Bajaj<br />
The domestic traveller<br />
has also got used to adventure<br />
travel and barring aberrations, we are happy to<br />
be progressing steadily.<br />
Contd. on page 4 !
AGENTS <strong>TAFI</strong> DAILIES 2007 <strong>DAY</strong> 2 TRAVTALK 3<br />
Fore Representations focuses<br />
on the elite & middle class<br />
Tourism has been on a high in the Indian market for more than a decade now.<br />
With Indian companies representing many global tours, the variety and<br />
numbers increase as well.<br />
K AVYA C HAWLA<br />
ndia is today the fifth largest tourist<br />
Idestination in the world. Indians with<br />
disposable income are now<br />
ready to spend on their<br />
travel needs. Encashing the<br />
same Fore Representations<br />
has made travelling abroad<br />
an interesting and fun loving<br />
experience. Fore<br />
Representations is an <strong>of</strong>ficial<br />
agent representing<br />
Globus & Cosmos in India.<br />
way as a total solution company. With the<br />
start <strong>of</strong> the inbound division two years<br />
ago, the group has been successful in<br />
other areas like conferences, domestic<br />
hotels, etc. The group also acts as PSAs<br />
for ACP Rail and Globus Family <strong>of</strong> Brands.<br />
Globus & Cosmos can now <strong>of</strong>fer the same<br />
through Fore Representations. Eurail rail<br />
Forerunner<br />
• Fore Representations is an <strong>of</strong>ficial<br />
agent representing Globus &<br />
Cosmos in India<br />
• Fore Representations, which started<br />
just five years ago, has come a long<br />
way as a total solution company<br />
and Brit rail products give flexibility to<br />
travel plans for individual business travellers.<br />
“We are trying to sell all our best<br />
products since the past one year and<br />
are expecting tremendous growth<br />
next year by focusing on the B2B market<br />
all across north India for promoting these<br />
products,” he said.<br />
Parikshit Sawhney,<br />
managing director,<br />
Fore Representations<br />
“<br />
We are expecting<br />
tremendous<br />
growth next<br />
year by<br />
focusing on<br />
B2B market all<br />
across north<br />
India.<br />
”<br />
After achieving success<br />
in India and in the Indian<br />
market with Indian products,<br />
Fore Representations<br />
wanted to try doing well<br />
with Globus & Cosmos as<br />
well. Now one year after<br />
working and selling Globus<br />
& Cosmos products, we are<br />
focused on capturing both<br />
the elite class and the middle<br />
class travellers as<br />
Globus products <strong>of</strong>fer great<br />
value for money. We have<br />
made co- branding with<br />
the products on our hotel<br />
bookings. This involves<br />
both the elite class and the<br />
middle man too.<br />
Fore Representations,<br />
which started just five<br />
years ago, has come a long
4 TRAVTALK <strong>TAFI</strong> DAILIES 2007 <strong>DAY</strong> 2<br />
COVER STORY<br />
Concept <strong>of</strong> service fee must<br />
be instilled in client’s psyche<br />
" Contd. from page 1<br />
Ajay Prakash, chief executive,<br />
Nomad Travels, Mumbai,<br />
feels that the industry has<br />
to take the changes happening<br />
in their stride and<br />
do the business by evolving<br />
themselves. "If we innovate<br />
ourselves we will not be<br />
sidelined and with technology<br />
we have to be the drivers<br />
<strong>of</strong> change," he said. "Lot<br />
<strong>of</strong> agents feel the online<br />
agencies and airlines are<br />
impacting their business.<br />
Despite these kinds <strong>of</strong> realities<br />
today over 60 per cent<br />
<strong>of</strong> ticketing is done through<br />
agents," he said.<br />
"The biggest challenge<br />
today for travel agents is to keep the<br />
belief in their clients that they still<br />
need travel agents and that even if<br />
it costs more, it is worth having an<br />
agent who will take care <strong>of</strong> any travel-related<br />
problem. The concept <strong>of</strong><br />
N Ramji,<br />
director,<br />
Travel Masters India<br />
service fee must be instilled in the<br />
clients' psyche. Clients must realise<br />
that an agents' time is money," said<br />
Ajay Prakash,<br />
chief executive,<br />
Nomad Travels, Mumbai<br />
Bachani, adding, "We have to stop<br />
free service, excellent service to the<br />
client but with a price tag should be<br />
the mantra." According to Ramji, the<br />
great challenge for the agent community<br />
would be to prepare themselves<br />
for a zero per cent commission<br />
regime. But by the level <strong>of</strong> competence,<br />
he argues, that a travel<br />
agent can charge even 10 per<br />
cent service charge. "If you<br />
create your own niche and<br />
create your own brand,<br />
clients would happily pay for<br />
your services," he informed.<br />
Indian agents are quick<br />
learners after all. They don't<br />
allow the opportunities to go<br />
away and never fumble<br />
before challenges. The<br />
punch came from none else<br />
than Kumar: "Indian travel<br />
pr<strong>of</strong>essionals are a hardy lot<br />
and will secure our future<br />
depending on what market<br />
situation warrants, learning<br />
from mistakes committed<br />
elsewhere, and would decide<br />
whether to remain 'agents' or to<br />
become 'consultants'. Maybe, we will<br />
ask our principals: are they willing<br />
to come in the open and say that they<br />
do not want agents at all?"<br />
Future <strong>of</strong> adventure/<br />
medical tourism<br />
" Contd. from page 1<br />
Swadesh Kumar<br />
Ajeet Bajaj, MD, Snow<br />
Leopard/Adventure<br />
With over 70 per cent<br />
<strong>of</strong> the Himalayas in the<br />
country, India could very<br />
well become the adventure<br />
capital <strong>of</strong> the world.<br />
And with the increase in<br />
disposable income among<br />
the youth <strong>of</strong> the country,<br />
domestic adventure<br />
tourism is expected to<br />
grow by over 40 per cent.<br />
Swadesh Kumar, MD, Shikhar Travels<br />
Adventure tourism in this country is growing by<br />
leaps and bounds and the growth has been phenomenal.<br />
The pr<strong>of</strong>ile <strong>of</strong> today's traveller has changed. People<br />
want to do s<strong>of</strong>t adventure tours and that too for a shorter<br />
period. We, therefore, have to cater to their needs.<br />
The future trend <strong>of</strong> adventure tourism is exciting.<br />
We expect a similar growth for a few more years.<br />
May be the growth will be a little faster. The adventure<br />
tourism industry has to adopt ourselves to the<br />
fact that the customers can go directly to smaller<br />
cities where the activities are actually organised.<br />
Either we have to have <strong>of</strong>fices there or we have to<br />
have a relationship with the local travel agents.
6 TRAVTALK <strong>TAFI</strong> DAILIES 2007 <strong>DAY</strong> 2<br />
AGENTS<br />
SURV's new European desk to<br />
focus on aggressive hotel rates<br />
SURV WORLDWIDE has recently announced the formation <strong>of</strong> specialised destination<br />
desk at its outbound travel division in Delhi. One <strong>of</strong> the major costs in an international<br />
vacation is the cost <strong>of</strong> accommodation. SURV Worldwide through its 'Lowest<br />
Rate Assurance' initiative, proposes to reduce the hotel and accommodation cost.<br />
By tying up with a large<br />
hotel supplier in Europe,<br />
SURV also proposes that<br />
anybody who presents a<br />
pro<strong>of</strong> <strong>of</strong> lower rate from an<br />
online booking website with<br />
a confirmed room delivery<br />
can avail SURV's <strong>of</strong>fer to<br />
pay the difference.<br />
TT BUREAU<br />
URV Worldwide, the leisure travel<br />
Sdivision <strong>of</strong> Onkar International has<br />
recently formed a specialised destination<br />
desk. SURV Worldwide's 'Lowest Rate<br />
Assurance' program guarantees the lowest<br />
hotel room rates for any location in<br />
Europe & UK to any travel agent. Karanvir<br />
Bahia, chairman <strong>of</strong> the Onkar group, said,<br />
"The outbound Indian traveller is looking<br />
for quality experiences at affordable rates<br />
and our endeavour to set up the European<br />
desk is to deliver best-price <strong>of</strong>ferings with<br />
customised experiences."<br />
By tying up with a large hotel supplier<br />
in Europe, SURV also proposes that<br />
anybody who presents a pro<strong>of</strong> <strong>of</strong> lower<br />
rate from an online booking website with<br />
a confirmed room delivery can avail<br />
Karanvir Bahia,<br />
chairman,<br />
Onkar group<br />
Ravi Saxena,<br />
director,<br />
SURV Worldwide<br />
Alok Jain,<br />
director,<br />
SURV Worldwide<br />
SURV's <strong>of</strong>fer to pay the difference.<br />
Ravi Saxena, director <strong>of</strong> SURV<br />
Worldwide, says, "We have made substantial<br />
efforts to decrease the hotel costs<br />
for a prospective vacationer. I can guarantee<br />
the lowest hotel room rates across<br />
major locations in Europe & UK from now<br />
to December. Our agent marketing team<br />
is <strong>of</strong>fering these rates to our 1,000+ travel<br />
agent partners across the country to<br />
make their European vacation <strong>of</strong>ferings<br />
more competitive and attractive."<br />
With a 35-40 per cent share in the<br />
Indian outbound market, Europe proves<br />
to be an attractive holiday destination<br />
for the Indian travellers. Alok Jain,<br />
director, SURV Worldwide, said, "Indians<br />
travelling abroad are very demanding<br />
when it comes to cost and at SURV<br />
Worldwide we are striving to deliver the<br />
best value across all major destinations.<br />
We expect our new European desk with<br />
its focus on aggressive hotel rates to be<br />
a key driver <strong>of</strong> growth in this segment<br />
<strong>of</strong> leisure travel."
10 TRAVTALK <strong>TAFI</strong> DAILIES 2007 <strong>DAY</strong> 2<br />
AIRLINES<br />
Nok Air plans to fly to more<br />
destinations in India<br />
Nok Air has set eyes on more Indian destinations after adding Bangalore<br />
as its maiden international destination. The airline is looking at India in a<br />
big way and is keen to operate to all potential cities as soon as possible.<br />
TT BUREAU<br />
fter positioning itself as<br />
Athe world's first shoppers'<br />
airline, Nok Air is planning to<br />
add more destinations in its<br />
Indian network. The airline<br />
recently commenced daily Bangkok -<br />
Bangalore flights. The carrier is utilising<br />
Boeing 737-400, with a capacity <strong>of</strong> up to<br />
156 seats on this route.<br />
Speaking to TRAVTALK , Rajiv Bhatia, GM<br />
Nok Air will<br />
• Start daily flights from Chennai later<br />
this year<br />
• Have daily flights from Hyderabad<br />
and New Delhi<br />
• Have common rated fares on its<br />
website for both public and agents<br />
- India, Nok Air said, "We will be starting<br />
daily flights from Chennai later this year<br />
and by mid 2008, we will have daily<br />
flights from Hyderabad and New Delhi.<br />
We are already in talks with couple <strong>of</strong><br />
domestic carriers and hope to announce<br />
the code share arrangements soon. We<br />
are looking at India in a big way and are<br />
keen to operate to all potential cities as<br />
soon as possible so as to increase the utilisation<br />
<strong>of</strong> our aircraft that are currently<br />
not in operation during the nights."<br />
The carrier is mainly focusing on<br />
leisure and incentive segments. However,<br />
the airline has noticed a steady increase<br />
in the number <strong>of</strong><br />
business travellers.<br />
Commenting on its<br />
Rajiv Bhatia,<br />
GM - India,<br />
Nok Air<br />
USP, Bhatia said, "It is a known<br />
fact that Bangkok is one <strong>of</strong> the<br />
best places to shop. While on<br />
one hand you get the biggest <strong>of</strong><br />
international brands under one ro<strong>of</strong>, on<br />
the other, you get to pick up some good<br />
quality junk stuff at a cheaper rate from<br />
the local markets. We have tied up for<br />
exclusive discounts <strong>of</strong> up to 30 per cent<br />
on many clothing and cosmetic brands,<br />
eating joints, etc. The discount coupons<br />
are being handed over to the passengers<br />
onboard our flights."<br />
"Nok Air provides Business Class (Nok<br />
Plus) with wider seats, blankets, complimentary<br />
wine, beer and hot meal.<br />
With honest pricing for both Nok Plus<br />
and Nok Economy, the response received<br />
by the airline has been exceptional<br />
despite our launch during<br />
the low season.<br />
Additionally, convenient<br />
timings and our on-time<br />
performance till date<br />
have helped us to win<br />
the confidence <strong>of</strong> the<br />
travellers and the agents<br />
fraternity," he added.<br />
Nok Air has placed its<br />
distribution channel<br />
strategy for the Indian<br />
market in action. For<br />
bookings, the airline has<br />
a website and ensures<br />
that unlike some other<br />
carriers, fares on its website and to the<br />
agents are common rated. Bhatia said,<br />
The airline recently<br />
commenced daily<br />
Bangkok - Bangalore flights.<br />
"We aim to touch all our passengers with<br />
our friendly Nok culture. At Nok Air, we<br />
make a great effort to understand the<br />
needs and demands <strong>of</strong> passengers, no<br />
matter how complex they may be. As a<br />
result, we hope to give passengers a level<br />
<strong>of</strong> service that is beyond their expectations<br />
yet at honest prices and with<br />
value additions."
12 TRAVTALK <strong>TAFI</strong> DAILIES 2007 <strong>DAY</strong> 2<br />
AIRLINES<br />
bmi launches flights to<br />
new destinations<br />
With its main <strong>of</strong>fice located in Mumbai, along with an additional eight<br />
<strong>of</strong>fices in Ahmedabad, Bangalore, Chennai, Delhi, Calcutta, Cochin,<br />
Hyderabad and Goa, bmi, represented by Jetair, has recently disclosed its<br />
plan to launch flights to new destinations.<br />
TT BUREAU<br />
mi, Heathrow's second largest carri-<br />
has recently announced that it will<br />
ber,<br />
serve a new destination as well as introduce<br />
major enhancements to its network<br />
<strong>of</strong> services from Heathrow, with effect<br />
from October 28, this year.<br />
The airline is set to launch daily<br />
flights from London to the Egyptian<br />
capital <strong>of</strong> Cairo. The new competitive<br />
Plans<br />
• The airline is set to launch daily<br />
flights from London to the Egyptian<br />
capital <strong>of</strong> Cairo<br />
• Major enhancements for travellers<br />
will also take place from October<br />
28 to other destinations newly<br />
served by bmi<br />
service will be operated on Airbus<br />
A320 aircraft in a two class configuration<br />
- Business and Economy.<br />
Major enhancements for travellers will<br />
also take place from October 28, to other<br />
TT BUREAU<br />
he merged airline will fly under the<br />
Tbrand <strong>of</strong> 'Air India' both domestically<br />
and internationally. V. Thulasidas<br />
takes over as the chairman and managing<br />
director while Vishwapati Trivedi is<br />
the joint managing director <strong>of</strong> the<br />
merged company<br />
The new airline will have a combined<br />
fleet size <strong>of</strong> over 112 aircraft, comparable<br />
to the best airlines in the Asian region<br />
and will rank among the top 30 airlines<br />
in the world. As part <strong>of</strong> its fleet acquisition<br />
programme <strong>of</strong> 111 aircraft, the new<br />
airline will induct 21 new aircraft (7<br />
Boeing 777, 10 A-320 family aircraft and<br />
4 Boeing 737-800) this year.<br />
'Air India' launched its inaugural daily,<br />
non-stop Mumbai-New York flight with<br />
the first Boeing 777 200 LR aircraft. This<br />
destinations newly served by bmi as it<br />
commences services at the start <strong>of</strong> the<br />
winter timetable. The Jordanian capital<br />
<strong>of</strong> Amman and the Lebanese capital <strong>of</strong><br />
Beirut each benefit with an increase in<br />
direct frequency, with daily services now<br />
available to both locations.<br />
Nigel Turner, chief executive <strong>of</strong>ficer,<br />
bmi said, "The introduction <strong>of</strong> new competition<br />
onto routes has historically invigorated<br />
markets and we expect our new<br />
competitive service from Heathrow to the<br />
Egyptian capital <strong>of</strong> Cairo to appeal to both<br />
leisure and business travellers alike. It is<br />
also extremely pleasing that our service<br />
to Cairo will be operated in cooperation<br />
with EgyptAir. This will enable each <strong>of</strong> us<br />
to benefit from our strengths in our<br />
respective home markets to promote and<br />
sell seats on each others' services."<br />
There is no doubting that the frequency<br />
enhancement to schedules on<br />
routes from Heathrow to Amman<br />
and Beirut will be welcomed by<br />
travellers. Together, these major network<br />
enhancements will enable much greater<br />
flexibility to travellers in planning<br />
business travel itineraries<br />
is the first non-stop India-US flight by a<br />
domestic carrier. The new Boeing 777<br />
aircraft was the first <strong>of</strong> the series to sport<br />
the new branding.<br />
The merger <strong>of</strong> Air India and Indian<br />
will provide an integrated international<br />
and domestic footprint, which will significantly<br />
enhance customer proposition<br />
and allow easy entry into a global airline<br />
alliance. The merged airline has given<br />
them the opportunity to unlock significant<br />
synergies on account <strong>of</strong> optimal utilisation<br />
<strong>of</strong> resources through improvement<br />
"The new destination,<br />
service and frequency<br />
enhancements that we are<br />
announcing, together with<br />
the full integration <strong>of</strong> the<br />
former BMED network<br />
into bmi, represents the<br />
biggest expansion that we<br />
will have ever undertaken<br />
in a single action. The<br />
number <strong>of</strong> destinations<br />
that bmi will serve from<br />
Heathrow at the start <strong>of</strong><br />
the winter timetable will<br />
be 36. This further reinforces<br />
our position as<br />
Heathrow's second biggest<br />
carrier and sends out a clear message <strong>of</strong><br />
the presence <strong>of</strong> bmi as a major force<br />
within UK aviation both now and in the<br />
future," said Turner.<br />
Elaborating further he said, "We know<br />
that our most important customers are<br />
frequent flyers who <strong>of</strong>ten travel with us<br />
on business - a group that makes up a<br />
considerable proportion <strong>of</strong> our total passengers.<br />
They are looking for value for<br />
money, friendly welcoming service and<br />
Merger <strong>of</strong> AI & Indian to<br />
enhance customer proposition<br />
The ministry <strong>of</strong> corporate affairs, Government <strong>of</strong> India has approved the<br />
application for the merger <strong>of</strong> Air India and Indian into a new company 'National<br />
Aviation Company <strong>of</strong> India Limited' (NACIL), earlier incorporated under the<br />
Company's Act 1956 on March 30, 2007.<br />
More than Rs. 800 crore <strong>of</strong> annual<br />
synergies are expected to be realised<br />
once the integration is completed.<br />
Nigel Turner,<br />
chief executive <strong>of</strong>ficer,<br />
bmi<br />
“<br />
We know that<br />
our most<br />
important<br />
customers are<br />
frequent flyers<br />
who <strong>of</strong>ten<br />
travel with us<br />
on business.<br />
”<br />
want to be recognised and<br />
rewarded. Our new initiative<br />
delivers on all these<br />
points as well as helping to<br />
set out the future direction<br />
<strong>of</strong> the company, building<br />
on key strengths such as<br />
market-leading punctuality<br />
and a quick and efficient<br />
airport experience.<br />
Whilst our focus is on the<br />
business traveller, we will<br />
continue to apply our<br />
'making travelling a pleasure'<br />
ethos to all our passengers,<br />
whatever their<br />
purpose <strong>of</strong> travel.<br />
Customer feedback shows<br />
us time and time again<br />
that our people make bmi<br />
the preferred choice <strong>of</strong> airline,<br />
and significant investment<br />
in ongoing training<br />
will ensure that continues<br />
to be the case for all our<br />
customers. The airline<br />
industry has been through<br />
a period <strong>of</strong> massive change<br />
in the past five years - a<br />
process that continues<br />
today. By developing and<br />
evolving our products and<br />
services we can ensure we continue<br />
to meet and exceed the expectations<br />
<strong>of</strong> our customers and remain competitive<br />
in the marketplace."<br />
Whatever your reason for flying, it's<br />
easy to earn rewards - simply start flying<br />
with bmi as a diamond club member<br />
and you can receive a whole range<br />
<strong>of</strong> benefits - bmi diamond club is one<br />
<strong>of</strong> the most generous frequent flyer<br />
programs in the air.<br />
in load factors and yields on<br />
commonly serviced routes<br />
as well as deployment <strong>of</strong><br />
'freed up' aircraft capacity on<br />
alternate routes. Leveraging<br />
the combined network and<br />
route rationalisation will<br />
result in improved product<br />
<strong>of</strong>fering to consumers. Overall, more than<br />
Rs 800 crore <strong>of</strong> annual synergies<br />
are expected to be realised once the<br />
integration is completed.<br />
Domestic and international flights will<br />
seamlessly integrate, allowing passengers<br />
to check in for their international<br />
flight from any domestic point in India.<br />
The new fleet brings in a product and<br />
service level that is the best in class, and<br />
will now include in-flight entertainment,<br />
better seats and enhanced in-flight service.<br />
A combined schedule now means better<br />
connectivity to the largest international<br />
airline in India as well as improved<br />
service to various domestic points in<br />
India. An improved frequent flier program<br />
is in the pipeline along with a dedicated<br />
holiday packages website with new <strong>of</strong>ferings<br />
to various global destinations.<br />
Apart from the main passenger airline,<br />
other revenue generating division such as<br />
cargo, low cost carrier, ground handling<br />
and MRO will gain increased focus in the<br />
merged entity. They will be able to unlock<br />
significant value in the new structure<br />
where each will be managed as a separate<br />
strategic business unit under the corporate<br />
umbrella <strong>of</strong> the merged organisation.<br />
The new cargo airline, Air India Cargo<br />
is currently in the process <strong>of</strong> acquiring<br />
freighter aircraft by way <strong>of</strong> conversion <strong>of</strong><br />
B-737 and A-310 passenger aircraft. The<br />
first A-310 freighter aircraft has already<br />
started operations to the Gulf and Europe<br />
while the B-737 freighter will be operating<br />
in the Northeast region.<br />
Under the brand <strong>of</strong> Air India Express,<br />
the low cost carrier will fly on both<br />
domestic and international routes.<br />
Positioned as a value airline, it will serve<br />
markets that require point-to-point connectivity<br />
at a lower price point. Air India<br />
Express will have a brand new fleet with<br />
in-flight entertainment, meal service and<br />
other services, etc.<br />
The merger safeguards the employees<br />
with an assurance that all will be secured<br />
as a result <strong>of</strong> the merger.
14 TRAVTALK <strong>TAFI</strong> DAILIES 2007 <strong>DAY</strong> 2<br />
AGENTS<br />
Abacus simplifies booking<br />
through its non-air system<br />
As tourists and travellers continue to mature, there is<br />
a requirement not only to find enough people to service<br />
the sheer volume <strong>of</strong> travel, but also to efficiently<br />
address the increasingly diverse needs <strong>of</strong> travellers.<br />
Via launches convenient<br />
kiosks for booking tickets<br />
Booking tickets has now been made easier by Via, the<br />
Bangalore-based travel services company. For the first<br />
time ever, bus tickets can now be booked online at conveniently<br />
located kiosks, with or without a credit card.<br />
A<br />
TT BUREAU<br />
s the travel fraternity<br />
identifies correctly<br />
that a part <strong>of</strong> the revenue<br />
in the future would be the<br />
earnings from the Non-Air<br />
business as with every<br />
passing day the airline<br />
commissions are reducing,<br />
Abacus has really worked<br />
hard in getting the non-air<br />
content up for its clients.<br />
Viiveck Verma, managing<br />
director, Abacus India<br />
says, "In the hotels arena,<br />
Abacus has seen an<br />
increase <strong>of</strong> over 15,000<br />
properties in its system in<br />
the past one year. Today<br />
the number <strong>of</strong> properties<br />
an Abacus user can sell<br />
is 77,000 - far more than<br />
any other GDS. Abacus<br />
has also made sure that<br />
almost all <strong>of</strong> these properties<br />
are on the highest<br />
access level with instant<br />
confirmation facility."<br />
Abacus has been a<br />
proven leader in the Asia-<br />
Pacific market amongst all<br />
GDS for the hotel bookings<br />
Viiveck Verma,<br />
managing director,<br />
Abacus India<br />
with an average <strong>of</strong> 35 per cent YOY<br />
growth in the past 4 years and continues<br />
to grow. The standard automation<br />
which is present in the global air<br />
transportation scenario remains low<br />
at almost all levels in the hotel industry<br />
with very few industry standards.<br />
“<br />
Today more<br />
and more<br />
agents are<br />
realising the<br />
power <strong>of</strong><br />
booking non-air<br />
through<br />
Abacus system.<br />
”<br />
Verma said "Today more<br />
and more agents are realising<br />
the power <strong>of</strong> booking<br />
non-air through Abacus<br />
system - integration with<br />
air booking environment,<br />
instant room availability<br />
and booking confirmation<br />
24/7, booking fully integrated<br />
to the PNR enabling<br />
automated cancellations<br />
and modifications. Most<br />
importantly increased<br />
margins: Higher employee<br />
productivity and lower<br />
overheads."<br />
Abacus also participates<br />
in the BAR (Best Available<br />
Rate) program. "Abacus<br />
realises the challenges our<br />
agent customers are facing<br />
when booking a hotel room<br />
for their travellers. Abacus,<br />
being the distributor, facilitates<br />
both our hotel associates<br />
and agent users to<br />
add values in the whole sell<br />
and buy process," Verma<br />
noted. The BAR program<br />
denotes that hotels under<br />
the BAR program guarantee<br />
the rates across different<br />
booking channels for<br />
the same hotel for the same accommodation<br />
under same booking terms and conditions.<br />
As <strong>of</strong> August 2007, there are<br />
over 10,000 properties worldwide<br />
fewer than 18 chains, with a daily<br />
increase in these numbers, participating<br />
in Abacus BAR program.<br />
TT BUREAU<br />
n August 17, the first Via Kiosk was<br />
Olaunched at Garuda Mall in<br />
Bangalore in the presence <strong>of</strong> Niranjan<br />
Gupta, COO, Via and Amit Aggarwal,<br />
director, Via.<br />
Via has introduced the revolutionary<br />
concept <strong>of</strong> automatic ticket vending<br />
machines as an easy and handy<br />
means <strong>of</strong> booking tickets for customers.<br />
Payment can be through<br />
credit card or cash paid to the<br />
person manning the kiosk.<br />
Speaking on the occasion,<br />
Aggarwal said, "This is a transparent<br />
and non-biased means <strong>of</strong><br />
booking tickets, since it is all<br />
done in real time. The customer<br />
can select seats, the pick point<br />
and mode <strong>of</strong> payment. The kiosk<br />
also allows a customer to pay by<br />
cash to the attendent <strong>of</strong> the<br />
kiosk. At the completion <strong>of</strong> the transaction,<br />
the machine will generate an e-ticket<br />
which can be used to board the bus at<br />
the selected pick up point."<br />
Via Kiosks are an extension <strong>of</strong> the<br />
company's constant innovation in trying<br />
to make travel both convenient and comfortable<br />
and is a logical progression from<br />
hosting the inventories <strong>of</strong> private bus<br />
companies online, a feat never achieved<br />
before. Via aims to locate these kiosks<br />
across the country in high traffic areas<br />
such as malls, railway stations, bus stands<br />
and such others.<br />
With this newly-launched Kiosk, Via<br />
is the first company in India to build a<br />
complete Bus Reservation System for bus<br />
operators and manage their inventory<br />
online. Taking this forward, Via has<br />
already tied up with three leading bus<br />
operators - Indo Canadian Transport<br />
Company in Punjab, Vivek Travels in<br />
Delhi and Sree Kaleswari Travels in<br />
Andhra Pradesh. Via will power their bus<br />
inventories online, enabling customers to<br />
book tickets directly at their respective<br />
websites as well as Via's own website. It<br />
is meanwhile in talks with other service<br />
providers to broaden the network and<br />
<strong>of</strong>fer customers a much wider choice.<br />
Via is fast emerging as one <strong>of</strong> the<br />
most forward-thinking companies in the<br />
country with a slew <strong>of</strong> services aimed at<br />
the convenience <strong>of</strong> the customer. It has<br />
started to earn laurels, indicating that its<br />
excellence is being recognised. Via has<br />
managed to earn an incredible reputation<br />
within a short span due to its innovative<br />
ideas, far reaching vision, focus on<br />
the customer and a network <strong>of</strong> over 4800<br />
agents in over 380 cities. Via is clearly<br />
the thought leader in the travel and<br />
tourism industry.<br />
Saradha Tours & Travels<br />
<strong>of</strong>fering exclusive packages<br />
Dealing in specialised and exclusive private and group departure packages, the<br />
Saradha Tours & Travels has emerged as one <strong>of</strong> the leading travel houses in the<br />
eastern part <strong>of</strong> India. TRAVTALK brings you an overview <strong>of</strong> the company.<br />
TT BUREAU<br />
aradha Tours & Travels, since its<br />
Sinception, has emerged as one <strong>of</strong> the<br />
front running travel houses from Eastern<br />
India and operates exclusive private and<br />
group departure packages. Inbound programs<br />
are exclusively designed covering<br />
the Eastern Himalayan region <strong>of</strong> India.<br />
West Bengal, Sikkim, Assam, Meghalaya,<br />
Arunachal Pradesh, Mizoram, Nagaland,<br />
Tripura are the core regions which they<br />
Exclusive outbound programs are available<br />
for Switzerland, Africa, and Finland<br />
along with the fix dated departures for<br />
Europe, Australia and New Zealand.<br />
promote around the world for the discerning<br />
travellers. Exclusive outbound<br />
programs are available for Switzerland,<br />
Africa, and Finland<br />
along with the fix dated<br />
departures for Europe,<br />
Australia and New<br />
Zealand. With corporate<br />
headquarters in<br />
Kolkata, it has its<br />
inbound and outbound<br />
headquarters in New<br />
Delhi, regional base at Guwahati and<br />
operational <strong>of</strong>fices at Shillong, Gangtok,<br />
Darjeeling, and Siliguri in India to ensure<br />
Programs<br />
• Inbound programs are exclusively<br />
designed covering the Eastern<br />
Himalayan region <strong>of</strong> India<br />
• Wildlife tour <strong>of</strong> Kaziranga National<br />
Park, tribal tours <strong>of</strong> Arunachal, etc<br />
unforgettable experience for all guests.<br />
"The world is now turning its eyes<br />
towards the unknown and mystical northeast.<br />
If you are looking at experiencing<br />
something unique, something you never<br />
dreamed <strong>of</strong>, then talk to us, we will take<br />
you on a journey <strong>of</strong> a lifetime," says Rajdeep<br />
Bhattacharjee, general manager, Saradha<br />
Tours & Travels while sharing his views on<br />
the inbound programs. Wildlife tour <strong>of</strong><br />
Kaziranga National Park, tribal tours <strong>of</strong><br />
Arunachal and Nagaland, Buddhist tour <strong>of</strong><br />
North Bengal and Sikkim, exclusive honeymoon<br />
special at Ri-Kynjai Resort and<br />
complete tour <strong>of</strong> the Northeast are some <strong>of</strong><br />
the most fascinating tours they operate for<br />
their guests.
16 TRAVTALK <strong>TAFI</strong> DAILIES 2007 <strong>DAY</strong> 2<br />
AIRLINES<br />
SpiceJet woos common<br />
man, makes flying affordable<br />
Ajay Singh, director, SpiceJet, has been associated with SpiceJet since its<br />
inception in January 2005 and is an integral member <strong>of</strong> the SpiceJet think<br />
tank. Recently, he was also the advisor to the ministry <strong>of</strong> communications<br />
and information technology.<br />
TT BUREAU<br />
piceJet was launched to tap the huge<br />
Spotential for air travel in India and it<br />
intends to provide an alternative mode <strong>of</strong><br />
travel for train passengers so that they<br />
can travel at comparable fares in greater<br />
comfort and in far less time.<br />
Not only did the airline carry over six<br />
million passengers on its network, it also<br />
recorded the highest load factor <strong>of</strong> over<br />
86 per cent since its launch, achieved<br />
99.5 per cent flight dispatch reliability<br />
and maintained over 90 per cent on-time<br />
performance. Besides highest load factor,<br />
month after month, it has also registered<br />
lowest cancellations among its<br />
competitors. Started with two aircraft<br />
and a maiden flight between Delhi -<br />
Ahmedabad on May 23, 2005, in just 11<br />
months SpiceJet has grown upto 14 aircraft<br />
with 86 daily flights to 15 destinations.<br />
Nearly 2 millions passengers in a<br />
Good run<br />
• Recorded the highest load<br />
factor <strong>of</strong> over 86 per cent<br />
since its launch<br />
• In just 11 months SpiceJet has<br />
grown upto 14 aircraft with 86<br />
daily flights to 15 destinations<br />
Ajay Singh,<br />
director,<br />
SpiceJet<br />
“<br />
SpiceJet's<br />
goal will be to<br />
ensure that<br />
we provide<br />
reasonable fares<br />
and make flying<br />
affordable<br />
for all.<br />
”<br />
year and highest load factor among all<br />
airlines are some <strong>of</strong> the indicators that<br />
define the acceptance <strong>of</strong> SpiceJet among<br />
the passengers in India.<br />
"It will take time for people to understand<br />
that there could be a<br />
way to travel by air at the<br />
cost <strong>of</strong> AC II tier, without<br />
having conventional luxuries<br />
aboard. People have<br />
started learning the fact<br />
that flying could be an<br />
experience, whereby, one<br />
can simply fly safely ontime<br />
from Point A to Point<br />
B, at a cost much cheaper<br />
than that <strong>of</strong> full service airlines,"<br />
said Singh.<br />
"A large proportion <strong>of</strong><br />
our passengers (nearly 40<br />
per cent) are 'first time' flyers.<br />
We believe that we are<br />
taking a larger number <strong>of</strong> passengers<br />
from trains as opposed to passengers<br />
from other airlines," he added. Budget airlines<br />
like SpiceJet will<br />
always be cheaper compared<br />
to full service airlines.<br />
This is because they<br />
follow a different model<br />
that focuses on on-time<br />
and safe travel instead<br />
<strong>of</strong> "frills" such as meals<br />
on board, travel agency<br />
commissions, etc.<br />
"Fares in the near<br />
future will depend on<br />
input costs such as the cost<br />
<strong>of</strong> fuel. SpiceJet's goal will<br />
be to ensure that we provide<br />
reasonable fares and<br />
make flying affordable<br />
for the common man,"<br />
said Singh.<br />
SpiceJet is expanding<br />
fast. By end <strong>of</strong> 2008, it<br />
expects to add 23 new aircraft<br />
to its fleet, which<br />
will operate more than<br />
250 flights on around 24<br />
destinations, <strong>of</strong>fering<br />
more than 35,000 seats<br />
per day. At this moment,<br />
we are consolidating<br />
our popular routes to metros<br />
and mini metros.<br />
However in coming years<br />
our final aim is to make our services<br />
available in small cities, where the<br />
common man actually lives.
18 TRAVTALK <strong>TAFI</strong> DAILIES 2007 <strong>DAY</strong> 2<br />
CRS<br />
Luxurious <strong>of</strong>ferings from<br />
Bird Group & Dusit<br />
The opportunities for new players to enter into the hospitality<br />
sector have increased tremendously. The Bird<br />
Group under its wholly-owned subsidiary, BHS, has<br />
forayed into the hospitality business with Dusit Hotels.<br />
TT BUREAU<br />
n a joint venture with<br />
IDusit, Thailand's leading<br />
premier hotel company,<br />
Bird Hospitality Services<br />
(BHS) plans to develop six,<br />
4 to 5 star hotels, which<br />
will provide the former<br />
the possibility to manage<br />
or franchise several hotels<br />
in India. The first three<br />
properties, projected to<br />
open within 2010, are in<br />
Delhi, Goa and Rishikesh<br />
while the next three will be<br />
up by 2013 in Pune,<br />
Amritsar and Jaipur.<br />
Ankur Bhatia<br />
executive director,<br />
Bird Group<br />
In the first phase <strong>of</strong> its launch in<br />
Delhi, Goa and Rishikesh, collectively,<br />
the elegant properties will comprise<br />
approximately 500 stylish deluxe rooms<br />
and suites. The properties will serve<br />
variety <strong>of</strong> cuisines from Continental,<br />
Indian and world cuisines. Equipped<br />
with state-<strong>of</strong>-the art meeting rooms<br />
and the latest audio-visual facilities,<br />
the property is an ideal venue for<br />
meetings and conferences.<br />
These properties will involve investments<br />
by Bird Hospitality Services to the<br />
tune <strong>of</strong> over US$ 200 million in various<br />
phases <strong>of</strong> development. The Bird Group<br />
has been a front-runner in the travel and<br />
tourism industry for almost four decades,<br />
with a touch point in every vertical <strong>of</strong> the<br />
industry. Seeing the tremendous demand<br />
and the burgeoning growth in this sector,<br />
it was only logical for the group to step<br />
into the hospitality industry.<br />
This is a welcome initiative, with<br />
increasing demand for quality hotels;<br />
In a joint venture,<br />
Dusit and Bird<br />
Hospitality Services<br />
plans to develop six,<br />
4 to 5 star hotels.<br />
providing accommodation<br />
avenues for travellers will<br />
add another feather to the<br />
vast portfolio <strong>of</strong> services<br />
provided by the Bird<br />
Group. The group also<br />
plans to <strong>of</strong>fer its management<br />
expertise to several<br />
hotels and resorts with the<br />
Dusit brand name ranging<br />
from the super-luxury<br />
spa resorts to smart<br />
budget properties across<br />
the length and breadth<br />
<strong>of</strong> India.<br />
India is a high-growth<br />
market, ready to be<br />
tapped, as it possesses the right<br />
resources, unspoiled natural environment<br />
and capable manpower to ensure<br />
the healthy growth <strong>of</strong> its local hospitality<br />
industry. The country is witnessing<br />
a tremendous boom with inbound travel<br />
<strong>of</strong> 4.43 million in 2006 with a double<br />
digit growth forecast year on year till<br />
2020; this partnership comes at the<br />
most opportune time. The main focus<br />
<strong>of</strong> Bird Group's hospitality venture<br />
will be to provide its customers a<br />
world-class experience with pr<strong>of</strong>essional<br />
quality service.<br />
Galileo walks away with<br />
the Best GDS award<br />
Galileo, a leading global distribution system (GDS)<br />
and subsidiary <strong>of</strong> Travel Port, has won the 'Best GDS'<br />
category at Travel Weekly Asia's prestigious travel<br />
industry awards.<br />
TT BUREAU<br />
he awards, which were held recent-<br />
at The Harbour Plaza Metropolis in<br />
Tly<br />
Hong Kong, recognised the best in the<br />
Asian travel industry, acknowledging<br />
their contributions to tourism. It was the<br />
first awards ceremony to be hosted by the<br />
region's leading travel trade publication.<br />
On the other hand, Galileo India is<br />
the National Distribution Company <strong>of</strong><br />
Galileo International, the leading global<br />
travel and technology distribution<br />
company. Galileo India commenced<br />
operations in 1994 and within a span<br />
<strong>of</strong> 13 years the company has extended<br />
its network to over 277 cities with<br />
20 dedicated <strong>of</strong>fices.<br />
Galileo India today has over 10,500<br />
agency terminals with 21 service centres<br />
and 10 training centres across India. It<br />
has now, in its embrace, over 450 airlines,<br />
23 car rental companies<br />
and 66,000 hotel<br />
The awards were held<br />
at The Harbour Plaza<br />
Metropolis in<br />
Hong Kong recently.<br />
properties worldwide.<br />
It has also<br />
achieved the status <strong>of</strong><br />
having the maximum<br />
number <strong>of</strong> airlines in<br />
India at the highest<br />
level <strong>of</strong> agreement.<br />
Simon Nowroz,<br />
managing director,<br />
Galileo Asia, said, "This is absolutely<br />
fantastic news for Galileo and confirms<br />
our position in Asia as the system <strong>of</strong><br />
choice for both travel suppliers and<br />
travel agents. Our team here has<br />
worked very hard to deliver leadingedge<br />
products and extensive travel content<br />
designed to help our customers<br />
manage their businesses more efficiently.<br />
It is particularly rewarding for<br />
us to win this category in Travel Weekly<br />
(Asia)'s first awards ceremony."<br />
Syed Mohd. Razif, managing director,<br />
Sri Sutra Travel added, "This award<br />
reflects Galileo's ability to deliver<br />
service and content that helps to make<br />
a difference for Galileo users. This is a<br />
great win for Galileo and for Galileo<br />
users across Asia."<br />
Tah Sin Chong, acting managing<br />
director, Travel Division from Reliance<br />
Pacific PLC commented, "We have been<br />
working with Galileo for several years and<br />
have always found<br />
their products and<br />
solutions to be<br />
highly effective and<br />
their customer support<br />
second to<br />
none. We are very<br />
pleased that they<br />
have won this<br />
award in Asia."<br />
"The competition<br />
had been very intense and some <strong>of</strong><br />
the awardees and runner-ups were separated<br />
by only a few votes. There were<br />
over 160,000 individual votes and it<br />
is a very good indication that the<br />
industry found the awards an effective<br />
platform to recognise the best<br />
among their peers," said Iris Kwan,<br />
publisher, Travel Weekly.<br />
Chairman<br />
Vikramajit<br />
Publisher<br />
SanJeet<br />
Editor<br />
Rupali Narasimhan<br />
Director Marketing<br />
Poonam Makhija<br />
Editorial<br />
Luvleena Walia<br />
Priyanka Saxena<br />
Ratan Kr Paul<br />
P. Krishna Kumar<br />
Rohit Kaul / Barnali Gogoi<br />
Kavya Chawla<br />
Sriprakash Menon<br />
Nithya Ramani / Malabika Sarkar<br />
Marketing<br />
Gunjan Sabikhi<br />
Ankur Verma<br />
Abhinav Malhotra<br />
Vikram Raj<br />
Surbhi Kumar<br />
Ashutosh Mohaljee<br />
Nidhi Chopra<br />
Geetika Pathak<br />
Harish Kumar<br />
Prem Sagar<br />
Amit Sarkar / Geeta Santhanam<br />
Design<br />
Rajesh Chhetri / NN Misra<br />
Shibu Varghese / Sudhir Mudgal /<br />
Parmindar Singh<br />
Production Manager<br />
Anil Kharbanda<br />
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