| TRAVEL: Most people these days don't mind paying extra for customised packages.
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| Forty like-minded Indians, bundled into a van readied with Bollywood hits, post a 12-hour routine of sightseeing and souvenir shopping, comforted at the thought of vegetarian fare awaiting them at the hotel... is no more everybody’s idea of a perfect foreign holiday.
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| Travel operators are reporting that it’s now skiing holidays, driving holidays and castle stays that tickle our (collective) fancy. The outbound traveller segment (estimated at eight million persons in 2006) is maturing, and travel operators are shedding their principal group package tour image for a more premium identity.
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| According to Nishant Kashikar, senior general manager, SOTC Do-It-Yourself Holidays & Kuoni Holidays, their FIT (Free Individual Travel) segment has, over the last two years, surpassed GIT (Group Inclusive Tours) in volume (60:40).
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| Arup Sen, executive director, Cox & Kings reports a similar, albeit smaller, growth of the FIT segment as a proportion of their business volume (15-20 per cent). “It’s a natural cycle, first time customers are getting more discerning and are confident enough not to need the hand-holding of group travel,” says a spokesperson of Thomas Cook.
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| Most travel companies have developed dedicated teams to handle customised holidays. Four years ago, SOTC launched a sub-brand called SOTC Do-It-Yourself (DIY). And then last year — when they observed that within the FIT category, customer spends were rising — launched Kuoni Holidays that also offers customised solutions but caters to upmarket clientele. In its first year, Kuoni Holidays has clocked up 50 per cent of the value of business that
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| D-I-Y has. Cox and Kings, that reports a 100 per cent volume growth in its FIT category, last year started the sub-brand 100% Holidays to cater to the increasing premiumisation of outbound travel. The cost differential between a GIT and FIT trip starts from 30-40 per cent. “Segmentation is key for travel marketers,” adds Kashikar
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| And it’s not just about choosing not to travel in hordes. “The FIT segment is driven by activity requests — wine trails in the south of France, bungee jumping in New Zealand, biking in New Zealand and gourmet tours in Melbourne,” says Sen.
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| Increasingly popular are self-drive holidays in countries like New Zealand and Malaysia, where the Indian driving licence is valid. “The emphasis for travellers these days is on discovering the country at their own pace. And this time round they want to be participants, not just spectators,” says Kashikar.
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| Travellers are getting picky with geographies too. “The Far East is synonymous with group travel but for customised holidays, Greece, Scandinavia and Eastern Europe are huge favourites,” says Kashikar. “South-east Asia is naturally at the lower end of the aspiration scale because it is most affordable,” says a travel operator who doesn’t want to be named.
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| “It costs an average $7,500 per family, Europe is $10,000, $12,000 for Australia and $20,000 for somewhere exotic like Bora Bora,” he continues.
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| Sen clarifies that even though countries like Malaysia may be associated with package tours, people still go there for customised holidays and choose the rainforests or a homestay over a city stay.
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| It helps, most agree, that individual tourism boards are actively promoting country-specific strengths. “Most tourism boards offer online training programmes for our staff, so they become country specialists,” says Sen.
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| Of course, that saves companies some of the rising R&D costs associated with retaining competitive advantage. “Today, when a customer comes to us he’s done his research and also initial costing,” says a Thomas Cook spokesperson, “he can’t be outsmarted.” |
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