The US-based Internet monitor Hitwise (which monitors more than 25 million internet users) said that visits to online travel agents remained stable last year, while visits to hotel and airline websites increased nearly 20%.
Hitwise said that travellers are researching travel agency websites but then booking directly with airlines and hotels: there was ''a big push to book directly with airlines and hotels at the expense of the online agents'."
A series of ambitious economic reforms aimed at deregulating the country and stimulating foreign investment have moved India firmly into the front ranks of the rapidly growing world economies. Skilled managerial and technical manpower that match the best available in the world and an educated middle class whose size exceeds the population of the USA or the European Union, provide India with a distinct cutting edge in global competition. Today, India is one of the most exciting emerging markets in the world be it aviation, real estate, retail, banking, health care services or hospitality. After a five-year downward spiral starting 1997-98, the hospitality industry in India witnessed a visible revival only by the second half of 2002-03, thanks to strong domestic travel trends and a positive economic and investment environment.
The industry, despite being an important component of the economy, contributed only 2% of the GDP in 2003/04. According to recent estimates of the WTTC Indian tourism demand will grow at 8.8% over the next ten years (from 2005-15), which would place India as the second most rapidly growing tourism market in the world. This is expected to result in a growth of 7.1% in total travel and tourism GDP and an increase of 0.9% in travel and tourism employment. With an estimated 26,000 rooms in the branded hotel segment, the size of the hotel industry continues to represent an abysmal figure for India's size and growth prospects. Based on the forecasted growth in demand we expect that another 100,000 to 125,000 rooms will need to be added, across the country, in the next five to seven years, to be able to meet the increase in demand. Our preliminary research indicates that, at best, there are currently only 45,000-50,000 rooms under different stages of planning and construction that are expected to enter the market in the branded segment in the next five years.
Often we are asked;
Has India reached its peak in terms of hospitality development project potential?
Are most cities in India now in an oversupply situation?
What is a prudent market positioning and entry strategy?
The great Indian Hospitality Boom, is it for real?
This seems to be a million-dollar question... my view on key factors that will drive future demand and on niche markets that offer a unique potential for development.
Weekend Getaways and Integrated Travel Circuits
While there has been much activity in hospitality projects in metro cities, very little has actually been done to tap the potential of domestic tourism, which is currently estimated at 250 million travelers. According to our estimates, there will be sustained demand for weekend travel at major gateway destinations and these markets will grow in the range of 35-40 percent annually in the next three to five years. India's Per capita Income growth will also continue to witness robust growth. Significantly, higher disposable income rather than lower savings has influenced the present-day consumption boom in India. This is good news, as income induced spending is likely to sustain itself for a longer period and higher disposable incomes are also expected to enhance the concept of traveling for leisure thus providing the necessary impetus to destination travel within Integrated Travel Circuits.
Commercial Demand
The Indian economy's performance has been impressive and the macro economic outlook is expected to continue providing momentum for growth. With a targeted 8.0% annual growth in the economy, we expect demand for room nights across key commercial destinations across India to grow annually at an average of 16-20 percent over the next three to five years. There is a hugh demand for prime commercial space in Tier II cities within India. Hotels positioned between budget and mid-market levels and having an international brand affiliation continue to provide the most attractive opportunities, across most secondary markets.
Extended-Stay Products
India has firmly established itself as a world leader in the IT & ITeS and BPO space. The developments and expansions planned within this segment remain encouraging. The entry of new companies, typically, generates significant room night demand during the start-up period, as processes are set up and executives travel for training. Although there are very few branded extended stay products in India, the size of the extended-stay market segment is estimated to be in the range of 11.0% - 13.0%. There is a Hugh demand for accommodation facilities offering extra amenities such as fully equipped kitchen, home-like furnishings and finishes, and an exercise facility. Development of dedicated serviced apartments that make the extended time away from home more comfortable and offers value for money is another segment that offer hugh potential.
Mixed-Use Development Projects
A keen observer of the hotel market would agree that India has been guilty following a herd mentality when it comes to hotel developments. Almost all development strategies are directed towards building a prototype hotel that looks just same as it's 10-year old neighbor hotel! Over the next three to five years, the biggest surge in accommodation demand is expected to come from commercial zones that are being developed in metro suburbs and secondary markets. Mixed-use development projects that include retail and commercial space have also gained momentum in the last 24 months and will continue to be an attractive option for developments in large land parcels. This provides a unique opportunity for hospitality projects. Areas such as Whitefield in Bangalore, Navi Mumbai, Manesar near Gurgaon, the International Airport commercial zone in Hyderabad, Rajarhat and Salt Lake City in Kolkata, Kharadi and Kalyani Nagar in Pune, and the Ahmedabad-Ghandinagar highway will witness large levels of commercial development and are attractive locations for new hotel projects.
MICE
Currently there is an acute demand-supply imbalance scenario due to lack of quality hotels. In most markets, insufficient room availability and high rates create conditions that are not conducive for large international conferences to be held. Logistical bottlenecks and lack of appropriate infrastructure in these markets also pose a problem. Various state governments in India have expressed keen interest in convention centre developments. Existence of a convention centre generally induces substantial room night demand and a strong growth opportunity exists for products that adopt an aggressive marketing strategy for the MICE segment, as within a few years demand from this category is likely to rebound very strongly.
The economy's buoyancy, initiatives to improve infrastructure, the aviation and real estate boom, easing of restrictions on foreign investment and, perhaps, most importantly, efforts to communicate the Brand India message – will continue to fuel demand for hotels across star categories in the majority of markets. India's hotel industry is increasingly being viewed as investment-worthy, both within the country and outside. Niche markets such as culture tourism, the Great Indian Temple circuit, health tourism, adventure tourism etc will grow rapidly.
The journey from India versus China to India and China has just begun for India Inc. The outlook for the hospitality market in India is buoyant and will continue to remain so, in my opinion. Over the next three to five years India is all set to emerge as one of the world's fastest growing tourism markets and will be hard to ignore.
As of now, the great Indian hospitality boom – Is surely for real and here to stay!
This past year as I have attended many hotel investment conferences around the world, the feelings of hotel owners, lenders and operators were euphoric. Occupancies are up, room rates are growing faster than inflation, hotels are making profits, money is cheap and the industry is having fun again. Even with this upbeat outlook, it is human nature to wonder: When Will The Bubble Burst? Based on history, the bubble always bursts. In the United States after a huge building boom during the early 1970s, overbuilding, inflation and high interest rates burst the hotel industry's bubble... See below link for the complate document...
 When Will The Bubble Burst? | By Steve RushmoreThis past year as I have attended many hotel investment conferences around the world, the feelings of hotel owners, lenders and operators were euphoric. Occupancies are up, room rates are growing fas... 
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WSJ ( Read the whole story... paid subscription required)
Spot Runner, a Web startup that creates low-priced TV commercials, is expected to announce an agreement with Cendant Corp. today to sell customized TV spots to Cendant's network of real estate agents and brokers. Spot Runner is not the first company to use online systems to sell conventional media. Google famously bought radio advertiser dMarc Broadcasting a few weeks ago, with a similar intention. Using the Web makes it cheaper for Spot Runner to broker and develop TV ads: its Web-based system brokers ad time on local broadcast and cable TV channels while its database of content allows users to select images and backgrounds to create ads. The move could be bad news for print media, which relies on real estate advertising in papers' classifieds sections. Real estate advertising is estimated at $11 billion last year, according to Borrell Associates, with only a fraction going to TV. Spot Runner executives said advertisers can create 30 second TV spots for less than $200 in many local markets and less than $50 in smaller ones. -
The 1,000-year-old friezes adorning the Hindu temple in Belur are among the finest in southern India. Still, the small town in the Hassan district about 150 miles from the tech hub of Bangalore is not on many tourist itineraries, and online information about eating and lodging in Belur is scarce.
For the most part, Indian travel web sites have catered to bringing the South Asian Diaspora home. The sites did little to rescue travelers from long lines for tickets inside India's thronged train stations and airports. Nor did they provide much information about towns off the tourist circuit.
But with new low-cost airlines competing for travelers, and a rising, increasingly Internet-savvy middle class eager to explore the homeland, there is room for a new type of travel site. That's why Pramod Haque, managing partner at Norwest Venture Partners joined Indian media company TV 18 and Reliance Capital to invest in Yatra (see Norwest Bets on India Web Site).
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With an expected launch date of May 2006, Yatra, which means journey in several Indian languages, will tap into the burgeoning domestic Indian travel market. The Indian travel industry is expected to reach $32 billion by 2008.
Yatra will allow wayfarers to book travel through call centers servicing 18 languages, via SMS, and over the Internet. To anyone who has waited in the ticket line at Mumbai Central station, such services are long overdue.
The need is so great, that Yatra is not alone. WestBridge Capital Partners, India's largest and most active venture capital fund, in January invested an undisclosed sum in Travelguru, which is targeting India's online travel market. Customers will be able to book their travel across 300 airlines and 55,000 hotels in India and abroad.
Started as a Harvard Business School project in 2004, the company has taken a year to develop cutting-edge, proprietary travel technology and establishing close partnerships with travel suppliers in India.
KPCB also announced investing $2.7 million to $3 million in yet-to-be launched Cleartrip.com , an online travel portal for India, in the first round.
The numbers support the flurry of investment. The Internet user base in India grew 54 percent during the last year: there were 38.5 million users expected between 2005 and 2006. That's up from 25 million in the year before.
According to the Internet & Mobile Association of India, the total e-commerce market in India will touch $262 million in 2005 and 2006, growing more than 100 percent by 2007 to $500 million.
Falling broadband prices—as low as $5 per month—coupled with the availability of $200 PCs, content in regional Indian languages, and a jump in VoIP are factors contributing to the growing Internet user base.
Government Support
The government is promising to help. India 's IT minister Dayanidhi Maran said recently: "We are continuously evaluating policies which will help increase competition and bring down prices as well as increase access speeds. Our aim is to achieve critical mass across the country with a special impetus in the rural and remote areas."
Preeti Desai, president of the Internet & Mobile Association of India, says that online shopping for services such as airline and railway tickets, and product categories like electronic gadgets and home appliances, will spur further usage of the Internet.
"In India the IT infrastructure is improving, mobile phone penetration is growing, purchasing power of the middle class is rising, and there are more people traveling every day," said Vab Goel, a partner at Norwest.
Now is the time to visit Belur and the Chennakeshava temple. Before the tourists discover it.
| Tuesday, Feb 21, 2006 6:01 AM EST |
| YAHOO TAPPED CENDANT'S TRAVEL DISTRIBUTION Services Division, which includes Orbitz.com, CheapTickets.com, and Away.com, as online travel bookings provider, the companies are expected to announce today. Additionally, CheapTickets.com will become the provider of Yahoo Travel's cruise business. |
 Ian Pilling, MapQuest Business Solutions |
Editor's note: Mapping has quickly become an essential part of real estate Web sites as map-based searching offers a more streamlined, interactive way of looking for homes. Brokers and agents are still sorting out how to incorporate maps into their Web sites and turn them into a lead-generating tool. In this three-part series, we go beyond the buzz to uncover what mapping can do for real estate business.
When Ian Pilling was searching for a home with his wife three years ago, the couple would drop off their toddlers with the grandparents on Sunday and hit the road, racing to see all the properties on their list within a three-hour time window.
Pilling says he would have been able to get a lot more out of those three hours if today's mapping technology had been available.
"You can only devote a portion of the weekend to your house search," said MapQuest's Business Solutions marketing manager. "Mapping technology can help you quickly find houses with your criteria in the neighborhoods you want. And you can create an itinerary that takes you from your house to your agent's place and the six houses you want to see."
Many options exist for consumers searching online for real estate and a number of companies offer a map-based interface for searching for-sale homes. Map-based searching offers a more streamlined way of looking for homes in which the consumer doesn't have to go through screen after screen to find out location-related information.
According to Pilling, it's a "six clicks of separation" thing.
"When you visit most real estate Web sites, it takes six clicks to view a property," Pilling said. "We (MapQuest) counted the clicks. You go to the site, put in your ZIP code, click 'Go.' Then the next screen comes up, and so on. When a home finally comes up, you still don't know if it's in the neighborhood you like."
This mode doesn't support the well-known real estate aphorism, "location, location, location," according to Pilling.
"Map-based search gives you location right up with the other criteria such as number of bedrooms," Pilling said.
An example of the kind of approach Pilling advocates is the Web site of Roger Fazendin Realtors. The first thing that visitors see on the site is a colorful map of a section of Minnesota.
A graphic of a yellow house appears in every part of the map where a home is for sale. Mousing over the graphic brings up a thumbnail photo and description, and clicking on the thumbnail brings up more information.
If the home buyer is interested in a different area of the state, he or she can quickly change what sector is represented. A smaller map of the entire state appears to the right, and the home buyer can move a small square on that map until it's positioned in the right area. After a couple of seconds, the larger map adjusts to represent that area.
"Once real estate firms have their online presence to help people search for real estate the way they want to, it's a matter of further differentiating yourself by presenting more information visually," Pilling said.
Another site, Mightymap.com, focuses exclusively on New York City.
Within Manhattan, Brooklyn, the Bronx, Queens and Staten Island, the site has links to some 40 micro-neighborhoods, such as Times Square and the Upper East Side. Co-ops, condominiums and all kinds of buildings are tracked, represented on the map by dollar signs. (Red dollar signs are condos; all others are black.)
When the visitor clicks on a dollar sign, the address flashes up on the screen, a closeup of the neighborhood appears in the map and a box appears in the lower right-hand corner with information on the property such as the building class and the year built.
"What Mighty Map is about is not searching for a home but getting good independent research tools," said Jonas Rudofsky, chief executive officer and founder of the company. Rudofsky has 14 years' experience in the field as a commercial real estate broker and real estate developer.
Click here to see a video interview with Mighty Map's Rudofsky.
"When someone calls you up and says, 'I got a great apartment in such and such a place,' you can go right to a particular block on our map and see the property relative to a subway station, relative to where you work," Rudofsky said.
"You can go right to a particular block and look at sales prices on the map both for houses and condominiums," the CEO said.
"You can look at who owns the building. The zoning of the property. The shape of the property. How far you are from various attractions," Rudofsky said. "It's being able to check the legitimacy of what someone tells you."
Information offered includes the occupants of the buildings, any tax or building violations, "everything registered to the parcel," Rudofsky said.
One special feature on the main page, Power Lists, offers a mind-boggling assortment of information including the 10 apartment buildings with the most residential units, the 25 largest floor plates, the 50 oldest buildings and the 10 buildings with the largest number of floors.
"Given that buying a home is probably the largest purchase most people in this country make, decision support is important to the seller and the buyer," Rudofsky said.
There are thousands of candid pictures like this available online, as even the most established online travel sites are harnessing the Web's collaborative potential to enhance their offerings. The member of Barcelona-based Tripadvisor and his hotel bathroom photos are just a few of the millions of similar contributions. Never before have prospective travelers had an opportunity to look this candidly into potential travel destinations.
User-generated content has exploded over the Internet, and, from blogs to Wikis to My Space, real-life user commentary is trumping established media and brands. A few years ago, there was talk of the death of traditional travel agents, as people around the globe clicked their way to e-tickets at online travel-agent sites, like Orbitz and Expedia. Now the established travel guide sites are under attack, as are hotel, restaurant and resort-sponsored Web sites. Travelers have taken to the Web and are now providing real-time, illustrated, no-holds-barred travel guides.
Get the full story at Forbes
Kayak.com hires 'marketing guru'
Kayak.com's "Dream Team" of Travel adds another player to its all-star roster by appointing Brandweek 2005's Marketer of the Year winner Dean Harris, 55, as Chief Marketing Officer. more...
| by Shankar Gupta, Thursday, Feb 16, 2006 6:00 AM EST |
| GROWTH IN TRADITIONAL LOCAL ADVERTISING--INCLUDING classifieds and print Yellow Pages--will be flat or negative in the coming five years, but advertising in the online version of the same media will grow significantly, according to a new forecast by the Kelsey Group. The group is predicting that local search, including online Yellow Pages, will grow 30.5 percent, to $13 billion in 2010. Interactive classifieds are projected to grow 7.9 percent per year to reach $21.1 billion in that same time, from $14.4 billion in 2005. Print Yellow Pages revenues will grow by just 1.5 percent to $28.4 billion, while global offline classifieds will drop by .2 percent to $78.5 billion, by 2010. "The traditional products, the newspaper classifieds, and print Yellow Pages are going to see flat or negative growth, and negative growth in the case of classifieds," said Kelsey Group Analyst Greg Sterling. "We're going to see a trend towards more performance media, where value is proven and self-evident to the advertiser, and that's the influence of Internet on traditional marketing." Kelsey also predicted very high annual growth for pay-per-call: 130 percent annually, reaching $3.7 billion in 2010, from $57 million in 2005. Sterling said that the product would likely begin to appear in print publications as well as online--such as the recently announced deal between pay-per-call firm Jambo and LA Weekly. "It's interesting to a broad cross-section of advertisers," he said. "I think that we're going to see pay-per-call in the newspapers. I think we'll see it as a way to retain advertisers." According to Sterling, traditional publishers can protect their revenue streams by embracing the trend toward online and performance-based advertising. "There's some sort of defensive and offensive measures that newspapers can take, to retain advertisers: Bundling their products online and off, adding free listings with some kind of up-sells, performance-based products as opposed to the flat-fee products," he said. Sterling also noted that the growth in online classifieds may not be fully represented by growth in revenues, since many online classifieds services are available free of charge. "The big trends are continued robust online growth, although that doesn't always translate into revenues, like in the case of classifieds," he said. |
| Wednesday, Feb 15, 2006 6:01 AM EST |
| STARTING TODAY, EXPEDIA'S TRIP ADVISOR will, for the first time, run graphic banner ads on its site. The Travel Ad Network will represent the company. |
(CNN) -- After weeks of rummaging through suitcases, eating lukewarm room service and dismantling the trouser press for entertainment, sooner or later most business travelers start suffering hotel fatigue.
The last 10 years, however, have seen a dramatic shift for the travel industry, resulting in the emergence of a new sector that bridges the gap between hotels and full-blown property leasing.
Serviced apartments usually take the form of a suite of rooms, including a bedroom, bathroom and fully-fitted kitchen. Some also feature a dining room for entertaining guests.
But while hotel guests enjoy round-the-clock room service and a daily visit from cleaning staff, most serviced apartments are spruced on a weekly basis, and in the absence of a restaurant, guests must fend for themselves.
Despite other issues -- such as a lack of hotel-style star rating system -- corporate accommodation firms say the secret is out and business is booming.
"People are cottoning on to the fact that they are cheaper, they're bigger and there's more facilities," says Richard Cruise of Britain-based apartment provider MiNC.
While well established in the Asia-Pacific region, the apartment concept is only just gaining popularity in the United States and Europe, where a broadening spectrum of providers offers an increasing quality of product.
"In the past five years it has kicked off tremendously," says Gillian Taylor, an account manager with U.S.-based Pricoa Relocations, a company which specializes in helping executives with long-term moves overseas.
"In London alone, it's gone from one or two serviced apartment providers to hundreds," she told CNN.
According to Gavan James, Los Angeles senior vice president and general manager for Oakwood, the largest serviced apartment provider in the world, the industry is now worth $3 billion a year in the States alone. Of this, Oakwood claims $500 million.
"The growth of serviced apartments is really on a trend of travelers who want more comfortable and more home-like rooms," he told CNN.
"It is a better way to go. Generally speaking, we're less expensive than a mid-line hotel on a daily basis, although our services are a lot more limited."
Taylor -- whose firm is a long-term Oakwood customer -- puts the attraction down to economies of scale.
"Corporate apartments are more a home away from home, people can bring their families and it can work out considerably cheaper than hotels in the long-term, especially when we're handling business trips of up to 60 people."
Despite touting their advantages, most serviced apartment providers are keen to point out that their business does not encroach on the hotel industry.
"We rarely bump into each other directly, we do go up against some suite hotels but we're really a unique segment" says Oakwood's James.
Adds Taylor: "Hotels have their advantages, you can book one or two nights at short notice whereas apartments usually require seven days."
"Hotels have advantages which we do not," says MiNC's Cruise, who has worked in both sectors. "But for stays of three days or more, we can be much better."
| http://publications.mediapost.com/index.cfm?fuseaction=Articles.san&s=38956&Nid=18347&p=307939 |
| by Todd Friesen, February 2006 issue |
| IT SEEMS LIKE EVERYONE AND his brother has jumped on the local search bandwagon: Google, Yahoo!, MSN, Ask Jeeves, all the usual suspects. Local search results have become an integral part of popular applications like Google Maps, Yahoo! Maps, and Mapquest. Bonus local listings now appear above the natural listings on many regular search engine results pages. The big search engines' local offerings vary in quality and usability. Clearly, they remain a work in progress for all of the players. Yahoo! Local Search appears to draw on users' search histories to gauge their interests when serving results, while MSN has made much of its geographical and demographic targeting capabilities. But a recent search for "bars" in my hometown produced some curious results -- like ice cream parlors (maybe the tool knows I have small children?). Google's local product combines information from a variety of online sources, and Google Adwords now offers advertisers the option of targeting regions, cities, or even parts of cities, based on the zipcode of the area you want to reach. Google claims it can even custom-target an area that an advertiser defines. The geo-targeted ads are then served to searchers who include a location in their query, or to those who search from an Internet address within the targeted area. (But what happens if the user is accessing their service through a geographically separate portal like AOL? Google isn't saying.) To have a presence on local search engines, as well as the local versions of Google, Yahoo!, and msn, you need bricks and mortar, and a presence in the city where you want to be listed. Simply adding place names to the search terms for a purely online offer won't work if it has no other connection to the geographic location. In the early days of local search, you might see results from as far as 50 miles away. That's no longer the case, as the search engines get more sophisticated and precise in their targeting. And when planning your local search campaign, it's wise to keep in mind the relevance of your search terms. Are you bidding on the terms that users within your target area are likely to search for? There are other ways to play in the local search space. Ever notice that online Yellow Pages like Verizon SuperPages often show up in the results for searches that are city-specific? For example, if you're a chiropractor in Boston, you might not rank at all in natural results for the term "boston chiropractor," but you can be the featured advertiser in places like SuperPages for relatively little cost. And the basic Yellow Pages listings -- which can include contact information, hours of operation, payment options, Web links, and descriptions of products and services -- are free. What's the next step for local search? How about a marriage between local search and social networking? Advertising to local markets through location-based online social networks makes a lot of sense. By their nature, these networks provide marketers with a wealth of useful detail: We know who the people in the networks are, what they like to eat and drink, where they hang out, and what music they listen to because they disclose this information voluntarily through their user profiles. Perhaps it's time to start earmarking part of the search engine marketing budget to focus on the clusters of Internet users that you know are in your target demographic. Finally, when targeting local search, be sure to come up with a metric that will account for offline conversions. And make sure you get credit for your efforts. Todd Friesen is director of search engine optimization at Range Online Media. (todd@rangeonlinemedia.com) |
R obison Elementary School was misspelled in an article and headline Wednesday on B3. The headline also mischaracterized the geography bee at the school. And the following student names were misspelled: Cesar Almeraz, Maritsa Soto and German Solorzano. Link
THE headline "Parents `at fault for teen suicides'" yesterday incorrectly suggested that Wellington coroner Garry Evans had said parents were to blame for teen suicides. Mr Evans said his comments, made during a profile interview, were intended to draw attention to a societal issue that he considers merits wider debate.
CBS News' Public Eye blog has a post with some interesting results from a poll conducted by CBS News and the New York Times. The detailed poll information is here . The lead from the story about the poll:
A majority of Americans have at least a fair amount of trust and confidence in the news media, although relatively few express a great deal of confidence in the institution, a CBS News/New York Times poll has found. Still, most think the stories the news media report are generally accurate, and that the news media generally tell the truth (something many think the administration does not do).
And here are the interesting tidbits from the Public Eye blog:
In introducing correspondent Anthony Mason's package on the media, anchor Bob Schieffer mentioned some of the findings of the poll, namely that 63% of respondents had "at least some confidence" in the stories reported by the press while 69% generally believe stories to be accurate. That's a pretty high number, but maybe I'm just jaded from reading all the criticism the media has gotten lately. Here are some other findings of that poll
- The numbers of respondents who said they felt stories reported by the media are accurate match exactly results from a 1994 CBS News poll. In both cases, 69% said they believed the media was generally accurate while 22% said inaccurate.
- When asked, in general, how often the media tells the truth, 59% said all or most of the time while 40% said some of the time or hardly ever. When the same question was asked about members the Bush Administration, 39% said they tell the truth all or most of the time while 58% said they told the truth some of the time or hardly ever.
- Asked to compare the media's treatment of President Bush compared to past presidents, 35% said they thought the press has been harder on the current president, 18% said the media has been easier in its coverage and 45% said he's been treated about the same as others.
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