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Travel News, January, 2006

Tsunami & After

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Cruise tourism on the rise in India
by Kauveri Mondal

    Mumbai: Cruise shipping today is one of the largest growing sectors globally with an annual turnover of more than 500 billion dollars. Around 9.6 million passengers were estimated to have been cruising around the globe last year. The outbound cruise market till recently languished within the limits of an elitist niche. The convergence of two parallel phenomena that is the rise of the middle class and scaling down of the base price for a cruise has suddenly opened up this segment to a seemingly infinite market.

   The launch of "Super Star Libra", the first Indian cruise ship, has opened a floodgate of cruise tourism in India. "It is a fairly new concept as of now, because till now, Indians had to go to the far eastern countries or to the US or European countries to cruise as this kind of facility was not available in India. The other ship that we have in Singapore was quite popular with Indians. If I need to average out the number of passengers that we used to send from India to that ship, it would come out to be 750 people per week. India was becoming one of the top five contributors on that ship which was encouraging for the company. Cruise tourism is definitely on a rise," says Naresh Rawal, Senior Manager (Marketing), India Star Cruises. Citing this gathering potential, cruiseliners globally have charted a special agenda for the Indian market and the market has so far been responding with equal vigour. While the strength of the outbound market is pegged at about five million of which only the cruise segment is still an insignificant percentage, it is headed northward, growing at about 25 per cent annually. Worldwide, cruises constitute a mere two per cent of tourism numbers and yet rank high on the list of industries with a lot of upside potential. Unlike most other forms od tourism, there is a universal recognition of the need to develop this sector for its outbound and inbound potential.

    To cash in on this, the Ministry of Tourism (MoT) and Ministry of Shipping (MoS) are now coordinating with cruise companies to establish cruising as a high value product. "The Government is in fact encouraging. The Cabotage law which includes a clause where the ship needs to touch an international port in between the route, has been relaxed for the next five years. For example, in a route like Mumbai to Goa, we had to touch Colombo Port. So, instead of a two-night trip, we had to go through a five-night trip. The itenary thus was not feasible at all. Now, with the relaxation, it is not the case. Besides the port authorities have been helpful in terms of developing the infrastructure," says Naresh Rawal.

    The Government of India has offered 25 percent of the project cost for cruise terminals. Some of the biggest names in the cruise tourism business have trained their focus on the Indian market. Most of them have already set up their network in order to promote their vessels. To grow in the market, cruise companies are offering designer packages for their respective target audiences. The promotional and the marketing strategies are carefully crafted to suit the Indian consumer. "The packages are pretty much affordable in terms of what you spend on land holidays. If you compare them then one can see that in land holidaying, paying for a hotel, means of transport and also entertainment, they all are needed to be paid separately. Whereas in a cruise the package is all inclusive, the meals, the stay and the facilities are all taken at the same time," says Naresh Rawal. Cruise operators are now going that extra nautical mile by creating tailor-made services and packages for the Indian market. Mainstays like Star Cruises have already garnered a strong recall value in the Indian market as clientele have taken a liking to its ships both in terms of price and service culture. SuperStar Virgo for instance has an Indian restaurant that also serves Jain cuisine and even has vegetarian meal lines at the main buffet. Over and above the touch of Indianess, a combination of world- class entertainment, recreation and food and beverage facilities suitable for families, adults, honeymooners, teenagers and children lends the product a universal appeal.

   Cruises are now extending its marketing campaigns to regional markets like Punjab, Delhi, Gujarat, West Bengal, Maharashtra, Andhra Pradesh, Karnataka, Tamil Nadu, and Madhya Pradesh. "It has been a fabulous experience. I would call it a once-in-a- lifetime experience. In fact, we were all planning to go to Singapore for the same. We have been quite lucky that now we have cruise facility here. It saved us the trouble of travelling all the way to Singapore to experience cruising. Its amazing and unbelievable. It has to be seen to be believed," says Gurmeet Singh, a passenger at a cruise. Cruise companies have quickly learnt the merits of allying with the travel trade to grow their markets by providing them with opportunities to generate incremental revenues.
-Jan 7, 2006




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