You recently launched the Voyages channel which is a television channel that markets travel destinations in India where nominal per capita income is only about $800. What makes you think that there’s a market for Voyages in India?
A
When you look at per capita it can be very misleading. If you look at the 200 to 300 million middle class population that we have, per capita income would be much higher. If you look at top 50 towns across the country and some, there are large number of families which earn between $ 10,000-50,000 annually, and these have been primarily our target audience to begin with.
So distribution of income is quite varied in India. If you’re looking at a per capita income, then that’s not the correct figure to look at.
Q
When you’re talking about $10,000 to $50,000 in income per year, what do you think a typical vacation would be for somebody like that in India and is there a smaller part of that market that you would then target or is that whole 200 million fair game for Voyages?
A
Since we are moving people now across destinations worldwide and in India, we can speak from our experience. The preferred destinations internationally are Thailand, Malaysia, Singapore and Europe whereas the top destinations locally are Goa. Kerala and the hill stations.
So from that point of view, some of the international destinations like Thailand and Malaysia offer good value to the Indians and are comparable in price to the domestic destinations. We are not looking at the 200-300 million middle class as yet, but soon will expand to handle that market as well, our current plans enable us to target about 50 million individuals or 10-12 million Homes.
Q
In addition to operating in India, Voyages Channel is in Germany, Hong Kong and Taiwan and will soon be in the U.S., China, and the U.K. What are the challenges to convincing viewers outside of India to vacation in India and how do you present an honest, balanced picture of the country that doesn’t whitewash it or make it seem too nice or too pristine?
A
I’ve been working, basically, to showcase to the viewers exactly how their itinerary is going to look. For example, we cover the basics like the accommodations, the airport transfers and kind of rooms they will stay in, the kind of lobby and the restaurants that are there and the hotel facilities. Apart from that, what activities they would be engaging in.
So they can get a very objective view of the travel package that is being offered. Then they can call the call center and book their holiday tour, which gives them this basic itinerary. This is a basic, objective delivery to them of their holiday package. Unlike a brochure an audio visual medium is much more rich in content and the viewer can get a much more objective view of the destination from an audio-visual context rather than just through still pictures.
Q
Voyages Television is a little different from a typical television network or television station. Explain your business model.
A
We earn revenues through two distinct areas. We’ve got a margin of transactional revenue when viewers call us and they can book their holiday tour. Out of the total gross spend on the channel, we get a revenue share from the suppliers.
Apart from that, the traditional airtime revenue stream is also there: the ad sales. The advertisers want to advertise. All the advertisers on this, the trade becomes the target. The tourism industry which includes the airlines, the hotels, the tourism boards, that becomes the largest advertising group. In addition to that, the other lifestyle trends which you associate with travel also find this medium quite attractive.
Q
If you only had a half hour television show to sell a potential tourist on visiting the whole of India, what would you highlight?
A
But for the first-time visitor, there are two or three destinations that come to my mind. One is Kerala. The other one is Goa. The third is the Golden Triangle in the north. I think if we are to do a half an hour show, we would do these three destinations, these three itineraries.
Kerala actually is in the top ten destinations worldwide in Condé Nast. Apart from that, Goa is a really popular beach destination. Apart from that, the Golden Triangle, which includes the Taj Mahal, which is one of the Wonders of the World, and then Benares (Varanasi). If I can reach out to showcase in half an hour, these are the three destinations.
Q
With Goa and Kerala and the Golden Triangle, is there another side to this story, which is the downside that tourism could bring in making Goa or Kerala or the Golden Triangle too popular? Do you worry about that or do you think there are controls or steps taken to minimize that impact or do it responsibly?
A
I think that the impact on the economy itself is quite good. As a destination grows it gets new properties coming up and employment as well. Since the local culture is the major attraction for the traveler, a sincere effort is made to preserve it and showcase it. So in a way tourism helps to preserve the local culture and starts to value their traditions. For example, one can look at the renaissance of Ayurveda in Kerala as a positive impact of tourism.
Published: November 2007
Achal Mehra is the Managing Director of Voyages India, which is headquartered in Mumbai. Prior to joining Voyages, Achal served in a number of important positions in the Indian television industry. He was the General Manager - India and Deputy Director for Asia for AXN, the successful general entertainment channel launched by Sony Entertainment. In this role he had responsibility for all channel operations. Prior to joining Sony, he was a senior executive with General Electric’s NBC television group, where he worked on the start up of CNB in India and on the launch of the National Geographic Channel. He began his career in television with Modi Entertainment. Earlier in his career, Achal held a number of management positions with leading consumer goods companies. He was sales manager for the Snack Foods Division of Pepsi in India and held a similar position with Shaw Wallace, one of India’s leading domestic spirits companies. He is a graduate of the prestigious Indian Institute of Management in Ahmedabad.
