The economic crisis across the world is proving to be a death knell for the luxury trains run by the Maharashtra Tourist Development Corporation (MTDC).
The Deccan Odyssey, run by the MTDC, which is already running into losses is seeing its foreign tourists, mostly from the United States, cancelling the bookings.
Many tour operators, who had booked the train, cancelled the bookings abruptly. “We had 20-22 per cent of the cancellation for the season 2008-2009,” said Vijay Chavan, chief project officer of Deccan Odyssey. “Global economic downturn is one of the major reasons for the cancellations. Plus, the hype created by the media after the recent (MNS-North Indians) clashes in the city also led to the cancellations.”
The luxury trains including the Deccan Odyssey charge heavily — around $400-500 — depending on the season.
MTDC also blames the shift in the railway policy for the losses suffered by it. “When we started the service, it was mutually decided by the Railways that the respective state governments would share 50 per cent of the income. The Railway Ministry has made significant changes in the rules. According to the new rules, the state Government or the tourist department are charged Rs 1,000-1,200 per km which is not affordable,” added Chavan.
The current scenario has forced the MDTC to chart the train for G W Travels, a UK-based travel company which took the train from Mumbai to Jaipur-Udaipur, Delhi-Agra-Varanasi, Patna and Siliguri.
Started in 2004 on the lines of the Palace on Wheels run by the Rajasthan Government, this luxurious train is incurring a loss of Rs 5 crore annually. When its services commenced, it recorded an occupancy of only 15 per cent but it gradually improved to 40 per cent.
Route selection has been an issue for the Deccan Odyssey. Currently, the train commences its journey from Mumbai, goes to Konkan (Ratnagiri, Sawantwadi and Goa), Pune, and from there to the famous Ajanta and Ellora caves. “In the coming season, we plan to add Todaba sanctuary and Nanded,” said Jayant Gaikwad, managing director of the MTDC.
Agreed Ashok Kumar, executive director (tourism) of Railway Board: “The luxury trains are making losses. The route selection is one of the reasons for this. Unlike the Palace on Wheels which is immensely popular, the other luxury trains are yet to gain popularity.”
The Golden Chariot, run by the Karnataka Government, is facing similar problems, but the economic crisis has not hit this service started in March this year. The Golden Chariot, as of now, has not recorded any cancellations. “But it’s difficult to predict the bookings next year,” said Ratnakar, chief spokesperson for the Karnataka Tourist Development Corporation (KTDC).