Luxury Market

Railways to flag off first pan-India luxury train

IRCTC, COX & KINGS TO HAVE 50:50 STAKE IN THE NEW VENTURE

INDIAN Railways is in the final stages of negotiations with global travel major Cox and Kings to introduce the country’s first pan-India luxury train.
In fact, a new company will soon be formed to handle this venture with Indian Railway Catering and Tourism Corporation (IRCTC) and Cox & Kings holding 50% equity each, sources close to the development told SundayET.
Despite the slowdown, India’s luxury train market has drawn a lot of attention. The Golden Chariot, which explores heritage destinations in Karnataka, was introduced only in March this year. Significantly, the IRCTC wants to bank on the expertise of Cox & Kings to woo international tourists as the profitability will depend on good occupancy rates. Whereas the Palace on Wheels with 14 fully air-conditioned deluxe saloons is a profitable venture, Deccan Odyssey, another luxury train with 13 saloons and accommodating 96 passengers, is losing Rs 6-7 crore annually.
When contacted by SundayET, IRCTC’s managing director Dr Nalin Shinghal confirmed that the deal would be struck soon. “Yes, very soon, we will have a new luxury train targeting just 100 passengers a day. However, unlike the three luxury trains that we have in India now, this will have a pan-India presence. We will have a separate entity to handle this venture in collaboration with Cox & Kings,” he said. A spokesperson from Cox and Kings said that talks were going on with the IRCTC, but refused to divulge the modality of the joint venture. The new train may cost Rs35-40 crore and will target 100 rich passengers willing to shell out $400 to $500 a day. Though all three existing luxury trains are confined to one state each, the new luxury train will cover many tourist destinations across the country. Whereas the Palace on Wheels runs only within Rajasthan, the Golden Chariot is confined to Karnataka. Similarly, Deccan Odyssey does not go beyond Maharashtra.
According to IRCTC’s plan, the fourth luxury train in the country will run in various parts of the country between October to March, and tourists will have the option to pick and choose the states they would like to visit. “Thanks to the brand equity built by the Palace on Wheels over 20 years, many foreign tourists like to visit Rajasthan. But, finding passengers just for Karnataka and Maharashtra is not an easy task. The new luxury train will give the tourists a better option of travelling various parts of the country,” Mr Shinghal said.
faizan.khan@timesgroup.com

The new train will cost around Rs 40 crore, and it targets 100 rich passengers who can shell out $400 to $500 a day.

Everybody is trying to explore the luxury sector which has huge growth potential in developing market like India.I my view it is a good tactics that a PSU is undertaking one such project .Such project will provide a potential source of revenue which can be used to provide better infrastructure and subsidized  service to  common and  poor  people of India.It is one of the GOOD way of decreasing income gap between rich and poor in country .

Thanks for visiting

HOPE FOR INDIA’S FUTURE