• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Mr Ramesh Ramanathan

Shubhra Tandon

Mumbai, Sept. 12

Mahindra Homestays plans to take its homes inventory to 250 by next year from the current 50 homes. This addition in the ‘homestays’ initiative from Mahindra Holidays and Resorts India (MHIRL) would take its room count in this category to 750 rooms from the current 150.

Each home will have three rooms on an average. MHIRL is a part of the Mahindra Group.

The Homestays’ concept allows tourists to experience India by staying in a private home with an Indian family. They can choose from four types of homes — heritage homes, plantation homes, rural homes and city homes.

The concept is primarily aimed at foreign tourists looking to explore India from close quarters.

Mr Ramesh Ramanathan, Managing Director of Mahindra Holidays and Resorts India, told Business Line that a significant part of the investment is being made in marketing the homes in the overseas markets and setting up a Web network. He refused to reveal the actual figures.

However, the company plans to market the product among domestic travellers as well. While inbound tourism season in India lasts for five months (October to March), he said that occupancy in the remaining seven months will come from within India.

To begin with, this year, Homestays has identified houses in Kerala, Rajasthan, Delhi, Spiti in Himachal Pradesh and Sindhudurg in Maharashtra. It plans to expand its reach to Tamil Nadu, Karnataka and few more locations in Himachal Pradesh by next year.

The homes will be priced between $80 and $170, inclusive of breakfast. The company expects to achieve 20 to 25 per cent occupancy this year, going up to 60 per cent next year.

“We are not in a volume game and expect that there will be fair amount of demand for a concept like this. It opens out India like no hotel can,” said Mr Ramanathan.

Commenting on how the company would ensure that basic standards are maintained, he said, “As these homes are in close vicinity of our existing resorts, housekeeping staff from there would be making regular visits. Then there will be surprise inspections and mystery guests. Customer feedback will also help us keep a close watch on the homes.”

Homestays will also be training the house owners in hospitality skills and will equip them with list of items of basic amenities and other standards required, he said. As regards revenue sharing arrangement between MHIRL and house owners, a certain amount would be deducted as commission from the collections made. Mr Ramanathan refused to divulge specific details.

More Stories on : Strategy | Resorts & Amusement Parks | Tourism

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line