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Sunday 20-Nov-2011

Karnataka's Golden Chariot luxury train service unable to reap profits

In its first year, it had raked in handsome returns with 31 trips. The subsequent years saw the trip count nosedive to 26 in 2009-10 and 19 in 2010-11

By  Traveltechie Bureau | Bangalore

Will the 'Golden Chariot', operated by Karnataka State Tourism Development Corporation (KSTDC) in the state's backyards, be able to break even ? 

Figures show the Golden Chariot has been unable to reap golden benefits for KSTDC, with the luxury train stopping way short of the Rs 60-lakh mark per trip, which it requires to break even. 

Commissioned in 2008, Golden Chariot's 18 coaches fitted with modern facilities, has seen a gradual dip in revenue collection over its three years of operations as per a report in TOI by Saswati Mukherjee.

In its first year, it had raked in handsome returns with 31 trips. The subsequent years saw the trip count nosedive to 26 in 2009-10 and 19 in 2010-11.  

A big deterrent in making profits has been haulage charges the body needs to pay Indian Railways, said KSTDC sources. While the charge was Rs 23 lakh per trip in 2008, a rebate was announced after three months and the amount came down to Rs 18 lakh. After one year, charges were revised to Rs 35 lakh per trip. 

KSTDC's outstanding arrears to Indian Railways stand at Rs 6.52 crore (including manufacturing cost). KSTDC is believed to have approached the state tourism department to bail it out and the department agreed to a bailout sum of Rs 3 crore. With foreign tourists comprising the bulk of travellers, the luxury train only boasts of 40% occupancy per trip, bringing in not more than Rs 40 lakh. 

"Add to that some domestic tourists who get down after four days. Not always do we have passengers to fill in those seats which contributes to the revenue loss," said an official working with the luxury chariot. 

"We have not been able to attract people. Marketing needs to be more intense," said Sundar Naik, managing director, KSTDC. For this reason alone, senior KSTDC officials are travelling to theInternational Luxury Travel Mart being held in France next month. "Bookings for the Golden Chariot are on for the current season (October to March) and we are hopeful of finishing with profits," said Naik. The Chariot sets out on its fourth voyage in a fortnight's time.