Top Stories – Travltalk.com https://travltalk.com Talk about travel and Tourism Sun, 14 Apr 2024 19:11:51 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.1 Air India suspends Tel Aviv flights; airlines avoid Iranian airspace, ET TravelWorld https://travltalk.com/2024/04/14/air-india-suspends-tel-aviv-flights-airlines-avoid-iranian-airspace-et-travelworld/ https://travltalk.com/2024/04/14/air-india-suspends-tel-aviv-flights-airlines-avoid-iranian-airspace-et-travelworld/#respond Sun, 14 Apr 2024 19:11:51 +0000 https://travltalk.com/2024/04/14/air-india-suspends-tel-aviv-flights-airlines-avoid-iranian-airspace-et-travelworld/ [ad_1]

<p>A graphical representation of air traffic shows airspace over Iran and the neighbouring Middle East at 0000 GMT, April 14, 2024. Flightradar24.Com/Handout via REUTERS</p>
A graphical representation of air traffic shows airspace over Iran and the neighbouring Middle East at 0000 GMT, April 14, 2024. Flightradar24.Com/Handout via REUTERS

With the Middle East tensions flaring up, Air India has temporarily suspended its Tel Aviv flights and airlines have charted alternative flight paths to avoid the Iranian airspace. Longer flight paths will result in increased operational costs for the carriers, and the situation could also push airfares higher.

Air India, Vistara, IndiGo e inte and some international airlines are avoiding Iranian airspace and have opted for alternative paths for their flights to the West. A senior wide-body aircraft pilot at an Indian carrier told PTI that the alternative paths are increasing the flight duration.

With the revised flight paths chosen after taking safety and security into consideration, the duration of some flights has increased by around half an hour, the pilot said.

Such a scenario will result in higher operational costs, increased fuel usage and more crew members might have to be roped in for flights as there are duty time limitations. The pilot also opined the rise in expenses could even be passed on to the passengers, which means that international airfares could rise.

Iran launched dozens of drones and missiles at Israel in a retaliatory attack. Amid the escalating tensions between Iran and Israel, Air India on Sunday decided to temporarily suspend the flights to Tel Aviv from Delhi.

Air India operates four weekly flights between the national capital and Israeli city. The Tata group-owned carrier recommenced services to Tel Aviv on March 3 after a gap of nearly five months.

Air India dealt blow as aircraft technicians plan strike

Technicians at AI Engineering Services Ltd. — a state-run maintenance, repair and overhaul firm and an erstwhile Air India unit — will strike on April 23 due to various issues affecting their “well-being” and “professional growth,” All India Aircraft Maintenance Engineering Union wrote in a letter dated April 8 to the chief executive officer.

Air India and Vistara have opted for alternative flight paths for their flights to the West. An official in the know said that IndiGo, which operates flights to Istanbul with aircraft leased from Turkish Airlines, is avoiding the Iranian airspace. Air India on Saturday said it was closely monitoring the Middle East situation and that its aircraft will operate on alternative flight paths to and from India. On Saturday, Vistara said it is making changes to the flight paths of some of the flights due to the situation in the Middle East.

On Sunday, India said it is concerned over escalating hostilities between the two sides that threaten regional peace and security.

Iran carried out the attack on Israel in response to a suspected Israeli strike on its consulate in Damascus on April 1, in which seven Iranian Revolutionary Guards personnel, including two generals, were killed.

  • Published On Apr 15, 2024 at 12:41 AM IST

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India’s foreign ministry advises against travel to Iran & Israel, ET TravelWorld https://travltalk.com/2024/04/12/indias-foreign-ministry-advises-against-travel-to-iran-israel-et-travelworld/ https://travltalk.com/2024/04/12/indias-foreign-ministry-advises-against-travel-to-iran-israel-et-travelworld/#respond Fri, 12 Apr 2024 14:38:20 +0000 https://travltalk.com/2024/04/12/indias-foreign-ministry-advises-against-travel-to-iran-israel-et-travelworld/ [ad_1]

<p>India on Friday issued a travel advisory for its citizens, advising them not to travel to Iran and Israel "till further notice" due to the escalating tension in the region.</p>
India on Friday issued a travel advisory for its citizens, advising them not to travel to Iran and Israel “till further notice” due to the escalating tension in the region.

India on Friday advised its citizens against travelling to Iran and Israel until further notice in view of the “prevailing situation in the region”. The advisory from the foreign ministry came amid Iran’s threats to retaliate against a suspected Israeli airstrike on its embassy in Syria this month.

Countries including the US and Russia have issued similar travel advisories for their staff and citizens in the region.

In an advisory, the Indian Ministry of External Affairs (MEA) also urged the Indians residing in Iran and Israel to exercise utmost precautions about their safety and restrict their movements to minimum.

“In view of the prevailing situation in the region, all Indians are advised not to travel to Iran or Israel till further notice,” the MEA said.

Isreali : Galilee Tourism Industry reinvents itself as war enters sixth month

“The north is empty of visitors these days,” Safi Maklada, the Negev and Galilee Authority’s Druze and Circassian tourism coordinator, told The Press Service of Israel. “You won’t find anyone around except for the soldiers doing their duty, guarding the border and the communities, and their families dropping by for a visit.”

“All those who are currently residing in Iran or Israel are requested to get in touch with Indian Embassies there and register themselves. They are also requested to observe utmost precautions about their safety and restrict their movements to the minimum,” it added. It is feared that retaliation by Iran can widen the six-month old conflict between Iran-backed Hamas militants and Israel in Gaza.

The US has reached out to the foreign ministers of Saudi Arabia, UAE, Qatar and Iraq, asking them to urge Iran to lower tensions with Israel, as part of its efforts to contain the conflict.

  • Published On Apr 12, 2024 at 08:08 PM IST

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Build a strong digital core to build resilient and future-ready travel businesses, ET TravelWorld https://travltalk.com/2024/04/09/build-a-strong-digital-core-to-build-resilient-and-future-ready-travel-businesses-et-travelworld/ https://travltalk.com/2024/04/09/build-a-strong-digital-core-to-build-resilient-and-future-ready-travel-businesses-et-travelworld/#respond Tue, 09 Apr 2024 13:39:58 +0000 http://travltalk.com/2024/04/09/build-a-strong-digital-core-to-build-resilient-and-future-ready-travel-businesses-et-travelworld/ [ad_1]

Across the world, the travel industry is in the throes of a massive transformation. Amidst a volatile macro-economic scenario, traveller preferences are rapidly changing. In addition, the industry currently faces inflationary costs, an acute shortage of skilled talent and is increasingly under scrutiny to adopt more sustainable and green ways of operating.

Even as these challenges persist, the industry, which includes aviation, hospitality, and travel services, can take heart in the fact that traveler sentiment remains upbeat. Months of being cooped up indoors during the pandemic has had a profound impact on consumers, reminding them that travel is more than just the trip. Instead, it is about forming human connection. An Industry Consumer Pulse Survey 2023, which surveyed over 10,000 individuals from 16 countries found that 71 per cent of consumers plan to sustain or increase their spending on leisure travel even as they consider limiting spending across most other discretionary categories.

We believe that travel businesses must build a strong digital core to not just stay relevant but also thrive in this scenario and prepare themselves for the next wave of disruption. A robust digital core is imperative to building resilient business operations, boosting employee productivity, tapping new revenue streams, and most importantly, creating memorable experiences for travellers.

There is no ‘one size fits all’ digital approach
As per industry estimates, global airline passenger traffic is estimated to touch 9.4 billion passengers in 2024. Every year, some of the world’s largest hotel chains offer over a million rooms to guests each, and some car rental companies operate a fleet size of over a million cars each. Given the large scale and complexity of operations, and the diversity of operating models, processes and traveler needs, there is no ‘one size fits all’ approach to building a strong digital core.

Let’s look at this in the context of hotel chains. While all hotels want to deliver great guest experiences, select-service brands prioritize efficiency, have minimal workforce, and rely heavily on standardised processes. As a result, they need a Software as a Service (SaaS)-based lightweight workforce management platform and strong operational insights to maximise efficiency. On the other hand, upscale luxury hotel brands tend to prioritize full-service offerings, well-trained staff, and personalized services. They would typically need a best-in-class workforce management platform along with strong data-led personalisation capabilities integrated into a comprehensive CRM solution.Hence, travel businesses must design and develop their digital core and technology strategy in line with their unique requirements. Interoperable platforms and modular systems, cloud-native operating models, a strong data foundation, artificial intelligence capabilities, and security embedded in everything are all essential elements of this strategy.

Cloud capabilities are vital
Travel companies need to build a solid foundation for change, using the cloud to drive resilience and future growth. The Cloud’s inherent on-demand variability and uninterrupted global connectivity enables businesses to handle surges in business demand. A case in point is how Taylor Swift’s ‘The Eras Tour’ catapulted the demand for airline tickets and hotels in cities on the tour circuit. In situations like this, pricing systems need to be agile, capitalize on the demand, and swiftly distribute new rates across the sales channels. Similar nimbleness is also required during phenomenon like the volcanic ash clouds that can completely upend flight schedules at a very large scale. These situations need enhanced compute power and low-latency connectivity that the cloud offers.

Data-led and AI-powered travel operations
Travel businesses are no stranger to AI adoption – they have been applying AI to growth, experience, and productivity related use cases for some years now. It has been proven that leveraging AI at scale can help create personalised experiences, anticipate travelers’ needs, provide real-time assistance, and help travel companies streamline their operations, empower their employees, and reduce costs. The addition of generative AI to the mix has only given a fillip to AI adoption. Generative AI can help travelers curate a perfect family holiday itinerary, enable an airport manager draw up numerous ‘what-if’ scenarios for gate assignments during heavy snow, and assist with optimal staff allocation.

Our mountains Are calling for help – Sustainable tourism in the age of convenience

To tackle the unsustainable aspects of tourism, all stakeholders in the ecosystem must collaborate. Travellers can adopt mindful consumption habits. Local authorities have the power to incentivise eco-friendly businesses, while tour operators can educate tourists on the environmental impact of travel choices. Creating comprehensive environmental planning and waste management for eco-sensitive tourist destinations goes beyond strategy.

A recent industry research found that AI-influenced revenue for travel companies more than doubled between 2018 and 2021 and is projected to triple by 2024. However, only 13 per cent of surveyed travel companies used AI to reinvent core parts of the business, which indicates the tremendous potential for AI adoption.

In order to capitalise on this opportunity, travel companies must put in place the right data and AI strategy, infrastructure and platforms that govern how data is captured, managed, processed, and how insights are visualized and consumed. Robust data governance, responsible AI practices and in-grained security are vital. Equally key are building data, digital and cloud skills in the workforce supplemented by new operating models, and data-driven ways of working.

Elevate the Purchase Experience
To appeal to today’s traveller, their omnichannel experience – be it through the web, mobile app or call center – during browsing and booking must be seamless, intuitive, stimulating and personalised. Organisations must focus on transforming their sales channels and offering differentiated product and experiences that deliver value across the customer journey.

While the travel industry has faced many a curve ball over the years, it has successfully reinvented itself time and again. Reinvention, however, is a continuous process, and having a strong digital core is vital to building resilient and future-ready travel businesses and creating outstanding experiences for travellers.

The author is the Managing Director and Lead for Travel industry, Advanced Technology Centers in India, Accenture.

DISCLAIMER: The views expressed are solely of the author and ETTravelWorld.com does not necessarily subscribe to it. ETTravelWorld.com shall not be responsible for any damage caused to any person/organisation directly or indirectly.

  • Published On Apr 9, 2024 at 07:09 PM IST

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Cruiser Safaris For Owners Of Resorts & Tour Agents Banned, ET TravelWorld News, ET TravelWorld https://travltalk.com/2024/04/07/cruiser-safaris-for-owners-of-resorts-tour-agents-banned-et-travelworld-news-et-travelworld/ https://travltalk.com/2024/04/07/cruiser-safaris-for-owners-of-resorts-tour-agents-banned-et-travelworld-news-et-travelworld/#respond Sun, 07 Apr 2024 03:54:00 +0000 https://travltalk.com/2024/04/07/cruiser-safaris-for-owners-of-resorts-tour-agents-banned-et-travelworld-news-et-travelworld/ [ad_1]

The Tadoba-Andhari Tiger Reserve (TATR) ban on the newly-introduced Cruiser safari vehicles for resort owners and tour agents have left them fuming.

These nine-seater Cruisers, a replacement for the 22-seater old canters, will now be available for locals from Chandrapur only. The ban came into force on March 2. The park has six Cruisers with all of them operating from the Mohurli entry gate.

Chief conservator of forest (CCF) and TATR field director Jitendra Ramgaonkar said, “When we made these Cruisers available to everyone online, these were booked within minutes allegedly by resort owners. There was no room for those who came calling to my office for a berth.”

Ramgaonkar added, “The facility has been started with a good intention to benefit all but it seems it was misused by hiring agents in Chandrapur, depriving common tourists of an entry. Hence, we were left with no choice but to impose restrictions.”

However, stakeholders said that earlier one canter was made available online. Regarding the issue, Ramgaonkar said, “When one canter was available online, the same issues cropped up and common tourists could not book it. Yet, we will consider putting one or two Cruisers online soon.”

In response to grievances voiced by the local community, Tadoba has prohibited resort owners and safari/tour agents from bookings Cruisers. These safari vehicles are in demand owing to the economic cost of Rs 500 per person.

As per the new rule, locals from Chandrapur can book Cruisers from 11am to 2pm at the field director’s office on Mul Road in Chandrapur. From 3pm to 5pm, locals running home stays can do the bookings by visiting the office on a first-come-first served basis. One home stay owner will be able to book only six seats per day.

At a time when it is the peak wildlife tourism season and visitors from all over the country are making a beeline in Tadoba, the restrictions have left resort owners and tour operators disappointed. They termed the move as vote bank politics by forest minister Sudhir Mungantiwar to appease local voters before the Lok Sabha elections.

“There are six Cruisers in Tadoba. All these vehicles operate from the Mohurli gate. Why this bias?” said Nikhil Abhyankar, a resort owner at Kolara.

“A tourist entering the park from Kolara on the Chimur side is also part of Chandrapur. So, whom will you call a local? All the entry gates are part of Chandrapur. Why should they not benefit?” Abhyankar asked.

“When Cruisers were brought in, it was decided to distribute them at other gates so that the other locals could gain. Today, the maximum number of resorts are based in Kolara but despite the demand, neither the canters were started nor do the Cruisers operate from here. Why should only one entry gate benefit always? We too pay conservation fee to the park,” said some resort owners.

“The local community, which often relies on the reserve for their livelihood through eco-tourism and conservation efforts, has been particularly vocal about the need for regulation. Kolara, Navegaon and Zari gates should also get Cruisers,” said a section of guides.

Contrarily, the decision to restrict the use of Cruisers has been welcomed, but many tourists feel its benefit should not be confined to Chandrapur only. “What wrong have we done? If a politician can contest elections from anywhere in the country, why can’t Indian nationals enjoy a safari in a Cruiser?,” asked wildlife tourist Nitish Bhandakkar from Nagpur.

  • Published On Apr 7, 2024 at 09:24 AM IST

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Hilton expands luxury portfolio with acquisition of Sydell Group’s NoMad hotels brand, ET TravelWorld https://travltalk.com/2024/04/04/hilton-expands-luxury-portfolio-with-acquisition-of-sydell-groups-nomad-hotels-brand-et-travelworld/ https://travltalk.com/2024/04/04/hilton-expands-luxury-portfolio-with-acquisition-of-sydell-groups-nomad-hotels-brand-et-travelworld/#respond Thu, 04 Apr 2024 12:29:04 +0000 https://travltalk.com/2024/04/04/hilton-expands-luxury-portfolio-with-acquisition-of-sydell-groups-nomad-hotels-brand-et-travelworld/ [ad_1]

Hilton, a global hospitality leader, has taken a significant step in its luxury expansion strategy by acquiring a majority controlling interest in Sydell Group, specifically to grow the NoMad Hotels brand worldwide. The MoU signed between the two entities marks Hilton’s entrance into the fast-growing luxury lifestyle hotel market, introducing an exquisite brand known for its exceptional food and beverage, interior design, and service standards.

Sydell Group, under the leadership of founder Andrew Zobler, has earned acclaim for its innovative hotel concepts, including NoMad, The Line, Freehand, and The Ned. The collaboration entails Sydell managing design, branding, and operations for NoMad, while Hilton leads the development initiatives. This integration will see NoMad seamlessly integrated into Hilton’s commercial platforms, including Hilton Honors, ensuring a cohesive experience for guests.

The partnership anticipates the development of up to 100 NoMad properties globally, with discussions already underway for approximately 10 locations. The synergy between Sydell’s expertise in design and branding and Hilton’s commercial prowess is expected to drive significant growth in the luxury lifestyle segment.

“We are thrilled to be announcing Hilton’s highly-anticipated entry into the luxury lifestyle space with the NoMad Hotels brand. This offers yet another exciting dimension to our growth story in India, as we look to build on our growing momentum with our existing luxury and lifestyle brands such as Waldorf Astoria, Conrad and Curio Collection by Hilton. With the thriving Indian economy and increasing expectations of discerning travelers, this new brand will provide even more opportunities for exceptional experiences in desirable destinations across India and Asia Pacific,” said Alan Watts, president, Asia Pacific, Hilton.

Chris Silcock, President of Global Brands and Commercial Services, Hilton, expressed excitement about the addition of NoMad to their brand portfolio. He emphasized the unique luxury experiences NoMad offers, perfectly aligning with Hilton’s commitment to meeting evolving guest needs and expanding their offerings.

NoMad Hotels are renowned for their blend of luxury and lifestyle experiences, offering guests a sense of being part of vibrant neighborhoods worldwide. Each NoMad property will showcase unique local art collections, creating a distinctive ambiance for guests.

Hilton expands luxury portfolio in India, signs Conrad Hotels & Resorts property in Jaipur

The upcoming 246-key hotel is a collaboration with SunnyRaj Properties and is scheduled to open its doors in 2027. This announcement reflects Hilton’s dedication to expanding its luxury offerings in India, following the success of Conrad properties in Pune and Bengaluru, and the signing of India’s inaugural Waldorf Astoria in Jaipur last year.

The flagship property, NoMad London, will soon be available for booking through Hilton’s channels, with plans for further expansion in top global markets. However, NoMad Las Vegas is excluded from this agreement and will undergo rebranding in the near future.Andrew Zobler, CEO, Sydell, expressed enthusiasm about the partnership with Hilton, highlighting NoMad’s dedication to accessible luxury, exceptional design, and award-winning food and beverage experiences. He anticipates NoMad’s expansion into coveted neighborhoods worldwide, bringing Hilton travelers sophisticated luxury stays.

This strategic move by Hilton underscores its commitment to offering diverse stay options across luxury and lifestyle segments, complementing its existing brands like Waldorf Astoria, Conrad, LXR, and Signia by Hilton. The addition of NoMad, along with Hilton’s exclusive partnerships and planned acquisitions, reflects the company’s strategic growth trajectory and customer-centric approach.

Financial details of the transaction remain undisclosed at this time.

  • Published On Apr 4, 2024 at 05:59 PM IST

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India’s civil aviation ministry, watchdog step in as Vistara cancellations surge, ET TravelWorld https://travltalk.com/2024/04/02/indias-civil-aviation-ministry-watchdog-step-in-as-vistara-cancellations-surge-et-travelworld/ https://travltalk.com/2024/04/02/indias-civil-aviation-ministry-watchdog-step-in-as-vistara-cancellations-surge-et-travelworld/#respond Tue, 02 Apr 2024 11:00:00 +0000 https://travltalk.com/2024/04/02/indias-civil-aviation-ministry-watchdog-step-in-as-vistara-cancellations-surge-et-travelworld/ [ad_1]

<p>A Vistara passenger aircraft on the tarmac at Chhatrapati Shivaji International Airport.</p>
A Vistara passenger aircraft on the tarmac at Chhatrapati Shivaji International Airport.

India‘s civil aviation ministry said on Tuesday it was monitoring a surge in flight cancellations by Vistara as the airline grapples with a shortage of pilots, while the aviation regulator has sought daily information on flight disruptions.

Vistara, owned by the Tata group and Singapore Airlines , cancelled over 50 flights on Monday, with around 160 delayed, news channel NDTV reported. It is likely to cancel up to 70 flights on Tuesday, according to local media reports.

The airline operates more than 300 flights a day, according to its website.

Airlines have to comply with the norms of the Directorate General of Civil Aviation (DGCA), the Indian aviation regulator, to ensure passenger facilitation in case of cancellations or delay of flights, the Ministry of Civil Aviation said in a post on X.

The DGCA has asked the airline to submit daily information and details on flights that are being cancelled and delayed.

Vistara did not comment when asked for details on flight disruptions.

Vistara sees significant flight cancellations; to cut operations due to non-availability of pilots

Further, the airline has deployed larger aircraft like B787-9 Dreamliner and A321neo on select domestic routes to combine flights or accommodate more number of customers, wherever possible. One of the sources said first officers reporting sick have forced the airline to cancel flights as their salaries have been reduced significantly. The source claimed that some components of the salary have been reduced while incentives linked to flying hours have been raised.

The airline had said on Monday that it was forced to cut a number of flights due to the pilot shortage and was using some of its larger aircraft to “accommodate more passengers.” An increasing number of Vistara pilots have reported sick, protesting a revised salary structure ahead of the full-service carrier’s merger with Tata-owned Air India, as per local media.

  • Published On Apr 2, 2024 at 04:30 PM IST

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What the Indian airline industry requires for success?, ET TravelWorld https://travltalk.com/2024/03/29/what-the-indian-airline-industry-requires-for-success-et-travelworld/ https://travltalk.com/2024/03/29/what-the-indian-airline-industry-requires-for-success-et-travelworld/#respond Fri, 29 Mar 2024 10:54:48 +0000 https://travltalk.com/2024/03/29/what-the-indian-airline-industry-requires-for-success-et-travelworld/ [ad_1]

<p>(Left) Dr Avinash Ghalke and Rohit Prabhudesai (Right).</p>
(Left) Dr Avinash Ghalke and Rohit Prabhudesai (Right).

The Indian airline business is the fastest expanding in the world and the third biggest. Despite being the death zone for survival and profitability, many people, from the flamboyant to the modest, have been drawn to try their luck in the category due to its external attraction. However, on average, one airline has been grounded annually since 1994, when private ownership was first permitted. In an industry where the return on invested capital has continuously been negative for an extended period, Jet Airways four years ago and Go First last year were the most recent victims. The difficulty in achieving profits hasn’t been a problem that’s idiosyncratic to the airline industry in this country. This is a situation that has occurred in the world’s most developed economies as well. In his influential 2008 Harvard Business Review (HBR) article, strategy expert Michael Porter evaluated all key US businesses according to the Return on Invested Capital (ROIC) they had produced over fifteen years. You may guess which industry came in last on the list. Airline.

Even while the sector appears to be in dire straits, isolated instances of profitability have flourished. Before the pandemic, for example, Indigo had a successful profit run for years in the Indian environment. Similarly, Air India Express’s achievements before its merger with AirAsia were sometimes overshadowed by the challenges faced by its larger and more well-known sister company, Air India. There have also been cases of Southwest Airlines and Singapore Airlines making large profits over extended periods globally.

Therefore, while it is true that making money in the aviation sector is challenging, it is not impossible, as some of the aforementioned cases show—despite how uncommon they may have been. If we examine these exceptional cases, the key to their accomplishment is their capacity to comprehend the subtleties of the industry structure and manage it with superb resource and capability allocation.

For example, Indigo quickly saw that the industry structure in its area of operation was marked by hostile forces: powerful suppliers (fuel, aircraft, etc.) who could charge high prices; buyers who had many options, could easily compare prices, and were remarkably price sensitive; rivals who occasionally had ample financial resources; and the constant influx of new players drawn to the market by its allure. Selecting the Southwest route, it purposefully positioned itself to generate profits through large-scale operations, trying to offset the power of these factors. Therefore, the goal of its whole endeavor was not to attain cost efficiency superficially; instead, it concentrated on reducing expenses as much as possible throughout all of its activities to maintain lower pricing than other carriers. Additionally, it could synchronize its procedures, and its punctual performance notably contributed to decreased operational expenses. Table 1 shows that year over year, its cost per available seat kilometer (CASK) has remained the lowest among its counterparts in the nation. As a result, it effectively evolved into the low-cost strategy leader that Porter discussed in his writing. The issue for the others, or those that didn’t succeed, was that an industry could only have one low-cost leader since only one company could maintain the lowest expenses and then pass those savings along to customers through reduced pricing.

Conversely, if we look at global success, Singapore Airlines achieved success via a different route – that of differentiation. It is renowned for providing outstanding service at a premium for the customer. Finally realising this, Vistara, the Singapore Airlines subsidiary operating in India, is now focused on delivering a premium experience for its patrons, including complimentary meals, first-rate service, a loyalty program, and premium economy seats for an enhanced traveller experience. As a result, it reported its first EBITDA profit since its entry in 2016 during the first quarter of the Financial Year (FY) 2023–2024. Vistara should avoid making the error of directly competing with the low-cost group’s prices. Vistara has a unique value proposition, and it has to ensure that premium pricing pays the expense of delivering a higher value.

Vistara celebrates arrival of 70th aircraft & expansion of Delhi-Bali route

As part of its expansion strategy and in response to strong demand, Vistara has announced the deployment of its Boeing 787-9 Dreamliner on the Delhi – Bali route, effective from 31st March 2024. This move comes in anticipation of increased travel during the upcoming summer season. Vistara initially launched daily non-stop flights on this route in December 2023, operated by its A321LR aircraft, becoming the sole airline to offer direct flights between Delhi and Bali.

In any business, companies need to hold any of the two possible positions for success: either aim to create differentiation by spending higher or pursue low-cost leadership. Of course, there are many different kinds of differentiation; this is evident when one looks at another transportation area. Toyota, Mahindra, and Tata Motors strive for differentiation in the Indian market, albeit in different ways. While Toyota is associated with durable cars, Mahindra is recognised for its toughness. Tata Motors has established a strong reputation for safety while achieving a fantastic turnaround quickly from loss-making to a highly profitable position. In the airline sector, for example, offering premium economy seats like Vistara or operating unique routes that no one else flies, like Air India Express, are ways to stand apart.

Since the low-cost leadership group is a significant client category that can be catered to, it has a strong attractiveness that draws in most airlines. Indigo’s substantial market share of nearly 60% in India is attributed to its low-cost leadership position. However, the industry’s profitability could improve if other airlines pursued their unique differentiation. Currently, five Indian airlines operate in the low-cost segment, which can lead to a problematic scenario for profits due to competitive strategy. The more airlines that pursue differentiation, the greater the profitability tension would be relieved.

Porter states that the essence of strategy is gaining a competitive edge via differentiation. Finding, creating, and maintaining this distinct position no one else has taken hold of is the key to success. It would be simpler for Indian airlines to increase their own and the sector’s profitability the sooner they grasp this.

The authors are the Assistant Professor of Finance and Economics, SPJIMR and Assistant Professor in the Strategy & Consulting Area at the Goa Institute of Management.

DISCLAIMER:
The views expressed are solely of the author and ETTravelWorld.com does not necessarily subscribe to it. ETTravelWorld.com shall not be responsible for any damage caused to any person/organisation directly or indirectly.

  • Published On Mar 29, 2024 at 04:24 PM IST

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Tourism in New South Wales soars, exceeds $50 billion in visitor expenditure, ET TravelWorld https://travltalk.com/2024/03/28/tourism-in-new-south-wales-soars-exceeds-50-billion-in-visitor-expenditure-et-travelworld/ https://travltalk.com/2024/03/28/tourism-in-new-south-wales-soars-exceeds-50-billion-in-visitor-expenditure-et-travelworld/#respond Thu, 28 Mar 2024 09:52:35 +0000 https://travltalk.com/2024/03/28/tourism-in-new-south-wales-soars-exceeds-50-billion-in-visitor-expenditure-et-travelworld/ [ad_1]

<p>Picture used for representation.</p>
Picture used for representation.

The tourism sector in New South Wales (NSW) has reached unprecedented heights, surpassing USD 50 billion in visitor expenditure for the first time and leading Australia‘s post-pandemic recovery.

Data from Tourism Research Australia (TRA) reveals that domestic and international travellers injected a remarkable USD 51.4 billion into the NSW visitor economy by the end of December 2023.

Notably, NSW welcomed the highest number of international visitors, accumulated the most visitor nights, and boasted the highest visitor expenditure nationwide. The international segment contributed a substantial USD 11 billion to the visitor economy. Additionally, NSW experienced the most substantial growth in international visitor numbers, nights, and expenditure among all states and territories, with an increase of 1.8 million visitors, 42.8 million nights, and USD 6 billion in expenditure.

Despite the lingering impacts of the COVID-19 pandemic, international arrivals surged to 78 per cent of pre-pandemic levels, with visitor nights and expenditure reaching 90 per cent and 96 per cent respectively, compared to 2019 figures. Key international markets such as the United States, New Zealand, and the United Kingdom retained their positions as top contributors to NSW tourism, with China showcasing a robust recovery as the fourth largest source market. Notably, South Korea demonstrated the fastest visitor growth, while Indonesia and Singapore excelled in nights spent and expenditure, respectively.Sydney, as the hub of NSW tourism, solidified its status as the premier visitor destination among Australian capitals in 2023. It attracted 53 per cent of all international visitors to Australian cities, resulting in 73.1 million visitor nights and an estimated expenditure of USD 10 billion. These figures accounted for 40 per cent and 44 per cent of total nights and expenditure across Australia, respectively.

On the domestic front, NSW experienced a significant surge of 9.3 per cent in domestic visitors, propelling domestic expenditure to a record high of USD 40.5 billion. Regional NSW emerged as a standout, showcasing its natural attractions and experiences, leading regional Australia in domestic daytrip visitor levels.

Nature-based activities and caravan and camping holidays emerged as major attractions, with NSW retaining its position as the top caravan and camping destination in the country. Moreover, over 15 million overnight visitors indulged in nature-based activities, contributing USD 16.1 billion to NSW’s tourism economy.

Tourism Australia receives over 400,000 visitors from India for the first time

In January 2024 alone, Australia welcomed 26,200 visitors from India, equivalent to 106 per cent of pre-pandemic levels in 2019. This surge in Indian tourists is attributed to targeted marketing initiatives, a streamlined and digitised visa application process, and enhanced air travel options between the two countries. The upward trajectory in Indian arrivals highlights the enduring appeal of Australia as a top-tier destination, promising continued growth and mutual benefits for both countries’ tourism sectors.

Destination NSW CEO Steve Cox lauded these achievements, attributing them to the diverse and unparalleled experiences NSW offers across its regions. Cox emphasized the pivotal role of tourism stakeholders in driving growth and job creation in the state, expressing optimism about Western Sydney’s increasing prominence in the visitor economy, especially with the upcoming Western Sydney International Airport slated to further boost visitation.

International Visitor Highlights:
– 3.4 million international visitors, 87 million visitor nights, and USD 11 billion expenditure in 2023
– Visitations rebounded to 78 per cent of 2019 levels
– Sydney received 53 per cent of all international visitors to Australian capitals
– Top 3 source markets: US, New Zealand, UK
– Fastest recovering markets: South Korea (visitors), Indonesia (nights and expenditure), Singapore (expenditure)

Domestic Visitor Highlights:
– 102.5 million domestic visitors, a 9.3 per cent increase year-on-year
– Record domestic expenditure of USD 40.5 billion
– Sydney attracted 36 million domestic visitors, while regional NSW received 67.5 million
– Nature-based activities and caravan/camping remained popular, contributing significantly to visitor spending.

  • Published On Mar 28, 2024 at 03:22 PM IST

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Amex GBT acquires CWT in USD 570 million deal, ET TravelWorld News, ET TravelWorld https://travltalk.com/2024/03/26/amex-gbt-acquires-cwt-in-usd-570-million-deal-et-travelworld-news-et-travelworld/ https://travltalk.com/2024/03/26/amex-gbt-acquires-cwt-in-usd-570-million-deal-et-travelworld-news-et-travelworld/#respond Tue, 26 Mar 2024 07:00:13 +0000 https://travltalk.com/2024/03/26/amex-gbt-acquires-cwt-in-usd-570-million-deal-et-travelworld-news-et-travelworld/ [ad_1]

<p>Representative image<sub></sub></p>
Representative image

In a significant move in the B2B software and services sector, Global Business Travel Group (GBTG), announced on Monday that its American Express Global Business Travel (Amex GBT) arm has entered into a definitive agreement to acquire CWT, a leading business travel and meetings solutions provider. The acquisition is valued at approximately USD 570 million on a cash-free, debt-free basis and is expected to close in the second half of 2024, subject to customary closing conditions and regulatory approvals.

The transaction will be funded through a combination of stock and cash, with Amex GBT issuing approximately 71.7 million shares of its common stock at a fixed price of USD 6.00 per share and using cash on hand to retire CWT debt and cover the remaining transaction consideration. This strategic move is projected to be break-even to earnings per share in the first year of transaction close and accretive thereafter.

Paul Abbott, CEO, Amex GBT, expressed excitement about the acquisition, stating, “Bringing CWT onto the proven Amex GBT software and services model will create more choice for customers, more opportunities for people, and more value for shareholders.”

After the acquisition, CWT customers will gain access to Amex GBT’s proprietary software and services for travel and expense, including Neo1, Neo, and Egencia. This expanded offering will also include Select, enabling customers to integrate with leading technology partners. Additionally, customers will benefit from a wide range of professional services, such as meetings and events, consulting, and sustainability solutions, while Amex GBT’s marketplace will provide access to comprehensive and competitive content in the industry.

FCM Meetings & Events launches global venue finder platform

This platform revolutionides the booking process for meetings and group hotel accommodations within the MICE (Meetings, Incentives, Conferences, and Exhibitions) industry, offering a world-class booking experience. The platform also emphasises sustainability solutions through efficient contracting and cost controls, aligning with the growing demand for eco-friendly practices in the travel sector.

Patrick Andersen, CEO, CWT, expressed confidence in the value creation of the combined company, stating, “Joining forces with Amex GBT helps accelerate our vision of a tech-enabled future for business travel, where people and technology combine to deliver an exceptional customer experience.”The acquisition is expected to create greater capacity for investment in software and services, deliver significant shareholder value through synergy opportunities and efficiency gains, with approximately USD 155 million of annual run-rate synergies identified within three years, and provide CWT customers with enhanced choice and value.

  • Published On Mar 26, 2024 at 12:30 PM IST

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Indian travellers seize opportunity for extended break with Holi & Good Friday coincidence, ET TravelWorld https://travltalk.com/2024/03/22/indian-travellers-seize-opportunity-for-extended-break-with-holi-good-friday-coincidence-et-travelworld/ https://travltalk.com/2024/03/22/indian-travellers-seize-opportunity-for-extended-break-with-holi-good-friday-coincidence-et-travelworld/#respond Fri, 22 Mar 2024 14:13:19 +0000 http://travltalk.com/2024/03/22/indian-travellers-seize-opportunity-for-extended-break-with-holi-good-friday-coincidence-et-travelworld/ [ad_1]

<p>Picture used for representation.</p>
Picture used for representation.

As the Holi and Good Friday festivals coincide in March, Indian travellers have a great opportunity to enjoy a longer break. This year, Holi falls on March 25, and Good Friday is on March 29, giving people a shorter workweek to enjoy a longer leisure time without using up too much annual leave.

Many travellers are taking three days off to extend the holiday to nine days, thanks to the unique opportunity of Holi and Good Friday falling in the same week. According to various travel agencies and online portals, there has been a huge surge in demand, with close to 350 per cent increase in both domestic and international travel for the extended Holi weekend compared to last year.

Skyscanner’s Travel Trends 2024 report found that 63 per cent of Indian travellers plan to spend more on travel in 2024 than they did in 2023. This is evident from the bookings for destinations like New Delhi, Mumbai, and Bangalore in March 2024, which have already surpassed 75 per cent of the bookings recorded for March 2023, even though it is only mid-month. This suggests that this travel season is expected to be more robust than the previous Holi festival.

A growing trend in travel is the search for holidays that offer cultural immersion and spiritual connection.

Indians travellers are seeking a diverse range of experiences during their leisure time, from exploring vibrant cities to soaking in cultural festivities. According to data from Booking.com, some of the most searched leisure destinations, besides popular metros, include Udaipur, Jaipur, Goa, Lonavala, and Manali.

Furthermore, spiritual destinations are gaining popularity, with Vrindavan, known for its Holi celebrations, emerging as one of the top five most searched destinations in India. Other popular destinations include Rishikesh, Puri, and Varanasi.

For international travel, the announcements of visa-free entry has been a game-changer for destinations like Sri Lanka, Malaysia and Thailand, resulting in a significant uplift of approx. 35 per cent. Sri Lanka has seem maximum benefit with demand up by 40 per cent, followed by Malaysia at 35 per cent and Thailand at over 30 per cent.

Higher spends
Indians are spending 25 per cent higher this Holi compared to last year.

Airfare trends
Fueled by this growing demand in 2024, airfares have risen slightly by 12 per cent on the Mumbai to Delhi route and by 17 per cent on the Bangalore to Delhi route compared to the week of Holi in 2023. Similarly, for travellers flying from Delhi to Bangalore, airfares have surged by 16 per cent as opposed to the same time last year. That said, prices are not all rising at the same time, airfares on the Delhi to Mumbai route for example had a drop of 12 per cent in price when comparing airfares for the week of 11 March versus 18 March.

On the other hand, there has been a 6-10 per cent drop in airfares (compared to Holi last year) for domestic favourites like Srinagar, Chandigarh, Andamans, Bagdogra, Goa and Jaipur from hubs like Mumbai, Delhi, Bengaluru, Hyderabad, Chennai and Kochi. In the subcontinent, airfares to Kathmandu and Colombo have witnessed a drop of approx. 5 per cent – inspiring an uplift in air travel.

According to data shared by EaseMyTrip, there has been an impressive surge of around 190 per cent is noted in the Delhi-Goa, while the Mumbai-Lucknow route has seen an uptick of approximately 30 per cent. Despite a rise in airfares by 10-15 per cent, a 2.5 times surge in searches for the long weekend has been observed, compared to previous years.

“We have seen a 46 per cent YoY increase in flight searches for Holi travel this year. Domestic fares for popular routes have shot up 25-30 per cent in the last week of March as travellers are making most of the back to back long weekend on account of Holi and Good Friday holiday. International travel is also picking up with Dubai, Singapore, Bali & Bangkok emerging as traveller favourites this Holi,” said Aloke Bajpai, Chairman, Managing Director and Group CEO, ixigo.

Destination trends
Digital travel platform Agoda analysed its search data and found Dubai on top as the favorite international travel spot. Domestically, Goa is the most popular destination searched for Holi and Good Friday.

For those planning an international getaway, nearby Dubai is the most popular destination, with Singapore coming in second spot. Thailand’s visa waiver policy likely helps it secure two of the top five most popular spots for travel with Bangkok number three and Phuket fifth. Bali (Indonesia) is the fourth most popular international destination for the Holi and Good Friday break.

“As Holi and Good Friday long weekends approach, leisure bookings are on the rise. The top domestic flight destinations at MakeMyTrip are Goa, Srinagar, Guwahati, Port Blair, and Bagdogra. Popular hotel destinations include Udaipur, Jaipur, Puri, and Varanasi. Premium bookings are higher than usual by close to 10 per cent. Internationally, short-haul favorites include UAE, Thailand, Singapore, Indonesia, and Malaysia, while top long-haul destinations are the UK, USA, Australia, Japan, and Germany. Hotel bookings for religious destinations such as Puri, Varanasi, and Amritsar have doubled since last year, emerging as the second most preferred category after beaches,” said Rajesh Magow, Co-founder and Group CEO, MakeMyTrip.

Ensure punctual running of Holi special trains: Railway Board

Trains have been planned to connect major destinations across the country on railway routes like Delhi-Patna, Delhi-Bhagalpur, Delhi-Muzaffarpur, Delhi-Saharsa, Gorakhpur-Mumbai, Kolkata-Puri, Guwahati-Ranchi, New Delhi-Shri Mata Vaishno Devi Katra, Jaipur-Bandra Terminus, Pune-Danapur, Durg-Patna, Barauni-Surat etc,” the Railway’s press statement said.

“The spike in demand is primarily fueled by individuals travelling from metro areas to their hometowns in Tier II and III cities. We anticipate a surge in bookings for destinations such as Goa, Delhi, Mumbai, Bangalore, Jaipur, Mathura, Vrindavan, Varanasi, and Amritsar,” mentioned Nishant Pitti, CEO and Co-Founder, EaseMyTrip.

According to data from Airbnb, South Goa has emerged as the top Indian domestic destination with a nearly 330 per cent increase in searches for stays for the upcoming long weekend, highlighting its appeal as the preferred beach destination. Additionally, the cultural allure of Varanasi, Jaipur, and Pondicherry as well as popular hill stations like Mussoorie, Ooty and Manali are also driving diversified interest for short getaways during the upcoming long weekend.

On the international front, Athens leads the way with an approximately 400 per centspike in searches, earning its place at the top of the wishlist for Indian explorers, closely followed by Istanbul, Bangkok, and Rome. These cities represent a blend of historical richness and cultural vibrancy that resonates deeply with Indian travellers.

Krishna Rathi, Senior Country Director India Subcontinent and Maldives at Agoda, stated, “The consecutive long weekends for Holi and Good Friday provide a unique window for Indians to plan extended trips. Whether people are looking to explore India or abroad, it’s a great opportunity to whet the travel appetite among Indians, which has only increased since the recent waiver of visa requirements. As more Indians look to expand their horizons, Agoda is committed to offering great value deals on accommodations, flights, and activities at home and abroad to help them see the world for less.”

“With Indians becoming increasingly savvy with their travel planning, it is not surprising that travel enthusiasts are seizing the upcoming extended break for Holi and Good Friday to jet off to nearby destinations. As a result, cities such as New Delhi, Mumbai, and Bangalore are stealing the spotlight as prime hubs with Kolkata, Goa and Hyderabad following closely behind. Many are also making the most of the long weekend by flying to international hotspots like Dubai, London, and Bangkok,” said Mohit Joshi, Travel & Destination Expert at Skyscanner.

Drivecations: uptick of 25 per cent in closer to home/drivable destinations with increased length of stay from 3-4 days to 5-7 day. Travellers in/around Delhi are opting for destinations including Naukuchiatal, Munsiyari, Kangra, Kanatal, Kausani, Ranikhet, Mukteshwar; Bhandardara, Amboli, Sindhudurg, Kolad, Kamshet, Harnai-Anjarle, Saputara, Silvassa, Saputara for customers in Maharashtra & Gujarat; Hampi, Gokarna, Coorg, Puducherry, Kanyakumari for customers in Karnataka/Tamil Nadu.

Outdoor Adventure: 30 per cent increase in interest for outdoor and adventure travel with biking trips in Srinagar – Leh – Manali, Manali to Spiti Valley, Jaipur-Jodhpur-Jaisalmer. White water rafting in Rishikesh, Leh-Ladakh, Uttarakhand. Paragliding in Shillong, Gangtok. Camping in Jaisalmer, Kullu, Chopta. Trekking in Sikkim, Coorg, Mcleodganj. Snowboarding in Auli Pahalgam and Sethan. Safari in Pench, Kanha, Corbett, Ranthambore.

Rajeev Kale, President & Country Head – Holidays, MICE, Visa, Thomas Cook India said, “This year, we are witnessing a significant demand uptick of 5x vs last year and increased spends of 25 per cent; more so given the longer duration of two weekends. In addition to celebrating Holi, our segments across Young India, families, and ad-hoc groups of friends are looking to explore destinations within the country; also shirt haul international options.”

Daniel D’souza, President & Country Head, SOTC Travel said, “The upcoming Holi week combined with the subsequent Easter weekend offers strong potential for a week long vacation, and our data indicates surge from not only from metros and mini-metros, but also our Regional tier 2 and 3 cities. What is noteworthy is that we are seeing a surge in air-inclusive holidays fuelled by the dip in airfares over the extended week/weekend; drivecations too are seeing a brisk business.”

Flying to Southeast Asia gets easier with more flights, easy visa rules

Just before the onset of the summer travel season, India and Thailand last week finalised an agreement that will allow airlines to deploy more flights between the two countries. In a meeting in Bangkok, the countries agreed to increase capacity by 14,000 seats per week for both sides which is an increase by 43 per cent.

  • Published On Mar 22, 2024 at 07:43 PM IST

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