India was ranked fifth among the top five largest passenger markets for Singapore‘s Changi Airport, which handled 328,000 flights and 58.9 million passengers in 2023, rebounding to 83 per cent of traffic levels seen before the Covid-19 pandemic, according to official data released on Wednesday. Indonesia topped the airport’s passenger market in 2023, followed by Malaysia, Australia, Thailand and India, as per the latest figures released by the Changi Airport Group (CAG).
India was the sixth travel traffic generator for the Changi Airport in 2019. Before the pandemic hit in 2019, the airport had registered 68.3 million passenger movements.
The 2023 traffic passing through Changi airport was also an 83 per cent increase from the 32.2 million passengers the airport handled in 2022.
About 328,000 flights took off from or landed at Changi Airport in 2023, the data stated, as against 382,000 flights it handled in 2019.
Between October and December 2023, the airport recorded 16.1 million passenger movements, surpassing 90 per cent of pre-pandemic levels.
December was the busiest month of the year, with 5.8 million passengers moving through the airport. This was 91 per cent of traffic levels in December 2019.
The airport recorded its busiest day of the year on Dec 22, the Friday before Christmas, with 203,000 passengers passing through its terminals.
In December, 30,400 flights landed at or departed from the airport.
Quoting CAG, The Straits Times newspaper reported that all the regions to which the airport is connected are recording healthy recovery in passenger traffic from pre-pandemic levels. North America was the region that recorded the greatest growth of more than 25 per cent, compared to 2019.
The Chhatrapati Shivaji Maharaj International Airport (CSMIA) in Mumbai witnessed an impressive 35 per cent surge in passenger traffic in the calendar year 2023, welcoming 51.58 million passengers compared to 38.33 million in the previous year. The airport also observed a 20 per cent growth in Air Traffic Movements (ATMs), making a total of 3,34,391 movements, which emphasizes CSMIA’s efficiency and excellence in aviation.
Meanwhile, Europe, the South-west Pacific (comprising Australia, New Zealand and the Pacific Islands such as Fiji) and South Asia are near full recovery, rebounding to more than 90 per cent of passenger traffic levels in 2019, the report said. Compared to 2022, North-east Asia was Changi Airport’s leading region in 2023, with passenger traffic increasing more than four times that of the previous year. This was mostly due to a rise in travel between China and Singapore.
China had gradually loosened its Covid-19 controls from January 2023. Singapore later became one of the first countries China allowed its citizens to travel to in tour groups. Last July, China reinstated 15-day visa-free entry for Singaporeans.
Among the airport’s top 10 markets, China, Japan and South Korea were the fastest growing in 2023 compared to 2022.
The busiest routes to and from the airport throughout the year were Kuala Lumpur in Malaysia, Bangkok in Thailand, Jakarta in Indonesia, Denpasar in Bali, Indonesia, and Manila in the Philippines.
However, Changi Airport’s cargo flows dipped 6 per cent compared to 2022 amid global economic uncertainty and inflationary pressures, the report said.
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The Indian government has implemented a series of comprehensive incentives to entice international cruise lines and foster cruise tourism in the country, as per Union Minister for Ports, Shipping and Waterways, Sarbananda Sonowal. These incentives aim to create a conducive environment for international cruise vessels while promoting India as an attractive cruise destination.
Among the various measures, the government has accorded priority to cruise vessels over cargo vessels for berthing, signaling a commitment to facilitate smoother operations for cruise liners, said Sonowal. Additionally, a rationalized cruise tariff structure has been introduced to ensure more favorable pricing for cruise companies. Port charges are now calculated at a fixed rate of USD0.085 per Gross Registered Tonne (GRT), while a nominal passenger head tax of USD 6 is levied for the initial 12 hours of a vessel’s berth stay.
In a strategic move to promote tourism, conditional Integrated Goods and Services Tax (IGST) exemption has been sanctioned for foreign-flagged, foreign-going vessels when they convert to coastal runs, subject to their reconversion to foreign-going status within six months.
During the Global Maritime India Summit in 2023, sessions such as ‘Embark on a voyage to attract 50 million Cruise Passengers in India by 2047′ and a ‘Roundtable with Cruise lines’ were also organised, drawing the active participation of stakeholders from the industry, the minister recalled.
To further incentivise cruise liners, discounts ranging from 10 per cent to 30 per cent have been offered based on the volume of calls made by these vessels. Additionally, charges related to ousting have been eliminated, aiming to attract more cruise ships to Indian ports. Further, the extension of E-Visa and on-arrival visa facilities, alongside the introduction of a single e-Landing Card valid for all ports in a cruise itinerary, simplifies entry procedures for international visitors.
The panel’s discourse painted a comprehensive picture of India’s outbound travel industry, highlighting successful strategies, emerging trends, and challenges. The consensus was that despite the hurdles posed by the pandemic and geopolitical tensions, opportunities abound for businesses to cater to India’s evolving travel market by prioritising unique and priceless experiences.
Sonowal, in his Rajya Sabha reply, also mentioned that the significant efforts have been directed toward infrastructure development, with completed upgrades and modernization of Cruise Terminals at prominent ports such as New Mangalore, Cochin, Chennai, Mormugao, and Visakhapatnam. This enhancement of facilities aims to provide a seamless and enjoyable experience for both passengers and operators.Additionally, a notable policy change involves the waiver of cabotage for foreign cruise vessels, enabling them to transport Indian nationals from one Indian Port to another during their domestic leg. Sonowal emphasized that this relaxation serves as a significant boon for international cruise ships operating in Indian waters.
The impact of these initiatives is also evident from the increased number of port calls made by international cruise liners. In the fiscal year 2022-23, there were 60 port calls, while up to October 31, 2023, there were already 29 port calls at various Indian ports including Mumbai, Mormugao, New Mangalore, Cochin, Chennai, and Tuticorin, showcasing the growing interest and engagement of international cruise companies with Indian destinations.
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At a fireside chat at ET Travel & Tourism Conclave & Awards, Santosh Kumar, Country Head (Indian Sub-Continent & Indonesia), Booking.com delved into the platform’s distinctive approach within the Indian market and across the globe. He highlighted several aspects that set the Indian market apart while discussing emerging traveller behaviours, company’s innovative strategies, focus on sustainability and alternate accommodations ruling over traditional hotels.
Platform’s approach to the Indian Market vs Global
Indian travellers have earned the second position among APAC‘s most assured travellers, according to a Booking.com report. Speaking during the session, Kumar highlighted Booking.com’s adaptable platform, consistent across countries but also tailored to unique factors in India, given its burgeoning appeal.
“We started with the pay-at-hotel model, which is still popular here because it suits Indian travelers who like flexibility. Most of our global transactions use a different payment model. Presently, 55 per cent of our global transactions stem from the merchant model, wherein we handle payments for travellers. But in India, the pay-at-hotel system is still a big hit,” he said. This model, he added, offers flexibility and convenience and aligns closely with the Indian consumer psyche, particularly for domestic and outbound travel.
During the ET Travel & Tourism Conclave, Arvind Singh, Former Tourism Secretary & AAI Chairman highlighted India’s tourism growth, projecting a INR 16.5 trillion contribution to the economy in 2023, a mere 3.5 per cent dip from pre-pandemic 2019 figures. Singh also discussed global tourism’s outlook, foreseeing a 23.3 per cent surge in Travel and Tourism GDP, nearing USD 9.5 trillion for 2023.
Another unique facet is India’s wide parity market, stated Kumar. “As a fulfillment provider, we maintain consistent pricing across partner platforms, ensuring uniform rates, availability, and conditions, which differs somewhat from global norms. Additionally, the emergence of value-added services and bundled rates caters well to the value-driven preferences of Indian travelers. They seek not only accommodation but also crave inclusive add-ons such as spa treatments, meals, and diverse experiences, making bundled rates a hit in India,” he added.Emerging Traveller Behaviours
Kumar also discussed evolving travel patterns in the Asia Pacific, emphasising a normalisation of travel behaviours post-pandemic, a rise in experiential travel, and an increased awareness of responsible tourism.
“Now, when focusing specifically on the Indian market, we see some distinct behavioural traits. Indians are notoriously late bookers; they tend to have shorter booking windows, meaning they often book closer to their travel dates compared to other nationalities. For India, it is somewhere around 27-28 days, and for international booking the window is roughly three times higher than the domestic booking window,” he revealed.
Food, he said, is another thing playing a significant role in Indian travel experiences. “Indians tend to plan their travel itineraries around culinary experiences, making it an integral part of their exploration. Additionally, there’s a considerable demand for room service among Indian travellers, more so than in many other nationalities,” Kumar said.
The panel’s discourse painted a comprehensive picture of India’s outbound travel industry, highlighting successful strategies, emerging trends, and challenges. The consensus was that despite the hurdles posed by the pandemic and geopolitical tensions, opportunities abound for businesses to cater to India’s evolving travel market by prioritising unique and priceless experiences.
He further revealed that group travel is on the rise among Indian travellers across various segments. “This trend has been further amplified by the increasing availability of alternate accommodations in recent years. A noteworthy development has been the surge in unbranded accommodations in tier two and tier three markets, particularly in religious circuits,” he remarked.
What is intriguing according to Kumar is that around 70 per cent of new accommodations in these segments are transitioning from unbranded to branded options. This growth is attributed to the evolving infrastructure, improved connectivity, and expanded accommodation choices in these regions. “All these factors are anticipated to contribute significantly to the religious travel segment’s growth.”
Encouragingly, emerging brands in alternate accommodations also indicate professionalisation in the sector, likely leading to future consolidation, according to Kumar. “The shift in work dynamics from remote to office-based work might influence weekly occupancy patterns in the short-term rental segment, a trend worth observing,” he shared.
Focus on alternate accommodations
Kumar also spoke at length about Booking.com’s emphasis on alternate accommodations, a segment constituting 33 per cent of their global room nights in the last quarter, outpacing traditional hotel segments.
“It’s a substantial part of our business that continues to expand consistently. Each quarter, we witness a steady increase in the market share of alternate accommodations compared to traditional hotels,” stated Kumar.
Kumar highlighted how this segment disperses tourism traffic, especially to lesser-explored destinations, facilitating authentic travel experiences.
Yatra Online Co-Founder & CEO highlighted the low marginal cost of selling additional products once the platform is in place, with a focus on a deeper and wider product portfolio. This includes cross-selling of services such as insurance, attractions, and car rentals. Shringi underlined the importance of both technology-enabled and manually interfaced products in this evolution.
“Setting up structures for alternate accommodations is also quicker compared to traditional hotels, which often require extended periods due to licensing requirements. Consequently, there’s been a natural surge in supply, significantly impacting tourism trends. This growth has been particularly beneficial in addressing concerns related to climate change in popular hill destinations and has introduced entirely new destinations to travelers’ radars. Places like Uttarakhand, Himachal, Goa, and even other states like Tamil Nadu and Kerala are witnessing increased interest due to the emergence of homestays and similar alternate accommodations,” he said.
He mentioned the company’s investment in infrastructure and tools for this segment, along with collaborations with state governments to shape policies and organise targeted workshops and training sessions. “These endeavours also support the micro-entrepreneurs besides dispersing tourism traffic while enriching authentic travel experiences for all,” said Kumar.
Strategies & differentiation
Kumar further detailed Booking.com’s differentiation strategy, focusing on data-driven design, a seamless user experience. “Regarding Booking.com’s unique offerings like the Connected trip feature and other innovative products, our distinction lies in a few key areas. Firstly, our design principles prioritise simplicity and innovation. We conduct around 1000 tests daily on our website and app to ensure a seamless consumer journey. Unlike some competitor platforms that tend to be cluttered, our platform boasts transparency in pricing without any unexpected fees later in the booking process. Data is integral to every decision across departments, ensuring informed strategies,” he shared.
Secondly, sustainability is a core focus for Booking.com, revealed Kumar, adding that the company has committed to a Net Zero ambition aligned with the Paris Agreement. “We’re educating our global staff on sustainable travel and fostering partnerships through coalitions like the travelers’ coalition. For partners, our sustainable travel badge program allows accommodations to showcase sustainability efforts, collaborating with third-party certification programs,” he shared, informing that currently, over half a million properties globally have joined, categorised based on their sustainability efforts.
Additionally, Kumar seemed thrilled about the inauguration of Booking’s Center of Excellence in Bangalore launched on November 29. “Going forward, the objective is to expand our workforce to nearly 1000 employees within the next few years; presently, we’ve already reached a count of approximately 350 individuals in the past few months,” he revealed, adding that this center stands as our second-largest, complementing the existing facility in Romania.
This Center of Excellence, he said, serves as a pivotal facility specialising in FinTech product management and global engineering across all the brands including Booking.com, Agoda, Priceline—offering comprehensive support worldwide. “It signifies our steadfast commitment to India, showcasing our continuous investment in capabilities and marketing endeavours,” he concluded the chat on a positive note.
Kumar was interacting during a fireside session with ETTravelWorld’s Editor, Navneet Mendiratta, during the 2nd edition of the Economic Times Travel & Tourism Conclave & Awards. Notably, Booking.com also won the recognition “B2C Travel Campaign of the year” for Howzat for your perfect stay at the event.
Notably, the company, which is one of the leading online travel service providers, witnessed a surge in room bookings in 2022, surpassing 90 crore, marking a 52 per cent increase from pre-pandemic levels, coupled with a 13 per cent rise in revenue
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Dhordo, a part of the Indian state of Gujarat, has been recognised as one of the 54 Best Tourism Villages in the 2023 edition by the United Nations World Tourism Organization (UNWTO). Located in Kutch, Dhordo village is renowned for its rich culture and banni hospitality and attracts visitors for its intricate mud craft and Mutwa embroidery, besides the renowned 100-day Rann Utsav.
The UNWTO, in this third edition, selected 54 villages from a pool of nearly 260 applications. An additional 20 villages have joined the Upgrade Programme, with all 74 villages now forming part of the UNWTO Best Tourism Villages Network. Also joining the list of these 20 villages is Madla in India’s Madhya Pradesh.
This distinction celebrates villages that excel in nurturing rural regions while preserving landscapes, cultural diversity, local values, and culinary traditions.
These village selections were announced during the UNWTO General Assembly held in Samarkand, Uzbekistan.
“Tourism can be a powerful force for inclusivity, empowering local communities and distributing benefits across regions,” emphasised UNWTO Secretary-General Zurab Pololikashvili. “This initiative acknowledges villages that have harnessed tourism as a catalyst for their development and well-being.”
Besides Dhordo (India), the list of Best Tourism Villages for 2023 includes Al Sela (Jordan), Barrancas (Chile), Biei (Japan), Caleta Tortel (Chile), Cantavieja (Spain), Chacas, and Chavin de Huantar (Peru), Dahshour (Egypt), Hakuba (Japan), Higueras (Mexico), Huangling (China), Zhagana, and Zhujiawan (China), among others.
Launched in 2021, the Best Tourism Villages by UNWTO initiative is part of the UNWTO Tourism for Rural Development Programme. As per UNWTO, the programme works to foster development and inclusion in rural areas, combat depopulation, advance innovation and value chain integration through tourism and encourage sustainable practices.
In 2022, Jammu and Kashmir received a record 1.88 crore tourists. The current year is set to surpass this achievement, with foreign and domestic arrivals exceeding expectations. Sharing this and more, Secretary of Tourism & Culture, J&K Govt, Syed Abid Rasheed Shah, talks to ETTravelWorld about the role of sustainable tourism in U/T, plans to develop 300 new destinations and active involvement of youth.
Villages participating in this initiative are evaluated under nine critical areas, including cultural and natural resources, promotion and conservation of cultural resources, economic sustainability, social sustainability, environmental sustainability, tourism development, governance and prioritisation of tourism, infrastructure and connectivity, and health, safety, and security.The initiative comprises three primary pillars: Firstly, the “Best Tourism Villages by UNWTO” pillar recognising exceptional rural tourism destinations with accredited cultural and natural assets, a commitment to preserving community-based values, and a dedication to innovation and sustainability spanning economic, social, and environmental dimensions. Secondly, the “Best Tourism Villages by UNWTO Upgrade Programme” provides vital support to villages in their pursuit of meeting recognition criteria, addressing identified shortcomings during the evaluation process.
Lastly, the “Best Tourism Villages Network” acts as a platform for sharing experiences, best practices, learning, and opportunities among its members, welcoming contributions from experts and both public and private sector partners engaged in promoting tourism as a catalyst for rural development.
For the fourth edition of recognising more rural destinations, the call for submissions will take place in the first months of 2024.
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Intrepid Travel, founded 35 years ago in Australia, has now gone global, with 30 offices worldwide, including one in India. Starting small with a group tour of 47 customers on a trip to Thailand in their first year, Intrepid now aims to take over 300,000 travellers on adventures by the end of 2023. Contributing to this aim is India as well which is in their top priority markets, according to Natalie Kidd, MD of Intrepid Travel Asia.
“India consistently ranks among our top five countries out of the 112 we serve,” revealed Kidd. Pre-pandemic, Intrepid was bringing in 12,000 customers annually into India, and while they haven’t quite reached those numbers this year, they’ve witnessed a resurgence in many Asian regions, approaching pre-pandemic figures. “Our global goal is to carry around 300,000 customers by the end of this year, and India plays a pivotal role in this vision,” she shared.
“In India, while we haven’t quite returned to pre-pandemic numbers in 2023, we are confident that the growth trajectory will continue. Some of the challenges we faced this year, including limited visa accessibility, impacted our targeted growth in India. However, we anticipate resolving these issues by next year, and we’re poised to return to our 2019 performance levels,” she told ETTravelWorld.
The company identifies July to November as key travel planning and sales periods, particularly in the UK market and the northern hemisphere, anticipating strong demand for India during this time.
“Looking ahead to 2030, we envision having 30,000 customers exploring India with us annually. India offers not just one-time experiences but also the potential for combining different trips and extended stays, encouraging repeat visits,” she added.
Post-pandemic recovery and expansion beyond touring
In terms of business and revenue, Intrepid is making a strong recovery in 2023, with expectations to reach pre-pandemic levels, reaffirmed Kidd.
“The year 2022 marked the beginning of our recovery at a global level. By the end of 2023, we are on track to reach revenue levels comparable to those of 2019. By the close of this year, we will have served a total of 300,000 customers worldwide, amounting to 600 million Australian dollars in revenue,” she told ETTravelWorld, hinting towards the company’s significant rebound.
Looking ahead to 2024, the company anticipates a resurgence with a projected 20 per cent compound average growth rate. “Achieving such growth for a 35-year-old company is a noteworthy achievement and underscores the revival of tourism,” she said.
As the company also closely looks at the longer term plans, it is looking beyond the traditional touring business, as brand Intrepid continues gaining global recognition.
“We’re actively exploring opportunities beyond tour operations, particularly in the space of experiential accommodation. This involves creating spaces where the accommodation itself is an integral part of the travel experience, firmly rooted in the local culture and surroundings. In this regard, we believe India holds immense potential as a prime location for such ventures, and we’re enthusiastic about the opportunities that lie ahead in this space,” she informed, adding that Intrepid is actively looking out for new avenues for investment.
While domestic tourist arrivals have reached about 8,816,153, and foreign tourist arrivals stand at 278,155, Punjab Tourism is preparing to join the tourism race. Rakhee Gupta Bhandari, Principal Secretary of Tourism & Cultural Affairs, Government of Punjab talks about the response of 1st Tourism Summit and Travel Mart, the series of proposed policies, targeted segments and a lot more.
India, an adventure travel hub
According to a recent report, India’s adventure tourism sector is experiencing rapid growth and is poised to surpass the USD 2.0 billion mark by 2028. Additionally, India is emerging as a sought-after adventure travel destination for Intrepid’s global clientele, hailing from countries such as Australia, the USA, North America, the UK, and various European nations, as per Kidd.
Reiterating that India holds a prominent position in Intrepid’s vision and its abundant business prospects, Kidd revealed that pre-pandemic, the country was said to have a 17 per cent share of global travel within the broader industry. “However, our experience at Intrepid Travel tells a slightly different story. India’s performance in the adventure and experiential travel segment surpasses this statistic significantly,” said Kidd.
“It’s performing exceptionally well. The depth of culture and the sheer size of the country further make it an ideal destination for travellers seeking immersive experiences. From an adventure perspective, India is yielding positive results for the company,” shared Kidd.
She added that the first-time travellers to the country prefer exploring the classic destinations like Rajasthan, Agra but on subsequent visits, Intrepid has seen a growing interest in South India and other regions, including the northeast.
“In terms of experiences, we’ve observed an increase in demand for more outdoor activities, such as trekking, cycling, and other active pursuits. After a period of confinement due to the pandemic, there’s a heightened interest in getting outdoors and exploring smaller destinations, villages, and natural settings, since people want to immerse in a destination, forge connections with local communities, and create lasting memories beyond the typical tourist attractions,” she added.
As for India, she shared that Intrepid has recently introduced new wildlife-focused trips in their itineraries, with places like Bandhavgarh and Kanha in mind, which is set to gain traction for next year. “This trip will offer travellers more time outdoors in national parks, providing an opportunity to connect with nature.”
Sustainability: A core value
Intrepid is acutely aware of the environmental and social impacts of travel and has been giving back to the local communities, which Kidd says, is an absolute mandate for the other travel companies to follow. While she believes that travel can be a force for good, Kidd also acknowledges the negative consequences it can have.
In their efforts to reduce the carbon footprint of their trips, Intrepid looks for ways to eliminate unnecessary flights, opting for more sustainable modes of transport and routing itineraries to minimise environmental impact as well as decarbonisation, especially for interstate travel in India. “In our case, we work closely with our supply chain, including smaller operators and hoteliers, to encourage sustainability practices. We believe in collaboration rather than competition when it comes to sustainability.”
Adding that sustainability is of paramount importance for the future of the travel industry, Kidd continued, “Every aspect of tourism should be examined through a sustainability lens. While sustainability may pose challenges for some, particularly smaller operators, it’s also an area where smaller businesses can be more nimble and adaptable to change. We all share a responsibility to address sustainability issues in the travel industry.”
In addition to environmental sustainability, Intrepid also addresses social issues. They have made efforts in promoting gender diversity in tourism by actively encouraging women to apply for roles as tour leaders and providing support to ensure their safety and success in these positions.
Today, 70 per cent of Intrepid’s staff in India are female, Kidd shared with pride.
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The latest forecasts from American Express Global Business Travel (Amex GBT), consulting suggest that hotel rates are poised to continue their upward trajectory in 2024 across most global destinations. This trend is anticipated even as leisure travel demand is expected to soften.
The Hotel Monitor 2024 report, based on a comprehensive analysis of millions of hotel transactions and International Monetary Fund (IMF) economic data, predicts that several cities may see substantial rate increases of up to 17.5 per cent due to a combination of tight supply and local conditions driving room costs higher.
Most cities are expected to witness rate increases in line with local inflation. This follows substantial price hikes in 2022 and 2023, primarily driven by the surge in “revenge tourism.” The report anticipates that the softening demand for leisure travel will be offset by a continued rise in business travel and meetings and events.
There’s a noticeable increase in weekend corporate travel, and travellers are opting for fewer but longer business trips, indicating a growing trend of combining business travel with leisure activities.
In response to this shift, global hotel chains are expanding their extended stay offerings. Vacation rental companies are also observing increased requests for amenities like high-speed WiFi and late check-out times to accommodate remote work, suggesting that business travelers are seeking alternatives to traditional hotel accommodation.
Hotel rate rise in India?
According to Amex GBT report, India is expected to witness significant hotel rate increases in major cities, highlighting its position as a vital business travel market. As travel patterns continue to evolve, businesses and travellers alike will need to adapt to these changing dynamics in the hospitality sector.
In 2024, Mumbai is expected to have the highest growth rate in hotel rates among major Indian cities, with an increase of 15 per cent. Chennai follows closely behind with an expected hotel rate growth of 14.6 per cent. Meanwhile, Delhi is predicted to experience a hotel rate increase of approximately 12 per cent, and Bengaluru is expected to see significant growth in hotel rates at 11.1 per cent. Hyderabad is also anticipated to have a robust hotel rate increase of around 10.8 per cent.
The influence of inflation
While global inflation is showing signs of slowing down, it continues to impact room rates, particularly due to rising costs affecting hotel operating margins. Staff costs, notably hotel wages in the United States, have reached record levels in 2023.
This escalating cost base is disrupting the traditional relationship between supply and demand in the hotel industry. Hotel operators are increasingly limiting inventory to address staffing shortages, reduce overheads, and protect rates. Consequently, traveling during off-peak periods may no longer result in the same level of savings, as the correlation between rates and occupancy weakens.
JLL anticipates that this positive momentum in the hospitality sector will continue into the second half of 2023, with an estimated transaction volume of around USD 88 million (INR 722 crore), extending into 2024. This optimistic outlook is underpinned by the industry’s robust performance, driven by strong macroeconomic fundamentals, a thriving commercial market, and improved air connectivity.
Building effective hotel program
After absorbing significant rate increases in 2023, travel buyers are under pressure to manage costs. Additionally, there is a growing emphasis on meeting sustainability commitments, adding another layer of complexity to program development.
To adapt to these changes, travel buyers should reassess existing arrangements and prioritize negotiating better rates, improved terms, and additional amenities in frequently visited hotels and cities. Concentrating spending on a smaller number of providers can help secure favorable rates, enhanced terms, and other benefits, even for smaller businesses.
Simon Fishman, Vice President, Global Hotel at Amex GBT, commented on the report, stating, “With the softening of leisure travel demand, we and our corporate customers have an improved position at the negotiating table, meaning we can make even more rates available to travelers.”
He added, “It’s also the right time to make sure a hotel program is fit for the future. More than ever, it’s about presenting travelers with relevant and personalised options. One might want the best rate, while another will prioritise amenities and experience.”
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“Almost 1 million foreign tourists came to Moscow in the first half of the year. Over 600 thousand people over the summer alone,” said Evgeny Kozlov, Chairman, The Moscow City Tourism Committee on his recent visit to India.
Kozlov was in India to meet Indian tourism stakeholders and participate in a trade event.
For Russia, the importance of Indian tourists is gradually increasing and the tourism committee is actively looking at engaging the Indian traveller more. According to Kozlov, the tourist traffic from India was growing at 12-15 per cent annually, before Covid-19 put a halt on tourism activities.
Apart from Goa, Aeroflot operates direct flights from Moscow to Delhi throughout the year. The south of India is a popular destination for beach holidays for Russians in the fall and winter. The flights are expected to be in high demand, providing tourists with comfortable and direct access to the Indian Ocean coast. The up-to-date schedule is available on Aeroflot’s website.
“After the pandemic, only 20,000 Indians came to visit Russia. But, now we are on the way to recovery. All the necessary conditions have been created for this. Thanks to e-visa possibilities, more than 3,000 people from India visited Moscow within two months,” he shared. The city hopes to reach the pre-pandemic figures next year and to make that possible, is working closely with the Federal Ministry of Tourism to launch no visa group tourism between our two countries. “We believe that it will stimulate the partnership and eventually, tourism,” he said.
According to Kozlov, an increasing number of Indian businessmen are choosing Moscow as their preferred destination for business events. For Moscow, business tourists account for one fifth of all tourist traffic to the city. At the same time, about 40 per cent of all business tourists return to the city with family or friends.
According to the information shared by The Moscow City Tourism Committee, in 2022, the most frequent business visitors to Moscow from non-CIS countries were from China, Turkey and India. The number of business visits from Asia-Pacific countries showed high growth rates – 14 per cent.
“At present, China is the top tourism source market for Russia followed by the Middle East and then Turkey. India stands at the sixth position. But, with new incentives and promotional push in place, we hope for India to be in the top three tourism markets for us,” he said.
According to Kozlov, the number of tourists from China is six times higher this year than the previous one. The driving factors for the increase have been their growing curiosity to learn more about Russia, group free visa facility and good air connectivity. “We have 50 direct flights to different cities of China from Moscow,” he said.
And now, with growing bilateral cooperation, Russia is looking at replicating the model with India. “We are in touch with the authorities to establish new direct flights from India to Moscow. Because we are ready, all our infrastructure is ready. And now the Indians just have to come and explore our country,” he said.
“Every week we will get six charter flights coming in,” said a representative of one of the tour operators. “Flights from Kazakhstan and one flight from Uzbekistan will also come. This season looks to be good.” Aeroflot will fly to Goa thrice a week from Moscow, and twice from Yekaterinburg. The EU has imposed restrictions on Russians travelling to Europe following the Russia-Ukraine conflict, with some countries imposing an outright ban.
Currently, there are 10 direct daily flights from Moscow to India. Of these, seven direct flights connect Moscow to New Delhi and three direct flights connect Moscow to Goa.
“As a region, we would like to have new flight connections to Ahmedabad, Kolkata and Mumbai, to start with. We would like people from both the countries to explore each others’ rituals and traditions and eventually promote tourism,” he said.
Russia as a tourism product, according to Kozlov, is designed to fit all pockets. “Accommodation to suit your pocket is very easy to find in Russia. There are approximately 2,000 hotels in Moscow that can fit into different budgets – from five star to affordable price hotels for group tourists. In fact, it is much better to stay in a hotel rather than an apartment,” said Kozlov.
To push MICE tourism, Moscow is all set to host the international conference Meet Global MICE Congress for the first time on October 6. The participants to this event will include 250 representatives of the business tourism industry from 14 countries, including India, China, Indonesia and Malaysia – the largest number of delegations being from India and China, the city tourism committee shared.
“Additionally, we are implementing an online training and certification program for Moscow MICE Ambassadors, in cooperation with the Association of MICE Agencies of India to promote Moscow as an attractive destination for business tourism. The program is expected to expand to four streams by 2024 and by the end of the year we will already have 200 MICE ambassadors from India,” shared Kozlov.
Film tourism is the next big thing on Moscow’s tourism agenda. “In five years, Moscow will be among the top five destinations for film tourism,” asserted Kozlov. “Our foremost priority is to attract filmmakers to Moscow and show them how easy it is to produce a new film here,” he said, adding that Moscow offers a single window clearance for those interested in shooting a film in the country. Currently, the website is in Russian, but will be available in English in two months.
“In all, we are very serious about developing a strong tourism bond between the two countries and we hope it will be well received by the people of this country,” he concluded.
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