Centre for Asia Pacific Aviation India (CAPA India) has warned that the nation’s aviation sector is likely to be adversely impacted this year by potential supply chain issues. With nearly 200 out of a total fleet of nearly 800 aircraft facing grounding during this financial year, the report by the Capital & Transaction Advisor says that this number is likely to go up with more airlines planning to ground planes in the coming months.
Although India’s leading airlines have already placed orders for nearly 1,700 aircraft, because of the global supply chain challenges faced by aircraft manufacturers, the delivery of these is likely to be a gradual process spanning almost the entire next decade. News reports also indicate that leading manufacturers like Airbus and Boeing have stopped taking orders for some of their popular models until 2030. Meanwhile, industry experts say that the existing crisis will lead to constrained capacity, more flight cancellations and delays, thereby forcing airlines to increase rates.
The group chairman of UAE-based aviation conglomerate says that the global shortage of aeroplanes may lead to an increase in ticket prices, particularly for short-haul flights.
“With travel demand outpacing seat capacity, it will naturally result in increased fares. Due to the impact of global supply chain issues, capacity augmentation is also likely to take more time. This will naturally lead to higher fares, especially in the domestic travel sector, where there are only a limited number of players operating on certain routes. Less competition is another factor that may precipitate the surge in airfares,” says Jaideep Mirchandani, group chairman of Sky One.
Meanwhile, according to the online travel platform Cleartrip, airfares this summer have seen a major increase compared to 2023. As per the data, the airfare for the Bengaluru-Delhi route was INR 7,300 in March 2024, compared to INR 5,600 in the previous year, marking an increase of 30 percent. Likewise, the rate for the Mumbai-Delhi route was 22 percent higher than in 2023, at INR 6,000 in March this year. The Mumbai-Bengaluru flight ticket has also risen by 37 percent this March, at INR 4,400 as against INR 3,200 during the same period last year.
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.
Mirchandani said one of the most cost-effective ways for airlines to overcome supply chain issues is through leasing aircraft. “Leasing will enable airlines to adjust their fleet size and composition in response to market demand, seasonal variations, and network expansion. It is a cost-efficient option that will reduce the burden of upfront capital expenditure and depreciation costs for the airlines,” he adds.He also expects an uptick in wet leasing, which involves renting planes along with operating crew and engineers, to meet the rising demand for flights which will place some control on airfare price increases.
[ad_2]
Source link
Yet again, promising strides in passenger demand is witnessed during October, signifying a continued resurgence in air travel, revealed the recent statistics by International Air Transport Association (IATA)
Throughout October 2023, global air traffic surged by 31.2 per cent compared to the same period in 2022, as measured by revenue passenger kilometers (RPKs). This notable increase brought global traffic soaring to 98.2 per cent of pre-Covid levels, indicating a substantial rebound in the aviation sector.
Domestic air travel took a leap, showing a 33.7 per cent increase in October compared to the preceding year. This substantial growth was notably propelled by an exceptional triple-digit surge in China, surpassing even the air travel figures recorded in October 2019 by 4.8 per cent.
Meanwhile, international air travel exhibited a robust recovery, climbing by 29.7 per cent compared to the previous year. Despite this recovery, international RPKs reached 94.4 per cent of the levels seen in October 2019, signifying that while progress is evident, international demand is still on a slower trajectory to full recovery.
IATA’s Director General, Willie Walsh, expressed his observations on this trend. He highlighted the surpassing of pre-Covid levels in domestic markets while noting a slower pace in international demand’s resurgence. Specifically, the Asia Pacific region‘s international demand remained 19.5 per cent below 2019 levels. This discrepancy, according to Walsh, might be attributed to delayed easing of Covid restrictions in some parts of the region, alongside commercial developments and political tensions in specific areas.
Passenger market performance across regions
Asia-Pacific airlines led the charge with a 80.3 per cent increase in October 2023 traffic compared to the same period in 2022. Both capacity and load factor showcased substantial improvements, indicating a robust recovery in the region.
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.
European carriers observed a 16.1 per cent rise in traffic in October 2023, accompanied by slight increases in both capacity and load factor.Middle Eastern airlines reported a 24.1 per cent surge in October 2023 traffic compared to the previous year. Despite regional conflicts, their operations remained relatively unaffected at the global level.
North American carriers marked a 17.5 per cent upswing in traffic during October 2023 compared to the same period in 2022, demonstrating stability in both capacity and load factor.
Latin American airlines recorded a notable 21.2 per cent increase in traffic, although the simultaneous increase in capacity resulted in a slight dip in the load factor, which remained the highest among all regions.
African airlines experienced a substantial 25.3 per cent surge in traffic during October 2023 compared to a year ago. However, increased capacity led to a decline in load factor, marking the lowest among all regions.
“People assign a high value to the freedom to travel. The strong demand we’ve seen all year confirms that. And aviation is committed to ensuring that people can continue to enjoy this freedom. To do that in the long-term, we must also meet our commitment to achieve net zero carbon emissions by 2050,” said Walsh.
“Last month, the Third Conference on Aviation Alternative Fuels (CAAF/3) agreed on a global framework to promote Sustainable Aviation Fuel (SAF) production with the aim that aviation fuel in 2030 is 5 per cent less carbon intensive than fossil fuel used today. Now, governments need to support that target by immediately putting in place policies to stimulate SAF production. It bears repeating: last year, every drop of SAF that was produced was purchased. The same thing will occur this year. But, with a few notable exceptions, governments are not living up to their obligations to ensure SAF is plentiful and affordable to support the industry’s energy transition,” added Walsh.
[ad_2]
Source link
Traditionally, travel planning was a meticulous process. Today, it is characterised by a desire for flexibility. Right from refunds to easy cancellation policies, travellers look for flexible products that facilitate unexpected changes in plans. In fact, as per a recent Google report, 78 per cent of Indians make an eventual trip booking decision different from their original intention.
Flexibility in travel is not just a trend; it’s a fundamental shift in the way we explore the world around us.
Post-Covid travel sentiment has gone high; be it is a long weekend trip, a last-minute flight deal, or a surprise destination for a special occasion, spontaneous getaways have become popular among Indians.
In an exclusive interview with ET Travel World, Aditya Agarwal, CTO, Cleartrip shares insights on the travel industry’s evolution and Cleartrip’s strategies to cater to the changing needs of travellers while also talking about the company’s focus on flexibility for travellers.
“We have seen that flexibility is increasingly a requirement that customers are looking for. Almost one in every four customers opted for this product, with a 5-7 per cent premium paid for flexibility and peace of mind. After the success in domestic market, we are soon going to launch our Flex products on international sectors as well,” he said.
Cleartrip revamped its flexibility products during the pandemic to allow cancellations and changes to dates or airlines. While flexibility comes at a small premium, Agarwal noted travellers are willing to pay upfront for peace of mind. “This is the first time we’ve seen people willing to pay a premium to get that feature of flexibility,” he remarked.
Looking ahead, he said Cleartrip aims to increase adoption of flexibility options. The company is working to make the products cheaper or free through partnerships. This could boost travel in non-metro areas. “The company is working to increase adoption of their product, particularly among infrequent travellers, by educating them on its value and partnering with banks and loyalty programs to offer it at a discount or even for free, such as through the Flipkart VIP program and Axis bank partnership.” he commented.
Cleartrip has also seen double-digit adoption of affordability products, such as buy now pay later and no-cost EMI options, to help customers manage high transaction values in travel bookings.
For the travel industry, meta search engines have presented opportunities for growth. Smaller hotels and airlines can reach a global audience without the need for an extensive marketing and distribution network. OTAs have allowed them to compete effectively with larger players, leveling the playing field and driving competition. However, it’s not all smooth sailing.
Agarwal also mentioned that Cleartrip has relaunched its hotels and buses businesses, expanded into B2B verticals, and has successfully grown in the travel agent and corporate businesses. He is optimistic about the industry’s growth in the next 12-24 months, citing increased demand and supply.
Flexible Travel Products by Cleartrip
Cleartrip has introduced flexible travel products like Flex Max and Cancel For No Reason. Flex Max provides free cancellation or rescheduling options on all domestic flight bookings, while Cancel For No Reason allows hotel booking cancellation until check-in time with a full refund of up to INR 25,000.
Highlighting modern Indian travellers’ preferences, Agarwal notes a growing appetite for immersive and experiential travel experiences. He observes a trend of travellers venturing beyond their home country’s borders for international trips, seeking comfort, convenience, and memorable moments. There’s also a surge in online holiday package bookings, and tier 2/tier 3 customers are taking 20-30 per cent fewer trips than tier 1 city customers.
He also shared some numbers highlighting booking demand during the festival season. FlipKart’s Big Billion Days sale during the festive season witnessed a significant rise in bookings across various modes of transportation. Flight bookings increased by 1.9 times, hotel bookings saw 3 times increase, and bus bookings rose by 1.8 times. Additionally, the CT Upgrade program that offered free meals or seats on select flights was successful in helping 1.3 times more customers get preferential seats. Furthermore, the CT FlexMax and Flex products were utilized by 1.5 times more customers, indicating a growing popularity of these offerings.
[ad_2]
Source link
India’s river cruise tourism, previously an underrated segment, is now on the brink of exponential growth. Key credits to Antara River Cruises that made headlines with the launch of MV Ganga Vilas, the world’s longest river cruise, in January 2023.
This 51-day long journey, traversing across 27 river systems, with foreign tourists onboard, was one of the firsts to garner support from the Ministry of Ports, Shipping, and Waterways and the Inland Waterways Authority of India (IWAI), meanwhile putting India on the international cruise circuit.
Eyeing the domestic front now while following the festive season this year, Antara River Cruises is now set to launch two suite catamarans in Odisha for 3/4-night cruises exploring Bhitarkanika. Additionally, Antara will also introduce a single-suite Naukavilas for those seeking an exclusive experience soon, informed Indira Banerjee, Vice President – Sales And Marketing, Antara River Cruises.
The partnership between Cordelia Cruises and StampThePassport has already yielded impressive results, with over 10,000 visas processed for Cordelia Cruises passengers between April and September 2023. By joining forces with Cordelia Cruises, passengers can benefit from a hassle-free visa application process, enhancing their cruise travel experience from start to finish.
Further, in response to the growing domestic demand this festive season, the cruise operating brand has just launched the short itineraries with 10 departures scheduled for the next three months. “Typically our cruises have been attracting international guests who have supported our business, thereby filling up our inventories. Of late we have seen that domestic tourists are also interested in such unique experiences but for shorter durations. So, we have offers for both clientele, those who want an extended tour of seven, ten or more days and now these 2/3/4 night options,” said Banerjee.
She added that Antara has designed its short cruise journeys to be more than mere journeys. As per Banerjee, “They are immersive experiences that allow passengers to explore diverse cultures, picturesque riverscapes, and the essence of the regions they sail through.”
These routes, crossing places like Kolkata, Bandel, Chandernagore, Fulia, among others, are carefully curated with the collaboration of local bodies, craftsmen, and guides. The passengers aboard these cruises can attend presentations and talks on board by experts, as well as enjoy a variety show that represents the local culture, added Banerjee.
With a fleet of nine riverships under Heritage River Journeys, Antara River Cruises, led by Chairman and Founder, Raj Singh, has played a significant role in establishing river cruise tourism in India, asserted Banerjee, while reminiscing how Antara River Cruises’ launch of the cruise MV Ganga Vilas, demonstrated the vast potential for river cruise tourism both in India and abroad.
National Tourism Policy to aid the growth
As per some recent figures shared by a senior official from Kochi’s Port Authority, the number of cruise passengers in India stood at a mere 0.2 million in 2016. However, the country’s vision for this segment aims to witness an increase to four million passengers by 2041.
“River cruise tourism in India is an untapped, unexplored market with immense possibilities and good return on investments,” stated Banerjee, adding that cruising is one of the best and sustainable ways to experience slow travel and coincides well with post pandemic shift in travel demands.
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.
The new draft National Tourism Policy augurs well for rapid development of cruise tourism in India as it includes cruise tourism-friendly policies, efforts of the Task Force set up for cruise tourism, and the government’s plan to open as many as 111 waterways in the country.
She believes that the sector which is poised for a massive growth going forward, will definitely be given a push through the awaited draft National Tourism Policy. This policy promises significant growth for cruise tourism, making it an attractive market for investment and development in the coming years.
Antara’s sustainability and community-driven initiatives
Realising the increasing importance of sustainability within the country, Antara River Cruises claims to have a series of impactful initiatives that promote responsible and sustainable travel.
Banerjee elaborates that the company prioritises environmental preservation by opting for cleaner ‘green’ fuel sources for both propulsion and power generation. Additionally, they have adopted energy-efficient LED lighting and established stringent energy conservation policies.
Antara River Cruises goes further by minimising generator use through shore power connections at jetties, reducing emissions and fuel consumption. They also operate premium-quality Sewage Treatment Plants (STPs) onboard, ensuring responsible waste management.
According to tourism department officials, the app will be providing all the guidance and support to the travellers who reach the state of Tamil Nadu. The tourism department will showcase the cultural and rich heritage spots, through the app, which would help the tourist reach the desired spot with ease.
Environmental responsibility, she adds, extends to the prevention of river contamination through the effective use of Oil Water Separator Machines. And, the company employs dolphin deterrent devices to safeguard local wildlife populations.
Single-use plastics are also effectively eliminated by substituting them with eco-friendly alternatives such as bamboo straws and biodegradable garbage bags. These measures contribute to the reduction of plastic waste in waterways, added Banerjee. For the well-being of passengers, the company also offers water treatment plants and RO plants for the provision of safe and clean drinking water during the journey.
Antara River Cruises also aims to enhance the overall guest experience while remaining eco-conscious by utilising electricity-driven rickshaws for off-board excursions. This not only provides convenient transportation but also reduces carbon emissions, according to Banerjee.
Besides, Antara River Cruises also focuses on socio-cultural and economic activities by employing locally handcrafted ships, an all-Indian crew, and supporting local communities through the farm-to-table concept, regional flavors, and special cruises for vegan travellers.
They also directly support NGOs to provide education to children from disadvantaged backgrounds and partner with festivals to sustain heritage in living arts, culture, and performance.
[ad_2]
Source link