The Union Minister for Civil Aviation and Steel, Jyotiraditya M Scindia, recently chaired an Advisory Group Meeting with Airport Operators on December 19, 2023, ahead of the anticipated festive season. The primary focus was on strategising to prevent congestion at airports during this period. Scindia emphasised the ministry’s proactive measures to ensure a seamless and efficient travel experience for passengers.
During the meeting, the Minister engaged with airport operators, addressing their queries and offering guidance to optimise operations for passenger convenience. The key topic discussed was the promotion of ‘DigiYatra‘ to streamline and expedite the shift from manual to digital check-ins and entry gate processes.
Currently operational in 13 domestic airports, including Lucknow, Mumbai, Ahmedabad, and others, the proposal to extend ‘DigiYatra’ to international passengers for both arrivals and departures was deliberated upon. The Minister urged airport operators to explore and present successful biometric-enabled models utilized in other countries to enhance passenger facilitation.
Further, Scindia also reviewed the Capital Expenditure targets of all airport operators, aligning these goals with the achieved results in the third quarter. Representatives from major airport operators such as GMR Airports, Adani Airports, BIAL, Cochin Airport, and the Airports Authority of India were present at this crucial meeting.
The newly constructed terminal boasts impressive capabilities, accommodating 1200 domestic and 600 international passengers during peak hours, with plans for potential expansion to handle up to 3000 passengers per hour and an annual capacity of 55 lakh passengers. Notably, the design incorporates local culture and heritage elements. This opening follows the Union Cabinet’s recent approval to declare Surat Airport as an International Airport.
In addition to the Advisory Group Meeting, the Minister chaired the Cargo Advisory Committee session on the same day. Discussions within this committee primarily revolved around bolstering collaboration within the cargo industry. Scindia reassured the committee members of the government’s commitment to proactively address concerns within the cargo sector and promote collaborative efforts among stakeholders. The necessity for a digital transformation in air cargo, incorporating elements like E-KYC and digital shipping invoices, was a key focus. The Minister urged the committee to devise a comprehensive action plan to explore and implement digital transformations in the industry.
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In a remarkable development, international arrivals in India during the Diwali festival period have witnessed a substantial 11 per cent surge compared to the previous year, according to a report. This surge underscores India’s increasing appeal as a global tourism hotspot, attributed to improved infrastructure, enhanced travel accessibility, and the country’s diverse cultural and natural attractions.
A noteworthy contributor to this influx is the Indian diaspora, playing a pivotal role in the surge of international arrivals. Diaspora members extend their stay in their homeland for an average duration of 7 to 10 days before embarking on their international journeys. This trend reflects a growing connection and interest among the diaspora to rediscover their roots, delve into their homeland, and immerse themselves in the cultural richness of India during the festive Diwali season.
This extended stay allows the diaspora to participate in Diwali festivities actively and provides ample time to explore various regions of India, from vibrant cities to serene countryside, fostering a deeper sense of cultural exchange and connection.
Family leisure travel witness growth
Meanwhile, as Thanksgiving approaches, Florida emerges as a favoured destination for domestic leisure travellers, with Orlando and Fort Lauderdale topping the list of highest arrivals. Other popular US destinations include New York, Las Vegas, and Los Angeles, according to data and insights from Adara.
Top origins for international travellers
The top source markets for international arrivals in India during Diwali for leisure travel include Singapore, the USA, and Australia, constituting 60 per cent of all inbound flight bookings. Significant contributors also include Saudi Arabia, Canada, UAE, the UK, and Malaysia.
New research reveals that the outlook for APAC’s tourism market will continue to improve into 2024. In terms of overall value, the APAC region is projected to end 2023 at 68 per cent of the revenue generated in 2019. With regards to China, the World Travel Market report predicts the value of Chinese outbound travel could potentially be double the size of the United States by 2033.
Domestic travel hubs
Singapore, Melbourne, and Sydney stand out as the top origin cities for leisure travel to India during Diwali, with Riyadh, London, Kuala Lumpur, New York, and Toronto following suit. The busiest airports in India during this festive season are projected to be Mumbai, New Delhi, and Bengaluru, with Pune, Chennai, Ahmedabad, Hyderabad, Kolkata, Vasco da Gama – Goa, and Bhubaneswar airports also ranking among the top origins.Flight booking insights
An interesting revelation in flight bookings is that 67 per cent of bookings from the Philippines are for ticket prices under USD 200, followed by 47 per cent from Saudi Arabia and 45 per cent from the UAE. In contrast, 83 per cent of bookings from the U.S. are for tickets priced at more than USD 1000, with New Zealand sharing the same percentage.
On average, flights are booked 57 days in advance for international travel during Diwali. This extended booking window has seen a consistent rise since 2019, reflecting travellers’ confidence in flight take-offs and local travel policies. Additionally, the rise in airline ticket prices motivates travellers to secure their flights well in advance when prices are more economical.
As the festival season unfolds, these trends paint a vibrant picture of Diwali travel patterns and highlight the evolving dynamics of global travel preferences during festive seasons.
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With the festive and winter tourism season approaching, OYO is gearing up to expand its footprint in India’s prime leisure markets. The company has set its sights on adding 750 hotels in the next three months, spanning across 35+ leisure destinations. Among these, significant emphasis will be placed on key markets such as Goa, Jaipur, Mussoorie, Rishikesh, Katra, Puri, Shimla, Nainital, Udaipur, and Mount Abu.
The majority of these new hotels will be incorporated under OYO’s premium brands, including Palette, Townhouse, Townhouse Oak, and Collection O. This expansion is aimed at providing travellers with an array of superior options.
To further empower potential hotel owners in these strategic markets during the upcoming tourism season, OYO has introduced the ‘Excellence Network Program.’ This program offers a range of benefits to hotel owners to meet the demand dynamics of the peak season, including access to OYO’s extensive network of guests, priority listing on the OYO app, and competitive commission rates.
According to a recent government report, the number of foreign tourists who visited India during January-June this year increased by 106 per cent compared to the corresponding period in 2022. With the approach of the autumn-winter high season, these numbers are expected to rise further. This high season, which typically spans from October to January, witnesses a surge in both domestic and international tourists, making it a crucial period for the tourism and hospitality industry.
OYO has already experienced a 28 per cent increase in advance bookings across all major leisure markets compared to the same period last year. OYO’s expansion in these markets comes at an opportune time, allowing travellers to maximize their vacations while creating a positive impact on the local economy and communities.
In his expanded role, Rakesh will be responsible for overseeing pivotal operational finance functions, including Treasury, Controllership, Shared Services, Business Finance, Taxation, Financial Planning & Analysis (FP&A), and the execution of results, compliance, and timely audits throughout the organisation. Rakesh will continue to report directly to OYO’s CFO, Abhishek Gupta.
Anuj Tejpal, Chief Merchant Officer at OYO, commented on the expansion, stating, “As we head towards one of the most important seasons for tourism, it is heartening to see the number of foreign travelers increase in India after the Covid lull. With our ‘Excellence Network Program,’ we want to provide hotel owners with a competitive edge and the necessary support to make the most of this opportunity. Our expansion in these leisure markets also aligns with our mission to provide quality accommodations and memorable experiences to travelers. The influx of new hotels will not only boost tourism but also provide employment opportunities for local communities.”In addition to its expansion, OYO has introduced a ‘Stay Now Pay Later’ (SNPL) option to provide travellers with more flexibility when planning their trips. SNPL offers customers a credit limit of up to INR 5,000, which can be settled after 15 days of their stay.
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