Valued at USD 41.2 bn in 2022, the global luxury car rental sector is likely to reach USD 61.96 bn in market capitalisation by the end of 2028. The growth translates into an impressive CAGR of 7.2 per cent, which is quite exceptional given the nascent stage of luxury mobility in the car rental service domain. Many important tailwinds are fueling the growth of luxury car rentals prominent among which are rising prosperity, expanding business travels, and increased spending on experiential activities. The fast-expanding global economy is also complementing the growth with corporate bookings and business travels soaring to a new high by the day. With so many interesting developments happening, here are key trends and innovations that are likely to dominate the luxury car rental space in the future: Experiential and Leisure Travel: While business travel continues to remain the backbone of the luxury car rental space, the strong potential exhibited by the experiential and leisure categories is infusing a new lease of growth to the category. The best bit is the growth trajectory across experiential and leisure categories is democratised with strong potential being witnessed from all across the globe. While North America continues to lead the growth of experiential travel, the emergence of Asia-Pacific is significant for sustaining the growth potential of luxury mobility in the long run. The growth in these two categories is also led by enhanced customisation offered by service providers which aligns with the broader preferences and choices of the customers. Eco-Friendly Perspective: While luxury mobility rental space is primarily about indulgence, the rising aspirations of customers in the category are not coming at the cost of the environment. Travellers are increasingly showing a preference for EVs and hybrid vehicles and as a result, the percentage of sustainable vehicles in luxury car rental fleets is rising at a significant pace. Going forward, the concern for sustainability is likely to intensify further which means the category growth will also push the sales of alternate vehicles in the market.
Subscription-based Model: The use of subscription-based models in the luxury rental space is fast funding favour with target audiences. In fact, the model is playing an instrumental role in bringing incremental growth to the luxury mobility space. In comparison to a conventional system, the subscription model offers greater flexibility while allowing customers to choose from a large range of vehicle models on offer. It also allows customers to rent for a longer time, thereby taking away the hassle of making payments on a daily basis.
Technology Integration: The rising levels of technology integration in the form of connected car tech, in-car entertainment, and advanced safety equipment are also driving growth prospects in the luxury car rental space. The appeal of these features is prominent among Gen X and Millennials and with Gen Z fast climbing the affluence ladder, the use of advanced technologies will help consolidate the standing of luxury rental services across customer demographics and generations.
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. Gupta feels that 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.
Niche Influence: Within the car rental space, the emergence of niche categories is catching the attention of market experts. Take, for instance, the growing appeal of vintage cars, special-edition vehicles, and iconic models of yesteryears. These vehicles are striking a chord with customers and thanks to their innate appeal, service providers are earning hefty premiums on these offerings. Owing to features of exclusivity, rarity, and uniqueness, these categories are emerging as prominent growth accelerators for the luxury car rental space.
Challenges for Luxury Rental Mobility
Although brimming with exciting growth prospects, the category of luxury car rentals is also faced with some formidable challenges. The flux in the economic scenario, eroding brand equity, and handling operation costs are some of the significant challenges associated with the category. In addition, service providers also need to constantly add new customers to fuel the growth in addition to managing and retaining their existing customer base. Moreover, meeting regulatory compliances, managing insurance complexities, and securing the approval of authorities are prominent issues that the segment must overcome for a sustainable future.
The luxury car rental segment is at an inflexion point and promises exciting growth prospects for all stakeholders of the ecosystem. The rising affluence, demanding customers, and evolving preferences are causing a tectonic shift, helping service providers come up with improved offerings, innovative models, and technology integration to create, communicate, and deliver superior experiences to customers. In sum, the outlook for luxury car rental remains positive and the category is likely to emerge as one of the fastest-growing segments in the automobile market in the future.
The author is the Director at KTC India, leading transport company based in New Delhi.
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.
[ad_2]
Source link
As travel becomes an integral part of Indian lifestyles, Wowtickets.com, a UK-based flight booking platform recently launched in India, unveils insights into Indians’ favorite domestic destinations. Analysing data from 36 million travellers nationwide, Wowtickets.com sheds light on the top 15 travel destinations preferred by Indians, reflecting the nation’s diverse interests and rich cultural heritage.
Wowtickets.com conducted a search survey nationally to gather insights about the cities and routes that Indians love travelling in India and the results show that Goa, Delhi, Mumbai, Bengaluru, and Srinagar are the top 5 destinations.
India’s passion for travel is evident, with bustling airports like Delhi and Mumbai ranking among the world’s busiest. With a thriving travel and tourism sector, India’s GDP growth has paved the way for enhanced infrastructure and transportation, catering to the evolving preferences of travellers seeking unique experiences.
Top destinations nationwide
Among the top 15 destinations, Goa emerges as the most sought-after destination, drawing travellers with its beaches and vibrant culture. Delhi, Mumbai, Bengaluru, and Srinagar follow closely, catering to both leisure and professional travelers.
Regional preferences
Regional variations in travel preferences are apparent, with Mumbaikars favoring destinations like Goa and Delhi, while Delhiites show a penchant for Goa, Mumbai, and Bengaluru. Similarly, travellers from Bengaluru and Hyderabad exhibit preferences for key metropolitan cities and scenic locales.
Unique search patterns
Interestingly, travellers also explored unconventional routes, indicating a growing appetite for offbeat travel experiences. Searches from Lucknow to Gangtok, Mumbai to Leh, and Srinagar to Mumbai highlight the diverse interests of Indian travellers.
Dmitrijus Konovalovas, Director & CEO, Wowtickets.com, emphasises India’s burgeoning tourism sector, poised to become a key player in the global market. “The travel industry in India is experiencing rapid growth, poised to become a significant player in the global tourism market. Predictions indicate that by 2023, the global tourism market will reach a value of USD 16.9 trillion, with India’s tourism sector making substantial contributions. This is largely driven by the enthusiastic travel aspirations of India’s youth, who prioritize exploration and adventure. As Indians increasingly explore destinations within their own country, domestic tourism receives a significant boost, further fueling the nation’s tourism growth,” he said.
The campaign aims to instill aspiration among Indian travellers and establish a loyal customer base with travel agencies based on the total number of passengers booked within the specified timeline. Scheduled to run for four months, from February to June 2024, the campaign seeks to capitalise on the growing interest in travel to Kenya among Indian tourists.
According to a report from Crisil, the travel and tourism sector in India is projected to experience a growth rate of 12–14 per cent in the coming years. India’s GDP growth has helped the travel and tourism sector thrive due to advancements in infrastructure and transportation, catering to the evolving preferences of younger travellers who seek memorable and unique experiences. In 2023, experts anticipate that the travel and tourism industry will generate approximately USD 9.5 trillion in revenue. Furthermore, projections suggest that by 2030, the global tourism market will soar to USD 16.9 trillion, with an average annual growth rate of 5.4 per cent from 2022 to 2030. During this period, the Asia-Pacific region is poised to experience the most substantial growth compared to other regions.
The top 15 most searched Indian destinations that Mumbaikars want to travel nationally.
Goa, Delhi, Bengaluru, Srinagar, Chennai, Chandigarh, Kolkata, Jaipur, Lucknow, Varanasi, Kochi, Ahmedabad, Dehra Dun, Patna, and Hyderabad.
Total searches were 31.86 lakh.
- The top 15 most searched Indian destinations that Delhiites want to travel to nationally
Goa, Mumbai, Bengaluru, Srinagar, Pune, Patna, Kolkata, Leh, Hyderabad, Ahmedabad, Chennai, Guwahati, Bagdogra, Kochi, Bhubaneswar
Total searches were 35.09 lakh. - The top 15 destinations Bengaluru wants to travel nationally
Delhi, Mumbai, Goa, Kolkata, Pune, Lucknow, Patna, Ahmedabad, Ranchi, Hyderabad, Jaipur, Kochi, Bhubaneswar, Bagdogra, Guwahati
Total searches were 24.86 lakh. - The top 15 most searched Indian destinations that Hyderabadis want to travel to nationally
Delhi, Goa, Bengaluru, Mumbai, Kolkata, Jaipur, Kochi, Vishakhapatnam, Chennai, Tirupati, Varanasi, Srinagar, Ahmedabad, Coimbatore, Chandigarh.
Total searches were 10.98 lakh. - The top 15 destinations Chennai travelers searched nationally.
Delhi, Mumbai, Bengaluru, Port,Blair, Goa, Kolkata, Hyderabad, Ahmedabad, Coimbatore, Pune, Kochi, Guwahati, Madurai, Patna, Srinagar
Total searches were 90.5 lakh. - The top 15 destinations Kolkata travelers searched nationally.
Delhi, Bengaluru, Mumbai, Pune, Guwahati, Bagdogra, Port Blair, Goa, Hyderabad, Chennai, Srinagar, Ahmedabad, Agartala, Jaipur, Bhubaneswar
Total searches were 10.97 lakh.
Indians also searched for some strange locations where there were no direct flights or fewer flights available:
Lucknow to Gangtok, Lucknow to Puducherry, Mumbai to Leh, Pune to Goa, Srinagar to Mumbai and Delhi to Shirdi, Deoghar to Kochi, Lucknow to Imphal, Agra to Jaipur, Gaya to Chennai and Nasik to Varanasi
Total searches were 10.97 lakh.
In terms of overall tourist numbers, Indonesia welcomed a staggering 11.67 million visitors in 2023, almost double the number in 2022. Bali alone received 5.23 million visitors, accounting for nearly half of Indonesia’s total tourism arrivals. To boost arrivals from India, plans for Vistara direct flights from Bombay and strengthening Delhi departures are in the pipeline.
[ad_2]
Source link
As the travel industry eagerly anticipates the dawn of the New Year and steps into 2024, key industry players Thomas Cook India and SOTC Travel have shared insights from their leaders, offering a comprehensive overview of the diverse travel preferences that will shape the journeys of Indian travellers this year.
In an overview on emerging travel trends and expectations, Rajeev Kale, President & Country Head of Holidays, MICE, Visa at Thomas Cook (India) Limited, and Daniel D’Souza, President & Country Head – Holidays at SOTC Travel share their thoughts anticipating a sustained surge in demand from the dynamic Indian market.
Event-based Travel on the Rise
Thomas Cook India anticipates a surge in event-based travel in 2024, driven by the enthusiasm of millennials, young professionals, and Gen Z. The focus on live concerts, events, and cultural immersion reflects a desire for dynamic and culturally rich journeys. This trend is expected to persist and evolve, shaping the choices of contemporary Indian travellers.
Sleep Tourism and Wellness Retreats
Kale feels that young Indians are moving away from traditional sightseeing holidays towards more relaxed vacations. Trends like sleep tourism, encompassing activities like yoga, swimming, and spa wellness therapy, are gaining popularity. Destinations like Goa, Coorg, and Puducherry are experiencing a surge in demand for accommodations offering sleep-centric amenities.
Personalised and Curated Travel
There is a growing demand for fully customisable private holidays, especially among discerning travellers. High Net Worth Individuals (HNIs), multigenerational families, ad-hoc groups of friends, and honeymooners/couples are seeking exclusive and tailored travel adventures. This trend caters to those looking for premium, experience-led travel.
Visa-Friendly Destinations
Recent announcements of free visa travel to countries like Thailand, Vietnam, Malaysia, and Kenya are expected to ignite interest among Indian travelers. According to Kale, accessibility of easy-visa and visa-on-arrival options contributes to the growing appeal for hassle-free international travel.
Top Destinations Overview
Australia, New Zealand, France, Switzerland, Spain, Portugal, Hungary, and Finland are anticipated to be top choices for long-haul journeys. Shorter getaways are likely to favor bustling locations such as Singapore, Malaysia, the Maldives, Dubai, Abu Dhabi, Thailand, Indonesia, Saudi Arabia, Ras Al Khaimah, Oman, Hong Kong, Vietnam, and Bhutan. Mid-way destinations like South Korea, Japan, and Turkey also offer compelling options.
Another big opportunity we see in the coming year is Event tourism. We definitely expect a surge in travel for concerts or even sport events. Specially the new generation are more than keen in taking out time and spend big money to travel for big events. Specially after covid, people have realized the importance of enjoying life and curating golden moments. They are now, definitely more than happy to spend their money in creating experiences.
Sustained Trends
According to D’Souza, travel trends in India continue to evolve with a growing appetite for unique and offbeat destinations like Meghalaya, Ziro, Gokarna, Halebidu, and Tawang. Adventure tourism is also on the rise, with places like Rishikesh, Manali, Goa, and Auli catering to the demand for trekking, wildlife safaris, and adrenaline-pumping activities. Sports enthusiasts continue to travel globally to witness major sporting events, tournaments, and championships. Festivals are also a major draw for travellers, with cultural celebrations offering immersive experiences in diverse traditions. The interest in luxury travel experiences persists, with a focus on exclusive accommodations, personalised services, and opulent amenities. Culinary exploration remains a key trend, with travellers keen on discovering local cuisines, street food, and culinary traditions. Cruises continue to be a popular choice, offering luxury, entertainment, and the chance to explore multiple destinations.
Newer Trends
D’Souza also shed light on various, exciting travel trends emerging in recent years. One such trend is Astro Tourism, which offers experiences centered around stargazing and astronomical wonders. Another trend is Travel During Shoulder Season, which involves embracing off-season travel for a serene and economical exploration of destinations. For those with fast-paced lifestyles, Instant Holidays is a popular trend that involves spontaneous bookings with short planning windows.
Skip-Gen Travel is another trend that has been gaining popularity where grandparents create travel memories with their grandchildren, fostering intergenerational bonds. Plan-Free Travel is another trend that emphasises spontaneity and flexibility, allowing on-the-go decision-making.
Lastly, Religious Tourism is a trend that has always been popular where people embark on spiritual journeys to sacred destinations such as Vaishno Devi Temple, Vrindavan, Rameshwaram, Shirdi, Hemkund Sahib, Jagannath Temple, and the Golden Temple.
[ad_2]
Source link
2023 was the year when travel was officially back to normal on par with the pre-pandemic levels. Travellers flew, took trains, crossed oceans and even went on a trip to space to tick off their bucket list. It was an eventful year. As we say goodbye to 2023 and welcome another year, here are some of the unique travel trends that dominated 2023 proving that the travel industry is dynamic, constantly changing and evolving.
Rise of conscious travel
Travellers became conscious of their impact on the environment and opted for eco-friendly accommodations and experiences that support local communities and leave minimum carbon footprints. A large number of travellers ensured that their itineraries included local experiences such as a visit to a local village, getting in touch with a local craft and more.
Digital nomads going strong
Many offices allowed their employees to work from home, leading to many working professionals becoming digital nomads, working and travelling across the world.
This travel trend is set to rule 2024 as well.
Wellness travel
This trend has been popular for a few years now but in 2023, travel agents saw a sharp increase in the bookings where travellers were interested in trips that offered them mental or physical wellness. Tourists increasingly chose destinations that offered yoga retreats, spa experiences and meditation.
Trending destinations for Indian travellers
Some of the most popular destinations favoured by a large number of Indian travellers in 2023 were Vietnam, Singapore, Thailand, Azerbaijan, Maldives and Kazakhstan. Most travellers were interested in discovering offbeat destinations and experiences.
Youtube and Instagram reels played an important part in inspiring travellers to explore these destinations, especially since most GenZ and Millennials look to these platforms for inspiration.
Astro-tourism is becoming more and more popular, reflecting a general desire for deeper bonds with the universe and establishing India as a destination of choice for those looking for experiences in space that go beyond the typical. This increase, says Aditya Sharma, Community Director at Vaatalya, is attributed to the discovery of dark sky sanctuaries and reserves in places like Hanle in Ladakh, Benital and more.
Private group trips The desire to get together with friends and family for a holiday or an experience after the pandemic shows no sign of stopping, resulting in an increase in private group holiday bookings in 2023.
More people planned holidays with their entire family or a group of friends this year and indulged in experiences they will enjoy in a group, whether it’s going on a beach holiday, booking a villa in the mountains or hiking trips.
Food experiences
2023 saw a significant shift with food experiences emerging as a key motivator for travellers when booking holidays. Beyond the traditional sightseeing and relaxation, the culinary landscape of a destination became a focal point where travellers showed immense interest in unique and immersive gastronomic adventures.
This emphasis on food tourism reflected their desire for cultural immersion and a deeper connection with the destination.
The author is the Director of Brightsun Travel.
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.
[ad_2]
Source link
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
[ad_2]
Source link
Dhruv Shringi, Co-Founder & CEO of Yatra Online, engaged in a fireside chat at the 2nd ET Travel & Tourism Annual Conclave & Awards, offering insights into the evolution of Yatra’s platform, the impact of technology, and the future of the travel industry.
He was speaking during a fireside chat interaction with ETTravelWorld on the topic: Online travel agencies – Achieving growth during disruptions.
Shringi outlined Yatra’s continuous product evolution, emphasising the strategy of adding more products to the platform. He 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.
AI and its impact on the industry:
Shringi delved into the multi-layered impact of Artificial Intelligence (AI) on the travel industry. He discussed the positive and negative repercussions for employers, customers, and employees. From an employer’s perspective, AI can reduce service costs significantly, creating a cost advantage. However, customers need to be aware that their data is being used to provide customized responses. Shringi also highlighted the changing skill sets required for employees in the era of automation.
Addressing future innovations, Shringi envisioned concierge apps transforming the industry. He discussed a utopian scenario where users could simply instruct their devices to plan a trip, and the app would provide options, eliminating the need for manual intervention. He emphasised the potential for such innovations to disrupt the industry significantly.
Corporate travel and technology adoption
Shringi further shed light on Yatra’s focus on corporate travel, positioning it as the bedrock of the organisation. He highlighted the increased adoption of technology solutions by companies, driven by the need for scalable and automated business processes. He predicted a decade of integrated technology focus in contrast to the previous decade’s consumer-focused technology adoption.
“So, companies are adopting technology at a pace which has not been seen in the past decade. The last decade, as I said was more consumer focused in the next decade will be more integrated focus,” he said.
Discussing partnerships, Shringi emphasised the importance of collaboration to drive business growth. He cited examples of partnerships with destinations like Saudi Arabia and technology partnerships with companies like Nirvana in Abu Dhabi. Shringi advocated for organisations to play to their strengths and partner with others to create a marketplace-like environment.
“Right so the partnerships I personally feel are a great way of growing the business. So, because you can’t really do everything yourself. At least you know, you can do it yourself and do a good job. That’s what I feel I feel it’s better to focus on one or two core areas where you’ve got to make a lot of skill and in-depth expertise, and then partner with the others who focus on certain other areas and make it a platform like a marketplace in that sense,” Shringi said.
Regarding domestic tourism, Madhavan Menon emphasised the growth across various forms, including road transport, cruises, and resorts. He noted the success of cruises, citing a significant increase in people driving to resorts. Menon highlighted that new destinations, including Kashmir and the Northeast, are witnessing increased tourism due to improved accessibility.
Consumer booking trends
Shringi shared observations on changing consumer booking trends, particularly in Tier-II and Tier-III cities. He highlighted the prevalence of mobile devices as the primary channel for consumers in these markets. Shringi anticipated a shift towards simpler transactions being conducted on mobile devices, while acknowledging the ongoing challenges related to payments, confidence in international travel, and visa processes.
Shringi commended the Indian government’s significant investment in infrastructure, especially in the travel sector. He noted the substantial capacity expansion in aviation, attributing it to government spending on infrastructure projects. Shringi expressed optimism about the sector’s growth and capacity building, fueled by government initiatives.
The Yatra CEO’s insights and interaction at the 2nd edition of ET Travel & Tourism Conclave & Awards on November 30 in New Delhi provided a comprehensive view of Yatra’s strategic direction, the transformative impact of technology, and the dynamic landscape of the travel industry.
[ad_2]
Source link
The global pandemic, with all its disruptions and challenges, served as a catalyst, transforming the very essence of travel. No longer confined to sporadic vacations, it has become a dynamic and integral part of modern living. In fact, the travel and tourism sectors are among India’s largest industries, making a substantial contribution to the nation’s GDP, estimated at approximately USD 122 billion.
This paradigm shift in consumer preferences and behaviours has given rise to three remarkable tourism trends: Solo Adventures, Wellness Getaways, and the Digital Nomad Lifestyle. So, how is the hospitality sector managing the upswing in trends in travel, you may ask?
To leverage these burgeoning tourism trends, businesses in the travel and hospitality sector have introduced innovative products and crafted strategies to cater to the evolving travel landscape. They have recognised the need to adapt to changing customer demands and have responded with agility. Here are some key ways in which the hospitality sector is addressing this transformative wave of travel:
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.
Customised experiences: Personalisation is the topmost service in today’s travel landscape. Providing tailored, flexible experiences that align with a traveller’s unique preferences is paramount. It begins with the initial contact, be it through social media or the website, where the messaging should resonate with the traveller’s preferences. From there, travel and tour suggestions can be finely tuned to match their desires. By offering such customer-oriented services, the clients are better satisfied and increase the likelihood of repeat visits.Ensuring connectivity and productivity: The rise of digital nomads, a distinct group seamlessly blending work and travel, underscores the importance of connectivity. These individuals, comprising freelancers and remote workers, rely on technology to work remotely from anywhere in the world, making high-speed Wi-Fi and reliable signals essential. Travel establishments that can provide this connectivity effectively cater to the unique needs of digital nomads, setting them apart from traditional vacationers who typically disconnect from work while on holiday.
Planning services for bleisure travel: Coined to represent a blend of business and pleasure, bleisure travel is distinct from digital nomadism as it primarily involves business-related trips, including conferences and meetings, intertwined with leisure. This trend, where India stands as the world’s second-ranking destination, offers extended stays that alleviate stress, enhance productivity, and foster a healthier work-life balance.
Business travellers now embrace a multi-dimensional approach, as CEOs research projects from poolside recliners and marketing executives work on hilly slopes while their children enjoy nearby recreational areas. Hotels and resorts can offer extended spa hours, diverse menus, family-friendly activities, healthy breakfast options, and personalised city experiences. This trend is underpinned by the shift towards more frequent short holidays, departing from traditional lengthy annual vacations.
Fostering community and social interaction: Solo travel is a growing trend, with solo travellers comprising a notable 11% of the overall travel market in India, showing a substantial growth rate of approximately 131% since 2016. These solo adventurers are drawn to the freedom of planning their own schedules, meeting new people, and stepping out of their comfort zones. As a result, they often seek interaction with local communities to gain richer cultural experiences and perspectives. This highlights the importance of hospitality establishments that facilitate social interaction, helping solo travellers create meaningful connections during their journeys.
Participants at the roundtable held in Delhi also unanimously agreed on the necessity of facilitating consultations with a broader range of stakeholders, especially from the industry. They emphasised the need for a collaborative approach to ensure that regulatory efforts are aimed at promoting fairness, contestability, ease of compliance, and overall growth within India’s travel and tourism segment of the digital economy.
Skilled staff for wellness services: The wellness tourism sector is experiencing a significant upswing. In 2023, travellers seek transformative retreats to enhance their physical and mental well-being. These retreats help individuals overcome grief, find purpose, and nurture their bodies. The market size of wellness tourism in India is projected to grow at a CAGR of 5% by 2028. In 2020, the Indian wellness market was valued at nearly 78 billion U.S. dollars, ranking India 12th among the top twenty markets for wellness. This indicates a substantial opportunity for hospitality providers to offer skilled staff and services that cater to the wellness needs of travellers seeking holistic experiences such as spas, wellness programs, ayurvedic cooking and more.
These trends signify a broader shift towards more personalised and wellness-oriented travel experiences, reflecting the growing convergence of work and leisure in the digital era.
However, the impact of these trends extends beyond the realm of hospitality alone. The travel gear industry, which encompasses luggage, backpacks, duffel bags, and business bags, is poised to grow significantly. This market is estimated at a substantial INR 53,000 crore annually in India.
Brands offering travel gears should prioritise product quality, durability, and designs that align with these evolving trends. Consider offerings like lightweight luggage with convenient laptop compartments or sturdy backpacks designed for back and shoulder support while emphasising sustainability to embrace the shifting consumer demands and maintain the competitive edge in an ever-evolving market.
As travellers continue to seek diverse and enriching adventures, the tourism, hospitality and travel gear industries must collaborate to meet these dynamic needs, ensuring that each journey is not just a trip but an unforgettable experience.
The author is Managing Director, Swiss Military
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.
[ad_2]
Source link
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.
[ad_2]
Source link