Indian Airlines Gain Share in International Travel - India Report
06.11.2024 - 05:39
/ skift.com
/ Sean Oneill
/ Bulbul Dhawan
Indian airlines accounted for 45.6% of the international traffic in India in the April-June quarter this year. That’s up from close to 44% last year and just 34.7% pre-pandemic.
A total of over 17.6 million passengers traveled to and from India during the quarter. Of this, domestic airlines carried over 8 million travelers.
International traffic in India during the quarter increased 13.5% compared to pre-pandemic levels.
Indian Airlines and International Travel: Indian airlines have been upgrading their fleets and efforts to cater to the growing demand for inbound and outbound international travel. Air India and IndiGo have placed large orders to increase their fleets.
IndiGo also placed its first-ever order for widebody aircraft earlier this year, indicating expansion to long-haul destinations.
Due to the anticipated growth in international travel as India becomes a key source market, airlines from other countries are seeking more flying rights. However, Indian airlines are largely opposing this.
Earlier this year, credit rating agency CRISIL Ratings said that Indian airlines will account for half of the country’s international passenger traffic by the 2027-28 financial year. In the 2024 fiscal year, Indian airlines held a 43% share in international traffic.
Manish Gupta, senior director at CRISIL, had said that increasing disposable incomes, easing visa requirements, growing number of airports, and enhanced air travel connectivity are likely to lead the international passenger traffic to annually grow at 10-11% over the next four years.
Indian Hotels Company (IHCL) has acquired a majority stake in he operating company behind Tree of Life Resorts and Hotels, our Senior Hospitality Editor Sean O’Neill reported. With this, the hospitality company is expanding its “experiential leisure” segment. IHCL will take a 55% stake in the company.
While the price of the all-cash deal has not yet been finalized, IHCL has said that it will not be more than INR 180 million ($2.1 million). The deal is expected to close next year.
Tree of Life currently has only 19 resorts and hotels. IHCL plans to help expand the portfolio to 100 properties by 2030. The move underscores the growing popularity of “experiential leisure” as a hospitality trend.
TreeHouse Hotels and Resorts has launched a new brand: ‘hi-way MOTELS’. This marks the fifth brand under the hotel chain. The Hi-way Motels brand aims to target travelers who commute via roads and look for budget accommodations.
As part of the brand, TreeHouse will open properties along highways and expressways, near smaller towns, and on the bypasses of major cities. Ajay Mehtani, Partner, TreeHouse Hotels & Resorts, said that the goal is to capitalize on a gap in the