Oyo Enters the Premium Resorts Business With New Brand

The U.S. Consulate General in Mumbai has cleared the visa backlog caused by the Covid-19 pandemic and said that applicants can schedule appointments for immigrant visa interviews within the standard time frame, the U.S. Consulate General Mumbai said in a statement.

Airbus plans to deepen its industrial presence in India, Chief Executive Guillaume Faury said on Wednesday after meeting the country’s prime minister.

The Tatas will let go of Indian full-service carrier Vistara as they look to merge the airline with the more “internationally-recognized” Air India, Air India CEO Campbell Wilson said on Monday.

Indian companies have failed to set targets to reduce corporate travel emissions, according to an annual report by campaign group Transport & Environment. Globally, only 50 companies out of 322 have set targets to reduce business travel, with information technology (IT) services company Wipro paving the way in India. Wipro has achieved a 15-20 percent reduction in air travel emissions between the 2015 and 2020 period. Among all 10 Indian companies featured in the ranking report, only IT services provider Tech Mahindra reports on air travel emissions specifically. “Advancements taking place in India are mostly being led by the technology industry. We invite these technology companies to continue to work on their travel policies and demonstrate leadership to catalyze change in other industries,” said Denise Auclair, corporate travel manager at Transport & Environment. Of the companies that have targets, only four companies meet the “gold standard” of reporting air travel emissions and commitment to reducing them by 50 percent or more, by 2025 or sooner. These are Novo Nordisk (pharmaceuticals, Denmark), Swiss Re (finance, Switzerland), Fidelity International (finance, Britain) and ABN Amro (finance, the Netherlands).

India will boost Ayush treatment — indigenous medicine and associated treatment techniques — through health tourism, informed Ayush minister Sarbananda Sonowal. Set up in 2014, the Ayush ministry is responsible for developing education, research and propagation of traditional medicine systems in India. The government has been making efforts to boost traditional medicines for international tourists visiting India for treatments under Ayush methods — ayurveda, yoga, naturopathy, unani, siddha and homeopathy, among others. Earlier this year, the Ayush ministry had signed a memorandum of understanding with the tourism ministry’s India Tourism Development Corporation (ITDC) to work together for the promotion of medical value travel (MVT) in Ayurveda and other traditional systems of medicine. The Indian medical value travel market size is valued at $5–6 billion and is expected to grow to $13 billion by 2026. With 5,00,000 international patients annually, India is poised for a giant leap in medical tourism on the back of soaring cost of treatment in the West and the Russia-Ukraine war driving more patients for medical care to the country. In addition, the government’s initiatives under the ‘Heal in India’ scheme — of accrediting Ayush centers and launching Ayush e-visa — is also expected to fuel medical tourism.

Reports suggest that India-based budget hotel operator and aggregator Oyo will be reducing its Initial Public Offering (IPO) size by about two-thirds. The company is likely to file a fresh document for its IPO as soon as this week, according to a Bloomberg report. The company had initially filed to go public in October 2021. In December, India’s capital markets regulator, the Securities and Exchange Board of India (SEBI), had advised Oravel Stays, the parent company of Oyo, to refile the draft prospectus, updating all the relevant sections such as risk factors, key performing indicators, outstanding litigations and basis for offer. Oyo’s last submission to SEBI was the updated financial results of the first half of financial year 2022-23. Updating its draft red herring prospectus with results for the first half of the 2023 financial year in November, Oyo had reported that its adjusted earnings before interest, taxes, depreciation, and amortization for the second quarter grew eight times from $860,000 in the first quarter to $7 million primarily driven by a 23 percent quarter-on-quarter rise in gross booking value per hotel. However, speaking at a town hall on Monday, Oyo Founder and Group CEO Ritesh Agarwal told employees that Oyo expects its revenue in the financial year 2023 to be more than $692.5 million, up 19 percent from 2022’s $581 million. Agarwal attributed the company’s better financials to sustained growth in India, Indonesia, the U.S., and the UK, and relevant optimization and synergies in its European vacation homes business. He outlined that Oyo’s key focus areas this year would be on profit after tax along with consistent momentum in earnings before interest, taxes, depreciation and amortization, achieving cash flow positive in financial year 2024, cost efficiency and improving contribution margins, and making storefront additions. 

Thailand-based Minor Hotels will launch its luxury Anantara brand in India with Anantara Jaipur Hotel in the north Indian state of Rajasthan, scheduled to open in the fourth quarter of 2023. The hotel will feature 150 guest rooms and suites, including four terrace suites with private plunge pools, and a 160-square-meter royal suite with a large terrace and private pool. Besides bars and restaurants, other facilities will include a spa, beauty salon, gym, semi-outdoor pool, kids’ club, and event spaces. The hotel will be able to cater to weddings of up to 2,500 guests with its collection of indoor and outdoor venues. “Jaipur is one of India’s most vibrant destinations, with a huge destination wedding potential, and I look forward to working with (owner) Ajay Gangwal and his team to launch our first Anantara in India, which is a significant strategic step for Minor Hotels,” said Dillip Rajakarier, CEO of Minor Hotels. Minor Hotels currently has a portfolio of more than 530 hotels and resorts in 56 countries across its brands, which include Anantara, Avani, Elewana, Oaks, NH, nhow and Tivoli. In other developments, Hilton announced that it, too, has an interest in Jaipur, where it will debut its luxury brand, the Waldorf Astoria. Radisson, too, is thinking luxury, and announced on Wednesday that it would be debuting its luxury lifestyle brand, Radisson Collection in India with the signing of the first hotel in Hyderabad.

India plans to open up to 50 new tourism destinations, promote green tourism, launch a publicity campaign in overseas markets and operationalize 59 new air routes during its presidency of the G20 this year, said Arvind Singh, secretary at the ministry of tourism. “India’s tourism sector is showing one of the strongest recoveries in the Asia Pacific region. Despite the challenges posed by the pandemic, the country registered 6.19 million foreign tourist arrivals in 2022 — a growth of 305 percent as compared to 1.52 million in 2021,” he said while speaking at the G20 Tourism Expo held in the north Indian state of Rajasthan. “We have recommended 59 new routes to the ministry of civil aviation under the regional air connectivity scheme which has been successful. Of this, 51 routes are already operational,” Singh added. The government is pushing green initiatives to promote responsible tourism in the country and authorities plan to ensure small businesses have the resources for green investments and to create local jobs. 

Potentially IPO-bound budget hotel operator and aggregator Oyo’s U.S. business has recorded a 48 percent revenue growth from bookings on its own platforms — such as the app, website, mobile web and call centers — in the fourth quarter of 2022 compared to the same period in 2021. While Oyo’s app generated 99 percent growth, revenue from bookings via the company’s call centers reported a 59 percent surge for the quarter. Earlier this month, Oyo had announced its plans to add more than 100 hotels in the U.S. this year across the states of Oregon, Washington, Oklahoma, Georgia, Florida, and Texas, its fastest-growing state. This is nearly double the number of hotels the company added to its portfolio in 2022. “While bookings through online travel agents such Booking.com and Expedia Group play an important role in increasing revenues for our hotel partners, direct demand through Oyo’s own platforms leads to better margins for our hoteliers,” said Gautam Swaroop, chief executive of Oyo International. Swaroop added that the company experienced a 3x growth in app conversions and 2x growth in conversions from the call center using price optimizations and by creating operational efficiencies, performance management and better incentive structures in the organization. An earlier Skift report had mentioned that Oyo is likely to launch the initial public offering around the Indian festival of Diwali in November, once it gets the approval from India’s capital markets regulator, the Securities and Exchange Board of India.

Indian conglomerate Tata Group has sought fair-trade regulator Competition Commission of India‘s approval for a merger between its Air India and Vistara — the company’s joint venture with Singapore Airlines — into a single full service carrier called Air India. This is separate from the already underway (and regulator-approved) merger of Air India Express and Air Asia India into a single low cost carrier, named Air India Express. Tata would hold 51 percent of the total equity of the merged entity while Singapore Airlines would own a 25.1 percent minority stake, according to a filing on the regulator’s website. Air India would also absorb all Vistara employees. Vistara currently has about 5,103 employees, and around 80 percent are operational staff, including pilots, cabin crew and engineers. The merger, announced in November last year, would create a stronger rival to India’s dominant carrier IndiGo and help Singapore Airlines solidify its foothold in one of the world’s fastest-growing aviation markets. Air India recently placed a mega order for 470 aircraft from Boeing and Airbus as it plans to become a dominant player globally. 

India is on the cusp of an aviation boom as many call the country the “most promising aviation market” globally post-Covid.

India’s domestic air traffic has hit a record high with 456,082 passengers flying on a single day, the civil aviation ministry said in a tweet. The ministry’s data shows a total of 456,082 passengers flew via 2,978 flights on April 30 and there were a total of 5,947 flight movements. “Indian domestic air travel hits new high, surpasses pre-Covid average,” it tweeted. The ministry referenced the May 1 numbers, said 448,248 passengers had taken to the skies via 2,936 flights. The rebound in India’s aviation industry comes after heavy losses faced by the industry in the past Covid-hit years. The global airline trade body, the International Air Transport Association’s latest market analysis report shows India is in the process of becoming a key global aviation market outpacing other thriving markets like the U.S., China, and Japan in passenger load factor at 81.6 percent in February 2023. With India’s air passenger traffic expected to reach 395 million in 2023-24, the country seems to have solidified its position as the world’s third largest aviation market. Credit rating agency ICRA had also recently revised its outlook on the Indian aviation industry to stable from negative due to the fast-paced recovery in domestic passenger traffic. Indian airlines have witnessed an annual growth of 51.7 percentin passenger traffic during January-March 2023 as compared to the corresponding period last year, according to Indian aviation watchdog Directorate General of Civil Aviation. Domestic airlines carried 375.04 lakh passengers between January-March 2023, as against 247.23 lakh in the same period last year.