Solo Travel Tops the Trends Chart This Summer

More Indians are taking personal loans to travel and meet vacation-related expenses, according to Madhavan Menon, executive chairman of Thomas Cook India. 

Only 25% of Indians traveling abroad purchase travel insurance well in advance while making travel arrangements, while the majority of them wait until the last three days to buy it, according to data compiled by insurance aggregator Policybazaar.

Indian carriers have occupied a lion’s share of international air traffic, which is more than pre-Covid times, as per data released by India’s aviation watchdog Directorate General of Civil Aviation (DGCA). This is testament to the fact that India could rank among the top three markets for outbound travel in the coming years. Leading this expansion in market share in low-cost carrier Indigo. Passengers carried on international flights operated by Indian carriers accounted for 43.5 percent of total overseas travel in the fourth quarter of 2022, up from 39.2 percent in the corresponding period of 2019. In 2020, during the same period, the market share of Indian carriers rose to 65.3 percent, and in 2021, the share of Indian carriers in the total international passenger traffic stands at 49.6 percent. Out of the 30 Indian cities from where international passengers embark/disembark, five Indian cities accounted for approximately 70.2 percent of international passenger traffic. Delhi tops the position in the category with a share of 28.3 percent, followed by Mumbai at 19.8 percent share and Chennai at 8.5 percent share). 

India is expected to overtake Germany to become the world’s third most powerful travel and tourism market by 2032, according to World Travel and Tourism Council’s Economic Impact Research.

India could rank among the top three markets for outbound travel in the coming years, according to Omri Morgenshtern, CEO of online travel platform Agoda said while speaking to media in India during his recent visit to the country. Indian travellers are increasingly becoming more important to many countries and will become second to China in terms of spending in Asia, he said. An earlier Skift article had reported how the time is ripe for India — which already ticks most of the boxes as a suitable candidate to take over from China as the largest travel source market — to enter the dragon’s space. In India, online travel booking is growing at a faster pace after the pandemic in comparison to other global markets, outpacing the Asia Pacific market, said Morgenshtern. The total transaction value in travel almost hit pre-Covid levels in 2022. “Since 2019, the rank of importance of Indian tourists for Thailand for example has risen from 10th to 6th. I expect it to become more important in the coming years, not only to Thailand but to many countries in APAC,” he added. Morgenshtern also sees a lot of potential for inbound tourism in India. While India’s inbound is growing slower than outbound travel, he believes it is going to see fast growth in the coming years.

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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’s largest private airport operator — Adani Airports will bid for about a dozen more airports in the country to expand its footprint in the world’s fastest-growing aviation market, confirmed the company’s chief executive officer Arun Bansal. “India will have 1 billion air passengers by 2040, with passenger traffic growing at a compound annual growth rate of 8.5 percent over the next 20 years,” he said. On their strategy to acquire more airports in the country, Bansal remarked, “Our strategy is simple, to create a scale [of operations]. If the bid condition is right, we will bid.” The Indian government recently privatized six airports — Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati and Thiruvananthapuram — all of which were won by Adani Airports. Adani currently manages seven operational airports including Mumbai’s Chhatrapati Shivaji Maharaj International Airport and is also developing the Navi Mumbai airport in Maharashtra. The airport is expected to handle 90 million passengers per year by 2036. In the first phase, which is scheduled to be completed by December 2024, the airport will have a passenger handling capacity of 20 million. All of Adani’s airports have experienced significant growth in passenger traffic in recent years. The company’s six airports together saw a 92 percent increase in domestic passengers and a 133 percent increase in international passengers. The number of domestic flights increased by 58 percent, while international flights increased by 61 percent.

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. 

Airbnb hosts in India collectively made over $12 million from bookings with families last year. Indian family travel on the short-term rental site grew by over 90 percent in 2022 compared to pre-pandemic in 2019, according to a new report released by the company. Most families booked Airbnb listings because of the value and space compared to hotel rooms — with the top-booked categories being near a national park, a pool, near a beach and lake house. Goa, Bengaluru, Karnataka, Pune, Hyderabad, Dehradun, Jaipur, Raigarh, Ernakulam, New Delhi and Nainital were the most preferred family travel destinations in India. Globally, Indians have been traveling to London, Toronto and Dubai for a family getaway. “Families are spending more on domestic as well as international travel and are more willing to support local communities and small businesses. We are glad to see the multiplier effect Airbnb delivers on the local communities as it creates meaningful earning opportunities for those considering hosting on the platform,” said Amanpreet Bajaj, general manager for India, Southeast Asia, Hong Kong and Taiwan for Airbnb. The company recently partnered with Sheroes — a New Delhi-based women’s networking and enabling platform — to grow its community of women hosts in India. Under the partnership, Airbnb will launch a digital content and training program for six months, which will be accessible on relevant Sheroes community channels. This collaboration will provide training to support members of the social platform who are interested in hosting on Airbnb to harness their passion for hospitality, as well as enable more women in India to travel the world independently. 

Nearly 97 percent of Indian travelers intend to make greener travel decisions over the coming 12 months, according to Booking.com’s annual Sustainable Travel Report. Amid rising climate anxiety, Indian travelers say they are making conscious accommodation and transport choices with 83 percent of respondents feeling that doing so would help protect the planet for future generations. Now in its eighth year, the research highlights a dilemma where people are forced to choose between affordability and making sustainable travel choices. Around 84 percent of Indians think the global energy crisis and rising cost of living are impacting their spending plans. Nearly two-thirds of them (66 percent) believe sustainable travel options are too expensive, while 80 percent are willing to pay more for sustainable travel options to feel reassured they are driving impact. “India has emerged as one of the top 10 countries with 20,000 properties now being recognized for their sustainability efforts on Booking.com. We are listening and together with our partners across the industry, we are examining every part of the trip to not only support our travelers but also benefit local communities and environment,” said Santosh Kumar, country manager of India, Sri Lanka, Maldives and Indonesia at Booking.com. The report is based on insights gathered from more than 33,000 travelers across 35 countries and territories.  

India generated Asia’s highest outbound travel volume for the first time in 2022, with foreign trips exceeding those of China, South Korea, and Japan, as per tourism consultancy and research firm IPK International’s World Travel Monitor findings. An earlier Skift report had mentioned that the time is ripe for India — which already ticks most of the boxes as a suitable candidate to take over from China as the largest travel source market. With around 10 million foreign trips, the country registered a 190 percent year-on-year rise in outbound travel last year — which is significantly higher than the average global increase of 90 percent. India’s favorite travel destination in 2022 was Dubai, followed by the U.S., Thailand, Saudi Arabia, and Singapore. Overall, around 70 percent of Indian travelers undertook trips in Asia, which increased by more than 250 percent compared with the previous year’s figures. According to IPK’s Destination Performance Index, Thailand, Abu Dhabi, and Dubai were India’s preferred travel destinations in 2022 — based on travel satisfaction, recommendations, and the desire to revisit a destination. Among trip types, round trips ranked first with a market share of around 30 percent, followed by city breaks at 26 percent and sun and beach holidays at around 20 percent. Business trips comprised about a quarter of foreign travel, with meetings, incentives, conferences, and exhibitions market accounting for over 70 percent of business travel in India.