Tag Archives: KPMG

Business travel in India to grow by 11.5 per cent in 2019

FCM Travel Solutions and KPMG’s recent whitepaper titled ‘Redefining Corporate Travel Management’ forecasts that the total market for business travel in India is projected to grow at an annual rate of 11.5 per cent and a spend of up to USD 46 billion in 2019. In the past year, rise in annual growth of business travel spend for India has been the highest among the top 15 business travel markets globally. Consequently, India surpassed South Korea to reach seventh position in the top 15 business travel markets (by spend) globally and is projected to be in the top five by 2022. It is forecasted to be one of the fastest growing markets over the next five years, growing at the rate of 12.5 per cent over the forecasted period.

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45,000 new aircraft to be delivered globally between 2018 and 2040

Over the next two decades, the global commercial aircraft fleet size is expected to grow at a CAGR of around 4 per cent. Around 45,000 new aircraft are likely to be delivered globally between 2018 and 2040, suggests a report ‘Vision 2040 for the civil aviation industry in India’ by FICCI and KPMG. The growth will be driven by socioeconomic changes in emerging economies, especially in India, China, South East Asia and the Middle East. These factors include rising incomes and aspirations, lower oil prices, fierce competition between airlines and increasing value of ‘time’. For India, Boeing raised its long-term forecast for commercial airplanes to 2,300 new jets – valued at $320 billion – over the next 20 years. Nearly 84 per cent of those are expected to be narrow bodies. According to Boeing, with more than 5 per cent of the world’s fleet expected to operate in India by 2037, commercial services like flight training, engineering and maintenance and digital analytics etc., will be the key drivers of growth. In the South Asian market, including India, Boeing forecasts a commercial services market valued at USD 430 billion over the next 20 years.

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Total passenger traffic in India to rise six-fold to 1124 million in FY2040

The total passenger traffic (to, from and within India) in India is expected to rise nearly six-fold from 187 million in FY2018 to around 1124 million in FY2040, according to a latest report by FICCI-KPMG titled ‘Vision 2040 for the Civil Aviation Industry in India’. This includes around 821 million domestic passengers and around 303 million international passengers (to and from India). The overall CAGR across the five clusters works out to around 9% in domestic and 7% in international traffic during FY 2018-2040. “The FICCI-KPMG projection is higher than the projections made by leading organisations. Given the untapped potential of the Indian aviation market and the signi􀃶cant reforms being driven by the federal and state governments, we feel that the above projections are eminently achievable. These are of course predicated on the assumption that volatility in oil prices and exchange rate will be within a reasonable range and the constraints in terms of policies, taxation, infrastructure and ease of doing business shall be addressed on priority,” the report states.

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Mobile to influence 9 out of 10 purchases for airline tickets by 2022

More than four out of five airline bookings in 2022 are expected to be mobile-influenced, while nearly two out of five are expected to be Facebook-influenced, suggests ‘FB Travel Report’ compiled recently by KPMG, Facebook and Nielsen. The influencing factors iinclude awareness, consideration, intent, average influence and sales opportunity. Mobile internet users in India are expected to increase to 677 million by 2022 from 420 million users in 2017, the report further reveals. This growth is expected to be driven on the backdrop of organic penetration of the internet, digitally-savvy travellers, connectivity through social media and digital technologies over the next 5 years. Brands, therefore, have a revenue opportunity worth USD19 billion to re-look at their marketing strategies and adapt to the fast-evolving mobile-first internet economy of India.

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Business travellers prefer to go digital for flight and hotel check-ins

FCM Travel Solutions and KPMG’s recent whitepaper titled ‘The Digi-Smart Indian Business Traveller’ forecasts that amongst Asian business travellers, face-to-face interactions have become the least-popular option, except for hotel check-ins. They value the transparency of choice and information that autonomous digital channels, such as AI, can provide. Similarly, Indian business travellers are shifting to digital, with only 17 per cent of them preferring face-to-face interactions for process like flight check-ins. When choosing flights, convenient schedules and direct flights were consistently amongst the top-three priorities across all business travellers. Travel managers are aware of this and choose travel providers based on their ability to provide convenience and ease travellers’ journeys. Some these functions can be taken over by AI, which can process large about of data faster, and hence increase the efficiency and reduce cost.

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9 out of 10 hotel bookings to be mobile-influenced by 2022

With the app economy gaining prominence and hotels increasingly encouraging consumers to have direct transactions, the role of mobile in hotel bookings is expected to increase. As per a study by KPMG-Facebook, 9 out of 10 bookings in the hotel category are expected to be mobile-influenced by 2022. Our findings further suggest that in case of hotel bookings, 16 per cent of consumers drop out due to media friction and enhancing the media mix with mobile can reduce this friction by 3 percentage points, leading to a USD2 billion opportunity for the brand within the category by 2022.

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India is the world’s fastest growing business travel market: GBTA

Enlisting the factors driving digi-smart business travel in India, FCM Travel Solutions and KPMG’s recent whitepaper titled ‘The Digi-Smart Indian Business Traveller’ forecasts that the growing share of millennials in the Indian workforce work for longer hours than their global peers. Furthermore, travel service providers (i.e. airlines, hotels, taxi operators etc.) are enhancing their available capacity for online users, which is becoming an important travel booking channel. The introduction of the GST is also driving businesses to use the online route to meet the regulatory and compliance requirements. The emergence of user friendly technology solutions such as Artificial Intelligence and SBT is also making Indian travel managers use the digital platform as the mainstay in managing their travel and claims.

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In-flight Wi-Fi could be game changer in enhancing business traveller experience

FCM Travel Solutions and KPMG’s recent whitepaper titled ‘The Digi-Smart Indian Business Traveller’ forecasts that Indian travellers have higher inclination towards in-flight Wi-Fi as compared to travellers from other countries, according to a survey by Inmarsat. With current nil penetration and high demand amongst Indian travellers, in-flight Wi-Fi can be a potential game changer in enhancing business traveller experience considering that fliers are potentially willing to shift travel experiences for onboard Wi-Fi. For business travellers, the need for seamless connectivity makes them natural users of these services. While the use of in-flight Wi-Fi should be encouraged, it is necessary to consider various factors including aircraft upgrade requirements, connectivity speed and quality, cybersecurity concerns, etc.

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Online sales of travel booking to increase at a CAGR of 14.8% during 2017–21

The online sales of travel booking is likely to increase at a CAGR of 14.8 per cent during 2017–21, according to FICCI and KPMG India’s latest knowledge paper titled ‘Expedition 3.0- Travel & Hospitality Gone Digital’. This uprising of digital travel in India can be attributed to the increasingly digitally savvy Indian travellers. In 2017, India was projected to have accounted for 3.7 per cent of the global digital travel sales — making it the third-largest market by value in the Asia-Pacific (APAC) region. The Indian government’s move to remove high currency notes out of circulation in November 2016 is expected to have further catalysed the growth of digital travel sales in the country 2017. The most significant reform in travel has been brought by mobile applications, which have enabled the whole user experience to be available on-the-go. These include usage of mobile tickets/boarding pass, mobile check-in for hotel rooms, cab hailing applications, and even cloud passports in some countries — in addition to the basic features such as search, booking, payment, invoicing and customer support.

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FICCI-KPMG Knowledge Paper to focus on tech-savvy Indian traveller

FICCI and KPMG India have jointly unveiled the knowledge paper ‘Expedition 3.0- Travel & Hospitality Gone Digital’ at the inaugural session of Digital Travel, Hospitality & Innovation Summit. The Knowledge Paper looks at unravelling the technology trends in travel and hospitality segment that will help better define the future of the industry, how digitalisation has impacted the evolution of this industry and what can be achieved by overall technology inclusion across stakeholders in the industry ecosystem. Some of the key highlights of the paper reveal that most travellers go online, and 67 per cent even use voice search for research; 71 per cent use smartphones for research and booking, and 82 per cent prefer digital boarding passes and e-tickets for convenience; 87 per cent use videos and photos posted by friends as part of their travel research while 83 per cent want to be connected while travelling; 85 per cent use price comparison websites to look for deals, and 58 per cent agree spending considerable time to find best price; 91 per cent use review sites; and 75 per cent choose hotels that do not charge for Wi-Fi.  

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