MakeMyTrip said it is looking at the hotels and accommodations segment to contribute around 70 per cent to its overall revenue by the end of 2022. Currently, hotels and accommodations account for around 54 per cent of the company’s total revenue. “By the end of 2022, 70 per cent of our revenue will come from the hotels and accommodations segment,” Deep Kalra, Founder and Group CEO, MakeMyTrip. Currently, around 33 per cent of revenue comes from air travel and the rest is roughly from redBus, travel insurance and experiences, he added. “Going forward, the hotels and accommodations will contribute a bigger share of revenue, as there is still a lot of headroom in hotels. Still, only around 15 per cent of hotels are booked online, so there is a big market to be tapped,” Kalra said. On the trend of more Indians opting for overseas travel, he said, “The focus area for us and where Indians are going right now is overseas. Middle class has the money and is travelling overseas as it is aspirational.” The growth in international travel will be higher and it will grow faster than the domestic segment, he added. The company has recently posted its third-quarter results with a growth of over 30 per cent. When asked about the growth road map, Kalra said, “We are looking to moving on to twin path of growth and at the same time of reduction of losses.” He, however, did not provide any future guidance on growth numbers. Source: PTI

Prime Minister Narendra Modi is expected to inaugurate the Jewar Noida International Airport (JNIA), also known as the New Greater Delhi Airport redevelopment project between February 23-25, 2019 by laying a foundation stone for the USD 3.1 billion project, which will be the largest airport in India by surface area. JNIA, set to become operational in 2022, will provide the National Capital Region with a second facility after Indira Gandhi International Airport. The GMR Group holds first right of refusal for any new airport in Delhi and in February 2018, GMR Infrastructure’s director K Narayan Rao confirmed GMR’s plans to participate in the project. Rao said that a coordination committee should be established with representatives of the Union Government, Uttar Pradesh State Government and private sector to oversee the project and avoid delays. He also called for the development of metro rail connectivity to the planned airport.

Heritage and tourism in Chandannagar got a boost with the signing of a Memorandum of Understanding (MoU) recently between France and the Bengal government on the sidelines of the Bengal Global Business Summit. French ambassador Alexandre Ziegler, who was in Chandannagar to unveil plaques on three buildings enlisted by the West Bengal Heritage Commission, tweeted the event after signing the MoU late on Wednesday. “The agreement will initiate a very important revitalisation of Chandannagar’s Indo-French heritage,” he wrote. Tourism and home secretary Atri Bhattacharya said, “We have signed an MoU to together explore ways to redevelop Chandannagar heritage. There are some buildings that are either government property right now or can possibly be acquired. The French will do research and provide expertise in restoration and we will see in what phases we can fund restoration of heritage precincts.” Ziegler said, “With the MoU, we have now created a bilateral arrangement whereby we will provide technical expertise. Specialists in restoring monuments will come before summer for the first visit.” The MoU mentions only the Registry Office, the former French courthouse, by name. It was one of the buildings where a heritage plaque was unveiled on Wednesday. An estimate of the restoration cost will be drawn up with the help of French experts. The ambassador, on his fourth visit to Chandannagar , described the former French colony as “a jewel”. “You have history, charm, proximity to Calcutta… the potential for tourism is immense. Demonstrating what can be done in one building can have a snowball effect. Through honouring the past we are setting up a dynamic for the town’s economic development,” Ziegler said. Source: The Telegraph

Strengthening its presence in the Indian market, Austria has registered 8.6 per cent growth in the number of tourists from India in 2018. The central European country welcomed 192,000 visitors in 2018. The Austrian National Tourist Office (ANTO) is looking to focus on families this year. Addressing a press conference at Le Meridien, Delhi, Christine Mukherjee said that 40 million tourists from over the world travel to Austria every year. “India is very a crucial market for us. I am happy to inform that overnight stays by Indian travellers has doubled over last one year.” ANTO organised a three-city workshop in India which started in Mumbai, followed by Ahmedabad and concluded in Delhi. According to Mukherjee, 140 tour operators attended the workshop in Mumbai, while over 100 and 110 agents turned up for the workshop in Ahmedabad and Delhi, respectively. Industry partners and representatives from Vienna, Innsbruck, Salzburg and Swarovski Crystal World also attended the workshops and showcased their products to the travel trade. Thomas Bachinger, Market Management, Vienna Tourist Board; Andreas Reiter, Market Management—Spain, India and Arab Countries, Innsbruck Tourism; Klemens Kollenz, Sales and Marketing Manager, Salzburg Tourism and Christiane Gasser, Head of Marketing & Communication, Swarovski Tourism Services, interacted with members of the press on what each destination had to offer to Indian tourists.

To promote airlines to extend their service to Kerala, the Kerala government has decided to slash the tax on aviation fuel to 5 per cent from the current 28.75 per cent for domestic airlines. Making the announcement in the assembly during the discussion on the state budget for 2019-20, state’s Finance Minister TM Thomas Issac said that not only airports under the UDAN scheme but also non-UDAN airports would get the new tax breather in the state. “The tax on ATF will be reduced to 5 per cent from the existing 28.75 per cent for domestic airlines operating service from the state airports. A revenue loss of Rs 100 crore is expected through this,” he said. The tax cut is expected to benefit Thiruvananthapuram, Kochi and Kozhikode international airports as the government had already decided to levy only 1 per cent fuel tax from airlines operating service from the newly commissioned Kannur airport. Aviation fuel accounts for a major portion of operating cost for airlines. The tax cut can help become Kerala an attractive destination for various airlines as neighboring states like Tamil Nadu and Karnataka are charging a state tax of 29 and 28 per cent, respectively on jet fuel. The tax cut benefits would benefit only domestic passengers as the international airlines that operate to and from the state have not been charging VAT as per the new GST regime.  

Avalon Waterways, one of the brands under the Globus family of brands, has launched its new river cruise on the Ganges. Scott Nisbet, President and CEO, Globus family of brands, announced this in Mumbai on his visit to India to meet the travel trade partners. He said, “We started a new river cruise on the Ganges early this week. It is our new Avalon Waterways product and a seven-day cruise, round-trip to Kolkata that goes up north to the little towns. It is a fascinating trip and guests can add to that and turn it into a 13-day, 15-day, and even an 18-day cruise by including the Golden Triangle or Varanasi. So these extensions would not be a river cruise, they would be a tour. We are primarily focusing that on Western markets like US, Canada, Australia and the UK but it is also a great option for Indians as well. It’s a 54-passenger luxury ship, all-inclusive which means all meals, drinks and all excursions. It is also perfect for a small incentive group. We have taken a number of sailing, 75 per cent sold already, agents can start selling now.”  

The Average Daily Rate (ADR) for Indian mid-scale hotels crossed 3,ooo for the first time in 2018, according to a latest report by Horwath on ‘India Hotel Market Review 2018’. Mumbai is the only market at the top right hand corner – unfortunately, it fell back from strong occupancy position, without materially gaining in ADR. Several occupancy shifts have been in the negative direction. Bengaluru, Goa and Jaipur dropped Occ between 2.7 pts and 4 pts. Bengaluru is particularly surprising because there is no supply growth in this segment. Bengaluru and Goa at least made up on the ADR front; the former added over Rs 300 to comfortable cross the Rs 3k level. Goa ADR growth was more modest but is now pushing the Rs 4k level. Jaipur dropped rate as well – only Rs 60 but that’s material when one is in the low Rs 2k level. Delhi, Gurugram, Pune and Chennai moved up to the right, gaining both Occ and ADR. Occupancy gains varied from 0.8 pts to 1.5 pts; while ADR gains spread significantly between 3.3 per cent and 12.6 per cent. Improving product quality at the mid-scale level (e.g. the revitalised Ginger and Park Inn by Radisson) could enable improve performance for this segment. It really needs Occ growth in key markets to compensate softer initial period results from smaller cities and towns in which this segment must penetrate.

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.

The India domestic market posted the fastest full year domestic growth rate for the fourth year in a row (18.6 per cent), according to an International Air Transport Association (IATA) report. Domestic demand in India was underpinned by a robust economic expansion as well as by increasing number of domestic pairs. The country recorded its 50th consecutive month of double-digit annual growth in October. .“While globally, domestic air travel climbed 7 per cent last year, which remained unchanged from the rate in 2017. All markets showed annual growth, led by India and China, which both posted double-digit annual increases,” the report added.

Sarovar Hotels & Resorts is set to come up with a project in Auxum in Ethiopia and one in Somaliland. Ajay K Bakaya, Managing Director, Sarovar Hotels and Resorts, is extremely positive about the brand’s international presence, especially East Africa. He says, “Both the properties will start operating by mid-2020. With humble beginnings in Tanzania, we are now operating in Nairobi (Kenya), Dar es Salaam (Tanzania) and Lusaka (Zambia).” Sarovar is one of the fastest growing hotel chains in India with over 80 operational hotels across 50 destinations in India and Africa.