Tag Archives: Bain & Company

According to Air Travel Forecast by Bain & Company, travel projections between Europe and Asia have taken a significant hit, dropping from 70 per cent to 56 per cent of 2019 levels, reflecting both the impact of China’s lockdowns and soaring operation costs due to bans on flights over Russian airspace.

The 2022 travel forecasts by Bain & Company states that the Covid-19 Omicron variant’s surge continues to stall the travel recovery. It is projected that the global airline revenue for 2022 shall reach $432 billion in the baseline recovery scenario, representing 65% of 2019’s revenue. By the end of the year, global air travel demand could recover to 84% of 2019 levels in the baseline scenario.  

A total of 26 million international trips were taken by Indians last year, as per a Google and Bain & Company report. Last year, they took a staggering 1.8 billion trips — domestic and international — giving the travel and tourism industry a major boost in India. Indian travellers spent nearly $94 billion on transportation, lodging and consumption during their travels. While business travellers spent $37 billion in 2018, leisure travellers spent $57 billion.

The proportion of online bookings has been increasing rapidly and is expected to reach 33 per cent of all hotel bookings by 2021 due to a proliferation of online aggregators, according to a latest study titled ‘How does India travel?’ jointly prepared by Google and Bain & Company. The report states that during key research-heavy phase of interest, research and experience, digital plays a pivotal role with over 86 percent of consumers being influenced by online channels. During this phase, travellers spend their maximum time on search, travel tour provider websites, price comparison websites, and travel articles. Online video too plays a significant role with 21 per cent of travellers being influenced by this platform. In the booking and sharing phase, the report states that nearly 60 per cent of customers book transport and lodging online, and over 50 per cent share feedback online with social media being the dominant platform. Talking about the market opportunities for online travel players, Vikas Agnihotri, Country Director – Sales, Google India said, “New users perceive that online channels are geared towards the more frequent flyers and experience-oriented travellers; and existing travellers research online but the lack of trust in payments and booking experience make them end up booking offline. If travel players tap these online users through personalised marketing, messaging and travel plans, they can further augment online travel bookings. This can be done by adopting digital technologies to influence customers early in the journey and moving from one-time engagement to ongoing relationships to have a positive impact.” “There is a perception amongst consumers that online channels are geared towards premium customers, along with a marked distrust around payment and pricing terms. It is imperative for businesses …

Online bookings in India are projected to rise from 25 per cent to 35 per cent as internet penetration increases from 33 per cent to 50 per cent, according to a latest study titled ‘How does India travel?’ by Bain & Company and Google. As India’s travel spending is set to grow from $94 billion in travel spending to $136 billion by 2021, around $24 billion (or 57 per cent) of the incremental bookings will be online. The report states that frequent flyers research online and make decisions on the basis of business needs and availability of flights and hotels. They rely heavily on travel provider websites online (59 per cent) and price comparison websites (51 per cent) for airline and hotel reviews and availability with a tendency to search first by mobile device (61 per cent) and then by laptop (26 per cent).

Indian travellers spend 51 per cent of their transport expense on airlines, as per a latest study titled ‘How does India travel?’ by Bain & Company and Google. The Indian airline industry is one of the fastest-growing in the world. With 10 new airports in the last four years and the decrease of nominal prices by 18 per cent in 2017–18), airlines dominated the transport spending despite operational pressures. Bus price hike due to GST, falling passenger footfalls and preference for self-drive hampered growth in bus travel. Railways’ growth remained stagnant and it lost share to airlines for long-distance travel (>500 kms) and to road for shorter distance travel.