Tag Archives: KPMG

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.

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.

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.

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.

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.

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.

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.  

As part of its mandate to further enhance India’s digital drive in the travel and tourism industry, FICCI is set to organise the third edition of Digital Travel, Hospitality & Innovation Summit from March 21-22, 2018 at Federation House, New Delhi. The Summit will witness the presence of who’s who from the travel and hospitality industry, and will cover various topics related to the future of travel and innovation. FICCI and KPMG India will also jointly unveil the knowledge paper ‘Expedition 3.0- Travel & Hospitality Gone Digital’ at the inaugural session of the event. The 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 the stakeholders in the industry ecosystem. The Summit will also offer an opportunity for travel startups through Travel Tech Launch Pad, a platform for travel start-ups to learn from experts in the field of travel, exhibit their business ideas, and display their products and services in addition to providing a unique opportunity to connect with the right set of ecosystem partners.

FCM Travel Solutions and KPMG released a whitepaper titled ‘The Digi-Smart Indian Business Traveller’ with a focus on how technology is rapidly revolutionising travel by maximising efficiencies, improving experience and increasing options for the average traveller worldwide and increasingly in the Indian market. Rakshit Desai, Managing Director, FCM Travel Solutions, said, “Digital technology today is rapidly growing. Self-booking tools, travel analytics, Artificial Intelligence and sharing economy services are not only here to stay but hold myriad and exciting possibilities for the future. The report aims to assist organisations that wish to serve today’s digi-smart travellers, understand their needs and make strategic decisions, based on these insights.” Jaideep Ghosh, Partner and Head, Transport, Leisure and Sports, KPMG in India commented, “Globally, technology has penetrated deep into business travel practices — it finds a host of applications in travel, including online booking tools, sharing economy services, travel analytics, virtual assistance, payments and compliance. With this whitepaper, we have set out to explore the concept of smart travellers, technology trends in business travel, their enabling ecosystem, as well as some potentially disrupting developments that could transform business travel landscape.”

India ranks among the top 10 business travel markets with a spend of $ 29.6 billion in 2015. This was revealed in a white paper titled ‘Business Travel in India’ Emerging Trends & Opportunities’ released by FCM Travel Solutions along with KPMG. The report also details business travel spending in top 15 countries across multiple sectors over a period of five years. India is all poised to lead this growth and accordingly by 2030 business travel spending in India will have trebled from the present levels. The paper gives a comprehensive glimpse in to where and how business travellers in India are spending. Asia has become the world’s largest business-travel market, and trends suggest India’s significance within APAC will only grow with time. Rakshit Desai, Managing Director, Flight Centre Travel Group – India said, “In order to understand how emerging trends will impact business travel programs in the near future, it is first important to understand the perspective of business travellers today. Consequently for corporates, managing business travel is becoming increasingly complex, with changing traveller preferences, integration with mobile technology, and strategies adopted by travel suppliers. This white paper helps analyze the disruptive changes happening today and forecasts how they will impact managed travel processes, the Indian business traveller experience and their expectations in the near future. It also examines the impact of technology on the way business travellers would purchase products and services, thereby predicting leading trends until 2030. The report identifies six key business travel trends and reveals new travel behaviours of the future – Increasing number of business travellers relying on user generated content and mobile devices. With an increase in online and mobile booking tools and …