Indian Airlines Gain Share in International Travel – India Report

Skift Take

Indian airlines have been upgrading their fleets and efforts to cater to the growing demand for inbound and outbound international travel.

Bulbul Dhawan

Indian airlines accounted for 45.6% of the international traffic in India in the April-June quarter this year. That’s up from close to 44% last year and just 34.7% pre-pandemic. 

A total of over 17.6 million passengers traveled to and from India during the quarter. Of this, domestic airlines carried over 8 million travelers. 

International traffic in India during the quarter increased 13.5% compared to pre-pandemic levels. 

Indian Airlines and International Travel: Indian airlines have been upgrading their fleets and efforts to cater to the growing demand for inbound and outbound international travel. Air India and IndiGo have placed large orders to increase their fleets. 

IndiGo also placed its first-ever order for widebody aircraft earlier this year, indicating expansion to long-haul destinations. 

Due to the anticipated growth in international travel as India becomes a key source market, airlines from other countries are seeking more flying rights. However, Indian airlines are largely opposing this. 

Earlier this year, credit rating agency CRISIL Ratings said that Indian airlines will account for half of the country’s international passenger traffic by the 2027-28 financial year. In the 2024 fiscal year, Indian airlines held a 43% share in international traffic. 

Manish Gupta, senior director at CRISIL, had said that increasing disposable incomes, easing visa requirements, growing number of airports, and enhanced air travel connectivity are likely to lead the international passenger traffic to annually grow at 10-11% over the next four years.

IHCL Takes Control of Tree of Life

Indian Hotels Company (IHCL) has acquired a majority stake in he operating company behind Tree of Life Resorts and Hotels, our Senior Hospitality Editor Sean O’Neill reported. With this, the hospitality company is expanding its “experiential leisure” segment. IHCL will take a 55% stake in the company.

While the price of the all-cash deal has not yet been finalized, IHCL has said that it will not be more than INR 180 million ($2.1 million). The deal is expected to close next year.

Tree of Life currently has only 19 resorts and hotels. IHCL plans to help expand the portfolio to 100 properties by 2030. The move underscores the growing popularity of “experiential leisure” as a hospitality trend.

TreeHouse Hotels Launches New Brand

TreeHouse Hotels and Resorts has launched a new brand: ‘hi-way MOTELS’. This marks the fifth brand under the hotel chain. The Hi-way Motels brand aims to target travelers who commute via roads and look for budget accommodations.

As part of the brand, TreeHouse will open properties along highways and expressways, near smaller towns, and on the bypasses of major cities. Ajay Mehtani, Partner, TreeHouse Hotels & Resorts, said that the goal is to capitalize on a gap in the Indian hospitality sector. 

The company is currently identifying partners who own land near expressways that are suitable for building properties under the new brand. 

Coldplay Concert Boosting Hotel Searches in Mumbai

Coldplay’s three concerts in Mumbai next January have led to rising hotel searches. Online travel company Agoda has noted that after the announcement of the concerts, it observed a surge in searches of 3,300% compared to the week before the announcement. 

Skift had reported that hotel prices near the concert venue surged to INR 640,000 ($7,600) for three nights. All major branded hotels, including Taj The Trees, JW Marriott in Sahar and Juhu, The Westin in Garden City and Powai Lake, Four Seasons Hotel, The St. Regis Mumbai, and The Oberoi Mumbai were listed at over INR 150,000 ($1,800) for three nights during the concert. 

Typically, these hotels charge between INR 7,000 and INR 30,000 ($84 to $360) per night. Despite these high prices, most of the hotel inventory in the 10-km (6-mile) radius of the venue was sold out. 

Skilling Workforce in Andaman and Nicobar Islands

The Indian ministry of tourism is launching the second phase of ‘Paryatan Mitra’ (tourism friend) initiative in the Andaman and Nicobar Islands. It aims to upskill locals to boost the tourism sector in the archipelago. 

Under this phase, training for heritage walks, food court services, homestays, and handicraft promotion will be carried out. In the first phase, cab drivers, food vendors, and self-help group members were skilled to enhance tourism. 

Uzbekistan Airways Starts Flights From Goa To Tashkent

Uzbekistan Airways has commenced flights between Goa’s Manohar International Airport and Tashkent. The airline will operate two weekly flights between the destinations on a narrowbody aircraft. 

This is the second route the airline has launched to India in 2024. In April, Uzbekistan Airways commenced flights between Mumbai and Tashkent. It already operates regular flights to New Delhi for over 20 years.