Oyo’s IPO Pause and IndiGo’s Business Class

Skift Take

On this week’s podcast, our India-based editors look at IndiGo’s new business class offering and discuss the latest on Oyo’s IPO plans.

Skift

Did you miss out on some of the biggest stories from India last week? Don’t worry, we’ve got you covered. In this episode of the Skift India Travel Podcast, join Asia Editor Peden Doma Bhutia and India Reporter Bulbul Dhawan as they delve into IndiGo’s exciting announcement of a new business class and explore the latest challenges and successes in the Indian hospitality sector. Stay tuned for all this and more in this episode of the Skift India Travel Podcast.

Key Points

Here are five key points from the podcast:

IndiGo’s New Business Class Launch: IndiGo is planning to introduce a business class product by the end of the year, aiming to cater to the increasing demand for premium travel among corporate travelers. The full details will be revealed in August.

Indian Travel Spending Surge: Indian travelers spent a record $31.7 billion overseas in fiscal 2024, with $17 billion spent on international travel, a 25% increase from the previous year. Despite the introduction of a new tax, Indians continue to spend significantly on travel.

Oyo’s IPO Plans on Hold: Oyo has decided to pause its anticipated IPO plans due to ongoing refinancing and the uncertain political environment in view of the ongoing elections. The company plans to revisit the IPO once the refinancing is complete, possibly in a couple of quarters.

Hospitality Sector Worker Shortage: The hospitality industry in India faces a significant worker shortage, exacerbated by low wages and long hours. Leaders call for competitive salaries, better work-life balance, and opportunities for growth to attract and retain talent.

Strong Performance in Indian Hotel Sector: The Indian hotel sector had a robust first quarter in 2024, driven by corporate travel and weddings. Both business and leisure destinations saw high demand for hotel rooms, and this trend is expected to continue into the second quarter.

Listen Now

Episode Summary

This week’s podcast starts by looking closer at IndiGo’s major announcement about launching a business class service by the end of the year and what that says about the increasing demand for premium travel among Indian corporate travelers. IndiGo plans to offer this service on its busiest routes, aligning with its broader strategy of expanding international presence through new destinations and codeshare agreements.

The discussion also covers the notable increase in spending by Indian travelers, with record spending of $31.7 billion overseas in fiscal 2024, driven largely by international travel. Despite the introduction of a new tax, Indians continue to spend significantly on travel, and projections suggest they could become the fourth-largest global travel spenders by 2030.

The other big story this week: Oyo’s decision to pause its IPO plans. This is attributed to ongoing refinancing and the uncertain political environment. This cautious approach aims to ensure better preparedness and stability before proceeding with the IPO.

The hospitality sector’s strong performance in the first quarter of 2024 is driven by corporate travel and weddings, with a significant increase in room bookings, especially in tier-two and tier-three cities.

But the industry still faces a challenge in retaining young workers due to low wages and long hours. Leaders are calling for competitive salaries, better work-life balance, and closer collaboration between educational institutes and industry players to bridge the gap between hospitality education and industry needs.