A latest research by Phocuswright offers a high-level view of the Indian travel, trends and the key developments impacting the market.
Airline industry
Even though airline sector touched new highs, its growth is affected by some crucial issues. Air accessibility – and affordability – is the biggest ongoing development in India. India has a huge pent-up air demand with 100 second- or third-tier airports in development. Rising fuel prices, high import taxes on air turbine fuel, a depreciated rupee relative to the U.S. dollar are the key obstacles to the promising market.
Growth in Long-tail hotel standardization, online hotel sales erupt
India's hotel market is undergoing a supply transformation as the stay experience at budget and unbranded hotels – which accounts for the majority of the supply – standardizes and becomes predictable. Hotel franchise startups such as OYO, Treebo, FabHotels, etc. are signing up the long-tail budget and unbranded hotels nationwide, implementing operational and service standards, and implementing more effective revenue management and distribution.
As focus changes to online and ancillary sales Railway growth has been stalled
The rail sector growth has plateaued due to a constrained network and supply expansion, and passengers preference to other transport modes (including air, buses and car rentals). In an effort to boost non-ticket earnings, the monopolistic Indian Railways has updated it online shopping pathway by adding ancillaries – flights, lodging, taxis and in-journey food deliveries from famous restaurants.