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Indian travelers expected to spend $136 billion by 2021

April 24, 2019 by Forimmediaterelease

The Indian traveler has come of age, spending approximately $94 billion in 2018, on around 2 billion domestic and international trips, helping the Indian travel and tourism industry achieve unprecedented scale.

The momentum is expected to continue and the industry will grow at a 13 percent CAGR to $136 billion by 2021, according to a report, ‘How Does India Travel’. The report outlines how India spends on travel, the influence of online channels in their purchase journey and potential growth opportunities for travel businesses till 2021.

Deep diving into the $136 billion spends, the report cites a 12 percent growth in transportation ($50 billion), 13 percent growth in lodging ($21 billion) and consumption, which includes spends on shopping, recreation and food, to grow at 13 percent ($65 billion) over the next three years. Additionally, as more people come online, smartphone penetration improves and use of digital payments goes up, the report estimates that Indian travelers will spend an additional $24 billion on online travel bookings over the next three years, a growth from 25 percent in 2018 to 35 percent in 2021.

Online is a significant source of research

Elucidating the planning journey of Indian travelers, both for business and leisure, the report calls out five phases of a customer journey – Interest, Research, Booking, Experience and Sharing. 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, travelers 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 percent of travelers being influenced by this platform. In the booking and sharing phase, the report states that nearly 60 percent of customers book transport and lodging online, and over 50 percent 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 travelers 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 to address these concerns in order to effectively tap into the growing base of users.” Arpan Sheth, partner Bain & Company said.

Decoding the Indian travelers

The report further identified the five cohorts of travelers in India, across business and leisure travel, and categorised each against their online research behavior:

Frequent flyers: Nearly 70 percent of them booked online, cumulatively spent $17 billion in 2018. They make their choices based on convenience, availability, brand preference and past experiences.

Budget business traveler: 86 percent of them researched online whereas only 60 percent book online, cumulatively spent $20 billion in 2018. This cohort makes their decisions based on cost of travel, availability and consultation amongst their personal business network.

Experience-oriented traveler: Around 70 percent of their bookings were done online and cumulatively spent $22 billion in 2018. They extensively research both online and offline for ‘authentic’ experiences and convenience of options; display high loyalty towards preferred brand of airlines or hotels and actively share experiences.

Budget group traveler: 90 percent researched online and 55 percent booked online, cumulatively spent $29 billion in 2018. They make multiple decision-makers in the process and take the final decisions based on minimal cost.

Occasional travel visiting friends/relatives: 92 percent researched online but only 60 percent booked online, spent $6 billion in 2018. They maximize family convenience within a budget and believe online terms and conditions are restrictive.

Travel News | eTurboNews

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How does India travel? Let us count the 94 billion ways

April 17, 2019 by Forimmediaterelease

Bain & Company and Google India are together launching a report on “How Does India Travel.” According to the report, the Indian traveler has come of age, spending approximately $94 billion in 2018 on around 2 billion domestic and international trips. This has helped the Indian travel and tourism industry achieve unprecedented scale, and the momentum is expected to continue with the industry growing at a 13 percent CAGR to $136 billion by 2021, according to a report.

Fueled by digital, Indian travelers are expected to spend an additional $24 billion on online travel bookings over the next 3 years. The report outlines how India spends on travel, the influence of online channels in their purchase journey, and potential growth opportunities for travel businesses until 2021.

Deep diving into the $136 billion spends, the report cites a 12 percent growth in transportation ($50 billion), 13 percent growth in lodging ($21 billion) and consumption, which includes spends on shopping, recreation and food, to grow at 13 percent ($65 billion) over the next three years. Additionally, as more people come online, smartphone penetration improves and use of digital payments goes up, the report estimates that Indian travelers will spend an additional $24 billion on online travel bookings over the next three years, a growth from 25 percent in 2018 to 35 percent in 2021.

Online is a significant source of research

Elucidating the planning journey of Indian travelers, both for business and leisure, the report calls out five phases of a customer journey – Interest, Research, Booking, Experience and Sharing.  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, travelers 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 percent of travelers being influenced by this platform. In the booking and sharing phase, the report states that nearly 60 percent of customers book transport and lodging online, and over 50 percent 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 travelers; and existing travelers 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 personalized 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 to address these concerns in order to effectively tap into the growing base of users.” Arpan Sheth, partner Bain & Company said.

Decoding the Indian travelers

The report further identified the five cohorts of travelers in India, across business and leisure travel, and categorized each against their online research behavior:

  • Frequent flyers: Nearly 70 percent of them booked online, cumulatively spent $17 billion in 2018. They make their choices based on convenience, availability, brand preference and past experiences.
  • Budget business traveler: 86 percent of them researched online whereas only 60 percent book online, cumulatively spent $20 billion in 2018. This cohort makes their decisions based on cost of travel, availability and consultation amongst their personal business network.
  • Experience-oriented traveler: Around 70 percent of their bookings were done online. and cumulatively spent $22 billion in 2018. They extensively research both online and offline for ‘authentic’ experiences and convenience of options; display high loyalty towards preferred brand of airlines or hotels and actively share experiences.
  • Budget group traveler: 90 percent researched online and 55 percent booked online, cumulatively spent $29 billion in 2018. They make multiple decision-makers in the process and take the final decisions based on minimal cost.
  • Occasional travel visiting friends/relatives: 92 percent researched online but only 60 percent booked online, spent $6 billion in 2018. They maximize family convenience within a budget and believe online terms and conditions are restrictive.

However, challenges remain in meeting the expectations of these travelers. Customers perceive online channels geared towards premium cohorts (frequent flyer and experience-oriented traveler), while mass cohorts, with $55 billion in spending, remain underpenetrated. There are about 160 million non-transacting active Internet users in India with only 5 percent of online travelers from Tier-2 or Tier-3 cities. There is a significant (20 percent) difference between the booking rates of premium cohorts and mass cohorts, the latter being also dissatisfied with online channels (~33 percent satisfied) vs. premium cohorts (~42 percent). The second challenge is in penetrating existing users who exhibit a marked distrust in use of online channels to make bookings, especially around payment and pricing terms and booking experience compared with offline channels. Consequently, their online usage drops between the research (>86 percent online influence) and booking phases (~40 percent offline bookings).

How travel businesses need to adapt to the needs of online consumers

The report cites five major shifts that marketers need to make to market to the online travelers – First, alleviate consumer concerns by improving the booking and payment experience to build a trusted brand and increase adoption. Second, they need to address the negative customer perception issues by mass customization to drive higher share in the segment. They also need to utilize consumer technology to penetrate mass segments (standardize, enable sharing), reach non-transactors (build offline presence), and create new user access.  Moreover, they need to find innovative and frugal ways to package the experience to increase both adoption and retention.  Finally, they need to create a robust digital backend to adapt to customer needs across the purchase journey.

“The contribution of travel and tourism’s spend in India has reached developed market levels, from 6.7percent of GDP in 2013 to 9.4 percent in 2018. This growth, combined with a rapidly growing internet user base and adoption of online bookings will lead to $24 billion in incremental revenues through online channels by 2021. In order to benefit from this trend, businesses need to actively increase new user adoption and increase penetration in the existing user base across the purchase journey.” Joydeep Bhattacharya, partner Bain & Company said.

Travel News | eTurboNews

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Vietjet launches new service to Indonesia with Ho Chi Minh City-Bali route

April 12, 2019 by Forimmediaterelease

Vietjet today opens ticket sales for its new international route connecting the biggest city of Vietnam, Ho Chi Minh City with Bali (Indonesia). Vietjet is the first and only airline to operate this route, which will better link the two tourist-attraction cities to meet the increasing travel demands of local people and tourists as well as boosting the regional trade promotion and integration. Hongkognese will be more convenient to travel these two cities.

The Ho Chi Minh City– Bali route will operate five return flights per week, on every Monday, Wednesday, Thursday, Friday, Sunday starting from May 29, 2019. Flying time is around 4 hours per leg. The flight departs from Ho Chi Minh City at 08:05 and arrives in Bali at 13:05. The return flight takes off from Bali at 14:05 and lands in Ho Chi Minh City at 17:05 (All in local times).

Vietjet Vice President Nguyen Thanh Son said: “Vietjet has the advantages of an expanding flight network and comfortable, friendly aviation services; therefore, I believe that the new route will not only create opportunities for people to travel by safe, civilized and modern air transport, but also connect two cities as known as two economic, cultural centers of Vietnam and Indonesia. The route will contribute to promoting tourism and economic integration in the region as well as introduce the images of Vietnam to the world.”

Bali – the popular tourist island of Indonesia and Asia is often called among travelholics as ––“Island of the Gods”, “Tropical Paradise” or “Dawn of the World”. Voted as the best tourist island in the world, Bali is a wonderful blend between the pristine, beautiful landscape with the local cultural, artistic and religious quintessence. Besides visiting Ubud Palace, discovering the famous town Bedugul with large Bratan lake, tourists can go surfing, ‘snorkeling’ diving or visiting endless terraced fields.

Vietnam, the country of thousand years of culture was always a favorite destination of many international tourists. If Hanoi capital is a representative of ancient culture, bold identity; Hue ancient capital is dreaming or Da Nang, Quang Binh are impressive wonders, Ho Chi Minh City is Vietnam’s largest economic, financial central, vibrant and modern travel destination. The culture exchange trend and retaining characteristics make image and beauty of one of the most dynamic cities of the S-shaped country.

Travel News | eTurboNews

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Ethiopian Airlines has a statement on preliminary crash report

April 4, 2019 by Forimmediaterelease

Ethiopian Airlines had a tragic year so far, but it appears without fault to the carrier. The preliminary report about ET 302 crash on March 10 came in and the airline responded with the following statement:

The preliminary report clearly showed that the Ethiopian Airlines Pilots who were commanding Flight ET 302/10 March have followed the Boeing recommended and FAA approved emergency procedures to handle the most difficult emergency situation created on the airplane. Despite their hard work and full compliance with the emergency procedures, it was very unfortunate that they could not recover the airplane from the persistence of nose diving. As the investigation continues with more detailed analysis, as usual, we will continue with our full cooperation with the investigation team.

Group CEO, Tewolde GebreMariam said that “ All of us at Ethiopian Airlines are still going through deep mourning for the loss of our loved ones and we would like to express our deep sympathy and condolences for the families, relatives, and friends of the victims. Meanwhile; we are very proud of our pilots’ compliances to follow the emergency procedures and high level of professional performances in such extremely difficult situations. We are also very proud of our Global standard Pilot Training Center and the Ethiopian Aviation Academy which is one of the largest and most modern in the world equipped with state of the art and latest training technologies.

I would also like to take this opportunity to thank our valued customers, the traveling public, the media and Global aviation professionals for the remarkably high level of a vote of confidences and strong support that you have been giving us starting from the day of this tragic accident. We will double our efforts every single day to win your confidence and earn your business. Your Safety will remain our top most priority and we will continue to work together with our partners around the world to make air travel safer and more comfortable. My highest appreciation also goes to my 16, 000 colleagues at Ethiopian Airlines for their resilience, high standards of professionalism and their continued commitment for operational excellence and their award-winning customer services which enabled us to continue our business without any operational disruption, flight delays or flight cancellations.”

Ethiopian Airlines (Ethiopian) is the fastest growing Airline in Africa. In its seventy plus years of operation, Ethiopian has become one of the continent’s leading carriers, unrivalled in efficiency and operational success.

Ethiopian commands the lion’s share of the Pan-African passenger and cargo network operating the youngest and most modern fleet to more than 119 international passenger and cargo destinations across five continents. Ethiopian fleet includes ultra-modern and environmentally friendly aircraft such as Airbus A350, Boeing 787-8, Boeing 787-9, Boeing 777-300ER, Boeing 777-200LR, Boeing 777-200 Freighter, Bombardier Q-400 double cabin with an average fleet age of five years. In fact, Ethiopian is the first airline in Africa to own and operate these aircraft. Ethiopian is currently implementing a 15-year strategic plan called Vision 2025 that will see it become the leading aviation group in Africa with Six business centers: Ethiopian International Services; Ethiopian Cargo & Logistics Services; Ethiopian MRO Services; Ethiopian Aviation Academy; Ethiopian ADD Hub Ground Services and Ethiopian Airports Services. Ethiopian is a multi-award winning airline registering an average growth of 25% in the past seven years.

Mr. Asrat Begashaw

Manager Corporate Communications, Ethiopian Airlines

Tel 🙁 251-1)517-89-07/656/165/913/529

CorporateCommunication@ethiopianairlines.com

www.ethiopianairlines.com

www.facebook.com/ethiopianairlines

www.twitter.com/flyethiopian

Travel News | eTurboNews

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Trump appoints former Delta Air Lines executive new FAA chief

March 20, 2019 by Forimmediaterelease

Former chief of flight operations for Delta Air Lines was appointed by President Trump to run the Federal Aviation Administration, currently under scrutiny for allowing the troubled Boeing 737 MAX 8 to carry passengers.

Steve Dickson, who spent 27 years with Delta before retiring in October as senior vice president of flight ops, is joining the agency in the midst of its most turbulent period in recent history, with Transportation Secretary Elaine Chao having requested an audit of its certification of the aircraft, two of which have been involved in horrific crashes over the past five months.

While Dickson’s name had reportedly been under consideration since November, Trump allowed the FAA to go without an official head for over a year following the end of Obama-era agency chief Michael Huerta’s term. Daniel Elwell, who led the FAA under George W. Bush, has been running the agency in an interim capacity without being confirmed by the Senate.

The man from Delta will be the first FAA head in three decades to have come directly to the job from a senior airline position – something of a pattern for Trump, who has recruited a number of cabinet members from the ranks of corporate America to staff the agencies tasked with regulating their former employers. Acting Defense Secretary Patrick Shanahan, who previously worked for Boeing, is just one such appointment.

The FAA is under fire for allowing Boeing to conduct crucial parts of its own safety testing and certification process. A group of current and former engineers from both the regulator and the aircraft manufacturer claims the FAA merely took Boeing’s word that their new plane was safe – an oversight that other countries then allegedly magnified by conducting only minimal testing of their own, assuming the US watchdog wouldn’t have certified an unsafe aircraft. Boeing is also accused of “cutting corners” to quickly certify the plane in order to compete with the new Airbus A320 Neo – between them, Airbus and Boeing comprise the lion’s share of all passenger airliners – and of failing to properly train pilots to work with the onboard systems.

Ethiopian Airlines Flight 302 crashed earlier this month shortly after taking off from Addis Ababa en route to Nairobi, killing all 157 people on board after diving unexpectedly into a field. It was the second Boeing 737 Max 8 to meet such a fate in under six months, and investigators have pointed to “clear similarities” between this crash and the Lion Air Flight 610 disaster in October, which killed 189 people.

Travel News | eTurboNews

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