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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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Latest in the Sri Lanka wave of terror: Holy Sites must be respected

April 22, 2019 by Forimmediaterelease

The latest from Sri Lanka in regards to eight deadly terror attacks on Easter Sunday leaves 290 dead and more than 500 people injured.

Among the dead are also foreign tourists including 3 from India, 1 from Portugal, 2 from Turkey, 3 from the UK, and 2 with both a U.S. and U.K. citizenship
9 foreigners are missing, 25 unidentified bodies are also believed to be foreigners.

The German embassy is working on identifying possible German tourists among the victims.

Bombs explosions were reported yesterday in eight locations

  • Katuwapitiya Church
  • Kochikade Church
  • Church in Batticaloa
  • Shangri-La Hotel, Colombo
  • Cinnamon Grand hotel
  • Kingsbury Hotel, Colombo
  • Dehiwala
  • Dematagoda

An improvised explosive device (IED) was discovered in close proximity to the Bandaranaike International Airport in Colombo last night. The IED was successfully diffused and detonated by the members of the Sri Lanka Air Force.  The bomb was discovered along the Adiambalama road, in close proximity to the BIA hours before President Maithripala Sirisena returned to the country.

According to the Crime Division of the Sri Lanka Police (CCD) 13 individuals linked to the attack last night were arrested and 10 of them were later transferred into the custody for further investigations.

Officers of the Wellwatte police late last night managed to take into custody a van and a driver believed to have been used to transport the attackers. 24 people have been arrested thus far in relation to the incidents.

Schools and Universities remain closed, scheduled government examinations have been postponed. The Colombo Stock Exchange last night announced that they would not be open for trading until further notice.

The United States of America and the United Kingdom have issued travel advisories for Sri Lanka.

In the meantime, curfews and social media and instant message shut down are in effect in Sri Lanka.

Sri Lanka had planned to double tourist arrivals next year. This may be a big test to achieve such numbers.

The attacks that took place yesterday has also drawn international condemnation.

Here are some of their messages:

POPE FRANCIS

“I learned with sadness and pain of the news of the grave attacks, that precisely today, Easter, brought mourning and pain to churches and other places where people were gathered in Sri Lanka,” he told tens of thousands of people in St. Peter’s Square to hear his Easter Sunday message.

“I wish to express my affectionate closeness to the Christian community, hit while it was gathered in prayer, and to all the victims of such cruel violence.”

WORLD JEWISH CONGRESS PRESIDENT RONALD S. LAUDER

“World Jewry – in fact all civilized people – denounce this heinous outrage and appeal for zero tolerance of those who use terror to advance their objectives. This truly barbarous assault on peaceful worshippers on one of the holiest days in the Christian calendar serves as a painful reminder that the war against terror must be at the top of the international agenda and pursued relentlessly,” he said in a statement.

ARCHBISHOP OF CANTERBURY, JUSTIN WELBY, SPIRITUAL LEADER OF THE CHURCH OF ENGLAND

“The will to power leads to the murder of innocents in Sri Lanka. The utterly despicable destruction that on this holiest of days seeks to challenge the reality of the risen Christ. To say that darkness will conquer, that our choice is surrender or death. Jesus chose to defy this darkness and he is risen indeed.”

U.S. PRESIDENT DONALD TRUMP

“The United States offers heartfelt condolences to the great people of Sri Lanka. We stand ready to help!,” he tweeted.

INDIAN PRIME MINISTER NARENDRA MODI

“Strongly condemn the horrific blasts in Sri Lanka. There is no place for such barbarism in our region. India stands in solidarity with the people of Sri Lanka. My thoughts are with the bereaved families and prayers with the injured,” he said on Twitter.

PAKISTAN’S PRIME MINISTER IMRAN KHAN

“Strongly condemn the horrific terrorist attack in Sri Lanka on Easter Sunday resulting in precious lives lost and hundreds injured. My profound condolences go to our Sri Lankan brethren. Pakistan stands in complete solidarity with Sri Lanka in their hour of grief,” he tweeted.

RUSSIAN PRESIDENT VLADIMIR PUTIN

“Vladimir Putin expressed condolences to Sri Lanka President Maithripala Sirisena in connection with tragic consequences of terrorist acts,” his English Twitter account said.

GERMAN CHANCELLOR ANGELA MERKEL

“It is shocking that people who had gathered to celebrate Easter were the deliberate target of vicious attacks,” she wrote in a letter of condolence to Sri Lanka’s president.

FRENCH PRESIDENT EMMANUEL MACRON

“Deep sorrow following the terrorist attacks against churches and hotels in Sri Lanka. We firmly condemn these heinous acts. All our solidarity with the people of Sri Lanka and our thoughts go out to all victims’ relatives on this Easter Day,” he said on Twitter.

IRANIAN FOREIGN MINISTER MOHAMMAD JAVAD ZARIF

“Terribly saddened by terrorist attacks on Sri Lankan worshippers during Easter. Condolences to friendly govt & people of Sri Lanka. Our thoughts & prayers with the victims & their families. Terrorism is a global menace with no religion: it must be condemned & confronted globally,” he said on Twitter.

NEW ZEALAND PRIME MINISTER JACINDA ARDERN

“New Zealand condemns all acts of terrorism, and our resolve has only been strengthened by the attack on our soil on the 15th of March. To see an attack in Sri Lanka while people were in churches and at hotels is devastating,” she said in a written statement.

“New Zealand rejects all forms of extremism and stands for freedom of religion and the right to worship safely. Collectively we must find the will and the answers to end such violence.”

SRI LANKA EMBASSY

It was with horror and sadness we heard of the bombings in Sri Lanka costing the lives of so many people. We condemn the horrendous attacks targetting innocent civilians. Our sympathies go out to all the victims. Maldives stands in solidarity with people & Govt. of Sri Lanka.

TORONTO

The Toronto sign has been dimmed in solidarity with Sri Lanka following today’s tragic attacks. We join our Sri Lankan community and our Christian community in mourning those killed and pray for the recovery of those injured.

Travel News | eTurboNews

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Airbus to attend Turkey’s IDEF 2019

April 18, 2019 by Forimmediaterelease

Airbus will attend Turkey’s IDEF 2019, 14th International Defense Industry Fair, held at TÜYAP Fair and Congress Center in Büyükçekmece, Istanbul from April 30th to May 3rd.

At the exhibition Hall 2, Stand 234, Airbus will display a range of innovative defence and security products and services, including military aircraft and helicopters, perfectly in line with the aspirations of the Turkish Armed Forces in regard with the recently launched modernization programs.

Airbus will showcase a scale model of the A330 MRTT – the only new generation strategic tanker/transport aircraft combat proven and available today. The large 111 tonnes basic fuel capacity of the successful A330-200 airliner enables the A330 MRTT to excel in air-to-air refuelling missions without the need for any additional fuel tank.

Also on display, the scale mock up of the C295 in Maritime Patrol Aircraft configuration – a very robust and reliable, highly versatile tactical airlifter able to carry up to 9 tonnes of payload, at a maximum cruise speed of 480 km/h. Fitted with a retractable landing gear and a pressurised cabin, it can cruise at altitudes up to 25,000 ft, while retaining remarkable short take-off & landing (STOL) performance from unprepared, short, or soft airstrips, as well as excellent low level flight characteristics.

A scale mock up of the Astrobus S Earth observation satellite will be on show. The latest generation of Earth Observation Satellites for Very High Resolution (VHR) applications, it combines the advantages of a low-mass system (around 400 kg only) with the strong performance of a larger Earth observation satellite platform.

Turkey is a key partner for Airbus. With nearly 30 years of successful collaboration in civil and military aviation, Airbus is committed to long-term, mutually-beneficial industrial cooperation, working closer with its partners and customers as flag carrier Turkish Airlines, the Ministry of Defense and Presidency of Defense Industries, as well as Turkey’s air force, navy and coast guard.

Travel News | eTurboNews

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The future of flight: UN aviation agency looking for new designs and concepts

April 18, 2019 by Forimmediaterelease

The United Nations (UN) International Civil Aviation Organization (ICAO) has launched the Aviation Innovation Competitions and is looking for ideas, concepts, and prototypes from the next generation of aviation innovators.

The three competitions, managed by ICAO and supported by Transport Canada commemorate the agency’s 75th anniversary this year. Participants will be highlighted on ICAO’s digital content platforms, and global winners in each category will win grand prizes of $1000, $2000 and $5000. The global winner of the prototypes competition will also win a trip to Montréal to receive their award.

Submissions from elementary students, high school students and young adults must be uploaded by June 30, 2019.

Quote

“Canada is proud of its long-standing relationship with ICAO as Host State, and as an active member of the ICAO Council. Throughout 2019, we join ICAO and its other Member States in celebrating flight and the crucial importance of air connectivity worldwide. On this special milestone of its 75th anniversary, I am pleased to support ICAO’s Aviation Innovation Competitions and I encourage all young Canadians to apply.”

The Honorable Marc Garneau
Minister of Transport

Quick Facts

•Proudly hosted by Canada in Montréal, ICAO was created in 1944 to promote the safe and orderly development of international civil aviation throughout the world.

•ICAO sets standards and regulations necessary for aviation safety, security, efficiency, capacity and environmental protection, amongst many other priorities.

•Canada is one of 193 Member States and is also a member of the 36-member ICAO Council.

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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