For the frequent flyer, there's change on the horizon
The global business traveller never had it so good. As we launch the third edition of our annual guide, we find the travel landscape changing rapidly, almost by the minute. New technology is leading the change with better devices, more gadgets and apps aimed at helping sort out the uncertainties that traditionally go hand-in-hand with travelling. But most of the big changes that will impact you over the next year are a result of a delayed wave of liberalisation, which is sweeping the travel business in India.
After a lull of almost a decade, 2014 will see two major airline launches in India. The decision to allow foreign direct investment is leading up to more cross-border equity tie-ups with cash-strapped Indian carriers. Airport privatisation is on a roll and will extend to six smaller airports in the coming years. Roadblocks for hotel construction are coming down, at least relative to the previous decade. At the top end, global chains, including most recently the Ritz-Carlton, have opened for business. But there is even more action in the mid-segment, where the biggies are fighting it out, almost town by town, with local players like Indian Hotels, ITC and Lemon Tree. In the ‘below Rs 4,000 a night’ segment, at least a dozen new chains with pan-India reach are firmly in business.
There is also a revolution brewing in travel distribution. The fruits of online sales are now more widespread and available across products. The most visible change is in the process of booking hotel rooms. Online travel agency (OTA) Cleartrip tells us that it offers a choice of about 600 hotels in and around Delhi alone. The number of rooms available is growing in almost every town. Rival OTA MakeMyTrip has been expanding its hotel linkages to smaller cities, signing up with dozens of hotels to offer their inventory for sale online. In some ways the aggregators seem to be finally catching up with India Inc, which has been going into smaller towns for business.
We’ve sussed out the travel landscape and present four big trends that will change the way you travel in 2014.
Two airlines and many alliances
(This story appears in the 07 March, 2014 issue of Forbes India. To visit our Archives, click here.)