The Indian government is planning to invest INR 920 billion ($11 billion) in airport infrastructure. This fund will be used for construction of new airports and expansion of existing ones, Indiaâs civil aviation minister Kinjarapu Rammohan Naidu said.
The aim is to reach 200 operational airports by 2025, with another 200 airports being added over the course of the next two decades. At present, India has 157 airports. The minister said that the focus was on creating âworld-classâ facilities at the airport to ensure that air travel becomes more accessible to the common man.
This has come amid a surge in the aviation sector in India. Naidu said that airlines increased their capacity by about 9% this year, totaling 240 million seats across domestic and international markets. Earlier this year, data from aviation analytics firm OAG showed that India is the third-largest domestic aviation market as its domestic airline capacity increased from 8 million in April 2014 to 15.6 million this year.
Indiaâs domestic air passenger traffic is expected to reach 300 million by 2030.
Surge in Fleets: The investment to upgrade airport infrastructure is a part of Indiaâs overall expanding aviation market. The increasing demand has led to domestic airlines increasing their fleet size. Last year, former civil aviation minister Jyotiraditya Scindia had said that the fleet size of airlines increased from less than 400 in 2014 to about 700 by July 2023: a 75% increase in 9 years.
He had further projected this number to increase to about 1,200-1,400 by 2030. The airport infrastructure is being developed alongside to increase airport capacity accordingly.
The industry is likely poised to support this expansion. Credit ratings agency ICRA has maintained a stable outlook on airport infrastructure. It added that airport operators are likely to see revenue growth of 12-14% in the 2025 fiscal year.
âSustained improvement in both domestic and international passenger traffic, increase in tariffs at some of the major airports and ramp-up in non-aeronautical revenuesâ are expected to support this growth, said Vinay Kumar G, Vice President & Sector Head – Corporate Ratings, ICRA.
Oyo Strengthens Top Leadership
Hospitality company Oyo has announced five additions to its top leadership:
- Sonal Sinha is taking over as the Chief Operating Officer – International.
- Rachit Srivastava will be the Chief Operating Officer of OYO Vacation Homes (OVH) in Europe.
- Shashank Jain has been appointed as the Head of Technology and Online Revenue.
- Pankhuri Sakhuja will head Oyoâs listings business in Germany âTraum-Ferienwohnungenâ and flex-space business Innov8.
- Ashish Bajpai is the new Head of Revenue and Global OTA.Â
These appointments come as Oyo is expanding its international footprint after raising $175 million in its funding round in August. Last month, the company acquired Motel 6 and Studio 6 hotel brands from Blackstone for $525 million, boosting its presence in the U.S.
This year, it also acquired Paris-based rental management company Checkmyguest. The acquisition was valued at INR 2.3 billion ($27.4 million).
India Prepares for Festive Season
The upcoming festive season has led to a hike in bookings, online travel company Cleartrip has said. There is a particular interest in Southeast Asian destinations, its data showed. The overall hotel bookings increased by 40% for the festive season, and about 21% of the bookings were made 5-6 days before the check-in date.
International destinations such as Kuala Lumpur, Denpasar, Tokyo, Singapore, and Bangkok are witnessing a spike in booking, Cleartrip added. In India, flights to Mumbai, Bengaluru, and New Delhi have increased. Apart from this, flights to Bhubaneswar in Odisha and Lucknow in Uttar Pradesh have also seen an increase in airfares.
On the other hand, Ahmedabad and Kolkata have seen a price dip, Cleartrip data showed. Online travel company Ixigo has also shown that the average airfares on many domestic routes have dropped by 20-25%, likely due to increased capacity and fall in oil prices.
South Korea Tourism Signs Agreement With IRCTC
The Korea Tourism Organization (KTO) office in India has signed an agreement with the south zone of the Indian Railway Catering and Tourism Corporation (IRCTC). As part of this agreement, the organizations will promote cross-cultural tourism and strengthen travel relations between the two nations.
As part of this partnership, South Korea will be positioned as a preferred destination among the emerging and developing source markets in South India. IRCTC will curate all-inclusive tour packages to Korea and these packages will be designed targeting the travelers from South India, the two organizations have said.
KTO has set a target to welcome 200,000 tourists from India this year. In 2023, 120,000 Indian travelers visited the country.
Radisson Individualsâ Svelte Delhi Opens
Radisson Hotel Group has announced the opening of Svelte Delhi, a member of its Radisson Individuals brand. The 108-key hotel marks the debut of Radisson Individuals in the national capital.
The hotel chain had signed the hotel earlier this year to expand its portfolio in Delhi. It was then closed for developmental changes.
Radisson has more than 190 operational and developmental hotels across India. It operates 9 brands in the country, not including the Radisson Individualsâ extension Radisson Individuals Retreats.
2025 to be Marked as ASEAN-India Year of Tourism
The Indian ministry of external affairs has said that 2025 will be celebrated as the ASEAN-India Year of Tourism. During this time, joint cooperative activities will be taken to develop tourism in the region.
ASEAN is the Association of Southeast Asian Nations, and it includes Indonesia, Vietnam, Laos, Brunei, Thailand, Myanmar, the Philippines, Cambodia, Singapore and Malaysia as member nations.
The initiative is a part of Indiaâs âAct East Policyâ. This policy aims to deepen Indiaâs relations with countries in Southeast Asia and the Indo-Pacific region.
TreeHouse Hotels Partners With Avika for Wellness
TreeHouse Hotels & Resorts has launched Aura, a virtual reality wellness product developed by mental health company Avika. Through this product, the hotel chain aims to offer guests an immersive wellness experience, focusing on mindfulness and relaxation.
The products will debut at the chainâs Goa property and then extended to other hotels. In a statement, TreeHouse said that guests will be offered personalized VR sessions to reduce stress and experience calm.
