Skift Take
Indian travelers’ growing demand for nonstop flights is a big win for local airlines, but they’ve got a tough road ahead. Middle Eastern and European carriers aren’t backing down without a fight.
More Indian passengers are opting for direct international flights, according to aviation consultancy firm OAG. The firm compared data from 2019 with 2023, and found that even though India’s international air traffic last year was 600,000 lesser than 2019, the number of passengers flying directly to their destination increased by 2 million.
On the other hand, passengers making indirect trips declined by 2.5 million. The firm attributed the growth to more international flights by IndiGo and Air India, along with the introduction of international connectivity by new Indian carrier — Akasa. More international airlines operating the Indian market have also led to increased direct connectivity and more options for Indian travelers.
India’s largest carrier IndiGo, which recently placed its first-ever order for widebody aircraft, plans to offer nonstop connectivity from major Indian airports to global destinations.
Talking at the Skift India Summit this year, Air India CEO Campbell Wilson made a case for direct connectivity, “It may not be convenient to get on a flight for three or four hours, land in the wee hours of the morning, sit in an airport for an hour and a half or two hours or three hours or longer, and then get on another flight to get to Europe when you could have gone nonstop in eight-and-a-half hours.”
At a recent event, Suman Billa, additional secretary with India’s Tourism Ministry, said more direct flights between India and U.S. would not only make the market more cost competitive for people, but would also add to the convenience of traveling.
A May report by credit rating agency CRISIL pointed out that Indian airlines will account for half of the country’s international passenger traffic by fiscal 2027-28.
Australia Opens Up Ballot System for Work and Holiday Visa from India
Australia will be introducing a ballot system for nationals of 3 countries, including India, applying for the Work and Holiday Visa 2024-25 program year. The system is being introduced to manage the high demand Australia is receiving from these countries.
Who can apply? The Work and Holiday Visa is meant for individuals aged 18 to 30 years who can stay in Australia and work alongside in the country. Those with the visa can continue to work and stay for a year, and then renew it two more times if they continue to meet the eligibility criteria.
Australia’s New Rules for Visas: First-time applicants for the visa will need to register through the new ballot system, which will then randomly select applicants for the visa process. Australia’s Department of Home Affairs clarified that the ballot system will not impact the current and previous holders of the visa.
Australia agreed to offer 1,000 Work and Holiday Visas every year to Indian nationals under the Australia-India Economic Cooperation and Trade Agreement, which came into effect in 2022.
The new ballot system makes it a little complex for applicants to get their visas, even as the same number of visas will remain available. It has been announced at a time when the world has been trying to reduce visa restrictions or complications. Australia itself introduced a new tourist visa application process which eliminated the need for travelers to submit their passports, making the process simpler and more transparent for applicants.
EaseMyTrip Forays Into Medical Tourism
Online travel agency EaseMyTrip has entered the medical tourism segment by acquiring stakes in Pflege Home Healthcare and Rollins International. The company acquired a 49% stake in Pflege and a 30% stake in Rollins.
Nishant Piiti, CEO of EaseMyTrip, said, “With the growing demand for accessible, quality healthcare services, this acquisition was necessary to meet the evolving needs of travelers seeking wellness and medical solutions.”
The medical tourism industry in India has an estimated value of $10.4 billion in 2024, according to market research firm Future Market Insights. This figure is expected to increase over 17% every year to reach nearly $51 billion by 2034.
Air India Begins Daily Delhi-Kuala Lumpur Flights
Air India on Monday commenced daily direct service between Delhi and Kuala Lumpur in Malaysia. The airline operated an Airbus A320neo aircraft on the route. This is Air India’s sixth destination in the Southeast Asian region.
In the first six months of 2024, over 537,000 Indian tourists visited Malaysia. This marked an increase of nearly 90% over the same period last year. The surge in tourists is often attributed to Malaysia’s decision to allow visa-free entry for Indian and Chinese tourists.
Indian Railways Working on a Superapp
The Indian railway ministry is working on developing a superapp to streamline various railway-related services, railway minister Ashwini Vaishnaw said this week. While more details were not shared, he said that the app would include “all services that a passenger might need.”
Users would be able to book tickets, check PNR status, track trains.
Last year, a report by travel consultancy firm Videc said that ground transport, including rails and buses, is the driving force behind the online travel market in India. Rail and intercity bus categories accounted for 30% of the total market, it said. The OTA rail market is projected to grow at a 23% annual rate from 2023 to $2.2 billion in 2026.
South Africa Launches Campaign to Attract 100,000 Indians
South African Tourism has announced the 2024 edition of its Learn South Africa initiative to attract 100,000 Indian travelers by the end of the year. The travel trade workshop will be focusing on Tier-2 and Tier-3 regions in the country.
The tourism body said that there has been a strong uptick in the number of travelers from India, and with the initiative, the country aims to capitalize on this momentum. The workshops will be held in the cities of Chandigarh, Nagpur and Kochi.
India is among the top three focus markets for South Africa, and it is promoting itself as a leisure and meetings, incentives, conferences and events (MICE) destination to Indian travelers to meet its tourism targets.
