Skift Take
Indian travelers are evolving, and companies need to keep up!
In this episode of the Skift India Travel Podcast, Asia Editor Peden Doma Bhutia sits down with Mahesh Iyer, managing director and CEO of Thomas Cook India, to explore how the company is strategically adapting to the evolving preferences of Indian travelers. The discussion delves into the shifting dynamics of India’s travel landscape and how Thomas Cook is positioning itself to meet these new demands.
Key Points
Increase in International Travel Volumes: Thomas Cook India’s international travel volumes rose from 45% to 52%. Strategies include focusing on short-haul and domestic destinations due to long-haul challenges.
Challenges with Long-Haul Travel: Higher airfares and visa delays affecting long-haul destinations. Preference shifting to destinations with easier visa access.
Rise of Central Asian Destinations: Central Asian countries gaining popularity due to easier visa requirements and promotional efforts. Increased visibility and investment in the Indian market by these destinations.
Expanded Distribution Channels: Expansion of physical and digital distribution. Use of AI to assist with itinerary planning and pricing.
Economic and Travel Resilience: Optimism despite recession fears due to strong demand and adaptability. The travel industry’s growth is projected to continue.
Impact of Tax Policies and Credit Availability: Recent tax policies are expected to have a positive but limited impact. Increased disposable income and access to credit (for instance, Travel Now Pay Later schemes) are boosting travel spending.
AI Integration: AI helps streamline booking processes and improve customer engagement. Emphasis on assisted selling to cater to both DIY and guided travel preferences.
Travel Financing Trends: Young travelers are more inclined to use Buy Now Pay Later and credit options for travel. Older travelers prefer traditional EMI options and credit card benefits.
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Episode Summary
In this episode, we delve into the evolving landscape of international travel with Mahesh Iyer, managing director and CEO of Thomas Cook India. Iyer discusses the significant uptick in international travel volumes for Thomas Cook, which has risen from 45% to 52%. He highlights the company’s strategies to sustain this growth, including an enhanced focus on short-haul and domestic destinations due to challenges with long-haul travel such as high airfares and visa delays.
Iyer explains how the resurgence of travel has shifted preferences towards destinations with easier visa processes like Dubai, Singapore, and Central Asian countries. He also emphasizes Thomas Cook’s expanded distribution channels, including physical locations and digital platforms, and their integration of AI to improve customer experience in itinerary planning and pricing. Despite current economic uncertainties and recession fears, Iyer remains optimistic about the resilience of travel demand, citing the sector’s steady growth and adaptation to changing consumer behaviors.
The discussion also touches upon how the recent tax policies, like TCS (Tax Collected at Source), impact consumer spending on holidays and the role of fintech solutions like Buy Now, Pay Later (BNPL) in making travel more accessible. Iyer notes that while young travelers are more likely to use these financing options, the overall increase in disposable income and credit availability is positively influencing travel spending.
