Close Menu
Karachi Chronicle
  • Home
  • AI
  • Business
  • Entertainment
  • Fashion
  • Politics
  • Sports
  • Tech
  • World

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

What's Hot

Dig into Google Deepmind CEO “Shout Out” Chip Engineers and Openai CEO Sam Altman, Sundar Pichai responds with emojis

If Schreyers Iyer is serious about the test, you should play county cricket: Monty Panesar

Qualcomm’s Snapdragon Chips gets into trouble after a judge refuses to dismiss the case

Facebook X (Twitter) Instagram
  • Home
  • About us
  • Advertise
  • Contact us
  • DMCA
  • Privacy Policy
  • Terms & Conditions
Facebook X (Twitter) Instagram Pinterest Vimeo
Karachi Chronicle
  • Home
  • AI
  • Business
  • Entertainment
  • Fashion
  • Politics
  • Sports
  • Tech
  • World
Karachi Chronicle
You are at:Home » Yatra is making a big bet on corporate travel amid rising costs
Business

Yatra is making a big bet on corporate travel amid rising costs

Adnan MaharBy Adnan MaharFebruary 18, 2025No Comments6 Mins Read0 Views
Facebook Twitter Pinterest Telegram LinkedIn Tumblr Email Reddit
Share
Facebook Twitter LinkedIn Pinterest WhatsApp Email


Against this background, the online travel giant Yatra doubles corporate travel, focusing on the high-growth, technology-driven segment, which accounts for 60% of the business, separating it from direct consumer bookings. .

“Airlines will soon start flying to these airports, which will increase capacity and ease pressure in the top two cities. However, on the hotel side, travelers will be able to overtake the next two to three years. Continue to face high costs. Speaking exclusively to Mint Online Inc.

While some micromarkets within the city have seen pricing stable, the broader trends indicate that substantial cuts are unlikely to occur in the near future. “Instead of double-digit price increases, fees could increase in some regions at low single-digit levels,” Shringi said.

Read this | After a strong third quarter, Top Hotels see rooms for further growth

According to a recent report from hospitality consultant Horwath HTL, the Indian hotel market has only around 200,000 branded rooms, projected to grow to 300,000 by 2029. In 2024 alone, only 14,400 new rooms have been added. 11,700 rooms have been added from the new hotel and 2,000 rooms have been added from brand conversions. And the rest from the previous expansion. This slow pace of growth means that hotel prices are likely to remain high in the short term.

Rating agency ICRA Ltd estimates domestic air force traffic will rise to 164-17 million people in 2005, marking a 7-10% increase from 154 million people the previous year. did. For fiscal 2014, this number could increase to 175 million people.

Hotel prices are unlikely to fall soon, but once new capabilities come online, domestic airfares are expected to stabilize by the second half of 2025.

Jewar International Airport is scheduled to begin operations from April to May, while Navi Mumbai International Airport is set to open towards the end of the year. When airlines start flying to these hubs, additional capacity should help ease congestion at metro airports and stabilize ticket prices.

Read this | Center prepares 5-year plans for more than 50 new airports in small cities

Travel: Mixed Bags

Despite the recovery of the travel sector, business travel remains uneven.

Shringi noted that corporate travel has recovered since the pandemic, but that the composition of travelers has changed. Consulting companies, FMCG companies and e-commerce companies have booked more trips than before 2020, but the IT and IT services sector has yet to return to pre-pandemic levels. Manufacturing travel is currently 80-90% of the 2019 level, and IT companies are still operating at 60-70% of their previous travel capabilities.

“The IT sector should grow overall as there is a lot of investment in artificial intelligence and other things that are occurring around the world. Over the next two or three quarters, their spending will also start to rise.” He said.

Despite concerns about slowing economic growth in sectors such as FMCG and manufacturing, Yatra has yet to see a decline in corporate travel demand. Shringi believes its diverse client base will help its isolation from the recession. “We acquired new business customers, which helped offset slower spending from existing clients,” he said.

Meanwhile, religious tourism has emerged as a high yield segment driven by increased disposable income and better infrastructure at major pilgrimage sites. Events like Mahakam, which are expected to attract 500 million visitors, highlight this shift.

Read this | Maha Kumbh Melas Philosophy for the Travel Industry, taking wings

The line between India and “Bharat” is beginning to blur, Singh said, adding that it is no longer a metropolitan tourist heading towards religious tourism.

“We will not see a slower demand for travel in the near future due to the major cultural changes that are happening in India and how people will use their disposable income,” he said.

In the calendar year of 2024, Pan India Hotel’s occupancy was 63.9%, approaching the level of 2008, marking the highest performance ever for the sector. Average daily room rates for all hotel categories approached £8,000 and revenue per room available (RevPar) exceeded £5,000 highlights strong demand despite continued capacity constraints.

Hotel occupancy in December 2024 is approaching pre-pandemic levels, with a steady year-over-year growth, according to hospitality consultant HVS. Major markets such as Mumbai, Kolkata, Ahmedabad and Kochi report occupancy rates above 80%, with Mumbai leading at 81-83%.

Read this | Hotels are captivating the super rich by monetizing India’s rarest products – Privacy

Kochi was the highest year-on-year, up 5-7%. However, markets like Chandigarh and Hyderabad recorded a decline of 2-5% points. Average room rates (arr) saw modest growth but rose in most markets except Goa, which maintains the highest arr in the country £14,000. Kochi also led ARR growth due to strong demand.

Yatra’s Growth Engine

Yatra doubles corporate travel and is shifting away from the consumer segment. There is a strong competition and customer acquisition costs.

“Corporate enterprise businesses are inherently much safer,” Shringi said, explaining that B2B margins are a direct contribution to operating profit, unlike significantly discount-driven consumers. “(w)e ​​doesn’t have to continually direct companies with discounts to purchase our packages. We’ve seen the lifelong value of our business customers.”

The Indian corporate travel market £1. It is 25 trillion units and has not been invaded in terms of digital adoption, making it an advantageous opportunity for online travel agencies.

Shringi said that corporate demand for air travel, large events and company offsite (such as meetings and incentive programs) is set to become a strong growth driver for Yatra. “The kind of growth we drive in this business is primarily behind the growth of corporate travel,” he said.

“Over the next two years, over the next two years, we will continue to expand our corporate business at a much faster pace at 25-30%. This type of growth will drive growth of around 40-50%. Profit terms,” ​​said Shringi.

That momentum is already seen in Yatora’s finances. In the third quarter, fiscal year 2025, revenue increased 111% year-on-year £235 crores, company shook from a £39 crore loss last year £Profit of 39 crores this quarter. However, the adjusted ticket margin fell by 23%, mainly due to the small volume of the consumer segment as Yatra expanded its back discounts in response to aggressive price competition.

Meanwhile, the company’s marketing and promotion costs rose 9.4% year-on-year. £11.4 crore for the quarter ended December 31st £10.4 crores for the same period last year.

Yatra’s corporate travel business focuses on large companies, but the company is expanding to small and medium-sized businesses.

Shringi said online travel companies traditionally target India’s top 5,000-10,000 companies, but now there is a huge demand from small businesses that lack direct negotiation power with airlines and hotels. There is. To address this gap, Yatra develops specialized products tailored to small and medium-sized business clients.

Also Read | Why are you paying more for flights from these airports?

The company is also looking at new opportunities. It is an individual trip for employees of the corporate clients that provide services. With over 500,000 employees working for companies using Yatra’s services, the company sees significant potential to offer personal travel packages through its platform.

There is a great opportunity there, Shringi added.



Source link

Share. Facebook Twitter Pinterest LinkedIn Reddit WhatsApp Telegram Email
Previous ArticleThe eyes of Vietnam’s southernmost province export electricity to Singapore
Next Article French Raphales can fight the “Russian” for three days
Adnan Mahar
  • Website

Adnan is a passionate doctor from Pakistan with a keen interest in exploring the world of politics, sports, and international affairs. As an avid reader and lifelong learner, he is deeply committed to sharing insights, perspectives, and thought-provoking ideas. His journey combines a love for knowledge with an analytical approach to current events, aiming to inspire meaningful conversations and broaden understanding across a wide range of topics.

Related Posts

India’s pharmasect is ranked third in the world and leads in affordable drugs

May 18, 2025

Casting Director Frees Hindi Cinemas from Stock Characters: Shabana Azmi | Hindi Movie News

February 18, 2025

Wall Street today: Focusing with US stock and Trump tariffs

February 18, 2025
Leave A Reply Cancel Reply

Top Posts

President Trump’s SEC nominee Paul Atkins marries multi-billion dollar roof fortune

December 14, 202499 Views

20 Most Anticipated Sex Movies of 2025

January 22, 202570 Views

Alice Munro’s Passive Voice | New Yorker

December 23, 202455 Views

2025 Best Actress Oscar Predictions

December 12, 202434 Views
Don't Miss
AI June 1, 2025

Dig into Google Deepmind CEO “Shout Out” Chip Engineers and Openai CEO Sam Altman, Sundar Pichai responds with emojis

Demis Hassabis, CEO of Google Deepmind, has expanded public approval to its chip engineers, highlighting…

Google, Nvidia invests in AI startup Safe Superintelligence, co-founder of Openai Ilya Sutskever

This $30 billion AI startup can be very strange by a man who said that neural networks may already be aware of it

As Deepseek and ChatGpt Surge, is Delhi behind?

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

About Us
About Us

Welcome to Karachi Chronicle, your go-to source for the latest and most insightful updates across a range of topics that matter most in today’s fast-paced world. We are dedicated to delivering timely, accurate, and engaging content that covers a variety of subjects including Sports, Politics, World Affairs, Entertainment, and the ever-evolving field of Artificial Intelligence.

Facebook X (Twitter) Pinterest YouTube WhatsApp
Our Picks

Dig into Google Deepmind CEO “Shout Out” Chip Engineers and Openai CEO Sam Altman, Sundar Pichai responds with emojis

If Schreyers Iyer is serious about the test, you should play county cricket: Monty Panesar

Qualcomm’s Snapdragon Chips gets into trouble after a judge refuses to dismiss the case

Most Popular

ATUA AI (TUA) develops cutting-edge AI infrastructure to optimize distributed operations

October 11, 20020 Views

10 things you should never say to an AI chatbot

November 10, 20040 Views

Character.AI faces lawsuit over child safety concerns

December 12, 20050 Views
© 2025 karachichronicle. Designed by karachichronicle.
  • Home
  • About us
  • Advertise
  • Contact us
  • DMCA
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.