News

Hyatt expects corporate rate rise in 2024 following Q3 growth

Hyatt Hotels’ third-quarter transient business travel revenue increased 19 per cent year over year and has recovered to approximately 90 per cent of 2019 levels, hotel executives said on Thursday (2 November) during an earnings call. Although most of the hotel company's corporate accounts use a dynamic pricing model, CEO Mark Hoplamazian said Hyatt is "about halfway through our discussions for our fixed-rate accounts," and he expects "rates to increase in the high single-digit range in 2024 compared to 2023." Meanwhile, demand for all customer segments "remains solid," Hoplamazian said, adding that the lines between business transient and group are increasingly blurring. Hyatt has about 70 per cent of its 2024 group business booked — a typical booking level for the hotel company by this time, Hoplamazian said — representing "equal measure of growth" across corporate, association, regional and specialty groups. While the corporate group segment is showing the highest level of growth, "they're all strong and it's balanced," he said. Hyatt's business mix now features "a continued blurring of the line between what means group and what means business transient," Hoplamazian added. "Some of the use cases have continued to move from what we used to call business transient into what we would call group," which is 10 or more rooms and a room block. Overall, "whether you want to call it business transient or group in corporate, that total demand level is going to be higher and grow over time from 2019 levels," he added. In Q3, group room revenue increased 10 per cent year over year and was up 5 per cent from 2019 levels, according to Hyatt. Growth in group revenue "accelerated during the quarter" and was up 13 per cent year over year. Q3 results Hyatt's systemwide revenue per available room in the third quarter was $145.40, up 8.9 per cent year over year. Average daily rate was $202.13, up 2.6 per cent. Revenue growth was driven by "strong rates and meaningful occupancy growth," Hyatt executives said, highlighting the Asia-Pacific region as a standout performer. Systemwide occupancy also was on the up, at 71.9 per cent in the quarter with a year-over-year increase of 4.2 percentage points. Occupancy levels continued to recover, according to Hyatt, with the month of September slightly below 2019 levels. In Q3, Hyatt reported $1.62 billion in revenue, up from $1.54 billion in 2022. The hotel company's net income was $68 million, an increase over $28 million in 2022.

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Dudhwa National Park to reopen on November 15; helicopter service in the offing

Dudhwa National Park is all set to reopen on November 15 along with new updates and offerings. Referring to this, Lalit Verma, Field Director of Dudhwa National Park, bookings for visitors interested in experiencing its captivating wilderness are already in progress. The national park spans across 490 sq km along the Indo-Nepal border in Lakhimpur Kheri, the park has not only lowered its service fees but is also introducing a helicopter service to enhance accessibility for tourists. Meanwhile, a significant development in this aspect is the launch of a helicopter service that will connect Lucknow to Dudhwa, Katarniaghat Wildlife Sanctuary, and Chuka Tiger Reserve. If reports are to go by, this initiative is currently in the final stage. Traveling from Lucknow to Dudhwa by road takes up to 5 hours whereas, with the helicopter service, this journey will be shortened to less than half an hour. Do note that the exact start date is yet to be determined

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As Delhi/NCR wakes up to ‘severe’ AQI, a look at places in India with the best AQI right now

With the Air Quality Index (AQI) surpassing the 400-mark on Thursday, reaching the ‘severe’ category, Delhi Chief Minister Arvind Kejriwal announced the closure of all primary schools for the next two days. Employing Stage-III of the Graded Response Action Plan (GRAP), the Commission for Air Quality Management (CAQM) has also prohibited non-essential construction activities and imposed limitations on specific vehicle categories. The transportation department has stated that a fine of INR 20,000 for BS-III petrol and BS-IV diesel vehicles will be imposed. These restrictions will apply to the neighboring areas of Faridabad, Gurgaon, Ghaziabad, and Gautam Buddh Nagar as well. Meanwhile, let's look at the places in India with the best AQI right now. Srinagar (AQI - 94): Surprisingly, the current air quality in Srinagar is at ‘moderate’ level, yet far better than Delhi-NCR. You can still expect good views, surrounded by breathtaking natural beauty and enjoy a shikara ride on Dal Lake. Gangtok (AQI - 80): As winter begins in Gangtok, the gradually cooling temperatures provide a moderate AQI and an ideal time to visit and explore the vibrant MG Road for shopping and local cuisine. Shillong (AQI - 69): Enjoy the cherry blossom season in Shillong, along with pleasant weather and good air quality. Its pleasant weather is further complemented with lush green landscapes and more. Kohima (AQI - 54): This number is also good in terms of air quality. Enjoy the pleasant climate and stunning greenery in Kohima for an unforgettable experience and immerse yourself in the Naga tribal culture. Manali (AQI - 31): For snowfall enthusiasts, Manali is a must-visit destination, and is adorned in winter's beauty, and to engage in thrilling adventure sports. Shimla (AQI - 53): Explore Shimla at its finest, featuring snowfall and crisp, fresh air, and take a scenic ride on the Kalka-Shimla toy train. Kodaikanal (AQI - 29): Visit Kodaikanal for its lush green landscapes, serene lakes, and a cool, refreshing climate that offers a perfect escape from the hustle and bustle of city life. Explore picturesque viewpoints, charming gardens, and a tranquil atmosphere in this hill station nestled in the Western Ghats of Tamil Nadu, India.

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Global travel and tourism industry to generate $10 trillion by end-2023

The World Travel & Tourism Council (WTTC) has predicted that the global travel and tourism industry, which suffered a significant blow amid the COVID-19 pandemic, has made a remarkable recovery and is expected to generate $10 trillion by the end of 2023. President & CEO of the Council Julia Simpson shared this positive outlook at the 23rd Global Summit and claimed that the global tourism market is expected to surpass the $15 trillion mark within the next decade. Simpson highlighted the industry's progress in 2023 and stated that it had almost reached the $10 trillion milestone. Despite the ongoing efforts in China to fully reopen its travel and visa processes, the sector's performance has exceeded expectations. She emphasized that the industry is poised to exceed the $10 trillion benchmark and is projected to approach a value of nearly $15 trillion over the next decade. Highlighting the industry's resilience and swift recovery, Simpson noted that various regions, including Europe, Africa, and the Middle East, are experiencing growth rates higher than initially predicted. Additionally, the industry's commitment to environmental sustainability is becoming more energy efficient as it grows, with a reduced impact on greenhouse gas emissions compared to 2019 data. According to WTTC 2019 data, travel and tourism was responsible for 8.1% of the Greenhouse gas emission globally. As our sector continues to grow, we are becoming more efficient with our energy use. While travel and tourism are growing, the impact on the environment is not growing at the same rate, said Simpson, who was accompanied by WTTC Chair, Arnold Donald. Highlighting the importance of the sector in creating new employment opportunities, Donald said one out of five new jobs being created today across the world is from the travel and tourism sector. He underscored the sector's role in creating new job opportunities, with one in every five new jobs worldwide originating from the travel and tourism industry. The three-day Global Summit is attended by nearly 1,000 delegates from 45 countries.

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Go First lenders to meet Monday, stare at Rs 6,500 crore in losses

Lenders to the insolvent Go First will likely meet Monday to assess an earlier fund-infusion plan into the grounded carrier saddled with about Rs 6,500 crore of overdue payments, with regulatory approval to lessors to repossess leased aircraft making it unviable for bankers to commit fresh money to the first case of voluntary bankruptcy in Indian aviation. The Directorate General of Civil Aviation (DGCA) told the Dehi High in an affidavit that the recent order exempting aviation leases from bankruptcy moratorium should apply even to companies undergoing insolvency proceedings. That drastically reduces the chances of the airline's revival, resulting in a potential loss of Rs 6,500 crore to creditors. Bankers said permission to lessors to take back the aircraft, if executed, will make it impossible to revive the airline that shut operations early May. "It looks like it is all over for Go First," said a person involved in its resolution. "It has been too long and now with this stand taken by DGCA, it will be very difficult to restart operations since the planes will most likely be flown away. Although lenders will stick to their stand that this new law cannot be applied retrospectively, the sheer time wasted in court hearings will make a resolution almost impossible" the person said. Central Bank of India and Bank of Baroda are the top two creditors for the airline with Rs 1,987 crore and Rs 1,430 crore of dues, respectively. Although DGCA's affidavit says the notification exempting aviation leases from moratorium should apply to Go First, it has put the onus on the High Court to decide on how to deal with the case. Banks have been opposing aircraft and engine lessors of the defunct airline on grounds that a bankruptcy moratorium does not allow lessors from taking charge of any assets undergoing resolution. "The call taken by DGCA is in line with international law and the Cape Town convention. But for banks, it looks like a lost cause,” said Bishwajit Dubey, counsel Supreme Court of India and an expert on bankruptcy laws. “They can indeed challenge it in the High Court and may also be favoured in the NCLT, which is also hearing this case but there is no doubt that this is a major setback for this resolution." Last month ET reported that Jindal Steel and Power promoter Naveen Jindal is the only expression of interest (EoI) to qualify as a bidder for Go First. Two other likely bidders could not meet the financial parameters set by lenders. Bankers said if the planes do not remain with the airline, there is no way the company can survive as potential bidders have nothing to build on. "Lending to an aviation company is risky because the main assets of any airline are mostly leased and not owned by the company. This risk has manifested previously with Kingfisher and Jet Airways and now Go First. It looks like Go First is headed to liquidation," said a second person involved in the resolution.

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Air passenger traffic to touch record highs of 373-380 million in FY24: Report

Passenger traffic growth revised upwards to 14-16% in the backdrop of strong recovery momentum; international traffic to cross pre-Covid level in FY24, says ratings agency ICRA. The overall passenger traffic will touch record highs of 373-380 million in FY24, translating into a YoY growth of 14-16% over FY23, ratings agency ICRA has said in its recent report, while maintaining a ‘stable’ outlook on the Indian airport infrastructure sector. The current estimate is higher than ICRA’s earlier estimate of 12-14%. The upcoming festive and holiday season is likely to drive passenger growth over the next 4-5 months. Vinay Kumar G, sector head, corporate ratings, ICRA, says the improved occupancy in other airlines as well as the addition of new routes has largely offset the impact of the Go-First bankruptcy on overall passenger traffic. This is also evident from a handsome 19% YoY growth in domestic passenger traffic during 7M FY2024. The data shows air traffic has consistently exceeded pre-Covid levels from April 2023, supported by robust growth in business and leisure travel in the domestic market, along with improvement in air connectivity to tier II cities or tourist destinations."Given this, the domestic traffic is expected to reach 110-112% of pre-Covid levels in FY2024. The international traffic recovered to 98% in 7M FY2024 and is expected to cross to pre-Covid levels in FY2024,” says Kumar G. The ICRA report says aero revenues of the major private airports recovered to around 85% of pre-Covid levels in FY2023 on the back of higher passenger and aircraft traffic, and are likely to reach 107-110% of pre-Covid levels in FY2024. Notably, the top five airports in India -- Delhi, Mumbai, Bengaluru, Hyderabad and Cochin -- developed under the PPP (public-private partnership) model, account for 50-55% of this passenger traffic. The recovery of aero revenue can largely be seen in line with broader trends in passenger traffic recovery. The ratings agency believes the recovery in "non-aero revenues" is also much stronger and is estimated to cross 120% of pre-Covid levels in FY2024, on a significant increase in lease rentals with large terminal areas getting added with the completion of the expansion at the PPP airports. “The revenues for these airports are expected to grow by 16-18% in FY2024 on the back of increase in passenger traffic growth, ramp-up of non-aero revenues, and increase in tariffs at some of the major airports," says Vinay. Notwithstanding the sizable capex planned towards capacity expansion in the medium term, ICRA expects the coverage metrics and liquidity position to remain strong for the industry players.” To meet the growing air traffic demands, AAI and other Airport Operators have targeted a capital outlay of approximately Rs 98,000 crore in the airport sector during 2019-2024 for the construction of Greenfield Airports and new terminals, expansion and modernisation of existing terminals and strengthening of runways, among other activities. Additionally, airports are transitioning to 100 % green energy, with 55 airports, including 49 managed by the Airports Authority of India (AAI), currently operating on 100% green energy.

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