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The Leela’s Latest Luxury Offering – India Report


Image: Arq by The Leela

Skift Take

As demand for luxury short-term vacation rentals rises in India, The Leela is seemingly seeking to leverage its established presence in the luxury hospitality space to capture more share of this market.
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Indian hospitality chain The Leela has announced the launch of Arq by The Leela – its collection of “ultra-luxury villas.” The collection has been launched at the Leela Palace Udaipur and is being positioned as a “hyper-personalized Palace within a Palace” by the hotel chain. The hotel chain will introduce more Arq by The Leela collections across its portfolio.

The villas aim to cater to ultra high-net worth individuals and elite guests. Though not quite exactly the same as vacation rentals, the villas are designed to allow the families of these guests privacy and exclusive spaces within the premises of Leela Palace Udaipur. These villas have their own swimming pools and private outdoor spaces.

A Skift Research report on short-term rentals in India this year indicated that the Indian short-term rental industry could expand into a $3 billion market by 2033. In an interview with Skift, luxury villa rentals brand StayVista’s co-founder Amit Damani said that there is a shift towards luxury villas among Indian travelers as they are seeking private, exclusive spaces. 

He had also said that there is a trust gap when it comes to alternative accommodations and creating brands within that space could address this gap.

The launch of the villa collection comes a month after The Leela’s parent company Schloss Bangalore filed for a $599 million (INR 50 billion) IPO. It marked the largest ever IPO in the Indian hotel industry. Through the public issue, the company aims to pay its debt and capitalize on the demand for high-end accommodations. 

By 2028, The Leela is planning to add eight hotels to its current portfolio of 12 operational properties. It is also expected to venture into segments such as wildlife and heritage tourism, in line with the broader demand for experiential tourism in luxury travel. 

Air India to Operate Vistara Aircraft Post Merger

Air India is set to operate Vistara aircraft after the merger of the two airlines on November 12. The airline said that these flights will be identified by a special four-digit Air India flight code starting with ‘2’: Vistara’s UK 955 flight between Delhi and Mumbai will be identified as AI 2955. 

This is being done to make the booking process easier for customers on the Air India website post the merger. Air India has also explained that the routes and schedules being operated by Vistara will continue. The in-flight experience, including the menu and the cabin crew, will remain the same. 

Additionally, the members of Vistara’s loyalty program Club Vistara will be transferred to Air India’s Flying Returns program. The combined loyalty program will be rebranded into the ‘Maharaja Club.’

Ahead of the merger, Air India is also commencing daily direct flights between Bengaluru and London Heathrow from October 27. With this, all three hubs of Air India will have direct connectivity to London Heathrow, the airline said. These new flights will replace Air India’s current Bengaluru-London Gatwick route. 

Indian Aviation Sector Will Need $170 Billion Investment

The Indian aviation sector will need an investment of more than $170 billion to support the traffic boom through 2030, according to credit ratings agency S&P Global. Most of this investment will be for new aircraft and for upgrading and developing airports. 

Stating that India’s aviation sector is underpenetrated, the agency noted that India has a bigger population than China but has an air traffic capacity less than one-third that of China. It further said that Indian airlines and airports are expected to “spend heavily” on expanding capacity over the next five years. 

Most of the spending is expected to be financed through debt, but increasing revenues are expected to support higher borrowing. 

Skyscanner to Launch New In-App Marketplace 

Travel metasearch engine Skyscanner is preparing to launch a new marketplace within its app that offers a range of additional services, Skift’s Peden Doma Bhutia has reported. The feature will integrate options such as ground transportation, visa services, and travel-related information in the app. This will make it into a one-stop shop for travelers, Skyscanner CEO John Mangelaars said. 

Skyscanner is looking to expand its presence in India. “India figures among our top 10 revenue-generating markets alongside the U.S., Brazil, Japan, France, Germany and South Korea. We believe India could soon be in our top three markets,” the CEO said. 

Radisson Introduces Braille Menus

Radisson Hotel Group has introduced Braille menus across its properties in India. The initiative is in partnership with the Confederation of Indian Industry’s (CII) Young Indians. 

In some properties, the group is also introducing scannable audio QR codes so that guests can listen to the menu options at their own pace. This initiative will be introduced across other properties of the chain later. 

How India is Traveling for Diwali

Nearly 40% of the bookings for Diwali travel between October 26 and November 4 were made in the first 15 days of October, according to data shared by online travel agency Cleartrip. While bookings from Mumbai have increased, airfares have been mostly flat. Goa saw the biggest spike of close to 5% in bookings from Mumbai, but the airfare declined by 0.23% compared to last year. 

Air routes including Bengaluru-Delhi, Mumbai-Delhi, Hyderabad-Delhi, and Bengaluru-Mumbai are among the top booked routes for the season.

Internationally, Denpasar in Indonesia and Kuala Lumpur in Malaysia have witnessed the biggest increase in bookings as compared to last year, the data showed. Apart from that, Bangkok, Dubai, Singapore, Phuket, Colombo, and Abu Dhabi have also seen an increase in bookings. 

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