Skift Breaking News Blog

Short stories and posts about the daily news happenings around the travel industry.

Hotels

Indian Hotels Company Had The Best Quarter in Its History: Here’s Why

7 hours ago

Tata Group-backed Indian Hotels Company (IHCL) reported what Puneet Chhatwal, its managing director and CEO, called the best first quarter in the company’s history.

The hotel brand reported strong free cash flows of almost $25 million and net cash positive of $33 million in its consolidated and standalone financials for the first quarter ending June 30, 2022.

A surge in demand across markets and segments, with occupancy and rates exceeding pre-Covid levels and backed by an asset-light model, Indian Hotels Company achieved a milestone earnings before interest, taxes, depreciation, and amortization of $51 million, compared to a loss of $15.5 million in the same quarter last year, said Chhatwal.

The company reported a profit after tax of $21 million against only $750,000 in 2019-20.

“The trend is very positive in India and we have outperformed in almost every market on the domestic front, except for a marginal lag in Rajasthan,” Chhatwal said.

With revenue per available room levels exceeding that of the first quarter of 2019-20 in Indian metropolitan cities, Chhatwal, said, “The cities of Mumbai, Bengaluru and New Delhi are back.”

Mumbai Bengaluru and Delhi are also important for the hotel brand as it has owned or licensed assets in these cities. “We account for those revenues and a change in the revenue numbers has a significant impact on our portfolio and our performance,” Chhatwal said.

The company has signed 10 new hotels in the first quarter, with three hotels each under the Taj and Ginger brands, and two hotels each under the SeleQtions and Vivanta brands, and expects to sign 15 more for the rest of the year.

With its presence in over 100 locations in India, Indian Hotels Company has further strengthened its pan-India footprint with the opening of four new hotels in the current fiscal.

“So our pan India footprint is stronger and is getting even further stronger as each month and each quarter goes by through our aggressive asset-light growth strategy that has been in place,” Chhatwal said, adding that the asset-light model is not only driving growth, but is also helping the brand find the right balance which is in line with its Ahvaan 2025 strategy.

Even as IHCL is getting ready to launch a new website and a new mobile app, the hospitality brand is clear that the backbone of the company was, is and in the foreseeable future remains the Taj.

“We are very clear that all brands associated directly or indirectly with the Taj are perceived as premium brands in their respective segment,” Chhatwal said during the first quarter earnings call.

“One thing which we have been very careful about in the last few years is the premiumization of our portfolio. Any business that we enter in we want our offering to be in the premium level in their relative positioning.”

The company’s long-term growth will also focus significantly on digital enablers such as the super app — Tata Neu. “The Tat Neu integration has enabled us to get one million new members in four months and a 50 percent growth in our loyalty base,” Chhatwal said.

Airlines

Majority Owner of India’s SpiceJet Looks to Sell Part of His Stake

5 days ago

Ajay Singh, Chairman and Managing Director of Indian carrier SpiceJet, is said to be in talks with a Middle Eastern carrier and an Indian conglomerate to partially sell a portion of his stake in the budget airline.

Singh holds around 60 percent stake in the airline.

“The company continues to be in discussions with various investors to secure sustainable financing and will make appropriate disclosures in accordance with applicable regulations,” a SpiceJet spokesperson said.

A major Middle Eastern airline has expressed interest to pick a 24 percent stake and a board seat in SpiceJet. An Indian business conglomerate has also approached Singh for a stake in the airline, IANS reported while quoting a source.

With two carriers — Akasa and Jet 2.0 — set to debut in India this year, the stake sale would help bring much-needed equity infusion into SpiceJet, India’s third largest airline by market share.

The airline posted a net loss of $158 million in the April-December period of 2021, and is yet to declare financial results for the January-March period of 2022.

Last year, Indian aviation watchdog Directorate General of Civil Aviation (DGCA) noted that SpiceJet had been operating on “cash and carry” method and approved vendors were not being paid on regular basis.

On August 2, SpiceJet stated that it had entered into a full and final settlement with the Airports Authority of India and has cleared all outstanding principal dues of the airport operator. “With this, SpiceJet will no longer remain on “cash and carry” at AAI run airports across the country and will revert to advance payment mechanism for daily flight operations,” a statement from the airline read.

Last year, SpiceJet had also announced its plan to transfer its cargo and logistics services on a slump sale basis to its subsidiary SpiceXpress to help the company raise funds independently. “The proposed hiving off of SpiceXpress is proceeding as per plan,” the airline spokesperson said.

Last month, DGCA issued a show-cause notice to Spicejet after its aircraft were hit by at least eight incidents of technical malfunction since June 19. The incidents included crack in the aircraft’s windshield, engine catching fire, weather radar malfunction and fuselage door warning.

On July 27, the airline was asked to operate only 50 percent of its approved flights for summer schedule for eight weeks.

Airlines

India’s Newest Carrier Akasa Air to Begin Commercial Operations From August 7

3 weeks ago

Akasa Air, India’s newest airline, will be taking to the skies on August 7 with its first flight connecting the country’s financial center — Mumbai with Ahmedabad in western India.

Akasa will operate 28 weekly flights between Mumbai and Ahmedabad. From August 13 onwards, the airline will start operating 28 weekly flights between Bengaluru, more popularly known as India’s Silicon Valley, and Kochi — a city in the coastal state of Kerala.

The bookings for flights are now open. The airline that claims to have India’s youngest and greenest fleet, will be operating the brand-new Boeing 737 Max aircraft on both routes. Akasa plans to add two aircraft to its fleet each month, in its first year.

In an interview with Skift, Vinay Dube, the airline’s founder and CEO, had highlighted that the airline’s network strategy would focus on establishing a strong pan-India presence linking metropolitan cities to Tier 2 and Tier 3 cities across the country.

“We will adopt a phased approach to support our network expansion plans, progressively connecting more cities, as we add two aircraft to our fleet each month, in our first year,” said Praveen Iyer, co-founder and chief commercial officer of Akasa Air.

Calling the airline unlike anything experienced in the category thus far, Dube reiterated the importance of providing an efficient customer service, a reliable and dependable network, and affordable fares.

The airline will be offering buy-on-board meal service through Cafe Akasa.

Filters

Tags

indian-travelers

Clear Filters