Indians love to holiday at home. After all, their country has everything a great holiday destination can offer - good weather, interesting sights and fabulous food. So why go elsewhere?
At the same time, Indians are possibly the most cost-conscious travellers, wanting always to have the best deals, for flights, hotels, tour packages and much else.
The global economic slowdown and the weakening rupee have made them even more careful with their money. Indians are casting their nets wider in their search for bargain holidays.
It is a competitive market as Thomas Cook, the UK travel operator, discovered much to its cost. The company is now thinking of selling its Indian operations.
"If the offers are attractive, then we will consider selling our stake and using the proceeds to continue to strengthen the group's balance sheet," says Sam Weihagen, the chief executive of Thomas Cook. The company has been trying to weather turbulent travel market conditions in India as well as in Europe.
It appears to have decided to exit its Indian operations at a time when traditional travel operators are very much threatened by nimble online outfits.
"More and more people are researching travel online, thus increasing the need for brick-and-mortar organisations to have an online presence," says Varun Chadha, the chief operating officer of JourneyMart.com. "However, merely having an online presence doesn't help [if] there is no visibility and credibility. Some of the big tour operators in India are focusing on acquiring customers online,"
Indians have grabbed the opportunity to shop online for the best travel deals, according to a study by comScore, a market research agency.
It found that the number of visitors to travel sites increased 32 per cent last year from 2010 for a total of 18.5 million visitors.
The biggest growth in India will come from domestic travel both in business and leisure segments, according to research by the Confederation of Indian Industry and PricewaterhouseCoopers India.
"In India, domestic travel is the biggest segment and is growing at a fast pace," says Timmy Kandhari, an executive director and leader, hospitality and leisure at PricewaterhouseCoopers India. "The Indian domestic tourism has seen better marketing and promotions with lot of branded hotels in mid-segment emerging for quality experience and affordability. Also, with new airports coming up, the country's infrastructure has improved."
The travel market for domestic tourists in India is getting increasingly competitive - and the online travel sites want more of the business.
"With newer technologies and platforms being introduced rapidly, more players are flooding the market. The competition is going to be strong, but it will only push us to innovate and better ourselves. People are becoming more internet-friendly and there is a growing trend in moving towards m-commerce [mobile commerce]," says Keyur Joshi, a co-founder of the online travel site MakeMyTrip.com.
So what are people looking for when they are surfing for a break?
Not surprisingly, Indian Railways was the busiest travel site, with 8.4 million visitors, up 8 per cent from the previous year, according to comScore.
But it is the online travel operators that experienced the most growth. MakeMyTrip reached nearly 3.9 million visitors in 2010-2011, up by 63 per cent from a year earlier, followed by Yatra Online, with 3.5 million visitors, up by 82 per cent, and Cleartrip.com, with more than 2.1 million visitors, up 80 per cent. International sites such as Expedia also received millions of hits.
And the momentum is likely to continue. Currently, only about 7 per cent of India's population, or 80 million people, use the internet, according to a study from the financial services company Avendus.
Only about 10 per cent of Indians - about 8 million - conduct transactions online. The increase in internet penetration is not the only driver of online travel operators.
"Emergence of smartphones and internet-compatible phones where it is slated that more people will experience the internet on the phones rather than PCs," says Mr Chadha. "The internet provides convenience and choice of travel information and booking options."
Despite the rush to go online, the industry is still in its infancy. Most Indians still do not have credit cards, which are the primary payment method at online travel sites.
And while the Indian consumer loves the convenience of browsing travel destinations online, he or she still prefers to talk to a person while booking, especially leisure travel, the experts noted.
"Consumers are using the internet as a research tool and are booking offline as the ticket value per transaction is high. This leads to a higher cost of service, forcing online travel agents to operate back-end service centres," Mr Chadha says.
Operating in cyberspace alone is not enough, but even online companies need to establish credible operations to fight the current turbulent market conditions and to serve the demanding Indian client.
"In 2007, we decided to establish our offline presence across the country. This was in relation to consumer buying behaviour and it was evident that consumers were quite comfortable in wanting to interface with retail sales agents," says Mr Joshi. "Indians are more comfortable buying holidays offline, especially the ones who are not comfortable with the internet and making online transactions."
business@thenational.ae
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The specs
Engine: 2.5-litre, turbocharged 5-cylinder
Transmission: seven-speed auto
Power: 400hp
Torque: 500Nm
Price: Dh300,000 (estimate)
On sale: 2022
THE SIXTH SENSE
Starring: Bruce Willis, Toni Collette, Hayley Joel Osment
Director: M. Night Shyamalan
Rating: 5/5
The five pillars of Islam
Dengue%20fever%20symptoms
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The%20specs
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ENGLAND SQUAD
Joe Root (captain), Dom Sibley, Rory Burns, Dan Lawrence, Ben Stokes, Ollie Pope, Ben Foakes (wicketkeeper), Moeen Ali, Olly Stone, Chris Woakes, Jack Leach, Stuart Broad
India cancels school-leaving examinations
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
Email sent to Uber team from chief executive Dara Khosrowshahi
From: Dara
To: Team@
Date: March 25, 2019 at 11:45pm PT
Subj: Accelerating in the Middle East
Five years ago, Uber launched in the Middle East. It was the start of an incredible journey, with millions of riders and drivers finding new ways to move and work in a dynamic region that’s become so important to Uber. Now Pakistan is one of our fastest-growing markets in the world, women are driving with Uber across Saudi Arabia, and we chose Cairo to launch our first Uber Bus product late last year.
Today we are taking the next step in this journey—well, it’s more like a leap, and a big one: in a few minutes, we’ll announce that we’ve agreed to acquire Careem. Importantly, we intend to operate Careem independently, under the leadership of co-founder and current CEO Mudassir Sheikha. I’ve gotten to know both co-founders, Mudassir and Magnus Olsson, and what they have built is truly extraordinary. They are first-class entrepreneurs who share our platform vision and, like us, have launched a wide range of products—from digital payments to food delivery—to serve consumers.
I expect many of you will ask how we arrived at this structure, meaning allowing Careem to maintain an independent brand and operate separately. After careful consideration, we decided that this framework has the advantage of letting us build new products and try new ideas across not one, but two, strong brands, with strong operators within each. Over time, by integrating parts of our networks, we can operate more efficiently, achieve even lower wait times, expand new products like high-capacity vehicles and payments, and quicken the already remarkable pace of innovation in the region.
This acquisition is subject to regulatory approval in various countries, which we don’t expect before Q1 2020. Until then, nothing changes. And since both companies will continue to largely operate separately after the acquisition, very little will change in either teams’ day-to-day operations post-close. Today’s news is a testament to the incredible business our team has worked so hard to build.
It’s a great day for the Middle East, for the region’s thriving tech sector, for Careem, and for Uber.
Uber on,
Dara
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Racecard
%3Cp%3E%0D5pm%3A%20Al%20Maha%20Stables%20%E2%80%93%20Maiden%20(PA)%20Dh80%2C000%20(Turf)%201%2C400m%0D%3Cbr%3E5.30pm%3A%20Al%20Anoud%20Stables%20%E2%80%93%20Handicap%20(PA)%20Dh80%2C000%20(T)%201%2C200m%0D%3Cbr%3E6pm%3A%20Wathba%20Stallions%20Cup%20%E2%80%93%20Handicap%20(PA)%20Dh70%2C000%20(T)%201%2C400m%0D%3Cbr%3E6.30pm%3A%20Arabian%20Triple%20Crown%20Round%202%20%E2%80%93%20Group%203%20(PA)%20Dh%20300%2C000%20(T)%202%2C200m%0D%3Cbr%3E7pm%3A%20Liwa%20Oasis%20%E2%80%93%20Group%202%20(PA)%20Dh300%2C000%20(T)%201%2C400m%0D%3Cbr%3E7.30pm%3A%20Dames%20Stables%20%E2%80%93%20Handicap%20(TB)%20Dh80%2C000%20(T)%201%2C400m%3C%2Fp%3E%0A
Killing of Qassem Suleimani
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Florence and the Machine – High as Hope
Three stars
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
Western Region Asia Cup Qualifier
Results
UAE beat Saudi Arabia by 12 runs
Kuwait beat Iran by eight wickets
Oman beat Maldives by 10 wickets
Bahrain beat Qatar by six wickets
Semi-finals
UAE v Qatar
Bahrain v Kuwait
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Mica
Director: Ismael Ferroukhi
Stars: Zakaria Inan, Sabrina Ouazani
3 stars
