The demand for air travel has surged by 15-20% in cities hosting live events and other similar experiences, according to Bharatt Malik, senior vice president – air and hotel business of Yatra Online Ltd.
Speaking to NDTV Profit, Malik said that people are looking for a more premium experience in travel, highlighted by a strong demand for five-star accommodation.
“As far as the travel demand goes, it has increased by 15-20% in cities where the live events are happening," he said, adding that such cities include New Delhi, Ahmedabad and Hyderabad.
"We are seeing a similar trend in our booking pattern as well. Not just for flight, but for hotels also. Five stars have no inventory available, and three stars and above are running at 5x at the moment,”
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Flight rates to these cities, in the period of seven days leading to the scheduled events, are 10-12% higher than usual, Malik pointed out. As the date of travel gets closer to the date of the event, the prices can also shoot up by 24-25%, he added.
Malik claimed that the recent rise in demand is led by Gen Z and millennials, who are strongly driven by social media influence.
“There is an increase in short-haul travel, people are taking weekend trips to neighbouring cities for events. We are seeing a noticeable rise in demand for VIP experience and premium seating, indicating higher spending capacity,” he said.
Talking about Yatra's projection for fiscal 2025, Malik said the company is more focused on boosting its corporate base, especially after the deal to acquire Globe All India Services Ltd. announced last month.
Through this Rs 128-crore acquisition, Yatra will obtain the company's robust portfolio of around 360 corporate customers and annual gross bookings of approximately $90 million.
“We are looking to see if we can increase the share of our accommodation business with our flight business,” Malik added.
Shares of Yatra Online closed 1.5% higher at Rs 133.49 apiece on the NSE against Nifty 50's decline of 0.05% on Tuesday.
Online travel company Yatra to acquire Travelguru. Read more on Business News by NDTV Profit.