Tag Archives: GDP

Railways carry annual air traffic in a day: Aditya Ghosh

Aditya Ghosh, Co-founder of Akasa Air and Former Director of IndiGo, said the total number of air passengers in India in a year is about the same number of passengers that the Indian Railways carries in a day.

The co-founder of Akasa Air was speaking on the growth prospect of air travel in the country in a podcast and added, “So if you could magically convert one day’s worth of rail traffic to air, we will need 500 more airplanes in the country.”

Shedding more light on the air travel scenario in the country, he said air travel in India grows at about 2x of GDP growth typically. To maintain the same load factor considering the growth in passenger numbers 75 more airplanes will be needed next year. “Between all the airlines, who have ordered airplanes today, let’s say there are a thousand airplanes, but those are going to come over the next 10 years and many of them will replace the existing fleet. So, for a long long period of time we have this supply constraint market in India where demand is far outstripping the supply,” Ghosh said.

Drawing a comparison between the United States and India, the airline expert highlighted the potential for airlines. The US has over 14,000 airports while India has got something around 150-200 airports after the government’s recent focus on building infrastructure for air travel in the country, he said, adding that this shows the immense potential and the need to double airports in the country.

“India is a 1.4-billion population country with 500 aircraft whereas the US has 330 million people. An airline like the Southwest Airlines, which is not even the US’s largest airline has over 1,000 airplanes. So, if we had to catch up with one airline in the US, we would need to double the aviation industry, he said. (Source: Business Today)

Sunny Sodhi is the MD of FCM Travel India

‘FCM Travel India’s revenue has grown by more than 20% as compared to 2019’

FCM Travel India is bullish about prospects of business travel from Southeast Asia, Greater China and its youngest source market of Japan. Sunny Sodhi, Managing Director, FCM Travel India spoke to Disha Shah Ghosh about the MICE segments driving growth, and their focus areas.

 

Q. In terms of global pecking order as well as its position in the APAC region, where does India rank as a source market for business travel?

A. India is the 9th largest market in the world based on business travel spending. It is the 4th largest market in the Asia Pacific region, representing 5.7 per cent of business travel spend in the region.

Q. What has been the growth of the business travel segment in India during 2023, and your forecast for 2024?

A. FCM Travel India has seen an overall business growth of more than 20 per cent in 2023 compared to 2019. FCM India’s Meetings & Events revenue has also doubled. With India’s GDP estimated to grow at 6.8 per cent in 2024, we expect a robust year ahead.

Q. Which vertical of the MICE segment is driving this growth of business travel from India?

A. Meetings in 2023 had an exponential growth of more than 300 per cent. We have also seen a 30 per cent increase in requests for incentive trips which are making a comeback. Also known as employee reward programmes, incentive trips are used to boost employee engagement and productivity.

Q. For FCM Travel, besides India which are the top 5 key priority markets in Asia?

A. Southeast Asia, Greater China and Japan are priority markets for FCM Travel. Asia has continued to outperform with strong performances across Southeast Asia and the re-opening of China. Japan is our youngest market, and it is an exciting and dynamic market for business travel as it is the 4th leading business tourism market based on total travel spending.

Q. What is your strategy to drive the business travel market in India?

A. There are several strategies in place. We have heavily invested in technology and recently announced our corporate AI Centre of Excellence which has seen new features added to our suite of products already available to improve the customer experience and increase our operational productivity.

Aside from technology, we’ve also been working tirelessly towards clear and consistent strategies that have been successfully executed globally, with these strategies initially focusing on ‘Grow to Win’, but now also include productive operations.

We are also investing in FCM Meetings & Events which has just announced the launch of FCM Venue Finder, a platform that revolutionises the booking process for meetings and group hotel accommodations within the MICE industry.

Q. What has been your revenue growth in 2023?
A. FCM Travel India’s revenue has grown by more than 20 per cent as compared to 2019.

AlUla unveils ‘Forever Revitalising’ global campaign to captivate travellers

The ancient oasis city in the northwest of Saudi Arabia, is set to embark on an exciting journey with the milestone launch of its inaugural global brand campaign, Forever Revitalising.

This campaign encapsulates the essence of AlUla, presenting a refreshing and authentic perspective crafted to captivate travellers worldwide. With the ambition to be more than a traditional destination marketing campaign, the data-driven endeavour debuts across nine core global source markets in six languages, and will be integrated across multiple channels.

Signature events targeting travel trade and media partners in five major international cities -: Dubai, London, New York, Paris, Shanghai, and Mumbai, kicked start the campaign and to tell a captivating story.

Phillip Jones, Chief Tourism Officer at Royal Commission for AlUla (RCU), added, “In just a few years, AlUla has established itself as a destination on the global traveller’s wish list. However, Forever Revitalising marks the next chapter in this ever-evolving journey. Through this campaign, we can open up the dialogue even further on a global stage and communicate the full depth of AlUla’s appeal, attributes and ambition. The best is yet to come, and we extend an open invitation for all to be part of this extraordinary journey.”

Melanie de Souza, Executive Director, Destination Marketing at RCU, commented, “Forever Revitalising is not only about driving global awareness of a destination that till recently was relatively unknown to most travellers, but it is also about communicating the breadth and depth of the programmes and initiatives designed to create a better future for all those who live, work and visit our ancient oasis.”

“We hope that the film and creative assets do justice to a truly unique destination, capturing the essence of AlUla across our rich heritage, vibrant arts and culture, breath-taking natural beauty, thrilling adventures, and rejuvenating wellness experiences. This campaign we hope will not only resonate with travellers but also support and engage our travel partners who are critical to curating the unparalleled experiences of our evolving tourism landscape.”

With an emphasis on renewal and transformation, Forever Revitalising aligns with AlUla’s vision of becoming a destination that is not only historically rich but eternally relevant. With this global campaign, AlUla presents a revitalised cultural promise, inviting discerning tourists and partners to emotionally engage and be vested in its unique and evolving narrative.

Forever Revitalising encapsulates and delivers precisely what today’s globetrotters seek: authentic and meaningful experiences, and an acknowledgment that niche is the new travel norm, alongside the growing trend of eco-friendly and culturally-conscious travel choices.

This approach is firmly anchored in the AlUla Sustainability Charter, which exemplifies the destination’s commitment to integrating economic prosperity with the preservation of its natural and cultural heritage. This is best demonstrated by a development approach that centres on the well-being and interests of the people of AlUla. As the city evolves as a destination, it does so in a manner that is both sustainable and enriching for its residents, with goals to create 38,000 new jobs, contribute SAR 120 billion (USD 32 billion) to the Kingdom’s GDP, and increase the population to 130,000 by 2035.

Renowned French cinematographer Bruno Aveillan’s captivating film, Forever Revitalising takes the form of a two-minute thirty-second hero film, adding a cinematic touch like no other. Following his exceptional work on AlUla’s domestic brand campaign film in 2021, Bruno returns to the city with a fresh perspective, aiming to provide viewers with an emotive masterpiece that meticulously highlights AlUla’s essence and its promise across its core destination pillars: history & heritage, arts & culture, nature, adventure, and wellness.

This film, available in various lengths and offered in multiple languages, serves as the vehicle that introduces Forever Revitalising to the global audience. It goes beyond mere visual storytelling and destination marketing, conjuring an emotional response from its audience while capturing the elusive essence of AlUla.

Bruno Aveillan commented, “Every corner of AlUla is a wellspring of inspiration, and this essence is vividly captured in the hero film of the Forever Revitalising’ campaign. It’s infused with the enduring spirit of creativity and passion that courses through AlUla and its people, reflecting a legacy passed down from generation to generation. This legacy promises to continue thriving in the forthcoming chapters of AlUla’s journey. Crafting this film was an enriching experience, not only because it allowed me to witness some of the world’s most breath-taking landmarks and locations, but also because it offered me a vast canvas to explore the depths of my own creativity—a profound and enduring gift that AlUla bestows upon everyone who walks upon her historic sands and experiences the sheltered embrace of her oasis.”

The campaign also includes a collection of Brand Pillar Films, offering shorter yet captivating destination-focused videos that showcase the rich tapestry of experiences that AlUla has to offer. These Pillar Films, available in 12 different edits, each lasting six seconds and presented in various languages, cast a spotlight on iconic AlUla destinations such as Hegra, Jabal Ikmah, AlUla Oasis, AlUla Old Town, Sharaan Nature Reserve, and Elephant Rock, and a variety of attractions including balloon adventures, luxury hospitality, local artistry and craftsmanship, and the vibrant food and beverage scene.

Forever Revitalising also marks the first steps towards an integrated and connected omnichannel digital approach and experience for an enhanced customer journey. A digital transformation for AlUla features a new state-of-the-art e-commerce website, mobile app and a social first strategy.

The UK economy enters a recession after contracting by 0.3%

 

The UK economy contracted by 0.3% in the three months leading up to December 2023, slipping into a recession in the second half of the year. This was a more significant decline than the 0.1% decline between July and September and went against the expectations of economists surveyed by Reuters, who had anticipated a smaller 0.1% GDP decline for the October-to-December period. The Office for National Statistics reported a 0.1% decline in economic output for December, contrary to analysts’ expectations of a 0.2% decrease.

The Bank of England remains optimistic about 2024, foreseeing a rebound in growth, but any slow performance could impact Prime Minister Rishi Sunak’s efforts to gain voter support before an expected national election later in the year.

Following the release of the GDP data, the British pound experienced a moderate weakening against both the dollar and the euro, reflecting market reactions to the economic downturn

 

The UK economy enters a recession after contracting by 0.3%

 

The UK economy contracted by 0.3% in the three months leading up to December 2023, slipping into a recession in the second half of the year. This was a more significant decline than the 0.1% decline between July and September and went against the expectations of economists surveyed by Reuters, who had anticipated a smaller 0.1% GDP decline for the October-to-December period. The Office for National Statistics reported a 0.1% decline in economic output for December, contrary to analysts’ expectations of a 0.2% decrease.

The Bank of England remains optimistic about 2024, foreseeing a rebound in growth, but any slow performance could impact Prime Minister Rishi Sunak’s efforts to gain voter support before an expected national election later in the year.

Following the release of the GDP data, the British pound experienced a moderate weakening against both the dollar and the euro, reflecting market reactions to the economic downturn

Japan slides into recession, loses third-largest economy status

In a surprising turn of events, Japan’s economy has slipped into recession for the second consecutive quarter, fuelled by sluggish domestic demand. This downturn has led to the re-evaluation of Japan’s global economic standing, causing it to lose its position as the world’s third-largest economy.

The shift in rankings dates back to 2010 when China’s economic growth propelled it ahead of Japan, which was then the second-largest economy behind the U.S. Initially predicted by the International Monetary Fund to fall to the fourth position, the recent economic challenges have expedited this decline.

Nominal GDP, measured in dollar terms, plays a crucial role in these global rankings. Japan’s nominal GDP for the previous year amounted to USD 4.2 trillion, a figure that now places it slightly below Germany. The latter’s nominal GDP, announced last month, ranged between USD 4.4 trillion to USD 4.5 trillion, depending on currency conversion.

The economic contraction is evident in the latest data for the October-December quarter, where Japan’s economy shrank at an annual rate of 0.4%, with a 0.1% contraction from the previous quarter. Despite a 1.9% year-on-year growth in real GDP, these recent numbers paint a concerning picture for Japan’s economic outlook.

Both Japan and Germany share a history of building their economies through robust small and medium-sized businesses, emphasising solid productivity. However, challenges such as a weak yen and global economic shifts have put Japan at a disadvantage.

The weakening economic conditions have led experts to anticipate a diminished global presence for Japan. Tetsuji Okazaki, a professor of economics at the University of Tokyo, notes that even sectors that once bolstered Japan’s strength, like the auto industry, are now facing challenges, especially with the rise of electric vehicles.

As the gap between developed and emerging nations narrows, Okazaki predicts that India is poised to overtake Japan in nominal GDP in the coming years. These developments underscore the dynamic changes in the global economic landscape and the need for strategic measures to address Japan’s economic challenges.