The travel and hospitality retail industry has undergone a commendable metamorphosis from its earlier dormant status. Today, India is emerging as a prospective global retail destination for a large number of international travel and hospitality companies. Pallavi Majha explores how!
Better infrastructure, increased disposable income and technological advances, all have contributed to the thriving travel and hospitality retail in India as well as abroad. The industry is expected to generate US$28 billion by 2008, then escalating to a massive US$90.4 billion in 2014, in India alone. This makes India the top priority of global companies looking for potential markets around the world.
Business travel comprises the largest travel segment and India's corporate travel market is estimated at approximately Rs 150 billion. Travel costs have emerged as the third largest expense for corporates, after salaries and raw materials. Also, outbound business travel has shown higher growth as compared to inbound travel, during the past five years. Business travel thrives best in a free and robust economy and India is gradually moving towards that direction. With liberalisation paving the way for healthy competition and businesses going global the Indian traveller too is evolving into a global adventurer.
The travel industry is a close associate of the hospitality sector. Expanding travel and tourism sector along with rapid industrial progress has given a major boost to hospitality retail. Moreover, the globetrotting Indian is more conscious and demands the services he pays for.

Reasons for prosperity
Globalisation has made the consumer aware and with the increase in buying power, Indians are more willing to spend on travel and hospitality. Mr SM Korde, Secretary General, Hotel and Restaurant Association (Western India) apprises, “Five years back, the travel and hospitality sector was still to emerge out of the impact of 9/11 and several epidemics, as well as unsettled political and economic conditions internationally. Today, this has changed with some sort of stability and positive economic conditions are acting as an incentive for travelling.”The liberal foreign exchange regime, cheaper airfares and the extravagant travel budgets of MNCs have induced airlines, hotels and other service providers to roll out the red carpet. Urge for material gratification, open sky policy of the Indian Government, credit facilities extended by banks and tour operators, improved travel infrastructure and the growth of organised retail are the major factors contributing to the increasing travel retail.

Trend of joint ventures
An increased inclination towards tie-ups and joint ventures has become noticeable in the industry. Recently, Travel Port India announced the launch of TravelPort@Central in association with the Future Group at the Pune Central Mall. TravelPort@Central is India's first retail travel outpost within a mall aimed at offering value added holiday solutions to visitors.
Air Deccan has tied up with Indiatimes Shopping, to make available exclusive, low-cost shopping deals to Air Deccan passengers. Mr Sharat Dhall elaborates, “Indiatimes and Air Deccan have an exclusive arrangement wherein customers booking their Air Deccan tickets on Indiatimes Travel get the same fares and availability as that on the airline's own site.”