Domestic Travel in India continues to increase - American Express Business Travel Monitor

While fares across the board increased 4 per cent last quarter, domestic fares within India increased more than any other fare type, with fares up 18 per cent. Conversely, fares to the EMEA region and Americas were flat last quarter, according to the most recent American Express Business Travel Monitor. In comparison, in the Asia Pacific region fares overall were up by 2 per cent and domestic fares were up by 4 per cent.

Fares from India to EMEA sector remained flat last quarter, though has seen a significant increase in fares (9 per cent YoY in fares compared to the region's 3 per cent), which can be attributed to high inflation rates, as well as lack of supply and rising fuel costs. The Eurozone economic uncertainties at the end of last year were responsible for fares to this region remaining flat.

Likewise, the weakness of the US economy has contributed to fares from India to the Americas being flat in the last quarter. Variances in fare prices to the Americas also had a plateau effect on fares to the region in the last quarter. In India, the airfares to Americas grew marginally by 2 per cent compared to the same period in 2010.

Airfare from India to Intra Asia Pacific grew 2 per cent Q-o-Q but grew strongly at 10 per cent Y-o-Y. Intra Asia Pacific fares for the region grew by only 1 per cent Y-o-Y, in comparison.

Source : Equity Bulls

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