Flights between India and the Middle East are among some of the most lucrative that airlines operate in Asia, and not entirely for the reasons you might expect. Typically, the world’s most valuable flight corridors are between major economic hubs. As a result, travel demand is mostly driven by business travelers, who purchase expensive first and business-class tickets.
In the India-Middle East travel market, there is also a strong concentration of business travel. According to documents from travel technology company Amadeus, 28% of Indian business travelers visited the region within the past twelve months. Furthermore, a large portion of these business travelers are young and female, demonstrating a rising trend. However, they do not account for all of these routes’ passengers. They do not even account for a majority.
Photo: Siddh Dhuri | MumbaiPlanesIndia Middle East Air Market
There are over 12 million Indian visitors to the Middle East each year and a larger number in the reverse direction. As a result, the routes between key Middle Eastern hubs and Indian destinations are extremely lucrative. Airports like Dubai International Airport (DXB), Abu Dhabi International Airport (AUH), and Doha Hamad International Airport (DOH) all see dozens of daily flights to India.
The Middle Eastern major carriers, including Emirates, Etihad, and Qatar Airways, offer some of their most premium services on these routes.
Furthermore, they will fight tooth and nail to maintain their market share on key flights to India. In this article, we will take a deeper look at why flights to India are so valuable to these carriers.
Photo: Sam Chui Photos, Shared by EmiratesA market that goes far beyond just the India-Middle East routes
The reasons why India-Middle East routes are so crucial to Middle Eastern airlines are complex. Exploring them tells a fascinating story about the business models of these carriers.
For starters, Emirates, Qatar Airways, and Etihad are the ultimate superconnectors, airlines that focus entirely on hub-and-spoke operations. While cities like Abu Dhabi, Doha, and Dubai have increasingly become more attractive tourist destinations, the core of these airlines’ business is connecting passengers through their hubs.
The statistics are quick to back this up. According to The Independent, over 44 million passengers pass through Dubai International Airport annually, over 60% of which are connecting. In the modern world of aviation, aircraft now have ultra-long-range capabilities. Therefore, there are fewer and fewer routes which do not have a nonstop option. As the Middle Eastern carriers are known for their high service standards, few will choose a different airline over the, if their options are both nonstop itineraries.
However, when the airline is put in a position where it has to compete with nonstop offerings it is often in trouble. A good example of this is found in Australia.
Passengers consistently choose to fly nonstop between Perth Airport (PER) and London Heathrow Airport (LHR) nonstop, even though there is a stopping option.
When this new ultra-long-range route was launched in 2018, many were skeptical that passengers would opt for the service. However, enough passengers have chosen the nonstop option over a one-stop Middle East itinerary to keep the route profitable.
Photo: Clément AlloingSo what does this have to do with the India-Middle East market?
Therefore, it will often seek out routes with weaker competition. There are few routes left where one-stop itineraries from Middle Eastern carriers have a major competitive advantage. One of these markets is the lucrative US-India air travel market.
There are a handful of nonstop flights between these nations. However, both Indian and US carriers have extremely low reputations for service and passenger experience. This becomes even more noticeable when they are compared to Etihad, Emirates, or Qatar Airways. These Middle Eastern carriers have some of the industry’s best reputations for service and quality.
Millions of passengers fly between the US and India each year, and the number continues to grow. Furthermore, premium travel demand on these routes has only skyrocketed since the pandemic.
Currently, Emirates, Etihad, and Qatar Airways are the market leaders on these routes, connecting passengers from over a dozen North American destinations to over a dozen destinations in India. As a result, the carrier offers far better one-stop connectivity than any Indian or American competitor.
- North American Airlines Adds New Flights to Asia-Pacific Amid Travel Surge
- Due to Easter staff strikes, British Airways cancels 300 flights
In many cases, these airlines also are the best option for travel from parts of Europe, Latin America, and Africa to cities in India, due to a lack of nonstop flights. Furthermore, the airline is also a leader connecting passengers to Pakistan and Bangladesh.
There are few who will attempt to argue that the India-Middle East market has not been a key factor driving the success and long-term growth of the major Middle Eastern airlines.
Photo: Siddh Dhuri | MumbaiPlanesThings are changing for the Middle East-India market
More airlines are launching nonstop flights to India. This includes US carriers like United which continue to add destinations on the Indian subcontinent.
It also includes Indian low-cost carrier IndiGo, which is planning a long-haul expansion with the Airbus A350. This could significantly change the India-Middle East market. Fewer passengers will fly via Dubai, Doha, or Abu Dhabi and more will travel on nonstop itineraries.
In order to remain competitive, Emirates, Etihad, and Qatar Airways will need to innovate their product offerings. They will need to operate services to more cities, in order to expand their one-stop connectivity.
They will also have to improve their passenger experience further. This will make it easier for customers to choose a one-stop Emirates route over a more convenient nonstop journey.
Nonetheless, this could not be the beginning of the end for the extremely valuable India-Middle East air market. The continued allure of Middle Eastern cities to Indian tourists remains in its infancy.
An easy-to-reach destination with more popular attractions than ever, the tourist market is set to grow. The growth of low-cost carriers like IndiGo and flydubai will only continue to support tourism from India to the region.
Furthermore, business travel is set to continue growing between the Middle East and India. More and more companies within the two regions are doing business with each other.
Middle Eastern investment in India is reaching sky-high levels. Indian employment in the Middle East also continues to grow. As a result, the demand for premium travel, which drives the vast majority of profits in this extremely lucrative market, will only continue to grow in the coming years.
Featured Image by Siddh Dhuri | Mumbai Planes | Instagram
Stay tuned with us. Further, follow us on social media for the latest updates.
Join us on Telegram Group for the Latest Aviation Updates. Subsequently, follow us on Google News
Emirates to Deploy Airbus A350 to Two Indian Cities
The post Why is the India-Middle East Air Travel market So Valuable? appeared first on Aviation A2Z.
