The Disruption

Several changes are shaking up the structure of the travel sector.

- Manu Kaushik

Two developments over the past decade changed the face of the Indian travel and hospitality industry. One was the dawn of low-cost aviation. Low-cost carriers or LCCs, which did not exist till 2003, now account for 66.8 per cent of the sector.

Then came the big-bang entry of foreign hotel chains. Chains such as Starwood, Hyatt and InterContinental Hotels were doing fitful expansion in India till the early 2000s. Their wide portfolio with rooms at different price points tilted the scale in their favour as domestic hotel chains concentrated on the upper end of the mar