The news: Lufthansa and Cathay Pacific are expanding their India operations as Middle Eastern route disruptions affect Air India's connectivity. The Iran conflict has curtailed Middle Eastern routes and made passengers wary of Gulf connections, creating opportunities for airlines to capture strong demand for flights between South Asia and Europe/North America, leading to higher airfares.
Why it matters for MICE operators: Increased airline capacity and competition on India-Europe/North America routes could stabilize airfares for corporate travel and international conferences. More direct routing options reduce travel time and complexity for incentive groups and conference delegates. However, current higher airfares may impact event budgets, making it crucial to book early and explore alternative routing through these expanding carriers.
The takeaway: Diversify airline partnerships beyond Gulf carriers to secure better rates and routing options for international MICE groups.
Source: ET HospitalityWorld
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