How India Travels?
Read our report, produced in collaboration with the knowledge partner McKinsey & Company (October 2023), to find out
Indian travellers are back in action. With a strong economy, a growing middle class and travel-loving youth driving more tourism revenue in India than ever before, travel expenditure across domestic and foreign trips is projected to grow from $150 billion in 2019 to $410 billion by the end of the decade. The number of aggregate trips is expected to increase from 2.3 billion in 2019 to around 5 billion in 2030.
Our new report — released in Oct 2023 — explores the travel trends that we believe are here to stay, and what they could mean for the industry. The insights draw on conversations with industry leaders, data from Booking.com, and other sources.
Indian travellers have grown more discerning and experimental in what they want from a trip. They are willing to try unique, authentic, and immersive experiences, often inspired by social media platforms — where they get new ideas and plan their trips. They seek companionship over solo travel. Sustainable travel matters to them, but it is yet to be seen as a guiding factor.
Indian travellers today are ready to go, excited about novelty, and willing to see newer, offbeat places.
Across Indian cities, the Ministry of Tourism is shaping a holistic tourism proposition that has sustainable tourism at the core through its Swadesh Darshan 2.0 Scheme. Foreign travel is also within reach with competitive tour packages, easier bookings and visa access, with Indonesia, Vietnam and Nepal emerging as top destinations. Locations that traditionally catered to the well-to-do tourist, such as Dubai, are trying to attract more tourist segments.
The ecosystem is also evolving in response. Global branded hospitality players plan to expand in India’s Tier 2 and 3 cities. Attracted by the opportunity, microentrepreneurs are emerging in this space. Transport options, too, are growing at a time when people want to travel. India has nearly double the number of airports it had in 2014. In the last 10 years, over $200 billion has been invested in transportation, of which half will serve to improve road transport alone.
These are exciting times for the travel industry. As it seeks to tap the opportunities presented by travel trends and preferences, India’s travel industry could focus on five important themes.
Public–private collaboration
An ecosystem where public and private entities work together could not only package and promote destinations creatively, but also emerge to be agile and responsive to the growing needs of the Indian traveller for variety and convenience.
Going small to win big
Travel companies could zoom in, from a macro view of one kind of traveller to develop a more micro, nuanced understanding of their customers. Seeing them as micro-segments could help craft personalised experiences rather than cookie-cutter offerings, with relevant messaging for digitally-enabled travellers who plan lastminute and take several trips in a year.
Meeting desi demands
With more people choosing international holidays, tailor-made experiences that offer vegetarian meal options (for example) and easier connectivity become greatly relevant. The Indian travel ecosystem could grow its presence in popular international destinations to tap into the demands of Indians travelling abroad.
Digital differentiation
Personalisation relies on technology adoption to maximise value and excite diverse segments. Smart pricing, revenue management systems, and digitised functions could likely be critical differentiators for success.
Keeping it green with sustainable tourism
Sustainable tourism is perceived as costly. It is, however, emerging as a concept for the socially aware, younger traveller who looks at eco-friendly and inclusive holiday experiences.
Understanding the Indian traveller can help India’s travel ecosystem to evolve in sync with emerging demands and preferences, creating a vibrant tourism landscape in the years ahead.
Flip through the full How India Travels report below
