6 minute read
Two things make the travel market in India worth investigating: a thriving economy and high disposable incomes.
India’s travel market is widely considered to be one of the fastest-growing globally. Both domestic and outbound, the market is benefiting from an expanding middle-class population with high disposable income, coupled with a booming economy. Younger, affluent professionals are eager to explore destinations worldwide, which is excellent news for a travel agent in the know.
In this blog, we’ll explore the India travel market in-depth, focusing on key growth areas, government policies, and technology, as well as the future outlook for a travel business operating in the India market.
Key Travel Trends in Indian Tourism
The worldwide travel industry is continuing to grow, post-pandemic, and India is one of the countries driving this surge. In fact, the Indian travel market is poised to reshape global tourism, outpacing traditional drivers like the U.S., U.K., and Germany. But where exactly is this growth coming from?
- Increasing Disposable Income – India’s economy has been consistently growing for many years, now making it the fourth largest in the world. This has produced a rise in working professionals with a high disposable income.
- Digital Influence – the influence of social media brings hefty rewards in the travel industry, and India is no different. Travel content and influencer marketing are driving destination choices and experiential travel.
- Improved Connectivity – global and domestic flight paths have increased significantly in India, through international partnerships and agreements. And major transit hubs like Delhi and Mumbai have become more efficient, allowing faster connections.
- Government Policies – through initiatives like the e-Tourist Visa, the Indian government have made travel easier for international tourists. This has worked well alongside investment in infrastructure and marketing campaigns encouraging travelers to visit.
Experiential travel is the segment most benefiting from this favorable travel environment in India.
- Experiential Travel is top of the list when it comes to emerging travel markets in India, with Indian travelers keen to experience unique travel, focusing on thrill, nature and cultural discovery.
- Niche Travel
- Medical Tourism is experiencing a boost as Indians seek high-end treatments abroad.
- Educational Travel driven by higher numbers of overseas students.
- Religious Tourism, including travel to pilgrimage sites and spiritual locations.
- Solo Travel is becoming the new norm, especially among Millennials and Gen-Z, who are venturing alone to fulfil cultural or spiritual experiences.
- Sports Tourism is a fast-growing market in India, fueled by the popularity of experiential travel and the government’s new interest in hosting international sports events.
Domestic Travel
Indians are exploring more than ever within the boundaries of their own country. Domestic travel has always exceeded international travel, but demand is increasing even more. Young demographics are focused on discovering the diverse culture and geography of their own land. This is helped by travel becoming more affordable for a large proportion of the population. Many are increasing their spending on leisure trips, historical experiences, cultural discoveries, and more diverse trips. India is blessed with an incredible range of travel within its borders, from beaches to mountains to significant historical sites, and affluent Indians are eager to experience all of it.
Inbound Tourism
Although so far India isn’t a high-ranking destination for international visitors, it is undoubtedly one to watch. Each year, the country attracts more and more tourists looking to experience its diverse landscapes, rich culture and colorful cuisine. From the dramatic panorama of the Himalayas to the tea gardens of Darjeeling, visitors are realizing there is just too much to see on one visit. The government is making it easier for international tourists to enter the country, which is driving new and repeat bookings to this vast, diverse nation.
Travel Tech
Travel technology is massively fueling the travel landscape in India. India is a mobile-first market; most travel bookings are made on the go using mobile devices. Customers research, compare and even preview destinations online as they look for the ideal getaway. They demand seamless search and booking facilities, secure payments, personalized itineraries, competitive pricing, sustainable travel, and more…
To achieve all of this, businesses selling travel in India need to invest in cutting-edge travel technology to compete effectively.
- Strong Website Design – reach your market, drive brand identity, links to social media.
- Powerful Search and Booking Engine – user-friendly, access to complete travel inventory and GDS integration, real-time data.
- API Technology – connect to the vast network of suppliers, including airlines, hotels, cruise lines, and ancillaries, all in real time.
- Dynamic Tour Packaging – create, manage and sell diverse travel packages efficiently.
- Payment and Administration Technology – manage payments, bookings and back-office demands.
- AI-Driven Travel – deliver personalized travel itineraries for improved customer satisfaction.
India is projected to be among the top three global tourism markets by 2030.
Outlook
India’s tourism and hospitality sector is poised for substantial growth in the coming years. Domestic travel is pushing the surge, with domestic visitors expected to double by 2030, reaching an astonishing 5.2 billion! Better infrastructure and travel connectivity, coupled with high disposable income from a large middle-class population, are rapidly driving demand. In fact, at its current speed, demand is overtaking supply, particularly in the luxury travel sector, meaning strong growth is projected to continue well into the future. The Indian travel market is a high-growth, high-potential industry with significant opportunities for a travel business with a sustainable, digital approach to selling.
As a travel business, being part of the Indian travel market means you can be part of this quickly evolving, profitable industry.
Frequently Asked Questions
How is AI being integrated into Indian travel experiences?
Personalized customer experiences, AI-powered chatbots, predictive analytics for dynamic pricing, and generative AI for dynamic content and itinerary planning are helping to drive the Indian travel market by improving customer experience.
How can an Online Travel Agent (OTA) enter the travel market in India?
Build a strong online presence in the Indian market with a user-friendly website and powerful API technology to access the dynamic travel inventory. Establish strong relationships with airlines, hotels and tour operators. Define your niche, utilize social media and consider partnering with a GSA (General Sales Agent) for local, on-the-ground representation.
Do you need a license to be an online travel agent in India?
Yes. You must register your business, obtain a license from the relevant state tourism department, and obtain GST registration. Membership of travel bodies like IATA and TAFI will also help establish your business and connect with customers and suppliers.
