India’s travel market is on the brink of significant expansion, fueled by increasing passport ownership and substantial investments in personalized, immersive travel experiences.
Projected to become the world’s third-largest economy within the next three to four years, India currently ranks fifth, with approximately 80 million passport holders eager to explore new destinations.
Puneet Chhatwal, managing director and CEO of the Indian Hotels Company, highlighted this trend at the 24th WTTC Global Summit in Perth, stating, “The post-COVID demand for travel has surged, especially among younger travelers. Unlike previous generations that focused on saving for the future, today’s youth are more inclined to spend and embrace life in the present.”
Chhatwal pointed to the recent excitement surrounding Coldplay’s upcoming concert in India as a reflection of this mindset. The event’s high-priced tickets sold out within seconds, crashing the ticketing website and prompting the band to add a second concert due to overwhelming demand.
According to Chhatwal, India is emerging as one of Asia’s largest source markets for outbound travel. While Indian travelers often prefer destinations close to home, they are increasingly visiting the United States. He noted, “India has become the second-largest international source market for travel to the U.S., achieving nearly one million arrivals from January to May this year. This positions India just behind the UK, reflecting a 37% increase in Indian visitors compared to 2023.”
India’s outbound tourism is projected to reach $18 billion in 2024, with a compound annual growth rate (CAGR) of 11%, potentially hitting $55 billion over the next decade.
Chhatwal emphasized that Indian travel preferences are highly personalized, favoring immersive experiences such as cultural and culinary tours, as well as adventure travel. There is a growing interest in heritage, local culture, ecotourism, and wellness tourism, which has seen a significant uptick since the pandemic. “India, known for its yoga, Ayurveda, and holistic wellness, aligns perfectly with these global trends,” he added.
This burgeoning travel market is underpinned by India’s economic growth, which has seen its contribution to global GDP more than double from 3% at independence in 1947 to 7% today. The country’s literacy rate has also dramatically improved, rising from 23% to over 85% during the same period. Furthermore, India is on track to double its number of airports from the current 150 to 300 over the next few decades.
Additionally, India’s domestic tourism sector is benefiting from increased disposable income, leading to a rise in shorter and more frequent trips among its citizens.
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