An exponentially middle class in India is driving a prominent increase in outbound tourism, reshaping the travel landscape across Asia.
Spots from Hong Kong to Central Asia are witnessing a spike in interest from Indian travellers, fuelled by improved connectivity and affordable travel packages.
As per a recent report by India's leading online travel company, the number of Indian residents who took two or more trips in a year increased by 32 per cent from June 2023 to May 2024; the surge indicates a growing appetite for international trade among the Indian population. This trend is fueling growth in international destinations and benefiting domestic hotel chains like the Indian Hotels Company Ltd. IHCL's diverse portfolio of hotels like the Indian Hotels Company Limited.
IHCL's diverse portfolio of hotels, ranging from luxury properties to mid-scale options, has been instrumental in catering to the varied needs of Indian travellers. Destinations such as Almaty, Kazakhstan, Baku, and Azerbaijan have seen a meteoric rise in online search interest, with annual growth rates of 527 per cent and 385 per cent, respectively. This suggests a growing desire for off-the-beaten-path experiences.
Luxury travel has also gained traction among Indian travellers. Hong Kong has become a popular destination for premium travellers, with online searches surging by 131 per cent annually. The city's allure lies in its reputation as a glamorous and multifaceted international destination that provides a wide range of experiences. The report further revealed that leisure travel accounts for over half of all Indian international trips, followed by visiting friends and relatives.
International travel search volumes remained consistent across all seasons, with December being the most active month. The UAE, Thailand and the United States emerged as the top three countries of interest for Indian travellers, followed by Singapore and Indonesia. Mayur Patel, head of Asia at travel data provider OAG, attributed the growth in Indian outbound tourism to a growing middle class, affordable international packages, improved flight connectivity and more accessible visa procedures. He estimated that the number of Indians travelling overseas last year rose by 15 to 20 per cent compared to pre-pandemic levels. With the Indian middle class projected to expand significantly in the coming years, the base of potential outbound tourists is expected to grow prominently.
Mayur Patel, head of Asia at travel data provider OAG, attributed the growth in Indian outbound tourism to a combination of factors like a growing middle class, affordable international packages, improved flight connectivity and more accessible visa procedures. He said the number of Indians travelling overseas last year grew by 15 to 20 per cent compared to pre-pandemic levels. With the Indian middle class projected to expand prominently in the coming years, the base of potential outbound tourists is expected to grow. Millennials and Gen Z in India also break travel conventions, opting for independent travel rather than organized tours. This trend will likely drive a rise in solo backpacking and sustainable travel. The growth of Indian outbound tourism is expected to boost prospects for the Asian tourism industry, especially as more visitors from China seek domestic destinations. Countries in Southeast Asia, Northeast Asia, the Middle East, and Central Asia are actively marketing themselves to Indian tourists and negotiating to increase flight connectivity. Central Asian nations such as Kazakhstan and Azerbaijan have successfully capitalized on the trend by promoting themselves as compelling destinations for tourists seeking new experiences.
Indian tourists can now travel visa-free to Kazakhstan for up to 14 days. The report also highlighted a preference for premium hotel stays among Indian travellers, with over half of the total bookings in 2023 made for destinations with tariffs up to USD 84 per day. South Asian and Southeast Asian destinations such as Pokara, Pattaya, and Kuala Lumpur remain popular budget-friendly stay options.
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