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Travel
18 October 2024

India's Travel Industry Roars Back To Life

Domestic tourism experiences strong growth as wanderlust surges among Indian travelers

After being cooped up for so long, travelers are eager to explore the world again. For many, the pandemic was not just about staying at home; it was also about rethinking priorities and the value of experiences. Now, with the travel restrictions lifting, the post-pandemic travel industry is witnessing a significant rebound, propelled by changing sentiments among travelers and new travel trends.

For years, global travel came to a grinding halt as countries enforced strict lockdowns and border closures to combat COVID-19. Now, as travelers are beginning to emerge from their pandemic hibernations, they're witnessing their long-forgotten wanderlust reawaken. This renewed interest is particularly palpable among Indians, who have embraced traveling more than ever.

Take, for example, Mumbai resident Ramesh Rajguru. Eleven years after starting his career, Ramesh took his first family vacation to Kerala with his wife, children, and mother—the trip taking place just two years after the pandemic began and one year after lockdowns ended. "When we were stuck at home, I realized I hadn’t taken a family vacation, except for brief trips to temples or the beach," he reflected. And he didn’t stop there. Following the Kerala trip, he and his family have made travel plans to explore West Bengal and Rajasthan, showing how the pandemic has shifted priorities for many families.

According to the World Travel & Tourism Council (WTTC), domestic tourism in India has rebounded impressively since the lifting of pandemic-related restrictions. Records showed the sector’s contribution to India’s GDP exceeded Rs 19.13 trillion by 2023, representing nearly 10% growth compared to pre-pandemic levels. Predictions indicate even more growth is on the horizon, with expectations of contributions nearing Rs 21.15 trillion by 2024, reflecting not just resilience but also renewed enthusiasm among travelers.

This upsurge isn’t confined to the upper class either. Chiranjit Das, of Kolkata-based travel startup Travel Amor, recounts how even those from lower-middle-class backgrounds have started to venture out for vacations. “More inquiries are coming from school teachers and clerks,” he mentions. Even individuals who once avoided traveling now find themselves eager to experience new places.

Piya Bose, founder of the Girls On The Go Travel Club, highlights the expansive demographic of travelers who are stepping out. “Anyone with some form of income is now seeking travel opportunities,” she notes. She believes this trend could extend for at least five more years, spurred by the pandemic's long-lasting impact on people’s psyche, where exploring new places became not only desirable but necessary for mental health.

The reemergence of travel hasn’t only been fueled by the desire to explore but also influenced significantly by social media. Platforms like Instagram and TikTok are saturated with photos and travel stories, igniting wanderlust among users. “Young people are now eyeing destinations like Bhutan, Indonesia, and Malaysia,” says Das. This has led many to shy away from the once-favored spots like Thailand, which now face increasing competition from lesser-known destinations.

Governments have also played their part by simplifying travel regulations. Thanks to diplomatic efforts, Indian travelers can now enjoy visa-free options to numerous beautiful countries, including Fiji, Bhutan, and Kenya, enhancing their travel choices. Domestically, the improvement of transport infrastructure has made exploring previously less accessible regions more attractive—new airports and enhanced roads have opened doors to places once considered far-off.

Interestingly, the rise of travel occurs even as inflation rates have surged due to the recent geopolitical turmoil. Many individuals are feeling the pinch and tightening their spending on clothing and dining out, yet when it involves travel, they seem less inclined to cut back. Hotels and resorts have reported remarkable growth, all thanks to heightened demand. Data from the ICRA rating agency indicates the average room rate climbed to Rs 7,200 per night compared to Rs 6,600 just three years ago. It’s clear: Indians are ready to explore and spend on accommodation.

ICRA’s insights reveal occupancy rates have also seen healthy returns, ranging between 70-72%—approaching levels seen pre-global financial crisis. This data shows potential for the rates to continue climbing, projected to exceed the Rs 8,000 mark by 2025-2026.

What's new and exciting for travelers is the emergence of countless options as well. Many individuals are opting for alternative accommodation, such as homestays, and local vacation rentals powered by homeowner hosts. This surge stems from the shift toward customization and personalized experiences, creating avenues for those seeking unique travel options. "New-age travelers are leaping toward these opportunities," says Bose, highlighting the changing dynamics of travel.

All these trends suggest one thing: the thirst for exploration has become embedded within the fabric of modern Indian society. Instead of settling for the ordinary, travelers are now embracing the extraordinary, eager to discover the beauty their world has to offer.

Overall, as the post-pandemic world opens up, the travel industry presents not just rebounds but transformative changes. Adjusting to the new norms of traveling, to social media's influential pushes, and to government backing, Indian travelers are on the move with more determination than ever.

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