Between the first six months of 2024 (6M CY24), global travel saw a 14% increase year over year (YoY) from the previous year, marking a significant rise of 4% in travel within the country, as detailed in a report by Nuvama regarding the travel patterns of high-spending international outbound travelers.
Traveling abroad has turned into a favored option for numerous Indians, seeing a significant increase in 2024. This increase in 6M CY24 surpasses the pre-COVID growth rate of 12 percent for the same timeframe in 2019, with each month breaking new monthly records. Although the total increase in the number of passengers traveling compared to before the pandemic is relatively small, the growing travel budgets and the choice for business-class flights suggest a move towards more luxurious travel experiences.
A study conducted by Makemytrip (MMT) indicates that half of all overseas journeys are now taken for vacation purposes, as more people discover new places and focus on relaxation. Moreover, the amount of individuals embarking on more than one overseas journey has seen a notable rise. This study notes a doubling of travelers taking two or more trips, alongside a significant spike of those opting for three or more trips.
Seventy-two percent of city dwellers in India are making plans for the holiday season, with journeys to nearby places being the most popular choice, with 72% favoring them. Famous spots such as Goa (35%), Kerala (26%), and Himachal Pradesh (24%) are among the favorites. At the same time, 9% are looking forward to trips abroad, with the Middle East being the top pick at 46%, followed by Europe (35%) and Southeast Asia (34%). Also, 19% are thinking about combining trips within the country and outside.
This expansion shows a robust appetite for products at the upper segment of the market, showing a strong liking for corporate travel and luxury services. It’s also noteworthy that last-minute travel bookings make up approximately 50 percent of global journeys, suggesting an increasing pattern of spur-of-the-moment travel choices.
Trip spots such as Oman, the United Arab Emirates, Qatar, Nepal, and Azerbaijan have gained favor as places to fly to at the eleventh hour, whereas vacations to Europe and Canada are typically organized months ahead. This trend towards unpredictability is also seen in trips taken for fun within the country, suggesting there might be a comeback in interest for major tourist spots in India.
The increasing focus on city nightlife as a main reason for travel suggests an age group, especially those traveling solo or with no young or old friends. Delhi and Mumbai continue to be the leading choices for international trips because of their great connection.
Nonetheless, the growing allotment of funds for travel and the uptick in business-class travel activities indicate a robust rebound in the industry. Moreover, the rates of people staying in hotels have improved due to the increase in international travel for leisure purposes, experiencing a 24 percent increase in the number of nights booked by vacationers.