DestinationsOAG, McKinsey outline the potential of a market that could reach 90 million trips a year.

India, a golden opportunity not to be missed

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India has recovered 61% of its pre-pandemic market, representing “a much quicker recovery than most Asian countries”.
India has recovered 61% of its pre-pandemic market, representing “a much quicker recovery than most Asian countries”. Photo Credit: Adobe Stock/Danon

Aviation data analyst OAG has been taking a close look at efforts by countries in Southeast Asia to attract Chinese and Indian tourists – and indicates that while the focus of destinations in Asean will remain on visitors from China – “the golden source market all countries are aiming for” – the more visionary tourism boards across the region are continuing to lay down solid promotional groundwork in tertiary cities within India.

One example: Thailand previously launched marketing campaigns specifically for Indian consumers, travel agents, and niche businesses, among them marketing campaigns directed at Indian wedding planners and couples. Campaigns for travel agents showcased Thai culture and tourist attractions, catering to budget travellers and high-spending groups alike.

“The fact that international arrivals into the Asean region from India are nearing pre-pandemic levels is a clear indicator of its medium-term potential - and once flight capacity starts to ramp up beyond 2019 levels, as airlines plan, we could well see India joining China at the top of the table for tourism arrivals - an altogether much more robust future for the region than its previous over-reliance on the Chinese market,” OAG noted.

McKinsey & Company has also been analysing the Indian outbound market and says the country’s forecast growth in GDP per capita, accompanied by a growing propensity for international travel, could lead to “a wave of Indian travellers setting out to see the world”.

“If India follows China’s outbound travel trajectory (which it could, due to similarity in population size and per capita income trajectory), then Indian tourists could make 80 to 90 million trips a year by 2040.”

Further, McKinsey says India has already recovered 61% of its pre-pandemic market, representing “a much quicker recovery than most Asian countries”.

McKinsey is advising destinations looking to harness the full potential of the growing Indian market to consider tailoring their value propositions in alignment with one or more of the five key decision points that influence where Indian travellers choose to go.

Asking the following questions, McKinsey says, could help destinations to determine which factors align with what Indian travellers look for when planning a trip.

  1. Research: How attractive and popular is the destination with Indian tourists?
  2. Accessibility: Is it easy to obtain a travel visa?
  3. Connectivity: Are there convenient flights that connect India to the destination?
  4. Booking: Is the destination affordable for Indian travellers, and is there an adequate supply of hotels in the appropriate price range?
  5. Travel experience: What is the on-the-ground experience like for Indian tourists in terms of weather, attractions, and whether the local population is English speaking?

Outlook: Fortune favours the bold
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