While the world awaits the return of the Chinese travellers with bated breath, India’s massive outbound travel market has swiftly risen to reshape international travel landscape with its fast growth rate and strong post-pandemic recovery.
Boosted by rising economic prosperity and a fast-growing economy, Madhavan Menon, executive chairman of Thomas Cook India, believes that Indians' post-pandemic interest in travel will be sustained
“The magnitude that the Indian travel market has come back and sustained caught us all by surprise,” said Madhavan Menon, executive chairman of Thomas Cook India, referring to the post-pandemic travel boom. “Despite all the constraints – high airfares and hotel rates – people just want to travel.”
Propped up by a burgeoning middle class, predominantly young, tech-savvy, and eager for new experiences, Indians are flocking to international destinations in droves. According to global management consultancy McKinsey, India’s outbound travel market is projected to grow from 13 million trips in 2022 to a staggering 80 million by 2024.
This travel surge is driven by changing consumer norms of India’s expanding middle class.
Many of these people are educated professionals, and they’re willing to travel and spend,” Menon noted. “Just five to ten years ago, Indians had aversion to taking loans to buy consumer durable goods or services, but now it’s becoming fashionable among the younger generation to pay monthly instalments for a TV or a holiday.”
Where Indian globetrotters are going
Frequent overseas travel in shorter bursts are becoming a norm among Indians, with destinations in Asia and the Middle East among the top favourites.
“From the leisure travel standpoint, Malaysia, Vietnam, Thailand and the UAE are now regarded as shorthaul destinations and Indian travellers don’t hesitate to spend a long weekend in these countries. In the past, these were viewed as destinations where travellers would spend a week in.”
Regional airlines like Vistara and Vietjet are also driving Indian travel to Asia, improving connectivity with India by increasing flight frequency and mounting new routes to cities in the subcontinent. In many cases, said Menon, domestic fares are higher than some of these shorthaul destinations, further fuelling regional travel.
Waking up to cruises and services
Indian travellers are increasingly choosing cruises as a travel option. Photo Credit: Adobe Stock/VisualProduction
Notably, cruising has swiftly arisen since the launch of domestic cruise line in 2021, and international operators like Costa Cruises has since launched domestic sailings in India since November 2023.
“I anticipate that over the next couple of years Indians will now start traveling into Southeast Asia, Middle East and Africa on cruise ships. Outbound cruises out of India, rather than just the coastal part of India, is going to become the norm. India becomes a source market and not just a destination for causes.”
But perhaps what is music to the travel executive’s ear is the growing popularity of travel agent service among the younger clientele.
“The pandemic brought a lot of changes; the average age of our customers, for example, dropped by nearly 10 years. A segment of the market has suddenly appeared on the horizon and is now buying products from us. There used to be a group travel market, but now individual customers have suddenly started appearing on the horizon.
Looking ahead, Menon predicts a surge in customised travel offerings, driven by the evolving preferences of Indian travellers. Group travel will grow but not at the same rate, whereas customised travel will grow significantly.