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With a growing appetite for diverse experiences, authenticity and wellness, India’s tourism market has made significant strides post-pandemic. The world must recognize and meet India’s emerging priorities.
Peden Doma Bhutia
According to Mukul Sukhani, Senior Vice President, Business Development, MasterCard, the shift towards experiential travels, growing demand for premium travel options – Indians’ travel attitudes are evolving.
As per the latest data from India’s top bank , According to the Reserve Bank of India (RBI), credit card spending is set to reach a new peak of Rs 1.5 trillion in July 2023, showing a 25% year-on-year growth.
Speaking at the recent B20 summit in India, Michael Maybach, CEO of Mastercard, explained how the company has made significant investments in India, recognizing the country as a hub of digital innovation.
In his conversation with Skift, Sukhani sheds light on the changing Indian travel trends.
Here are some key points:
1: Shift in tourism source markets – from China to India
With China struggling, India has emerged as a dynamic force in the global tourism sector. According to Sukhani, the increase in outbound spending by Indian tourists has given a big boost to the global tourism industry, especially during the first six months of the year, with May and June witnessing a strong growth in overseas holiday spending.
Notably, the growth rate has increased by 30 to 40 percentage points over the previous year, indicating the resilience of India’s tourism sector even amid global challenges. (For more, read Skift’s megatrends report, India is the new China.)
2: Visa Policies: Gamechanger
While traditional hotspots such as the US, UK and Singapore remain popular among Indian travellers, there is a growing demand for travel to countries with easier visa policies.
Thailand is a notable example, Sukhani said.
“Thailand, which was once a stagnant tourist corridor, has regained its prominence due to its accessible travel policies,” Sukhani said.
In addition, the introduction of direct flights from Delhi to cities such as Azerbaijan and Georgia has increased tourist traffic to these destinations. Indian citizens only need to secure an e-Visa to enter Azerbaijan. Over 60,000 tourists from India to visit Azerbaijan in 2022.
Mukul Sukhani, Senior Vice President of Business Development at Mastercard.
3: discretionary spending flexibility
Despite risks to inflation and a potential recession, discretionary spending in India remains strong. Sukhani said leisure travel is seeing an increase, with people traveling more frequently than before the pandemic, which has removed concerns about less travel due to economic concerns. Travelers are also showing a willingness to invest in quality travel experiences.
The American Express Global Travel Trends report also pointed out that 90% of Indian travelers are pushing for travel plans centered around personal wellness, with 87% allocating more of their budget to luxury experiences rather than traditional luxury goods this year. intend to.
4: The rise of solo travel
A key trend reshaping India’s travel landscape is the rise of solo travel with a focus on enriching experiences. The emphasis on mental health has led to a rise in wellness tourism, which ranges from spa vacations to fitness-focused vacations.
“The demand for unique experiences has also fueled the popularity of travel companies promoting experiential travel, which curate experiential packages that prioritize activities over physical possessions,” he added.
5: Business Travel Operates Blended Trips
That said, the enthusiasm for leisure travel has extended to business travelers, who are increasingly mixing work trips with leisure experiences, a trend that Skift previously referred to as “The Great Merging.”
Recently, Marriott’s Regional Vice President for South Asia highlighted the increasing number of guests visiting places of stay with business trips.
6: Airline Partnership and Loyalty Programs
As airlines collaborate with financial institutions to capitalize on emerging travel trends, Mastercard has also partnered with Indian banks and carriers to launch co-branded credit cards.
Following co-branded cards from HDFC and low-cost carrier IndiGo on the Mastercard network, the launch of the Vistara card in association with IDFC First Bank reflects the airlines’ commitment to provide superior experiences.
While Sukhani acknowledged that the initiative drives customer loyalty, he also stressed on the importance of reaching critical mass for loyalty programs and co-branded cards to be successful. “You need a certain number of customers to justify the program,” he said.
Source: skift.com
