India’s outbound travel market is on a remarkable rise
A major factor driving this growth is the surge in first-time travellers exploring global destinations
Destinations are tailoring their offerings to attract high-value Indian tourists
India’s outbound travel market is on a remarkable rise. As disposable incomes rise and more Indians venture beyond their borders, international tourism boards, airlines, and hospitality brands are adjusting strategies to tap into this dynamic traveller segment. A major factor driving this growth is the surge in first-time travellers exploring global destinations.
Mr. Sanjiv Agarwal, Founder and CEO of Fairfest Media, organisers of OTM, notes, “With industry projections estimating it could reach USD 55.4 billion by 2034. In 2023 alone, 28.2 million Indians travelled abroad, spending USD 31.7 billion—over half of which was dedicated to travel. This shift highlights how travel is evolving from a luxury to a lifestyle priority for Indian consumers.
Global hospitality giants are making significant strides to cater to Indian travellers. Chains like Accor, Hilton, and IHG are expanding beyond major metro cities to Tier 2 and Tier 3 cities, where demand for quality accommodations is booming. While India’s domestic travel market is strong, the potential of outbound travel is equally compelling. Accor’s CEO, Sébastien Bazin, predicts that India’s 40 million outbound travellers could double soon, particularly benefiting popular regions like Southeast Asia and the Middle East.
Indian travellers are not shy about spending, with the average Indian splurging approximately USD 1,200 per international trip—a figure that often surpasses travellers from more mature markets. Airlines are also stepping up by increasing both domestic and international capacities to meet growing demand.
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