The travel market in India has been on the rise in recent years. In April 2024, the travel website MakeMyTrip published a report on the preferences of Indian tourists planning their next adventures, both domestically and internationally. Drawing data from over 100 million active users, the agency's inaugural "India Travel Trends Report" revealed a 25 per cent increase in the number of people taking more than three trips per year in 2023 compared to 2019. According to reports, summer travel this year went up by 40 per cent. According to a new McKinsey report released on Monday, there's even more reason to be optimistic about India's travel industry. The report indicates that the annual growth in travel spending in the country is projected to reach approximately 9 per cent, driven by a new generation of travellers benefiting from India's robust GDP growth of over 6 per cent per year.
The report highlights that India currently ranks as the world's sixth-largest domestic travel market based on spending. Projections indicate that by 2030, India is poised to rise to the fourth position, surpassing both Mexico and Japan. This remarkable growth is attributed to the booming middle class, resulting in an annual increase in travel expenditure of approximately 9 per cent. Furthermore, the report forecasts a doubling of domestic aviation passenger volume in India by 2030, propelled in part by a government-subsidised initiative aimed at enhancing connectivity to smaller domestic airports.
According to the McKinsey report, the surge in travel can be attributed to a multitude of factors shaped by the preferences and behaviours of Gen Z travellers. Preferring experiences over material possessions, they direct their expenditures towards travel and exploration. Given that Gen Z individuals are younger and generally face lower risk, they are eager to venture out and make up for missed travel opportunities post the pandemic and lockdown era.
The report indicates that a large number of travellers are interested in Asia. Currently, about 60 per cent of foreign visits in Asia are from other countries within the region. This number is predicted to increase to 64 per cent by 2030. There are several factors contributing to this trend, including the reduction in visa requirements and the growth of affordable regional airline networks, making travel within Asia more accessible.