How the Indian Diaspora Is Supporting India's Inbound Travel Growth - India Report

India's travel landscape is evolving rapidly, reflecting the country's growing economic clout and the increasing confidence of its travelers. The first half of 2024 saw a significant surge in both outbound and inbound tourism, with Trevolution Group reporting 46% market growth compared to the same period last year. This uptick is not just a rebound from the pandemic but an indicator of the deeper shifts in Indian travel habits.

Trevolution reported that trans-Pacific flights, in particular, have soared well above pre-pandemic levels, driven by a combination of increased flight connectivity, a robust economic outlook, and a burgeoning middle class eager to explore the world.

The traditional leisure tourism sector remains strong, but what's particularly noteworthy is the sharp growth in the visiting friends and relatives (VFR) segment. This reflects the deep ties of the Indian diaspora, particularly the 4.4 million Indian Americans, who are increasingly making frequent trips back home.

For Trevolution Group, which sold over 54,000 airline tickets to and from India in the first half of 2024, these trends are highly encouraging. The company's 68% increase in outbound tourism sales and 37% growth in inbound tourism highlight India as a pivotal market.

While India’s travel demand continues to rise, the country's travelers are also becoming more discerning, seeking out both value and flexibility. This bodes well for companies like Trevolution.

The travel habits of Indian passengers reveal a marked shift towards greater flexibility. The demand for round-trip tickets has risen, yet there’s also a significant increase in one-way tickets, pointing to a desire for more adaptable travel plans. This is further evidenced by the growing number of last-minute bookings, as Indian travelers take advantage of more affordable and accessible international flights.

As airfares stabilize and even decrease — in the first half of 2024, airfares to India were 27% cheaper in Economy and 8.5% in Business class, with the average Economy ticket price being $894.32. — international travel is becoming increasingly accessible to a wider segment of the population.

This affordability, combined with the push to boost tourism, signals a robust outlook for the travel industry in India. The next phase of growth will likely see more Indians venturing abroad.

“India remains a key market for Trevolution Group, consistently demonstrating strong growth in air travel year after year. It was also one of the first markets to rebound to pre-pandemic levels by 2021,” said Alex Weinstein, the founder of Dyninno Group, which restructured and rebranded as the Trevolution Group in 2022. 

Oyo Raises $175 Million in Latest Funding Round

Hospitality company Oyo has raised INR 14.5 billion (approximately $175 million) in its latest funding round. However, in this round, it has also seen its valuation drop from a peak of $10 billion in 2019 to $2.4 billion in its latest funding round, Skift’s Asia Editor Peden Doma Bhutia has explained. 

With this, Oyo’s valuation has now fallen below the total capital raised, estimated to be around $3.3 billion.

Oyo will use the capital to support its continued growth and global expansion plans, according to filings.

Earlier this year, Oyo withdrew its application for an IPO, which it had filed in March 2023. A source familiar with Oyo’s plans had told Skift that the company is close to completing a refinancing and expects to pursue an IPO after that.

Air India Express Adds 6 New Routes to Domestic Network

Budget airline Air India Express has launched six new daily domestic flights in a day. The new flights are set to operate on the Chennai-Bhubaneswar, Chennai-Bagdogra, Chennai-Thiruvananthapuram, Kolkata-Varanasi, Kolkata-Guwahati, and Guwahati-Jaipur sectors.

The airline said that the Guwahati-Jaipur route is exclusive to Air India Express, with no other carrier directly connecting these two cities. 

The airline connects more than 30 domestic destinations, along with 15 international ones. It operates over 380 flights daily with a fleet of 82 aircraft. Over a span of the last 10 months, the airline has inducted 26 new Boeing 737-8 aircraft to its fleet in an effort to expand its operations. 

Radisson Signs 100-Key Park Inn by Radisson Hotel in Chennai

Radisson Hotel Group has signed a 100-room hotel under its Park Inn by Radisson brand in Tamil Nadu’s Chennai city. The hotel marks the brand’s debut in the city and is set to open in 2028. 

The hotel chain currently operates seven properties in the state of Tamil Nadu. 

Radisson is one of India’s largest international hotel operators with more than 180 hotels in operation and development.

In an earlier interview with Skift, Elie Younes, executive vice president and global chief development officer at Radisson Hotel Group said, “Our expansion plans for 2024 are ambitious, focusing not only on major metropolitan cities but also targeting Tier 2 and Tier 3 towns to cater to the growing demand in these markets.”

Goa Tourism Minister Calls for Enhanced International Connectivity

Goa tourism minister Rohan Khaunte has called for an enhancement of international connectivity to the coastal state in a meeting with Indian tourism minister Gajendra Singh Shekhawat. 

He said that increasing direct international flights and improving connections between Goa and major global cities would help the state attract more tourists. 

Khaunte earlier told Skift that he wants to expand Goa’s image beyond nightlife, beaches, and parties. The state is seeking to attract remote workers or digital nomads, for which it plans to roll out high-speed internet across its rural areas and create coworking spaces along its iconic beaches.

The two ministers also discussed Goa’s plan to adopt regenerative tourism, as well as rejuvenation of the Basilica of Bom Jesus heritage site in the state. 

Corporate Travel Startup Ziptrrip Raises $238,000 in Funding

AI-powered corporate travel and expense management startup Ziptrrip has raised INR 20 million ($238,000) in pre-seed funding. The inaugural funding has come from angel investors and industry leaders, the company said in a statement. 

Ziptrrip offers end-to-end solutions integrating travel bookings and expense management for corporates. The startup is planning to use the funding for market expansion, hiring, and product innovation. 

The startup has more than 250 corporate clients. It achieved break-even in January this year, and has been maintaining profitability since then, Ziptrrip has said.