State of Travel 2024: New Growth Phase, India’s Rise, Upping Tech Spend
Skift Take
Key Points
- The travel industry is experiencing a real growth phase, moving beyond post-pandemic recovery with a 9% year-over-year growth.
- India is becoming a significant player in the global travel market, with its outbound travel growing due to rising incomes and improved connectivity.
- Tech investment in the travel sector is set to increase by 14% in 2024, with airports, corporate travel managers, and hotels leading the way.
Summary
In 2024, the travel industry has entered a new growth phase, surpassing post-pandemic recovery levels and achieving a 9% year-over-year increase. India is emerging as a prominent player in the global travel market, driven by a growing population and increased disposable income, contributing to a surge in outbound travel. Additionally, the travel sector is poised for significant technological transformation, with a 14% rise in tech investment expected, particularly in airports, corporate travel management, and hotels, aiming to enhance traveler experiences.
2024 marks a new era for the travel industry beyond the depths of Covid-19 and the volatility of the post-pandemic world. Skift Research’s State of Travel 2024 brings you 350+ insights into the current state of travel, consumer behavior, and sector-specific trends.
Here are 3 charts that highlight some of the travel trends we have observed this year.
Beyond Recovery: Global Travel Is in a Real Growth Phase
Skift Research’s Travel Health Index has been monitoring the travel industry’s performance since the pandemic, looking at recovery compared to pre-pandemic levels. In 2024, the industry has finally emerged from the aftermath of the pandemic and is experiencing real growth.
To reflect this, beginning in 2024, we have moved past the 2019 benchmark to start looking at travel growth year-on-year. The chart below from the State of Travel report, updated to include the most recent Travel Health Index figures, shows that the global travel average grew 9% above the same time last year.
This shows that the travel industry’s double-digit growth surge, fueled by the pent-up demand post-pandemic, has now subsided. The industry has transitioned to a more moderate and sustainable year-over-year pace.
Note: The Travel Health Index has been updated to the most recent available data.
India’s Rising Influence in the Global Travel Market
As India’s population grows and gets wealthier, the country is gaining prominence in the global travel market. Outbound travel has taken off, boosted by rising disposable incomes and Indians increasingly able to afford international travel.
India has a rapidly growing pool of first-time tourists. In the first half of 2024, 15 million Indians traveled to international destinations, which is a 14% year-on-year increase and a 12% increase compared to 2019. By 2027, India is projected to become the world’s 5th largest outbound travel market.
Several factors are driving this surge:
- Population: India surpassed China in 2022 to become the most populous country in the world.
- Favorable Demographics: The country has a young population with median age 28.
- Rising Personal Income: India’s growing middle class now has the financial means to explore international destinations.
- Social Media Influence: Social media platforms such as Instagram, for example, inspire Indians to travel and share their experiences.
- Influence of Movies and Celebrities: Indians are influenced by movies and celebrities. They want to visit destinations where their favorite movies or shows are shot at or destinations promoted by their favorite celebrities.
- Improved Connectivity: Enhanced air connectivity and relaxed visa policies have made international travel more accessible.
- A Shift in Priorities: Travel has become a priority for many Indians, especially through the pandemic. They want new experiences and exploring different cultures and do not mind spending on the same.
Digital Transformation in Travel to Pick Up Pace in 2024
There is a strong appetite for tech investment in the travel sector in 2024. The pace of travel industry transformation is set to accelerate with an average 14% increase in technology investment planned for 2024. 91% of travel companies expect ‘moderate to aggressive’ increases in tech investment in 2024.
The chart below shows the double-digit growth expected by the different travel sectors in tech spending this year. This surge reflects a commitment to enhancing traveler experiences across the entire travel ecosystem. Airports are leading the way, followed by corporate travel managers and hotels.
Stay Ahead of the Trends with Skift’s State of Travel 2024 Report
These are just a few of the trends covered in Skift’s State of Travel 2024 report. Download the State of Travel 2024 report for free today.
Up Next
The State of Corporate Travel and Expense 2025
U.S. Hotels May Have Hit Occupancy Ceiling in 2024
What Indian Travelers Are Looking for in 2025 — India Report
Posadas, Mexico’s Largest Hotel Group, Eyes Jamaica and Aruba
