New Experiences Driving Growth in India Travel Sector

A growing preference for new experiences such as sports, entertainment, cruises, wellness, and adventure is driving the growth of the travel sector in India, according to a new report by consultancy firm EY and Indian news group The Times of India Group. However, religious tourism still continues to be among the top preferences. 

“Once considered a luxury, travel has become a source of wellbeing and a way to gather unique experiences, which may constitute shopping, activities or even culinary experiences,” the report said.

The study noted some key trends in India for 2024:

• Travelers from Tier-1 and 2 cities preferred international travel according to visa trends, while those from Tier-3 cities are more inclined to travel domestically. 
• The average length of stay has increased by one day for domestic trips and two days for international trips compared to 2022.
• Nearly 60% of the travel service providers have reported an increase in bookings as compared to 2022. 
• “Indian traveler spending continues to grow with greater willingness to invest more in travel experiences. 80% of travel service providers have noticed increased travel budgets since 2022, with a quarter observing a rise of over 20%,” it said.

The most significant budget increase has been in international travel, followed by niche trips. EY added that Indian tourists are spending on international trips approximately four times that of domestic travel. Despite this, budget hotels are more popular among Indian tourists for their outbound travel. 

Growth Drivers: According to the report, the Indian travel industry is expected to grow at 12-15% annually for the next five years. More specifically, domestic travel is likely to increase 12-13% while the rise of short-haul destinations will lead to international travel growing at 18-20%. 

“This growth is supported by an expanding middle-income population, projected to add 20 million people, alongside two million high-income earners. India's GDP growth, a robust stock market, and political stability are also key factors contributing to this growth,” the report said. 

Digital enhancements are also playing a key role in streamlining business operations. “It particularly advances niche sectors like wellness, religious, cultural and adventure tourism.”

Visa Applications in India Surpassed Pre-Covid Levels

Visa application volumes in India increased by 11% year-on-year in 2024, according to data shared by visa services company VFS Global. The visa applications last year surpassed pre-pandemic levels by 4%, indicating a recovery and further rise in the number of Indians traveling internationally. 

Canada, China, France, Germany, Italy, Japan, Netherlands, Switzerland, Saudi Arabia, the U.S., and the UK were popular destinations for Indians last year. “India continues to show a strong demand for international travel, and this robust momentum will persist in 2025,” said Yummi Talwar, chief operating officer – South Asia, VFS Global.

There was also a surge in VFS Global’s visa at your doorstep (VAYD) service, under which applicants can complete their visa process, including biometric enrolment, from their preferred location. The service increased 21% year-on-year in 2024. 

Discover The World Partners With Europe’s Nicko Cruises in India

Travel services provider Discover The World has partnered with Europe-based river cruise line Nicko Cruises to market its cruises in India. Under the agreement, Discover The World will use its presence in the Indian market to promote Nicko’s cruises in rivers such as the Danube, Rhine, and Seine.

River tourism is a growing market for domestic Indian tourists, Raj Singh, chairman of Heritage River Journeys, which operates Antara River Cruises in India, told Skift last year. “River cruising in India is a new concept now and most people either do not know about it or do not understand its intricacies as it is a combination of cruising, hospitality, and touring,” Singh told Skift. He added that though popular in Europe and Americas, this concept is in a nascent stage in India.

Singh added, “Some people from India travel to Europe for river cruising, but they are not aware of river cruises in India itself.”

Akasa Air Launches Daily Flights to Abu Dhabi 

Budget airline Akasa Air has launched daily direct flights to Abu Dhabi from Bengaluru and Ahmedabad. The flights will add to the airline’s connectivity to Abu Dhabi from Mumbai and strengthen Akasa’s presence in the United Arab Emirates. 

The expansion is in response to the “favorable response” on Akasa’s Mumbai-Abu Dhabi route, as well as the growing demand for travel to the UAE from different parts of India. 

Since its launch in August 2022, the airline has expanded its network to 23 domestic and five international destinations. Internationally, it flies to four countries: Qatar, Saudi Arabia, UAE, and Kuwait. 

Cinnamon Hotels Appoints Gaurav Arora as Director of Global Sales in India

Sri Lanka-based hotel company Cinnamon Hotels & Resorts has appointed Gaurav Arora as the Director of Global Sales for India. He will work to strengthen the company’s presence in India as India is a key source market for Cinnamon as well as Sri Lanka. 

Arora has previously worked with Shangri-La, Hilton, and Marriott International. At Cinnamon, he will focus on growing revenue from corporate, leisure, and meetings, incentives, conferences, and exhibitions (MICE) segments. 

Delhi Airport Launches New System for Airside Operations

The Delhi airport has launched the Unified Total Airside Management (UTAM) system to streamline its airside operations. Consisting of artificial intelligence (AI), machine learning (ML), internet of things (IoT), and radar systems, the new system is expected to help reduce delays, improve turnaround times, and track the speed of all airside vehicles. 

Delhi airport has also established a centralized control room to monitor and manage all activities. The system will be able to track all airside vehicles including baggage carts, fuel trucks, and maintenance vehicles in real time.