GoStops Hostel Chain Raises Funding to Expand

The second Skift India Forum is underway at The Leela Ambience in Gurugram. We're discussing the themes dominating new Indian travel market with the CEOs and industry leaders driving change in airlines, hotels, experiences, tech, and more. We'll have full coverage on Skift.com and all the highlights in tomorrow's India Report. – Skift Team

Hostel Brand GoStops Raises $4 Million

Indian hostel chain GoStops has raised INR 350 million ($4 million) in its Series A funding. The company is planning to use the funds to expand its inventory by four times: From 2,500 keys currently to 10,000 beds over the next two years. According to a statement, it will grow its presence to 100 destinations in India, up from close to 30 locations at present. 

It also aims to use the funds to strengthen its operations, improve technology, and enhance the social and experiential aspects of the properties. This is in line with Indian travelers’ growing preference for new experiences during their trips. 

Demand for Hostels in India: As young and budget-conscious Indians fuel travel, hostels are emerging as a key alternative accommodation. Pranav Dangi, founder and CEO of backpacker hostel chain The Hosteller earlier told Skift that the backpacking culture in India was also contributing to the growing popularity of hostels. 

“Hostels provide affordable accommodation as well as a sense of community and shared experiences, which resonates with today’s independent, adventure-seeking travelers,” said Dangi. Solo travelers, digital nomads, and small groups of friends are the biggest takers. “This aligns with a broader global trend where hostels cater to lifestyle choices rather than just budget needs,” he added.

The growth of this segment led backpacker chain Zostel to launch Zostel Plus, a vertical that it describes as “premium hostels with aesthetic spaces and curated experiences.” These properties typically have more space, activities, and some even include a swimming pool. 

Thomas Cook Launches Borderless Prepaid Multi-Currency Travel Card

Travel services company Thomas Cook India has launched a borderless travel card with multi-currency support for Indian travelers. The card will support 12 global currencies across 200 countries, along with complimentary international global SIM card, complimentary airport meet and greet, and free lounge access at select international airports in India. 

This has come as the spending of Indian travelers has surged significantly. “The Borderless Travel Card is our strategic response to address the needs of India’s leisure segment. The timing is perfect – at the start of India’s key travel booking season,” said Deepesh Varma, executive vice president - Foreign Exchange at Thomas Cook India.

A Skift Research earlier this year stated that India has a significant lead over other destinations in terms of anticipated travel spending in 2025. In the 2023-24 fiscal year, Indians spent over $17 billion in overseas travel spending, according to data from India’s central bank Reserve Bank of India. RBI data also showed that between October and December last year, Indians spent close to $4 billion on travel overseas. In September last year, travel services company Collinson International said that Millennials in India were spending an average of $6,031 on travel annually, more than any other generation.

IndiGo to Launch Bengaluru-Krabi Direct Flights

Budget airline IndiGo is set to commence daily direct flights between Bengaluru and Krabi in Thailand from March 30. With this, Bengaluru will become the second Indian city after Mumbai to have direct connectivity to Krabi on IndiGo’s network.

The move aims to capitalize on the tourist flow from India to Thailand. Last year, India was Thailand’s third-largest source market. A record 2.1 million Indians visited the Southeast Asian nation in 2024, nearly 30% more than 2023. The 2024 arrivals figure also surpassed the pre-pandemic high of a little less than 2 million Indian visitors. 

Ixigo Records 500% Surge in Flight Bookings During Mahakumbh

The Mahakumbh gathering led to a massive surge in travel bookings to Prayagraj, according to data shared by online travel company Ixigo. Between January 13 and February 26, flight bookings increased by 540% year-on-year on the platform. Nearby airports in Lucknow and Varanasi also witnessed a significant rise in bookings. 

Meanwhile, train bookings surged 400% year-on-year and bus bookings grew by 2000% as compared to the same period last year. The company noted an increase in young travelers. “The Mahakumbh has spotlighted the rapid rise of spiritual tourism in India, with a remarkable surge in participation from young travelers. Our data shows that Gen Z and millennials are increasingly embracing cultural and religious journeys, making experiential travel the new norm. As faith-based tourism evolves, the future of travel will be driven by seamless multimodal connectivity,” said Ixigo group CEO Aloke Bajpai. 

SpiceJet Promoter to Infuse $33 Million 

SpiceJet’s founder and promoter Ajay Singh has announced plans to infuse INR 2.9 billion ($34 million) into the airline through Spice Healthcare Private Limited. This will increase the stake of the promoter group from 29.11% currently to 33.47%, it said in a statement. 

The move is aimed to strengthen the airline’s financial position as it looks to make a recovery from its fiscal struggles. According to Singh, who also acts as the chairman and managing director of the airline, the fresh capital will be used to grow SpiceJet’s operations as travel in India witnesses a boom.