India is increasingly important in tourism – on the international and domestic market

India is having a huge impact on global travel business - both as a rapidly growing foreign market and an up-and-coming hotspot for international visitors. Outbound trips are expected to increase fivefold by 2040, and inbound tourism in the luxury, cultural heritage and wellness markets is booming. With its high acceptance of digital applications, India is also driving rapid digitalisation in the travel market.

India is one of the fastest growing foreign markets for tourism. "1.4 billion people are 1.4 billion reasons to keep India firmly in your travel sights," enthused data specialist Yogeesh Chandra, Chief Strategy Officer at RateGain, a global provider of SaaS solutions for the travel and hospitality industry. His figures show that Indians are very eager travellers, keen to explore international destinations after considerable travel restrictions in the past.

Spending by Indian travellers set to rise to 410 billion US dollars per year by 2030

Surveys show that travel spending in India will increase from USD 150 billion in the 2019 (pre-pandemic) to USD 410 billion in 2030. India's tourists are increasingly demanding and more willing to experiment. "They expect authentic experiences, are community-oriented rather than seeking individual experiences, and are inspired by social media when making travel decisions," explained Raj Rishi Singh, Chief Marketing & Business Officer at MakeMyTrip, one of India's leading online travel companies. "They want to go to the Oktoberfest or see the Northern Lights," said Raj Rishi Singh. The growing budgets of the Indian middle classes mean that more and more people are able to travel.

India’s high acceptance of digital applications also means that digitalisation in its travel market is progressing faster than in the customer markets of other countries. Many Indian travel companies offer mobile booking apps, which are very popular, said Yogeesh Chandra.

Domestic tourism is also booming

In domestic tourism, a preference for experiences tops the list, with more travellers seeking luxury, adventure, wellness, sustainable accommodation and cultural attractions. "We have to be careful not to destroy destinations with overtourism and pollution," warned Raj Rishi Singh. "Visas and an infrastructure that has not caught up yet are the biggest challenges for incoming tourism," added Yogeesh Chandra.