India Outbound Travel Sees Rapid Growth, Focusing on Southeast Asia and Emerging Markets
The recovery of Asia’s travel industry has been predominantly associated with the return of Chinese tourists. However, recent data indicates that Indian travelers are driving the surge in international trips, outpacing other markets worldwide, according to Agoda’s CEO, Omri Morgenshtern, in an interview with CNBC Travel.
The travel searches of Indian tourists witnessed a staggering increase of 225%, compared to a 30% to 60% rise in searches from most other Asia-Pacific countries since 2019. This remarkable growth in India’s outbound travel can be attributed to the country’s economic progress, as stated by Lalitya Dhavala, a valuations consultant at travel analytics firm Cirium.
Thailand, Singapore, and Indonesia have emerged as the top choices for Indian travelers. Agoda’s data from January 2019 to mid-May this year reveals a surge of 256% in hotel and flight searches to Indonesia, 215% to Singapore, and 147% to Thailand. Surprisingly, Vietnam has gained significant popularity among Indian travelers, with a staggering 390% increase in searches since 2019.
Improved connectivity between India and Vietnam, owing to the introduction of direct flights, has contributed to the rising interest in the country. Vishal Suri, managing director of SOTC Travel, highlighted Vietnam’s proximity to India and its location within the ASEAN region, making it an attractive four- to five-hour flight destination.
While Southeast Asian destinations continue to attract Indian tourists, Agoda’s data suggests a decline in interest for East Asian countries such as Japan and Taiwan. However, searches for South Korea have witnessed an upward trend since the pre-pandemic period. Morgenshtern predicts a resurgence of interest in East Asian destinations soon. He also mentioned that the United States and the United Kingdom are popular but expensive markets for Indian travelers.
Contrary to common perceptions about Indian travelers’ spending power, they exhibit robust economic capabilities while traveling abroad. Agoda’s data reveals that Indian tourists spent approximately 30% more on accommodations for international trips post-pandemic compared to pre-pandemic levels, surpassing even the average spending of Chinese tourists by 20%. In Thailand, both Chinese and Indian tourists spend comparable amounts on hotels.
Indian travelers tend to prefer four- or five-star accommodations and well-known hotel brands. Additionally, they are increasingly inclined to explore authentic dining experiences rather than opting for fast-food outlets, according to Suri.
Although the surge in international travel primarily caters to wealthier Indian travelers, Dhavala suggests that the middle-class segment is focusing on domestic travel, with low-cost airlines in India well-positioned to meet this demand.