The travel industry in India is seeing a significant shift with Millennials emerging as the key demographic driving growth in the sector. A report by payment network Collinson International revealed that Millennials in India are spending an average of $6,031 on travel annually, surpassing other generations like Gen X, Gen Z, and Boomers. This trend of increased spending on travel among Millennials bodes well for the tourism economies of popular destinations, with travel being the second-highest spend category for this generation, accounting for 34% of their annual expenditure.
Another key finding from the report is that Millennials actively seek travel benefits when choosing a credit card, with a strong preference for perks such as earning and redeeming miles, access to airport lounges, travel experiences, and travel insurance. This indicates a strong desire among Millennials to maximize their travel experiences while also prioritizing financial security and convenience. In addition, Millennials, together with Gen Z, are leading India as a source market, with a notable increase in bookings from Indian guests for destinations like Thailand, where the younger generations account for a significant percentage of bookings.
Despite their willingness to spend more on travel, Millennials in India are generally cost-conscious and value-driven. They prioritize budget considerations and are conscious of getting value for their money even as they seek unique and memorable travel experiences. More than half of young travelers use their own funds, such as income and savings, to finance their travels. They also show a preference for traveling during the off-season to reduce costs and avoid crowds, as per a report by an online visa application platform Atlys. This shift in travel behavior highlights the evolving needs and preferences of the younger generation of travelers in India.
In a move to tap into the sports hospitality market, Radisson Hotel Group has announced a strategic partnership with Bengaluru Football Club for the upcoming Indian Super League season. This partnership will see the team staying at select Radisson hotels during their matches, with exclusive offers for Radisson Rewards members. Radisson has been actively expanding its presence in the sports hospitality sector, with services tailored to cater to the needs of sports teams and their fans. The hotel group’s focus on sports hospitality aligns with the growing interest in sports-related travel experiences among travelers in India.
In a bid to enhance their distribution capabilities, low-cost carrier IndiGo has entered into a partnership with travel technology company Amadeus for New Distribution Capability (NDC) content. This partnership will enable travel sellers under Amadeus Travel Platform to access IndiGo’s NDC content, streamlining the booking process for corporate travelers and travel agencies. The adoption of NDC technology by IndiGo reflects the airline’s commitment to improving the booking experience for its customers and providing direct access to a range of products. This partnership is expected to enhance the overall customer experience and drive growth for both companies.
Online travel company Cleartrip has experienced significant growth in its bus category business, recording a 150% increase in demand. With a strong emphasis on Tier 2 cities in India, Cleartrip has identified the bus category as a key segment with high levels of repeat bookings. To capitalize on this demand, Cleartrip has launched a ‘Bus Pass’ offering, providing a cost-effective solution for frequent bus travelers. The decision to introduce a bus pass was informed by the observation that a significant number of bus travelers utilize discount coupons while making bookings, indicating a preference for value-driven travel options. This strategic move is aimed at further expanding Cleartrip’s bus category business and meeting the evolving needs of bus travelers in the Indian market.
In a strategic acquisition, Indian visa and consular services company BLS International has agreed to acquire 100% stake in Dubai-based advisory firm Citizenship Invest, specializing in fast-track investor programs for residency and citizenship across multiple countries. This acquisition, valued at $31 million, expands BLS International’s portfolio to include long-term visa solutions such as residency and citizenship. By diversifying its services, BLS International aims to position itself as a comprehensive destination for individuals seeking bespoke visa and citizenship solutions across a wide range of countries. This move reflects the company’s commitment to expanding its service offerings and catering to the evolving needs of its clientele.
