India’s young population, with over 65% aged below 35, presents a large potential traveler base with increasing spending power. The Gen Z and Millennials in India prefer to travel during the off-peak season to avoid crowds and reduce costs. They are also attending international sports events, exploring cultural hotspots, and going on solo adventures as part of their travels. These preferences of younger travelers are crucial as they drive major trends in the travel industry, according to Atlys CEO Mohak Nahta. The younger generation in India is interested in destinations like the UAE, Vietnam, Egypt, Azerbaijan, and Oman, with Maharashtra, Delhi, and Uttar Pradesh driving outbound travel.
Consulting firm McKinsey and Company has projected that India will become the fourth-largest domestic travel market in terms of spending by 2030, currently ranking sixth. Skyscanner reported that over 81% of Indian Gen Zs start planning their first international trips as soon as they secure a job or receive their first paycheck. Budget is the most important consideration for young travelers, with over half of them using their own money, including income and personal savings, for their trips. Additionally, around 20% of young Indian travelers are using schemes like buy-now-pay-later when booking their trips. These factors indicate the changing travel preferences and behaviors of the younger generation in India, with a focus on affordability and independence.
South Africa’s department of home affairs has announced a new preferred visa system aimed at attracting Chinese and Indian travelers. The Trusted Tour Operator Scheme, set to be implemented in January next year, will cut down red tape in the visa process for Indian and Chinese nationals. South African Tourism has partnered with Ethiopian Airlines to offer affordable air travel to the country as part of a new campaign, providing low airfare on Ethiopian Airlines routes from various Indian cities to Cape Town and Johannesburg. This move is expected to boost tourism from India and China to South Africa, facilitating easier travel arrangements for tourists.
Thomas Cook India and SOTC are observing a growing trend of festival tourism, with Indians increasingly opting to travel with family for fun celebrations during festivals. The companies have launched festive tours for Durga Puja and Diwali to cater to this trend. Indians are now choosing longer stays for festival vacations, with an increase in stays from three days to 6-15 days. Thomas Cook India also noted a 10-15% year-on-year increase in spending appetite during festival vacations. Apart from traditional destinations like Kashmir, Himachal Pradesh, Dubai, and Abu Dhabi, emerging locations such as Azerbaijan, Uzbekistan, Kazakhstan, Vietnam, Cambodia, and Georgia are becoming preferred choices for festival vacations among Indians.
Accor has signed a Pullman hotel in Varanasi, set to open in January 2029, following the signing of a Pullman in Amritsar in 2027. The hotel chain currently operates 64 properties in India and has a developmental pipeline of 30 hotels. Accor sees potential in the expanding middle class in India, with CEO Sébastien Bazin highlighting the increase in the emerging middle-class population, particularly in India. The partnership between The Leela Palaces, Hotels and Resorts and luxury lifestyle management company RedBeryl will allow RedBeryl members access to the Leela Discovery membership, providing immersive travel experiences for luxury travelers. The alliance will involve joint marketing campaigns and exclusive events to showcase the features of the partnership.
