IndiGo, India’s largest airline, is making a strategic move by introducing a business class on the high-demand Delhi-Mumbai route to meet the growing demand for luxury and premium travel. This marks a significant shift for the airline, traditionally known for its budget offerings, as Indians are increasingly willing to spend on luxury experiences. The move comes at a time when the luxury market in India is projected to reach INR 822 billion ($9.8 billion) by 2027, driven by rising disposable income and a growing middle class eager to enjoy high-end experiences, including premium air travel.
The timing of the launch of the new business class cabin by IndiGo couldn’t be better, as rising disposable income and aspirations among flyers in India are creating a critical mass of travelers willing to pay a premium for priority services, comfortable seats, and gourmet meals. This trend is also seen in Tier-2 and Tier-3 cities, where consumers are increasingly opting for higher-value products and services, aligning with broader trends in India’s travel and tourism sector. The World Travel & Tourism Council predicts that India will become the world’s fastest-growing major economy in travel and tourism, with luxury travel playing a key role in this growth.
Indiver Rastogi, president and group head of Global Business Travel at Thomas Cook (India) and SOTC Travel, highlighted the under-supply in India’s domestic skies for premium front cabin services like business class, signaling a strong demand for such offerings in the market. The rise in premium travel demand is also evident in the corporate sector, with businesses viewing travel as a non-discretionary spend. IndiGo’s move to introduce a business class aligns with this growing demand from corporate travelers, with the Blue Chip frequent flier program expected to further fuel loyalty among business travelers.
The shift towards premium offerings in the Indian market is seen as a fundamental change rather than just a passing trend, according to industry experts. Rising disposable income in India is driving a shift towards luxury travel experiences, with more players offering unique luxury experiences at affordable prices. This has led to the growth of affordable luxury travel services in India, offering a broader range of high-end experiences for travelers seeking luxury without the hefty price tag. The introduction of IndiGo’s business class is seen as a reflection of this trend towards premium offerings in the Indian market.
Overall, IndiGo’s decision to introduce a business class marks a significant shift in its growth strategy, catering to the increasing demand for luxury and premium travel experiences among Indian consumers. The move aligns with broader trends in India’s travel and tourism sector, where luxury travel is expected to be a key contributor to growth. With rising disposable income, a growing middle class, and a strong demand for premium travel services, the introduction of a business class by IndiGo is well-timed and strategic, positioning the airline to capitalize on the evolving preferences of Indian travelers towards luxury and high-end experiences.
