Title : Where are Indians travelling and Why ?

Source : McKinsey insights India

Total No of Words: 706

Expected Reading time: 4 minutes

Genre: Travel : Literature

The world could see a wave of Indian travelers in the coming decade—nine charts reveal key
trends and case studies of how destinations can attract and delight these Indian travelers.
Boosted by rising economic prosperity and a fast-growing economy, India is set to be an
important global source market for leisure travel. India is now the fifth-largest economy, and its
population has surpassed China’s to become the largest in the world, at over 1.4 billion people
And the population is young—the median age is 27.6, more than ten years younger than that of
most major economies.What's more, consumption of goods and services, including leisure and
recreation, is forecast to double by 2030. Adding a strong post pandemic travel recovery, and a
growing appetite for international travel, these factors point to India’s significant potential for
outbound tourism.

Indian globetrotters set to soar

The country’s forecast growth in GDP per capita, accompanied by a growing propensity for
international travel, could lead to a wave of Indian travelers setting out to see the world. If India
follows China’s outbound travel trajectory (which it could, due to similarity in population size and
per capita income trajectory), then Indian tourists could make 80 million to 90 million trips a year
by 2040.

Racing ahead: Indian wanderlust is taking off

Prior to the COVID-19 pandemic, India’s outbound tourist market was among the
fastest-growing markets in Asia. India has already recovered 61 percent of its prepandemic
market, with 13 million outbound tourists in 2022.1 This represents a much quicker recovery
than most Asian countries.

Top picks: United Arab Emirates reigns, new gems discovered

Where do Indian travelers choose to go? Proximity is a key decision factor. In fact, around 70
percent of travelers choose nearby destinations. With a travel time of less than four hours, and a
large Indian diaspora, the Middle East is a destination of choice for around one-third of Indian
travelers, closely followed by South Asian destinations. For long-haul trips, North America and
Western Europe stand out as preferred choices.2 While the top destinations have remained
fairly consistent over the past decade, others are shaking up the rankings.

Regional flavors; global explorers

Indian travelers are not a homogenous group; destination preferences vary across regions. For
example, travelers from North India constitute a large share of travel to the United States and
Canada, while two-thirds of travelers from Kerala prefer destinations in the Middle East.
Purpose of travel, distribution of the diaspora, and cultural linkages play a role in destination
choice.

There’s something for everyone in Thailand

Over the past decade, Thailand launched 50-plus marketing campaigns specifically for Indian
consumers, travel agents, and niche businesses. For example, marketing campaigns directed at
Indian wedding planners and couples positioned Thailand as a top choice for weddings and
honeymoons. Campaigns for travel agents showcased Thai culture and tourist attractions,
catering to budget travelers and high-spending groups alike.

Azerbaijan’s visa policy wows Indian travelers

Complicated visa application processes, or long waiting periods, can influence decisions around
vacation destinations. Leisure travelers can be swayed by how difficult or easy it may be to
obtain a visa. In 2017, Azerbaijan introduced the ASAN system that processes electronic visas
within three working days of application. Popularity with Indian tourists skyrocketed thereafter,
with annual arrivals increasing fivefold by 2019. Combined with direct flights from India, and
restaurant and accommodation options suitable for Indian tourists, the country became
increasingly attractive for Indian travelers.

Vietnam takes off: Direct flights skyrocket arrivals

In 2019, Kolkata was the only city in India with direct connectivity to Vietnam, and three other
Indian cities offered sporadic flights. To stand out from Southeast Asia neighbors and gain
popularity with Indian travelers, Vietnam improved direct connectivity from India by increasing
flight frequency and adding new routes. Indian arrivals are now at an all-time high.

The luxury of Dubai is within reach

In 2022, India was the largest source market for leisure travelers to Dubai. The city is known for
its luxury offerings and, perhaps surprisingly, also offers a wide range of accommodations, such
as 3-star options. And flights from India are affordable when compared with flights of similar
distances. Taken together, these factors make the luxury of Dubai accessible to Indian travelers.