How India Travels 2023 - Booking - Com - Digital Version

How India
Travels 2023
A study of the Indian traveller
and the travel ecosystem
Market Perspective
How India
Travels 2023
A study of the Indian traveller
and the travel ecosystem
Acknowledgements
This report provides a perspective on emerging travel trends in India. Booking.com is grateful to the
following leaders who spared their valuable time to discuss what they see as the upcoming travel trends,
challenges and practical solutions.
Industry Experts
Amit Maini Deepak Rao GB Srithar
Senior Area Director, Director, Revenue Management, Regional Director,
Revenue Strategy - South Asia, India and South West Asia, India, ME and South Asia,
Marriott International Hyatt Hotels Singapore Tourism Board
Hardik Goyal Jaiwardhan Saraf Jatin Khanna

Senior Vice President, Chief Business Officer, Chief Executive Officer,
Treebo Hotels The Hosteller Sarovar Portico Hotels & Resorts
Mukut Chakravarti Paras Loomba Rupeshkumar K

Vice President - Founder, Great Himalayan State Responsible Tourism
Development & Partnerships, Expedition (GHE) Mission Coordinator,
Tamara Leisure Experiences Responsible Tourism Mission,
Pvt Ltd. Dept. of Tourism, Govt. of Kerala
Sidharth Gupta Syed Anzar Ahmed

Co-founder & CEO, Co-founder and Director,
Treebo Hotels Mystic Hotels, Bengaluru
This report would not have been possible without the efforts of the dedicated team from Booking.com.
Core Team
Amar Patel Andrew Chakhoyan Aparna Nair
Booking.com Booking.com Booking.com
Madhan Gandhinathan Santosh Kumar Urvi Thakkar

Booking.com Booking.com Booking.com
Yang Li
Booking.com
Cover page image credit - Mohini Goyal, Booking.com
Booking.com would also like to thank McKinsey & Company, the knowledge partner for this report.
CONTENTS
Introduction 01
Executive summary 02
Ready to travel 07
The discerning Indian traveller 12
Expanding horizons,
embracing India and the world 20
The rapidly strengthening travel ecosystem 27
A trail-blazing travel industry 41

Introduction
I am thrilled to present the Booking.com How India
Travels 2023 report: yet another significant milestone in
our relentless pursuit of understanding the ever-changing
behaviours and preferences of travellers around the world.
This is India’s moment to shine — the country is at an inflection
point with leading macroeconomic indicators and enablers
coming together positively to facilitate it. India continues
to grow at a rapid pace, with significant investments made
in manufacturing and services, infrastructure and last mile
connectivity improving rapidly. India has demonstrated
digital adoption across payments and content consumption.
Out of the 800–850 million people with internet access,
approximately 300–350 million are digital payment users,
while roughly 165 million engage in e-retail transactions for products and services. This phenomenon
has given rise to two critical cohorts, users from Tier 2 and 3 cities and the Gen Z demographics.
This research holds immense importance as it delves into the diverse Indian travel landscape — a
region that has emerged as a powerhouse in the travel sector, captivating millions of travellers with
its myriad cultures, breathtaking landscapes and rich history. India has remained resilient amidst
prevailing macroeconomic realities. Despite complex global challenges, including inflation, geopolitical
instability, climate change and supply chain disruptions, our recent Travel Confidence Index research
uncovered a striking paradox: a remarkable 86% of Indian travellers maintain unwavering optimism for
their future travel plans in the next 12 months, while over half (61%) have no intention of postponing their
travel plans. This unwavering spirit of adventure and desire to create lasting memories through travel
seem to outweigh any financial concerns, reinforcing India’s resilience and its position as a driving force
in the global travel ecosystem.
At Booking.com, our mission is to make it easier for everyone to experience the world. We understand
the importance of adapting to the economic climate while empowering travellers to explore and
experience the wonders of travel. In 2023, we continue to offer the widest choice, excellent value and a
seamless booking experience for travellers across the globe. Booking.com provides simple, convenient
and cost-effective options for travellers to embark on their journeys, search and book their perfect stays,
even amidst economic uncertainties.
How India Travels 2023 provides invaluable insights into the evolving nature of the Indian traveller
and the factors that are driving this growth. I invite you to immerse yourself in this report to thoroughly
explore, understand and unpack the vibrant opportunities offered by the Indian travel ecosystem.
Santosh Kumar
Country Manager
India, Sri Lanka, Maldives & Indonesia
Booking.com
How India Travels 2023 1

Executive Summary
Indian travellers are back in action, eagerly moving past the locked-
down days of the pandemic in a quest for new destinations, unique and
immersive experiences, and convenient, attractive packages.
With a strong economy, a growing middle class and travel-loving
youth driving more tourism revenue in India than ever before, travel
expenditure across domestic and foreign trips is projected to grow from
USD 150 billion in 2019 to USD 410 billion by the end of the decade.1
The number of aggregate trips is expected to increase from 2.3 billion in
2019 to around 5 billion in 2030.2
This report explores the travel trends that we believe are here to
stay, and what they could mean for the industry. The insights draw
on conversations with industry leaders, data from Booking.com, and
other sources.
The keen Indian traveller

Indian travellers today are ready to go, excited about novelty, and willing
to see newer, offbeat places.
They have grown more discerning and experimental in what they want
from a trip. They are willing to try unique, authentic, and immersive
experiences, often inspired by social media platforms – where they
get new ideas and plan their trips. They seek companionship over solo
travel. Sustainable travel matters to them, but it is yet to be seen as a
guiding factor.
And where do they want to go? While big metropolises like Delhi and
Mumbai remain top destinations, Tier 2 and 3 cities like Varanasi,
Coimbatore and Kochi, are gaining popularity. Across Indian cities,
the Ministry of Tourism is shaping a holistic tourism proposition that
has sustainable tourism3 at the core through its Swadesh Darshan
2.0 Scheme.4 Foreign travel is also within reach with competitive tour
packages, easier bookings and visa access, with Indonesia, Vietnam
and Nepal emerging as top destinations.5 Locations that traditionally
catered to the well-to-do tourist, such as Dubai, are trying to attract
more tourist segments.
The ecosystem is also evolving in response. Global branded hospitality
players plan to expand in India’s Tier 2 and 3 cities. Attracted by the
opportunity, microentrepreneurs are emerging in this space. Transport
options, too, are growing at a time when people want to travel. India has
nearly double the number of airports it had in 2014. In the last 10 years,
over USD 200 billion has been invested in transportation, of which half
will serve to improve road transport alone.6
1
Euromonitor
2
India Tourism Statistics, 2022 Report; Oxford Economics; UNWPP 2022; Euromonitor
3
Refers to Responsible Tourism which encompasses all forms of tourism and seeks to minimise negative
economic, environmental and social impact
4
Indian Tourism Report (selection of project development under Swadesh Darshan 2.0 scheme), 2023
5
Travel intermediary aggregated data
6
Web search including but not limited to Ministry of Civil Aviation, PRS India, Ministry of Road Transport
and Highways
2 How India Travels 2023

Towards a trail-blazing
travel industry
These are exciting times for the travel industry. As it seeks to tap the
opportunities presented by travel trends and preferences, India’s travel
industry could focus on five important themes.
A. Public–private collaboration: An ecosystem where public and private

entities work together could not only package and promote destinations
creatively, but also emerge to be agile and responsive to the growing
needs of the Indian traveller for variety and convenience.
B. Going small to win big: Travel companies could zoom in, from a
macro view of one kind of traveller to develop a more micro, nuanced
understanding of their customers. Seeing them as microsegments could
help craft personalised experiences rather than cookie-cutter offerings,
with relevant messaging for digitally-enabled travellers who plan last-
minute and take several trips in a year.
C. Meeting desi demands: With more people choosing international
holidays, tailor-made experiences that offer vegetarian meal options
(for example) and easier connectivity become greatly relevant. The
Indian travel ecosystem could grow its presence in popular international
destinations to tap into the demands of Indians travelling abroad.
D. Digital differentiation: Personalisation relies on technology adoption
to maximise value and excite diverse segments. Smart pricing, revenue
management systems, and digitised functions could likely be critical
differentiators for success.
E. Keeping it green with sustainable tourism7: Sustainable tourism
is perceived as costly. It is, however, emerging as a concept for the
socially aware, younger traveller who looks at eco-friendly and inclusive
holiday experiences.
Understanding the Indian traveller can help India’s travel ecosystem

to evolve in sync with emerging demands and preferences, creating a
vibrant tourism landscape in the years ahead.
7
Sustainable tourism takes full account of its current and future economic, social and environmental impact,
addressing the needs of visitors, the industry, the environment and host communities

It’s India’s decade
USD 410 billion

2030P
India travel Fastest COVID-19

USD 150 billion recovery across
expenditure1
2019 Asia Pacific
4th
Largest global
spender
6th
Largest global
spender
2019 2030P
Expected fastest growing travel expenditure1 amongst top 10
Over 2X 5 billion
2.3 billion growth Trips projected
Trips by Indians by 2030P3
in 20192
1. Euromonitor
2. India Tourism Statistics, 2022 Report
3. India Tourism Statistics, 2022 Report; Oxford Economics; UNWPP 2022; Euromonitor

It’s India’s decade
~1,600 aircraft
2030P4
Highest aircraft
659 aircraft orders globally in
20194 one year5
290K
Lodging
outlets1
145K
Lodging
outlets1
2019 2030P 2X increase
USD 2-3 USD

billion 6-7 billion
Hospitality market Hospitality market
through OTA through
in 2022 OTA by 2030P
Online Travel Agencies' (OTAs) growing ~4 times faster

than online direct and offline intermediaries6
4. Cirium Fleets Analyser; 2030 projections ranging from 1,500 to 1,700
5. Reuters article published on June 2023 “Record plane orders raise the stakes in India's aviation boom”
6. ONDC report on Democratizing digital commerce in India, May 2023

01
Ready
TO TRAVEL
Indians love to travel.
Indian travel has bounced back post
COVID-19, and Indians are travelling more
than ever, for work as well as leisure.

India and the world
Pre COVID-19, Indians were the sixth largest travel spenders in the world with tourism contributing
to around 5% of overall GDP. As per the World Travel and Tourism Council (WTTC), the travel and
tourism industry’s contribution to India’s overall GDP was 6.8% in 20198, which includes indirect and
induced impacts.
Top 10 countries by travel expenditure, domestic and outbound in 2019,1 USD billion
Travel expenditure Travel expenditure as % of GDP
USA 1,048 5%
China 983 7%
Germany 277 7%
France 186 7%
Brazil 170 9%
India 153 5%
Mexico 153 12%
Japan 145 3%
UK 123 4%
Australia 103 7%
1. Euromonitor; World Bank
COVID-19 suppressed the global travel industry through 2020 and 2021, but recovery became imminent
in 2022. Due to prolonged travel restrictions, especially in China, Japan and South East Asia, tourism
in Asia remained muted through 2022. India led the way on tourism expenditure recovery in 2022 by
reaching 78% of 2019 levels, vis-à-vis 52% for Asia9.
Post COVID-19, India is expected to surpass earlier momentum in the travel industry, possibly occupying
the #1 position amongst the top markets with 10-12% growth9 in total travel expenditure from 2023
to 2027.
8
World Travel & Tourism Council (WTTC)
9
Euromonitor

What to expect in the
coming decade
Indians embarked on 2.3 billion trips in 2019, and this number has been steadily
increasing. It is projected that this trend may continue, resulting in a 2X growth,
reaching a staggering 5 billion trips by 203010.
Number of trips taken by Indians, domestic & outbound,1 million
% Domestic trips % Outbound trips XX Number of trips in million
2030P 1% 99% ~5,000
2022 1% 99% ~1,700
2019 1% 99% ~2,300
1. India Tourism Statistics, 2022 Report; Oxford economics; UNWPP 2022
India’s travel and tourism expenditure is expected to surge over 2.5X from
USD 150 billion in 2019 to USD 410 billion in 2030. While outbound trips account
for ~1% of total trips, they contribute to ~25% of the total expenditure, which is
on track to increase to ~35% in the coming decade.
10
India Tourism Statistics, 2022 Report; Oxford Economics; UNWPP 2022; Euromonitor

Travel expenditure by Indians, domestic & outbound,1 USD billion
% Domestic expenditure % Outbound expenditure XX Expenditure in USD billion
2030P 35% 65% ~410
2022 35% 65% ~120
2019 25% 75% ~150
1. Euromonitor
One of the primary drivers of this strong growth is the rising middle-income population. There is an
expected shift in India’s income pyramid, marked by ~6X growth in households earning USD 35,000
annually by 2030.
Rise in household income levels1 No. of households in million
2020 households by income distribution, USD 2030P households by income distribution, USD
Households: 260 million Households: 295 million
More More
than 35k 1% 2 than 35k 5% 13
10-35K 14% 35 10-35K 63% 164
5-10K 40% 105 5-10K 41% 106
0-5K 45% 118 0-5K 5% 12
1. Economist Intelligence Unit

02
The discerning
INDIAN
TRAVELLER
Unstoppable travellers
Around 29% of Indian travellers travelled for more than 25 days
in 2022 for leisure, which is the highest compared to other
large markets.11
Travellers who claimed they spent more than 25 days on average

for leisure travel across geographies in 2022,1 % respondents
India
29%
China
25%
Australia
24%
UK
24%
France
23%
Germany
23%
USA
15%
Brazil
15%
Mexico
8%
Japan
4%
1. Booking.com Traveller Trends Survey, 2023 (n=2,000 India, n=42,000 Global). The Traveller
Trends Survey 2023 targeted individuals aged 18 to 54 who booked leisure travel in 2022 and are
planning to travel for leisure in 2023. These respondents are actively involved in travel decisions
for the upcoming year.
Indian travellers took around three trips on average in 2022.

They are increasingly seeking varied leisure experiences. Online
travel agencies are working towards personalised offers, optimised
landing pages and triggering relevant product recommendations.
11
Includes USA, Mexico, Brazil, Australia, France, UK, Germany, China, Japan
The trend is expected to continue; Indian travellers are taking

multiple small trips a year as compared to 1-2 trips seen earlier.
— Jatin Khanna, Chief Executive Officer, Sarovar Portico Hotels & Resorts

Short and sweet
The average trip planning window for an Indian traveller has been around 30 days in 2023, a much
shorter duration than in other markets.
Average travel planning window across geographies in 2023,1 days
India
29
Japan
57
USA
63
France
75
UK
90
Australia
90
Germany
93
1. Booking.com Traveller Trends Survey, 2023 (n=2,000 India, n=42,000 Global)
The short booking window creates opportunity for the travel ecosystem to present travellers with
unique real-time products, such as last-minute offerings and loyalty programs, to attract repeat visits.

In good company
Globally, the highest preference is to travel with a partner, spouse or family. Indian travellers stand out
with their preference for travelling with friends, which has remained consistent in 2023.
Rank of top 5 preferred partners for leisure travel in 2022 across geographies1
Top 3 choices
Preferred partner India USA Germany China Australia Japan
With a partner or spouse 1 1 1 1 1 2
With a group of friends 2 5 5 3 4 5
With a friend 3 4 4 5 5 4
With a nuclear family

4 3 2 2 2 1
(e.g., parents and children)
Solo traveller 5 2 3 4 3 3
Group based travel options catering to varied interests are the key to delivering superior
travel experience.

“I want to go there” - The impact of TV
54% of Indian travellers admit that their choice of destination is influenced by their favourite movies,
shows, or stars. Only 2% claimed no influence.
Trip type preferred in 2023 based on TV show or movie,1 Top 5 activities for leisure travel in 2023,1 %
% respondents
Travel to a destination in a show or movie

54%
Try food or cuisine I saw on a show or movie

53%
Experience the culture from a show or movie

51%
Travel to a specific landmark from a show or movie

50%
Go to a restaurant from a show or movie

48%
Participate in an activity featured in a show or movie

40%
Meet a famous celebrity from a show or movie

40%
Stay at an accommodation from a show or movie 1. Booking.com Traveller Trends Survey, 2023 (n=2000 India, n=4
39%
Stay at the home of a celebrity

33%
None
2%
Indian movies fueled the travel choices of travellers across the spectrum. The Indian traveller’s love
for Switzerland stems from seeing its scenic landscapes in Indian movies. Partnerships with trending
celebrities can help create awareness for destinations. For instance, Switzerland partnered with an
Indian Olympic gold medallist for a ‘Friendship ambassador’ campaign, and Dubai partnered with a
leading Indian movie star showing the ‘Best day of his life’.12
12
Tourism websites; Press search

Indian travellers are foodies
44 %
~80 % service as important features
chose culinary experience as chose restaurant and room
the top feature when planning
leisure trips in 2023 for an enjoyable stay
Top 5 activities for leisure travel in 2023,1 % respondents
A food experience
44%
54%
Visit a viewing point to get great
53% views of the destination
39%
A day of shopping
37%
A sightseeing tour
34%
A museum or gallery
34%
Outbound destinations have the chance to promote both local

and Indian culinary options. While Indian food options provide
travellers with a taste of home, local food options provide
novel gastronomic adventures.
As part of ‘Passion Made Possible’, a joint campaign by

tourism and government agencies, Singapore offers a
plethora of dining experiences designed to satiate the Indian
tourist’s passion for food.
— GB Srithar
Regional Director, India, ME and South Asia, Singapore Tourism Board

Travel influencers
Today’s travel solutions are tech-enabled, mobile-centric
and span across different traveller touch points. A majority
of Indian travellers booked leisure travel on mobile apps
in 2022.13 They turned to social media to post pictures
and reels, evoking conversation and interest within Integrating digital
their network. capabilities beyond
Preferred social media platform for travel inspirations booking, such as
in 2022,1 % respondents
transportation and
food, is crucial for
91%
enhancing the overall
85% travel experience.
79%
51% — Hardik Goyal

Senior Vice President
42% Treebo Hotels
33%
1. Booking.com Traveller Trends Survey, 2023 (n=2,000 India, n=42,000 Global);

Responses are from social media users only
The importance of social media influencers has risen over the years. A leading travel influencer was
recently engaged by the tourism board of Abu Dhabi.14 The top influencers in India have a subscriber
base in the range of 1 to 3 million and have covered 20-30 countries on different channels.
This calls for ‘algorithm-led customised travel’. Travellers’ can be targeted with curated itineraries by
leveraging data basis their demographics, and interests such as beach, family holidays etc.
These travel options include customised triggers, virtual hotel tours, artificial intelligence-based
customer relationship management, hyper-personalised content and offers, and real-time destination
updates, etc.
13
Booking.com Traveller Trends Survey, 2023 (n=2,000 India, n=42,000 Global)
14
Travel vlogs and magazines

Sustainability vs. affordability
Sustainability is important to Indian travellers, but many feel that either these options are too expensive,
or it does not affect their purchase decision.
'Say-do' gap in sustainable travel options,1 % respondents
Value sustainable travel 99%
Find sustainable options costly 66% -33%
Consider sustainability,
13% -53%
but not a deciding factor
¹Booking.com Sustainable Travel Survey 2023 (n=1,012)
Enhanced traveller awareness, coupled with coordinated industry-wide efforts, are crucial for adoption
of sustainability as a key deciding factor.

03
Expanding
horizons
EMBRACING
INDIA AND
THE WORLD
Old and new favourites
Cities remain high among the top 10 most
booked domestic destinations. The popularity of
urban destinations is also attributable to in-city
weekend getaways.
Top 10 cities by domestic bookings,

H1 2023 and H1 2015¹
2023 2015 New entrant
2023 2015
New Delhi 1 2
Bengaluru 2 3
Mumbai 3 1
Chennai 4 4
Pune 5 7
Hyderabad 6 5
Gurugram 7 9
Jaipur 8 6
Kochi 9 12
Kolkata 10 8
1 Travel intermediary aggregated data

The globe-trotting
Indian
Top 10 outbound cities by booking,
H1 2023 and H1 2015¹
2023 2015 New entrant
2023 2015
Dubai 1 1
Bangkok 2 3
Singapore 3 2
London 4 5
Paris 5 6
Ho Chi Minh City 6 -
Ubud 7 -
Hanoi 8 -
Phuket 9 -
Kathmandu 10 -
1 Travel intermediary aggregated data
Indians are increasingly looking overseas for their

next vacation with new destinations from Vietnam,
Indonesia, and Nepal entering the top ranks.
Increasing air connectivity, greater awareness and
visa ease, are facilitating this.
Approximately 60 countries provide easy visa
access for Indians, primarily in Southeast Asia
and the Middle East. The impact of recent Tax
Collection at Source (TCS) on foreign travel is yet to
be determined.

A five-day international destination package now costs almost the same as a domestic package, making
overseas travel even more attractive.
Difference in average price of a 5-day trip to preferred

domestic and outbound destinations from top metros
Domestic Outbound
Mumbai
Darjeeling
+20% The oft-heard
Nepal rhetoric that India
is the next China
Chennai may finally hold
Andaman true for travel’s
+20% outbound industry
Sri Lanka
as Chinese look at
international travel
Kolkata
more sceptically.
Goa
+15%
Bangkok — Skift article
India Becoming the
Delhi New China in the
Guwahati Reordering of Asia
+10% Travel, Jan 2023
Nepal
1 Multiple travel intermediaries in India

Made for India
Indian travellers are spoilt for choice by destinations that are starting to develop an integrated and
customised proposition for them across affordability and interests.
Dubai has emerged as a key destination for Indians, especially after COVID-19. There are hotel rooms
ranging from USD 24 to USD 2,400 per night and roundtrip airfare options ranging from USD 300 to
USD 3,600 based on the type of experience preferred. The city boasts of budget restaurants offering
Indian cuisine at USD 15–30 per person and the first vegetarian Indian Michelin Star restaurant where a
meal costs around USD 180 per person.
Budget Luxury
5-day trip expense in Dubai,1 USD
Dubai Budget Luxury
300–360 3,000–3,600
Travel
Accommodation 120–180 9,600–12,000
Outdoor activities² 240–300 3,600–5,400
Food options 150–300 1,200–1,800
Total 810–1,140
80K-1L 17,400–22,800
15L-20L
1 Multiple travel intermediaries in India; Press search
2 Like desert safari, sky diving etc.
Indian travellers in Dubai enjoy myriad experiences like skydiving over the Marina, desert safaris, yacht
rides, theme parks and diverse food options. It has emerged as a key destination for Indians on the
back of successful ecosystem engagement, from airlines to hospitality groups and ample presence on
various booking platform.
Indian travellers are increasingly looking for

all-inclusive destinations.
— Rupeshkumar K
State Responsible Tourism, Mission Coordinator,
Responsible Tourism Mission, Dept. of Tourism, Govt. of Kerala

Making India incredible
The Government of India has come up with the Swadesh Darshan 2.0 Scheme based on tourist
attractions, connectivity, future potential and state support. 36 cities from 15 states and four union
territories were selected for integrated development with sustainable tourism at the core for domestic
and international tourists.
Cities covered under Swadesh Darshan 2.0 Scheme¹
Swadesh Darshan 2.0 is a 100% centrally

Kargil funded scheme that envisages the development
Leh of sustainable and responsible tourist
destinations by adopting a destination-centric
approach, enhancing the contribution of
Amritsar tourism to local economies, and creating
Kapurthala self-employment for local communities.
Chandigarh
Mechuka
Bomjir
Jorhat
Jodhpur Kokrajhar
Nalanda Shillong Niuland
Bundi Gaya Sohra Chumu-
Unakoti keidma
Dholavira Aizawl
Agartala
Champhai
Dwarka
Arakku
Povarim Hampi
Colva Gandikota
Mysuru
Mammalapuram
Lakshwadeep
Puducherry
Beypore Nilgiris Karaikal
Kumarakom
1 Indian Tourism Report (selection of project development under Swadesh Darshan 2.0 Scheme), 2023
The success of the scheme is evident with more Indian travellers visiting cities like Mysuru, Chandigarh,
Amritsar, Puducherry, and Jodhpur than ever before.

Select cities covered under Swadesh Darshan 2.0 Scheme¹
MYSURU
A tapestry of
heritage, nature
& wildlife
Mysore Palace Srirangapatna Brindavan Garden
AMRITSAR
Where
spirituality and
patriotism
unite in golden
splendor
Golden Temple Jallianwala Bagh Attari Border
JODHPUR
Echoes of
royalty resound
through
majestic forts
Mehrangarh Fort Blue City Ghanta Ghar Market
PUDUCHERRY
Where French
allure meets
coastal
tranquility
Auroville Paradise Beach Gandhi Memorial
CHANDIGARH
A symphony of
modernity and
green serenity
Rock garden Garden of Fragrance Leisure Valley
1 Indian Tourism Report (selection of project development under Swadesh Darshan 2.0 Scheme), 2023

04
The rapidly
strengthening
TRAVEL
ECOSYSTEM
Indian travellers are looking for unconventional destinations and alternative accommodations more
than ever before; and want to get there smoother and faster. The travel ecosystem in the country is
rapidly getting on board.
Hospitality: India checks in

Pre COVID-19, the hospitality industry Occupancy rate of hotels in India¹
experienced 8% growth in revenue
2016–19, but the pandemic led to a
2019 65%
reduction in occupancy rates from 65%
in 2019 to 35% in 2020.15,16
2020 35%
In 2022, there has been a strong rebound, ~50%
with occupancy rates soaring back to nearly
2022 60%
90% of pre COVID-19 levels.
1. HVS Anarock Research Report 2019, 2020, 2022
Lodging revenue is back to nearly 80% of pre COVID-19 levels. A steady 16–18% growth rate is projected
for 2022–24.15 The robust recovery is evident in the surge of lodging outlets, revenues, and revenue per
available rooms (RevPAR).
Lodging outlets, revenues and RevPAR, 2022-24P1,2
Lodging outlets Lodging revenue RevPAR

‘000s units USD billion USD
+13% +21% +15%
212 62
8.6
188
7.4 55
165
5.9 45
2022 2023P 2024P 2022 2023P 2024P 2022 2023P 2024P

1. Euromonitor
2. HVS Anarock Research Report 2019, 2020, 2022
Massive spike observed in domestic tourism post COVID-19, as people

are moving to weekend getaways, experiential travel. They do not want
to discount free time.
— Amit Maini
Senior Area Director, Revenue Strategy, South Asia, Marriott International
15
Euromonitor
16
HVS Anarock Research Report 2019, 2020, 2022

Next wave: Tier 2&3 cities
Leading international hotel chains are expanding
to Tier 2 and 3 cities like Jodhpur, Dharamshala,
Bodhgaya, Bilaspur, Kodagu, and Raipur.
Over 70% of the upcoming property pipeline for
Tier 1 hotel chains is coming up in Tier 2 and 3
cities like Kolhapur, Nashik and Puri.17
The potential for growth in these emerging
markets has driven the share of branded
inventory in Tier 2 and 3 cities to increase from
approximately 27% in 2015–16 to around 52%
in 2022–23.18
Branded hotel inventory supply in major cities,

2015-16 and 2022-231,2
Tier 1
Tier 2 or 3
27%
73% 2015-16
48%
52%
2022-23
Branded hotels are currently
focusing on Tier 2 cities for
expansion owing to the increasing
business opportunities and
travellers’ increasing willingness
to pay for standard services.
1. 2023 Indian Hospitality Trends & Opportunities, Hotelivate
2. Tier 1, 2, and 3 cities refer to Tier X, Y, and Z cities as per Central Pay — Deepak Rao
Commission guidelines Director Revenue Management,
India and South West Asia, Hyatt Hotels
17
Company website of Tier 1 hotel chain
18
2023 Indian Hospitality Trends & Opportunities, Hotelivate

Alternative is the new normal
There is a surge in demand for non-traditional stay
options like hostels, campsites, vacation rentals, and
chalets etc.
The growth rate of average daily rate (ADR) and
booked room-nights of alternative accommodations
are around twice that of hotels and managed chains.19
In 2023, for every room-night booked at a camp,
three room-nights were booked at villas and 14 room-
nights booked at guest houses.
In 2019, mostly group travellers were booking
alternative accommodation. In 2023, couples are
taking the top spot, as they look for more intimate
experiences, privacy, and stays in unique locations.
There is an increasing trend of ‘hotel as the
destination’ with a rise in resorts, wellness centres
and glamping options, driven by the rising popularity
Alternative accommodation
of weekend getaways.
has done for travel and tourism
The growth in weekend bookings for alternative what the Indian Premier League
accommodation in top cities is four to five times has done for cricket. It has
higher in 2023 than 2022.20 transformed the way people
travel, enabled destinations
and neighbourhoods to be
experienced in a more authentic
manner, and facilitated a wave
of micro-entrepreneurship
for homeowners.
— Santosh Kumar
19
Travel intermediary aggregated data Country Head, Indian subcontinent
20
Travel intermediary aggregated data (Cities considered are Varanasi, Goa,
Bengaluru, and Delhi) & Indonesia, Booking.com

Bridging the gap: Hospitality technology21
As traveller expectations increase, the hospitality industry needs to invest more in technology.
The technology landscape is vast with multiple solutions across modules:
Landscape of hospitality technology solutions
Modules Key solutions
Property management systems, housekeeping tools,

Operations management
staff collaborations
Revenue management Channel managers, central reservation system
Marketing Booking engines, metasearch, digital marketing, loyalty
Guest experience Guest messaging, Wi-Fi, guest room entertainment
While managed chains have access to multiple partners with an in-house technology team, independent
hotels struggle to integrate various solutions. Emerging businesses, especially in niche markets, face
difficulty in accessing expertise. The cost of technology upgrade at multiple hotels is typically recovered
by the cost savings through efficiency within a year.
Technology ends
up costing ~10% of
revenue, and is difficult
to understand for
independent hoteliers.
— Syed Anzar Ahmed
Co-founder and Director,
Mystic Hotels, Bengaluru
For managed chains, technology solutions across the spectrum remain highly relevant, as they
have aligned traveller’s expectations to their technology solutions. Independent hotels vary in their
technology needs based on their size. Solutions such as property management systems (PMS), channel
managers, booking engines, and Wi-Fi are consistently relevant across different hospitality archetypes,
including alternative accommodations.
21
Expert interview

The industry could make the most of available technology to provide travellers with a digitally enhanced
experience, resolve staff shortages, and improve working conditions. A range of technologies will be
integrated into the existing technology stack to make them more self-sufficient.22
There are limited dedicated SaaS solutions catering

specifically to alternate accommodations like hostels.
— Jaiwardhan Saraf
Chief Business Officer, The Hosteller
Automation and digitisation can also liberate staff from dealing with repetitive tasks, allowing human
resources to be allocated to roles where they can provide the most value. For example, technology
can empower customer-facing staff to deliver more personalised services. With the assistance of
technology, a trainee can quickly develop into an experienced concierge.23
22
The future of hotels: Customized experiences, sustainable practices, July 2023
23
The future of tourism: Bridging the labor gap, enhancing customer experience, August 2023

The
transformation
of Indian
transportation
In the last 10 years, an investment
of USD 200 billion24 has been made
in the transportation sector, with
over 50% in road infrastructure.
There is potential to focus on
enhanced traveller experiences,
such as modernising under-served
airports and the fragmented
bus market.
24
Web search including but not limited to Ministry
of Civil Aviation, PRS India, Ministry of Road
Transport and Highways
Enhanced transport
infrastructure opens
doors to unexplored
wonders, driving tourism’s
boundless growth.
— Rupeshkumar K
State Responsible Tourism,
Mission Coordinator,
Responsible Tourism
Mission, Dept. of Tourism,
Govt. of Kerala

Reaching for the skies
The Government of India’s UDAN (Ude Desh ka Aam Nagrik) scheme has helped create 487 new routes,
benefiting over 12.7 million travellers since the start in 2017.
With 131 airports (nearly twice the 2014 count), a growing fleet and wider connectivity, over 8 million
non-metro25 domestic travellers flew in 2022 to non-metro locations, marking a remarkable growth from
3 million travellers in 2016.26
Domestic air passengers,1 million

CAGR,
Metro to Metro² 300–350
FY 2016–19
Metro to Non-Metro
Non-Metro to Non-Metro 6%
150–160
140 16%
120 30%
33%
100 29%
39%
63%
62% 64% 30%
58%
3% 5% 7% 7%
2016 2019 2022 2023P 2030P
1. Directorate General of Civil Aviation
2. Metro includes Ahmedabad, Bengaluru, Delhi, Kolkata, Mumbai, Chennai, and Hyderabad
India is the fastest growing aviation market in the world with a projected 10–12% growth in airtrips
between 2023-30. To match the growing demand, Indian airlines have placed record orders for over
1,000 aircraft with the total number of aircraft expected to reach ~1,600 by the end of decade.
Number of aircraft in India for 2016, 19, 22, 23, 30P, unit1
2016 479
2019 659
2022 601
2023 647
2030P 1,500–1,700
1. Cirium Fleets Analyser
25
Excludes Ahmedabad, Bengaluru, Delhi, Kolkata, Mumbai, Chennai, and Hyderabad
26
Ministry of Civil Aviation

Trains are trailing behind
The growth in the rail sector has been significantly lower than road
and air travel.
Short routes witness tough competition from roadways, while
long routes lose out to the growing popularity of airways due to
improved connectivity and time efficiency.
The online bus ticketing market is expected to surge 10-15%
between 2023-25 by effectively solving accessibility, convenience,
and distribution challenges in India.
Number of passengers for air and rail, FY 2012, 19, and 221
million
-1% pa
3,847
3,655
+13% pa
140
84
1,350
61
2011-12 2018-19 2021-22 2011-12 2018-19 2021-22

Air Indian Railways²
1. Annual report of Indian Railways; Directorate General of Civil Aviation

2. Only non-suburban passengers
Indian Railways has recently Punctuality index of Indian Railways, 2016-221

made concerted efforts
-5% p.a. +9% p.a.
to improve the traveller’s
experience. These include 94.2 90.5
station re-development,
76.7 75.7
addition of new lines, gauge 71.4 69.2
conversion, high-speed
trains like Vande Bharat,
large scale induction of Linke
Hofmann Busch (LHB) coaches
etc. There has also been a
significant improvement in the
punctuality index.
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
1. Annual report of Indian Railways 2016-22

Cruising ahead
The 7,500 km long coastline, untouched forests,
tranquil islands, and unexplored river systems
of India present boundless opportunities for
cruise tourism.
A 5X boom in cruise traveller volume is projected
by 2030, driven by the rising demand for distinctive
experiences among modern travellers.
A leading domestic cruise operator is planning to
invest in excess of USD 1 billion by 2025 for acquiring
at least three cruise ships.
Number of cruise passengers, 2019, 23, 30P,1 million
COVID-19
impacted years
5X 1.5
0.3
0.26
2019 2023 2030P
Total # of
Indian cruise market vessels ~291 ~208 ~500
has the potential to

grow 10-fold over the
1. Annual report of Ministry of Ports, Shipping and Waterways; Maritime India
Vision 2030; Skift article "India Bets on Cruises: New Ports, More Ships –
next decade, driven

Big Goals", July 2023
by rising demand and

disposable incomes.
— Sarbananda Sonowal,
Union Minister for Ports,
Shipping and Waterways

MV Ganga Vilas
The luxury cruise between Varanasi and Dibrugarh is the longest river cruise in the world.
It sails for 3,200 km, touching 50 tourist spots and carrying 36 travellers.
Google trends show a staggering 5X surge in interest after its launch in Jan 2023
Varanasi cruise route27
Dibrugarh
Guwahati (Assam)
(Assam)
Patna Sahibganj
(Bihar) (Jharkhand) Rangpur
Sirajganj
Varanasi Jamalpur
Murshidabad
(Uttar Pradesh) Tangail
(West Bengal)
Dhaka
Sonargaon
Kolkata Barishal
(West Bengal)
Bagerhat
World’s
longest
river cruise
27
The Business Standard, 13 January 2023 edition; Press search

Booking
choices abound
The way Indian travellers choose to
book their trips reflects in three distinct
archetypes in the travel booking
intermediary market: offline, direct
online, and online travel agencies (OTAs).
While offline booking continues to hold
the major share, the digitisation of the
Indian economy is going to define the
future channel mix. With the expected
growth rate of 14–15%, online direct is
the biggest beneficiary, and OTAs are not
too far behind with a growth forecast of
growth of 10–11%.28
28
ONDC report on Democratizing digital commerce in
India, May 2023

Hospitality market gross merchandise value for OTAs,
online direct and offline intermediaries,1 USD billion
OTA +6% pa CAGR,

FY22–30E
Online direct 21-24
Offline
6-7 10–11%
12.5-15
2-3
2-3
14–15%
0.5-1
13-14
10-11 2–3%
FY22 FY30P
1. ONDC report on Democratizing digital commerce in India, May 2023
Offline and online direct channels continue to have an edge because of their personalised connection
to travellers and after-sales support. Some offer outdoor activities and dining experiences while some
smaller offline players offer customised tours, such as Jain experiences across the world.
Key elements of personalised tour packages29
Tailored itineraries Accommodation options
Group size, purpose of travel, budget, and duration, etc. Luxurious resorts to hostels
Local expertise Personalised services
Travel modes, climate, and off-beat locations, etc. Concierge, vegetarian food, and female guide, etc.
29
Press search; Top Indian OTAs

Online intermediaries are now going beyond distribution. They offer curation, end to end services, and
proactive matching of inventories specific to travellers’ needs, such as guided tours, curated packages,
online reviews and loyalty programs.
Online travel intermediary value chain
Retail distribution
Increased OTA involvement Traditional OTAs
Suppliers Sourcing Packaging Marketing Pricing Conversion

content
Owners or Identifying Curating Attracting, Minimising Development

managers and securing offers across engaging purchasing implementation,
of travel attractive available and nurturing friction and of pricing
inventory inventory inventory to potential driving strategy
enhance value traveller base propensity
to buy

05
A trail-blazing
travel industry
THE WAY
AHEAD
How India travels has changed. The time is ripe for different players in the travel ecosystem to develop
a shared vision for a flourishing tourism industry in India. Discussions with travel ecosystem partners
indicate five themes to build a lasting proposition that meets evolving traveller needs.
The way ahead for the travel ecosystem¹

Relevant stakeholders
Domestic Domestic & outbound Outbound
A B C D
Public–private Going small Meeting Digital
collaboration to win big desi differentiation
demands
Build Unlock Design customised Design thoughtful

partnerships for a micro-segments to adventures digital interventions
stronger travel enable personalised incorporating that resolve
ecosystem experiences cultural and personal meaningful
preferences pain points
Government Hospitality Hospitality Hospitality
Hospitality Transport Transport Transport
Transport Travel operators
Social media
E Keeping it green with Integrated action plan across the travel value chain to bring travel
sustainable tourism industry closer to sustainable travel
1. Expert interviews; The travel industry turned upside down, September 2020; World Travel & Tourism Council (WTTC); Press search

A. Public–private
collaboration
Public—private cooperation drives
tourism growth, especially in
emerging markets, by fostering
sustainability, job creation, and
economic competitiveness.
Public private engagement1
What public entities could do What private entities could do
Attract tourists
Destination promotion Strategic private partnerships
Best-practices and data sharing for
informed strategy
Talent and capacity support
Connectivity
Schemes to support connectivity Airport modernisation and technology
options for new destinations enablement
Focus on enhancing experience Involvement of large private companies
needed to finance large investments
Destination & attraction
Build niche and new destinations Travel packages

Build destination brands Attraction tours
Manage destinations Data backed decisioning
Amenities
Develop own standards (with Bundled public private partnerships
international benchmarks) for to support large investments
tourism products Ecosystem (hospitality, transport)
Coordination between partnership for standard experience
heterogeneous sub-industries
Reviews
Reward for reviews Create touchpoints for reviews
Incorporating reviews structurally
back in the development
1. Expert interviews
The Indian private ecosystem could engage with the Government of India to drive several initiatives
such as setting up a Tourism Investment Board and taking a cluster approach for investment by public
and private entities, similar to the Singapore tourism board.

Case Study: Singapore Tourism Board1
The Singapore Tourism Board (STB) is closely involved in tourism concept development. STB does
not deliver or operate infrastructure itself, but funds selected strategic projects through a tourism
development fund.
STB takes the lead in:

• Developing original tourism concepts and experiences
• Building distinctive and sustainable precincts
• Cultivating strong partnerships with relevant stakeholders
Destination experience group
Precincts & Responsible for place management of

tourism concept cultural and leisure tourism precincts
development
Enables master plans of tourism zones
Arts & Coordinates stakeholders (e.g., museums,

entertainment theatres, concerts, clubs) to develop a
vibrant arts and entertainment ecosystem
Sports Works with various stakeholders to develop

strategic products, including Singapore
Grand Prix
Integrated Oversees development of resorts and

resorts works closely with the operators to facilitate
continuous enhancement and reinvestment
Attractions, Works closely with industry partners to

dining & retail create a vibrant dining, retail and
attractions landscape

Cluster creation
Adopting a cluster strategy that involves an interconnected system of private and public sector
stakeholders can create a synergistic effect where the combined value is greater than the sum of
its parts.
The success of the cluster strategy depends on key enablers. These include building world-class
attractions, providing access to investment capital, ensuring sufficient accommodation capacity, having
a skilled labour force, offering a variety of transportation modalities, establishing distinctive branding,
and effective marketing.
Sample cluster¹
Museums
Accommoda-
tion and
Trade restaurants
Sports
Transport
Crafts
Meetings
and events
Universities
Government
Tourism
destination
Tour Travel
operators agencies
Theme
parks
1. McKinsey Travel Logistics and Infrastructure Practice
For example, the construction of the Guggenheim in Bilbao, Spain drove economic revitalisation
in the region, attracting 20 million visitors (60% foreign) in the first two decades and generating an
estimated 5,000 local jobs and 650 million euros in tax revenues.30
In India, the Ministry of Tourism, as part of the National Strategy for Sustainable Tourism, 2022, will
encourage clusters of businesses, for a positive impact on the local community.
30
The Guardian article “Guggenheim effect: how the museum helped transform Bilbao”, October 2021; Press search

B. Going small to
win big
Shifting focus from a macro-
segmented approach to a targeted
micro-segment approach would
help all players in the travel
ecosystem to develop lasting
relationships with travellers and
create personalised offerings.
Microsegments can create lasting, personal traveller relationships1
From To
Monoliths Microsegments
5–10 segments, with flavours of leisure, Thousands of specific segments,

corporate, and visiting friends and relatives e.g., “Digital nomads going for weekend
adventure”, “Affluent family want kids to
experience India at its grassroots”
Based on select attributes such as travel Based on opulent set of behavioural features,
purpose and demographics such as life-stage and brand-engagement level
Mostly static Segments change on a continuous basis, as

travellers are members of multiple microsegments
Standard promotions Specific for the traveller like loyalty programs, travel
and brand strategy promotion in booking window
1. Expert interviews; The travel industry turned upside down, September 2020

Leading retail businesses, banks and e-commerce players have built data-driven commercial
departments. They offer interesting travel products such as niche luxury packages, and curated loyalty
programs. One such example is bank credit cards connected back with OTAs to offer great loyalty
programs including air miles, discounts, etc.
Players in the travel ecosystem have an opportunity to leverage data beyond their own databases to tap
into value generating use-cases like bundling of meals or VIP experiences.
1. Expert interviews; The travel industry turned upside down, September 2020
Tap beyond core data sources1
Visibility of other Granular traveller Traveller historical

players insights preference
e.g., share of trip type e.g., total trips in last 2-3 e.g., booked mid-scale
by other airlines years, booking journey family suites twice along with
(hotel first booked vs air travel in the last 3 years
airlines first booked)
Granular travel Willingness to pay premium

preferences e.g., Services for which the customer will pay
Non-core data e.g., Taxi, ride share or a premium fee
private car rental
Payment insights Payment insights Booking window

e.g., Wi-Fi package, e.g., UPI vs credit cards e.g., 70% of trips booked
Core data miles redemptions, etc. and usage patterns within one week
Airlines and hotel Own traveller insights

booking e.g., status level, departure preference, direct vs.
e.g., travelled with the connecting flight, preferred seat or meal
airline 30X per year in
last 2 years

C. Meeting desi demands
Tourism companies could consider relevant
operational and cultural adjustments
to accommodate the unique needs and
expectations of the Indian traveller.
Home-style hospitality
Offer the Indian hotel experience through expansions or partnerships in popular destinations such as
UAE or Vietnam, as has been done by a leading Indian Tier 1 hotel that has expanded in around nine
international markets.31
Flying direct
Offer direct connectivity to Tier 2 and 3 cities with higher growth. Four out of the top five outbound
markets, namely Dubai, Singapore, London, and Bangkok, have consistently maintained their prominent
positions due to their direct connectivity with all city tiers.
Vietnam, a recently preferred destination by Indians, has capitalised on the benefits of establishing
direct connectivity beyond Tier 1 by adding routes from Bodhgaya, Kochi, and Varanasi as well.
Number of direct flights from India to Vietnam1 Total PAX Direct flights per month
250 30,000
COVID-19
impacted years
25,000
200
20,000
150
15,000
100
10,000
50 5,000
0 0
2018 2019 2020 2021 2022 2023
1. Diio Mi Introduction of direct flights from Kochi
Despite the proven demand stimulation by direct flights, not all popular destinations offer these
options. This is the perfect opportunity for other preferred outbound destinations to establish direct
flights to and from Tier 2 and 3 cities in India.
Offering familiar flavours

Most Indians love their traditional food. Travellers to popular destinations like Vietnam still struggle with
limited availability of vegetarian food options.32 There is a good opportunity for global tourist boards to
facilitate knowledge dissemination about Indian cuisine and cultural behaviour to hotels and restaurants
targeting Indian travellers. For example, in 2022, Canada hosted an Indian food festival showcasing over
50 cuisines, drawing in over 150,000 visitors.
31
Company Annual Report of Tier 1 hotel chain: Bhutan, Maldives, Nepal, South Africa, Sri Lanka, United Arab Emirates
32
Press search

D. Digital differentiation
The adoption of technology across travel modes is rapidly digitising Indian travellers and driving
significant shifts in their behaviour. Contactless travel solutions have gained popularity swiftly,
especially during and after the pandemic, across various touchpoints for travellers.
Airport journeys of travellers have seen technological interventions which have helped improve
customer experience and save travellers’ time. For example, DigiYatra with its contactless entry and
facial recognition system, has been used by more than 1.7 million travellers as of Jun 2023.33 More than
150 million have registered on the identity control software, DigiLocker.34
With increasing infrastructural development across airports, airlines, etc. to mobilise Tiers 2 and 3
traffic, there is an emerging need to revamp through thoughtful interventions. Even the top Indian
airports require technological advancement to overcome congestion and longer waiting times.35
According to a global survey by SITA, digital interventions are the best way to differentiate and sustain
customer experience. Travellers using digital technology have higher satisfaction rates than non-users.
Relationship between travellers' technology adoption and experience1
Satisfaction rate difference2 Non-technology users Passengers using technology
Satisfaction rate difference for

% of passengers using technology3 in 2022 technology users and non-users
Booking 92% 8.3 8.5
Check-in 62% 8.2 8.5
Bag tag 38% 8.3 8.4
Bag drop 22% 8.3 8.4
Identity control 41% 8.1 8.4
Dwell time 55% 7.1 8.3
Boarding 22% 8.2 8.4
On board 52% 7.7 8.3
Bag collection 29% 7.8 8.5
1. SITA survey report 2022: Passenger IT insights, SITA white paper: Air travel for a digital age
2. Satisfaction rating done on a scale of 10
3. Mobile, kiosk, automated gates, web
33
Indian Ministry of Civil Aviation, Press release 2021
34
DigiLocker
35
From 2017-19, around 25-35% of airports were underserved/ unserved

E. Keeping it green with
sustainable tourism
Investing in
Indian travellers confirm that sustainability matters to them, sustainable tourism
but they associate this with higher costs. The willingness to
pay a premium for sustainable travel is noticeably low, and
is investing in a
sustainability is not a big driver of purchase decisions. better future for all.
However, the problem looms large as aviation emissions
are expected to grow over 8 times, with air travel demand — Antonio Guterres
continuing to rise in India over the next 50 years.36 Lasting United Nations
improvements could emerge through a concerted, industry-
Secretary General
wide effort to overcome the multiple challenges that limit
the industry’s transition to sustainability. Indian travel
stakeholders need to collaborate to create a sustainable
travel ecosystem.
Ways to go green
Greater traveller Sustainability Unlocking the supply-

awareness and standards that are demand deadlock of
willingness to choose easy to understand sustainable technologies
sustainability, when and adopt for the that are still at a nascent
paired with tourism relevant travel stage. For example,
providers’ adoption of sector stakeholders electric aviation and
sustainable practices, could be key for hydrogen-powered
can unlock quick wins driving adoption. jets are in early stages
in the travel sector’s of development and
sustainability efforts. sustainable aviation fuel
(SAF), faces feedstock
constraints for scaling
up production.1
1. Decarbonising India: Charting a pathway for sustainable growth, October 2022
36
Grow from 16 MtCO2e per annum in 2019 to 126 MtCO2e per annum by 2070; Decarbonising India: Charting a pathway for sustainable growth,
October 2022

Ways to drive more sustainable tourism1
Develop unified sustainability framework,
Create funding evaluation criteria and ratings
instruments and incentives E.g., Travalyst is assembling key
E.g., South Africa’s Green Tourism stakeholders from the industry
Incentive Program targets small and focusing on consolidating
tourism businesses like lodges and sustainability related sources,
guest houses. It funds water– and collection methods, and analysis
energy-efficiency assessments. of environmental impact data
Between 50 and 90% of the cost of
the identified solution is then
funded by the program2
Friendly
footprints
Ways to drive
sustainable
Make binding
commitments to tourism
sustainability
Improve the transparency, accessibility,
E.g., All member airlines of
the International Air Transport and distribution of sustainability solutions
Association (IATA) agreed to E.g., In India, Booking.com has
the association’s commitment conducted multiple workshops with the
to fly net-zero by 20503 Responsible Tourism Mission of Kerala,
for homestay operators across the state
to educate them about the online
training platforms and the importance of
adopting sustainable practices.
1. Press search; The Path toward eco-friendly travel in China, March 2023
2. “The Green Tourism Incentive Programme,” Industrial Development Corporation, October 4, 2021
3. “Press release no. 66: Net-zero carbon emissions by 2050,” IATA, October 4, 2021
It is paramount to protect exotic and

sensitive locations through sustainable
travel. The government could set guardrails
for pricing and access, shifting the focus
from volume tourism to sustainable tourism. Kerala’s Responsible Tourism
For instance, Bhutan has implemented Mission focuses on boosting
‘sustainable development fee’ for offsetting
the carbon generated by tourists.37
tourism by developing
host communities...It has
With a clear vision, a ‘whole of nation
given rise to over 10,000
approach’ and effective collaboration
between the government and industry women entrepreneurs.
stakeholders, India has the potential to
become a leading tourism hub of the world.
— Rupeshkumar K
Mission Coordinator, Responsible
Tourism Mission, Dept. of Tourism,
Govt. of Kerala
37
Bhutan tourist fee Reuters press release, August 2023

UNTIL THE NEXT
ADVENTURE
The Indian traveller is willing,
eager and confident to keep
going, travelling near and far in
the search for new experiences.
This is a unique opportunity for
India’s travel ecosystem to meet
Indian travellers where they are -
with attractive, personalised and
more sustainable experiences.
The best is yet to come,
as we embark on this
journey of discovery and
adventure together.

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How India

Hardik Goyal Jaiwardhan Saraf Jatin Khanna

Mukut Chakravarti Paras Loomba Rupeshkumar K

Sidharth Gupta Syed Anzar Ahmed

Madhan Gandhinathan Santosh Kumar Urvi Thakkar

Cover page image credit - Mohini Goyal, Booking.com

The discerning Indian traveller 12

The rapidly strengthening travel ecosystem 27

A trail-blazing travel industry 41

How India Travels 2023 1

The keen Indian traveller

2 How India Travels 2023

A. Public–private collaboration: An ecosystem where public and private

Understanding the Indian traveller can help India’s travel ecosystem

How India Travels 2023 3

USD 410 billion

India travel Fastest COVID-19

Expected fastest growing travel expenditure1 amongst top 10

4 How India Travels 2023

2019 2030P 2X increase

USD 2-3 USD

Online Travel Agencies' (OTAs) growing ~4 times faster

How India Travels 2023 5

How India Travels 2023 7

Travel expenditure Travel expenditure as % of GDP

Mexico 153 12%

1. Euromonitor; World Bank

8 How India Travels 2023

Number of trips taken by Indians, domestic & outbound,1 million

% Domestic trips % Outbound trips XX Number of trips in million

2030P 1% 99% ~5,000

2022 1% 99% ~1,700

2019 1% 99% ~2,300

1. India Tourism Statistics, 2022 Report; Oxford economics; UNWPP 2022

How India Travels 2023 9

% Domestic expenditure % Outbound expenditure XX Expenditure in USD billion

2030P 35% 65% ~410

2022 35% 65% ~120

2019 25% 75% ~150

Rise in household income levels1 No. of households in million

10-35K 14% 35 10-35K 63% 164

5-10K 40% 105 5-10K 41% 106

0-5K 45% 118 0-5K 5% 12

1. Economist Intelligence Unit

10 How India Travels 2023

Travellers who claimed they spent more than 25 days on average

Indian travellers took around three trips on average in 2022.

The trend is expected to continue; Indian travellers are taking

12 How India Travels 2023

Average travel planning window across geographies in 2023,1 days

1. Booking.com Traveller Trends Survey, 2023 (n=2,000 India, n=42,000 Global)

How India Travels 2023 13

Preferred partner India USA Germany China Australia Japan

With a partner or spouse 1 1 1 1 1 2

With a group of friends 2 5 5 3 4 5

With a nuclear family

1. Booking.com Traveller Trends Survey, 2023 (n=2,000 India, n=42,000 Global)

14 How India Travels 2023

Travel to a destination in a show or movie

Try food or cuisine I saw on a show or movie

Experience the culture from a show or movie

Travel to a speciﬁc landmark from a show or movie

Go to a restaurant from a show or movie