Skift Take
More than 65% of Indian population is aged below 35. With increasing spending power, these young travelers make for a large potential traveler base.
Indian Gen Z and Millennials prefer to travel in the off-peak season to avoid crowds and reduce costs, according to a report by online visa application platform Atlys.
Young travelers are attending international sports events, looking at cultural hotspots, and going on solo adventures as part of their travels. During the Olympic Games this year, the platform saw a 60% increase in visa applications from India for France. This was driven in large part by younger travelers, Atlys said.
“Understanding the preferences of younger travelers is crucial as they drive major trends in the travel industry,” said Mohak Nahta, CEO of Atlys.
Gen Z and Millennials prefer destinations such as the UAE, Vietnam, and Egypt. On the other hand, solo travelers are preferring Egypt, Azerbaijan, and Oman.
Interestingly, Gen Z and Millennials from Maharashtra, Delhi, and Uttar Pradesh are driving outbound travel from India, Atlys said. These states have shown a significant volume of visa applications.
The Young Indian Travelers: India is a growing source of outbound tourism, as it is developing “fast-growing pools of first-time tourists,” according to consulting firm McKinsey and Company. McKinsey has also projected that India will become the fourth-largest domestic travel market in terms of spending by 2030 – it currently ranks sixth.
Earlier this year, a report by online travel agency Skyscanner had said 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 the young travelers, as more than half of the youth prefer to use their own money, including income and personal savings, for these travels. About 20% of young Indian travelers are also using schemes such as buy-now-pay-later while booking their trips.
South Africa Announces New Preferred Visa System
South Africa’s department of home affairs has announced a new preferred visa system aiming to attract Chinese and Indian travelers. The system will be implemented in January next year.
Indian and Chinese nationals do not have visa-free access to South Africa. The new system, the Trusted Tour Operator Scheme, is expected to cut down some of the red tape around South Africa’s visa process for the nationals of the two countries. Under the scheme, approved tour operators from India and China will be able to register with the department and offer fast-tracked visas to their clients.
Meanwhile, South African Tourism has partnered with Ethiopian Airlines to offer affordable air travel to the country as part of a new campaign. The campaign offers special low airfare on Ethiopian Airlines’ routes from Mumbai, Delhi, Bengaluru, Chennai to Cape Town and Johannesburg.
Thomas Cook Witnessing Growing Festival Tourism
Travel services company Thomas Cook India and its group company SOTC are witnessing a growing trend of festival tourism. Thomas Cook said that there is a shift from the traditional home-based celebrations among Indians, as they are now increasingly traveling with family for fun celebrations during festivals.
The company has launched festive tours for Durga Puja and Diwali to capitalize on the trend.
It said that Indians are now opting for longer stays during festival vacations: the stays have increased from three days earlier to 6-15 days now. “The appetite to spend has increased by 10-15% YoY,” the company said.
Apart from destinations like Kashmir, Himachal Pradesh, Dubai, and Abu Dhabi, new destinations are also emerging in the list of preferred locations: Azerbaijan, Uzbekistan, Kazakhstan, Vietnam, Cambodia, and Georgia.
Accor Signs Pullman in Varanasi
Accor has announced the signing of a Pullman hotel in Varanasi. The 180-room hotel is set to open in January 2029. In November last year, Accor had signed its second Pullman in India, set to come up in Amritsar in 2027.
Accor currently operates 64 properties in India, and has a developmental pipeline of 30 hotels.
In an earnings call earlier this year, Accor CEO Sébastien Bazin had said that it will benefit as the middle class expands, especially in India. “What’s most important … is the increase of the emerging middle-class population, which went up one billion in the last 10 years, half of those from India. Those are the preferred targets for Ibis, Mercure, and many of the hotels in our core,” he had said.
He further said, ““India alone… had 35 million international travelers for the last two to three years,” Bazin said. “There is no question in my mind that India will reach the 150 million mark that we’ve been enjoying with China and America.”
The Leela Partners With RedBeryl
The Leela Palaces, Hotels and Resorts has entered into a strategic alliance with luxury lifestyle management company RedBeryl. The partnership will provide RedBeryl members access to the Leela Discovery membership.
Shweta Jain, Chief Marketing and Sales Officer of The Leela, said, “Desire for immersive travel experiences continues to rise, particularly among the young affluent. Over 60% of luxury travelers are seeking custom, stress-free experiences that align with their lifestyle.”
As part of the alliance, RedBeryl and The Leela will launch joint marketing campaigns and co-create exclusive events to highlight the features of the partnership.