India’s New High Net Worth Travelers – India Report

Skift Take

Indian travelers are becoming an important source travel market across the world. A new report highlights the preferences of the high net worth traveler base and what they are willing to spend on.

Bulbul Dhawan

We’ve written a lot about India’s rising middle class – and how they’re set to keep spending more on travel. But now we’re hearing more about India’s high net worth travelers in a new report from Marriott International.

According to the research, culinary experiences are a key driver for Indian travelers. In fact, for them, a hotel’s fine dining options are more important than the property’s location.

India is also driving the trend of exclusive experiences in the Asia Pacific region, the report stated. “Affluent Indian travelers have a deep appreciation for culture, architecture and design and are willing to pay more for VIP access.” 

A significant portion of Indian travelers are planning to spend more on their leisure travel this year, looking at six trips over the course of the year, with an average three-four nights for a short trip and two-three weeks for a long holiday.

Nearly 50% of the Indian travelers are willing to pay more for luxury hotel brands, and wellness within their leisure trips is a priority. 

A full, fast-paced itinerary is also a preference for Indian travelers, the report added.

Key Destinations for Indians: About 70% of these high net worth Indian travelers are planning a trip to Australia, followed by Singapore, where more than 50% of travelers are planning to visit. 

Japan, Malaysia, Thailand, New Zealand, Hong Kong, and Maldives are among other key destinations for Indians in the Asia Pacific (APAC) region. 

A recent report by consulting firm McKinsey and Company said that India is a fast-growing source of outbound tourism. During the 2023-24 financial year, Indians spent about $17 billion on international travel.

Government to Work to Increase Tourism’s GDP Share to 10%

The government will work on increasing the contribution of tourism to India’s Gross Domestic Product (GDP) to 10% from the current level of just over 6%. 

Tourism minister Gajendra Singh Shekhawat said that India has several verticals of tourism, including culture, nature, wildlife, activity, adventure, and more. 

“We will work on how these verticals of tourism can be further developed, so that, along with increasing the contribution of tourism to the country’s GDP, employment opportunities can also increase,” he said.

Akasa Air Announces Flights to Abu Dhabi

Low-cost Indian airline Akasa Air has announced that it will be commencing flights to Abu Dhabi starting July 11. This will mark the carrier’s fourth international destination. Akasa Air will operate daily direct flights between Mumbai and Abu Dhabi. 

The airline commenced its international operations earlier this year, when it started flying to Doha, and then it expanded its network to include Jeddah and Riyadh in Saudi Arabia. It has also been granted flying rights to Kuwait, co-founder Praveen Iyer told Skift in an earlier interview. 

Akasa Air’s comes as there is a significant boost in connectivity between India and the Middle East in response to the rising demand from Indian tourists. Airlines, including IndiGo, Vistara, Etihad Airways, Oman Air, and SalamAir, have launched new routes and increased the frequency of existing flights to cater to the growing number of travelers. 

Ginger Hotels to Double in East, Northeast India in 3-5 Years

Indian Hotels Company (IHCL) is planning to double the presence of its Ginger brand in the East and Northeast region of India over the next three to five years, according to executive vice president Deepika Rao. 

The budget hotel brand currently has 11 operational properties in the region, and a pipeline of seven hotels that will open in two to three years. There are over 90 properties in Ginger’s portfolio, of which the East and Northeast region accounts for about 20%.

Ginger’s expansion strategy includes focusing on smaller cities. It is IHCL’s second-largest brand after Taj, and the company is looking to have over 85 operational Ginger hotels by the end of the 2025-26 financial year. 

EaseMyTrip Signs Agreement With Uttar Pradesh to Boost Tourism

Online travel company EaseMyTrip has signed an agreement with the Uttar Pradesh EcoTourism Development Board (UPETDB), which is responsible for executing promotional and tourism activities in the state. 

The collaboration aims to boost promotion and development of tourism in Uttar Pradesh by using EaseMyTrip’s reach and technology to showcase the state’s eco-tourism destinations, the online travel company said. 

EaseMyTrip will also actively promote all registered homestays in Uttar Pradesh on its online portal, as well as curate and market tourism packages showcasing the state’s unexplored destinations, cultural experiences, cuisine, and crafts. 

Air India to Set Up Flying Training Organization in Maharashtra

Full service carrier Air India is planning to set up a Flying Training Organization (FTO) in Maharashtra’s Amravati. This will be South Asia’s largest FTO, the airline said in a statement, and is being established as part of an initiative by the Maharashtra Airport Development Company (MADC). 

The FTO would train 180 commercial pilots every year after it becomes operational in 2025. 

“The FTO will offer aspiring pilots an opportunity to undergo training with curricula at par with global schools,” said Sunil Bhaskaran, Director, Aviation Academy, Air India.