Key Trends Redefining the Indian Luxury Travel Industry

Indian tourists are exploring all sought of destinations for their holidays in summer 2024, from Srinagar to Switzerland, Baku to Bhutan, Lakshadweep to London, and list goes on. However, for each one ?motivation to ?travel may be unique. ?While some chose popular vacation spots, others prioritise their self-actualization needs to explore the world based on their interests- be it eco-friendly gateway or a solo trip. Don’t be surprised to know that fans are traveling serious miles to enjoy their favourite sporting events or music concerts.

Redefined by meaning and motto, bespoke tours are on the top of young travellers’ bucket list. As per recent research by Deloitte, around 50% of those surveyed in India want to spend more on experiences than on physical possessions. The focus on sustainability, personal growth and self-reflection showcases a significant shift in the preferences of travellers.

Here are the key trends redefining the landscape of Indian luxury travel industry:

Transcendent experiences: With more means and penchant for experiential travel, young Indians seek for immersive experiences. They believe in YOLO (you only live once) and live in FOMO (fear of missing out) and hence, aspire to explore the world. As per Finn Partner study, young Indians are more willing to spend on experiential travel than their older counterparts. They value unforgettable memories such as snorkelling in the house reef with expert Marine Biologist or taking a zipwire through the rainforest to dine in the treetops. Rather than being passive travellers, young consumers lay more emphasis on activities, sessions or workshops like star gazing activity, cookery sessions or pottery workshops. Key triggers for young Indians to splurge include, unique and exclusive experiences (63%), luxury and indulgence (61%), and technology-driven experiences, such as VR historical tours (51%).

Indigenous travel: There is growing craze among young Indians for genuine indigenous travel experiences from local cuisines to local natural attractions and culture immersions. Domestic tourism has risen by 40% this summer, as per the Economic Times report. Within domestic travel, spiritual tourism in India has seen an extraordinary surge with 60% of tourism now is linked with religious places. Searches for Ayodhya grew by 585%, Ujjain by 359% and Badrinath by 343% in 2023 as compared to 2022. There is growing expectations of young consumers beyond darshan, they look for unique experiences such as cuisine trails, heritage walks, interaction with local communities, healing therapies and meditation sessions. Several luxury hospitality players are encashing on this opportunity, for instance, Marriott have announced opening in places like Katra and Ayodhya, Taj is planning to open property in Pushkar. Radisson has opened a hotel in Gopalpur, Odisha.

Solo travel: The spirit of exploration and adventure is high among young Indian travellers with 84% of Indians planning solo trips this year, outstripping the global average of 66%. This increase in solo travel is mainly driven by a desire for self-discovery, with 46% of Indians stating "reconnecting with themselves" as the key motive, as per to the American Express 2024 Global Travel Trends Report. ?Also, about 60% of Indian travellers expressed keenness for impromptu trips with key reasons behind these trips being the freedom to explore without pressure (50%), and the desire to experience new cultures and local experiences (48%).?

Health and wellbeing becoming a priority: People are increasingly becoming health-conscious, making wellness tourism a next big trend in India. Indian wellness market is set to cross USD 72 billion by 2025 (GOI data). Affluent travellers are seeking for yoga retreats, mindful food menus, thermal spas, traditional treatments like ayurveda and acupuncture, healing and rejuvenation. The number of Indians investing in holistic wellness programs at exotic destinations such as Ananda in the Himalayas has doubled since the pandemic, unimpacted by the high price tags. Recent report by CARE Ratings confirmed that with the increase in income levels and awareness, people in India are spending more on invisible experiential goods like education, health and well-being while reducing spent on tangible flamboyant goods.

?Sustainable travel- There is a growing preference for sustainability and eco-friendly vacations among young travellers. Today, more than 90% of Indians prefer sustainable travel. They wish to seamlessly integrate green practices in their entire journey from choosing eco-certified properties to supporting local communities, art, craft and culture, promoting wildlife conservation, preserving natural ecosystems and minimising waste and consumption. With increasing awareness of climate crisis, people are making more informed decisions. Affluent consumers today put more emphasis on quality of life and want to indulge in guilt-free pleasures. They value living a purposeful life and aim to explore meaningful experiences that build on their ‘authentic-self’.