The World Travel & Tourism Council’s (WTTC) 2024 Economic Impact Research (EIR) reveals a significant recovery of India’s Travel & Tourism sector, with domestic tourism playing a pivotal role.
25.06.2024 - 12:13 / skift.com / Bulbul Dhawan
India is now the third-largest domestic aviation market, after the U.S. and China, according to data by aviation analytics firm OAG. In April 2024, India’s domestic airline capacity was about 15.6 million, up from 8 million in April 2014.
Over the past decade, the Indian domestic market grew at an annual rate of 6.9%. The firm studied India, China, U.S., Indonesia, and Brazil, and India is the fastest-growing market, it said.
Factors for India’s Growth: Low-cost carriers accounted for 78.4% of the domestic airline capacity in India in the month of April, the highest of the five markets that OAG studied.
“The LCC sector has been key to driving growth in India’s domestic market. In the last 10 years IndiGo has almost doubled their market share, from 32% of capacity in 2014 to 62% today. Whilst the rest of the market has barely grown, averaging just 0.7% a year, IndiGo has a domestic capacity growth rate of 13.9% annually,” the firm said.
The Air India group accounts for 28% of the capacity. “This means that India’s two largest carriers account for 9 out of 10 airline seats,” OAG said.
Both IndiGo and Air India are expanding their operations and upgrading their fleets. Last year, IndiGo placed an order for 500 narrowbody aircraft, while Air India ordered 470 aircraft last year.
The Indian Aviation Industry: The Indian aviation industry has been growing as new airports are coming up. Between 2014 and 2023, the number of airports in the country doubled from 74 to 149. India’s domestic air passenger traffic during 2023-24 financial year surpassed pre-Covid levels and increased 13% compared to the year before.
The aviation industry in India is underserved. However, the annual passenger capacity at Indian airports is set to increase by 60 million.
The Indian government has inaugurated the ‘Fast Track Immigration – Trusted Traveller Program’ (FCI-TTP) to quicken the process of immigration for Indian citizens and Overseas Citizen of India (OCI) cardholders by allowing them to scan their boarding passes and passports, and undergo biometrics authentication themselves. According to the plan, the program will also eventually cover foreign travelers.
To implement the program, e-gates or automated border gates have been installed to minimize human intervention in the immigration clearing process at 7 major Indian airports, including Delhi. FCI-TTP is being implemented through an online portal, requiring applicants to register online with their details and documents to be verified.
Ease of travel is quickly becoming a focal point for airlines and airports. Last week, the Delhi international airport installed self-service baggage quick drop machines across terminals 1 and 3 to facilitate faster baggage
The World Travel & Tourism Council’s (WTTC) 2024 Economic Impact Research (EIR) reveals a significant recovery of India’s Travel & Tourism sector, with domestic tourism playing a pivotal role.
Till a little over a century ago, river cruising was quite prevalent in India until railways took over as a faster means of transport. Cut to now, the activity is back and growing in the country, only now it’s more for leisure, said Raj Singh, chairman of Heritage River Journeys, which operates Antara River Cruises in India.
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The coastal state of Goa has asked for public views, objections, and suggestions on the draft of the Goa Tourism Promotion and Management Bill, 2024. The bill aims to look at various aspects of tourism in the state, including illegal activities, job creation, and impact on the state’s economy.
Indonesia is planning to introduce visa-free entry for tourists from 20 nations, including India. The country’s tourism minister, Sandiaga Uno, has announced that the policy is in the works and it will be finalized before October this year. The move aims to boost international tourism in Indonesia, Uno said.
India’s travel and tourism sector has recovered significantly, according to a new report from the World Travel and Tourism Council (WTTC), but international travel spend in India continues to remain below pre-Covid levels.
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In December 2019, India and China were connected through 539 direct passenger flights. Now there are none.
Between January and May 2024, India has emerged as the second-largest international source market – not including Canada and Mexico – for tourism in the U.S., according to data released by the U.S. National Travel and Tourism Office (NTTO).