India's Outbound Surge: Key Drivers Behind the Travel Boom

Travel services operator Alhind Group based in Kerala’s Kozhikode has received the Indian aviation regulator Directorate General of Civil Aviation (DGCA)’s initial approval to start an airline. Alhind aims to commence operations of Alhind Air by the end of 2024. 

Catch Asia Editor Peden Doma Bhutia in conversation with Saniya Zanpure, Skift’s research analyst, as they dive into the Skift Travel Health Index (STHI) — a tool that tracks and measures the performance of various travel sectors. They explore why the travel industry in 2024 is mirroring 2023, with insights into the factors driving this stability. Plus, they look at India’s rise as a major player in global travel and find out what’s fueling this rapid growth.

Electric digital intercity bus startup Fresh Bus has raised INR 875 million ($10.5 million) in its Series A funding round. FreshBus, which offers ticketing, real-time tracking of buses, loyalty program, among other services, was founded by Sudhakar Reddy Chirra. Chirra had built bus aggregator Abhibus which was acquired by Ixigo in August 2021 in a cash and stock deal.

India’s travel landscape is evolving rapidly, reflecting the country’s growing economic clout and the increasing confidence of its travelers. The first half of 2024 saw a significant surge in both outbound and inbound tourism, with Trevolution Group reporting 46% market growth compared to the same period last year. This uptick is not just a rebound from the pandemic but an indicator of the deeper shifts in Indian travel habits.

Hilton has partnered with Indian actor Sidharth Malhotra to extend its global marketing platform, ‘Hilton. For The Stay’ in the Indian market. The campaign would be driven with new initiatives and investments tailored to India, the company said in a statement. 

India’s tourism industry is undergoing a significant transformation. The Federation of Indian Chambers of Commerce and Industry (FICCI) projects the outbound travel market to reach $55.4 billion by 2034. At the core of this boom is India’s expanding middle class, driving both domestic and international travel as disposable incomes rise.

The revenue of Indian tour and travel operators is expected to increase by 15-17% during the 2025 fiscal year, according to projections by credit ratings agency CRISIL. The growth is driven by rising domestic tourism and increasing propensity to travel overseas, the agency said. 

Landal GreenParks UK, the UK’s fastest growing company offering holiday breaks in nature, has seen a 24% YoY increase in summer bookings driven by longer staycations in the Southwest region.

India now allows nationals from Japan, South Korea, and the United Arab Emirates to get a visa-on-arrival for tourism, business, conferences, and medical purposes. The visa will be valid for 60 days, and travelers will be able to visit India up to two times during that period. 

With Independence Day and Raksha Bandhan just a few days apart with a weekend in between, Indian travelers are looking to use this opportunity to vacation. Online travel agency Agoda has witnessed an increase of over 260% in travel searches from Indians compared to the same period last year. 

The hotel industry in India is estimated to reach around $247 billion in 2024, and projected to hit $475 billion by 2029, according to market research firm Mordor Intelligence. That’s an annual growth rate of nearly 14%. 

The Indian government has advised airlines to self-regulate and exercise moderation in pricing air tickets, the civil aviation ministry has said. The move has come amid concerns over high airfares, especially during peak periods and festivals.