Inflationary pressures, higher airfares, and visa constraints have not deterred the Indian travel industry, which has experienced a significant boost in summer travel this year. Online travel agencies (OTAs) have witnessed an impressive uptick of 60-80 per cent year-on-year (y-o-y) in bookings compared to last year. The industry attributes this growth to long weekends and an increased interest in multiple smaller trips.

Ixigo, one of the prominent players in the travel industry, reported a 56 per cent increase in domestic travel bookings and a record-breaking 63 per cent increase in international travel bookings this summer compared to the previous year. Cleartrip also observed an overall increase in bookings during April and May 2023, with segments showing a substantial growth of 2.8 times in May and June compared to the same period in 2022. Thomas Cook’s holiday data revealed over a three-fold growth in outbound travel compared to last year, while EaseMyTrip saw a surge of almost 60 per cent in online flight searches in April and May this year compared to the previous year.

Domestic travel

In terms of domestic travel, Indian travellers have shown a preference for city trips, hill stations, and beach destinations to escape the summer heat. Popular choices include Kashmir, Shillong, Mysore, Guwahati, Bhubaneswar, and Kerala. Notably, even in the off-season, bookings for Goa have witnessed an astonishing y-o-y increase of over 150 per cent in May, according to Aloke Bajpai, Group CEO & Co-founder of ixigo. Thomas Cook highlighted a surge in bookings to Port Blair (60-80 per cent), Chandigarh, Dehradun, Kochi, and Goa (20-50 per cent), while Kashmir, Leh-Ladakh, and Uttarakhand continued to be popular destinations.

Despite challenges such as the suspension of GoFirst’s operations and numerous aircraft being grounded due to supply chain constraints, the domestic travel sector has experienced a surge in air pricing. Fares across major metros to Srinagar and Leh have seen a 100 per cent surge compared to last year, while fares to Port Blair have increased by 60-80 per cent, and to Chandigarh, Dehradun, Kochi, and Goa by 20-50 per cent. Despite these price increases, Indian travellers are displaying a strong appetite for spending, with Thomas Cook reporting a 30 per cent increase in the Average Transaction Value (ATV).

Not far from home

European travel has traditionally been a popular choice for Indian tourists, but the surge in airfares and visa constraints have led travellers to opt for destinations closer to home. Thomas Cook has witnessed a notable return of long-haul travel this summer, particularly to Europe, despite visa challenges. Switzerland, France, and Scandinavia topped the list of European destinations, followed by the UK, South Africa, Australia, and the USA for visa-holding customers. However, the recovery in European travel has not met expectations due to the high airfares, which have reached 60-70 per cent higher than pre-Covid levels.

Also read: booking.com sees chunk of bookings coming from domestic and outbound travel

As a result, Indian travellers have turned their attention to more affordable yet exotic destinations in Southeast Asia. Countries such as Cambodia, Thailand, and Vietnam have experienced a significant rise in bookings, with y-o-y increases ranging from 70 per cent to 240 per cent. Additionally, Australia has emerged as a popular choice for long-haul travel this year.

Commenting on the trends, Aloke Bajpai, Group CEO & Co-founder of ixigo, explained that increased ticket prices have influenced travellers’ decisions. However, industry players are now confident of the growth trajectory to continue during the monsoon quarter as well. 

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