Middle class driving outbound

Amsterdam, Singapore, London, Frankfurt, and Melbourne are top five trending destinations that Indian travellers are visiting this summer (June-August 2024), as measured by the change in share of flight bookings, stated a report from the Mastercard Economics Institute.

TT Bureau

Indian market witnessed a 21 per cent surge in domestic travel as of March 2024, compared to 2019, according to an annual report from the Mastercard Economics Institute (MEI), released recently. The report, titled “Travel Trends 2024: Breaking Boundaries’, provides comprehensive insights into the evolving landscape of the travel industry across 74 markets, including 13 in the Asia Pacific region (APAC). It stated that international travel by Indian experienced a 4 per cent increase during the period.

Drawing on a unique analysis of aggregated and anonymized Mastercard transaction data, the report takes a deep dive into key tourism trends for 2024.

More Indians are travelling than ever before

In 2024, fuelled by a growing middle class and expanded route capacity, more Indians are travelling internationally than ever before. In the first three months of 2024, 97 million passengers travelled through Indian airports. Just 10 years ago, the same figure would have taken a whole year to achieve.

While domestic air passenger traffic surged 21 per cent above 2019 levels, international travel rose by 4 per cent. Notably, Indian travellers are increasingly exploring key markets, with a 53 per cent increase in visits to Japan, a 248 per cent growth to Vietnam, and a 59 per cent rise in visits to the United States, compared to 2019, despite a stronger US dollar. This trend signifies a major shift in Indian travel habits towards widespread exploration and discovery.

According to the report, Amsterdam, followed by Singapore, London, Frankfurt, and Melbourne are the top five trending destinations that Indian travellers are visiting this summer (June – August 2024), as measured by the change in share of flight bookings.

“Consumers in the Asia Pacific region have an intense desire and willingness to travel and are becoming increasingly savvy to ensure they get the best value and unforgettable experiences from their trips,” said David Mann, Chief Economist, Asia Pacific, Mastercard. “For tourism authorities, retailers, the hospitality and F&B sectors, the bottom line is that costs matter. In today’s economy, foreign exchange rates and spending power have become vital components in driving a traveller’s assessment of value when they are making their plans. This suggests that businesses targeting tourism dollars need to review their current strategies, and shift them, if necessary, to maintain their appeal to travellers.”

Travellers continue to prioritise experiences over things

Consumers globally continue to prioritise experiences over material goods. This is playing out in the travel sector as spending on experiences, especially nightlife, totals 12 per cent of tourism sales – the highest point in at least five years. Additionally, a burgeoning fine dining scene in India has translated to marginal outperformance of the fine dining category for in-destination tourism dining. As of March 2024, spending on casual dining rose by 49.2 per cent, while fine dining saw a 55.2 per cent increase compared to the previous year.

Highlights of the report

• The first three months of 2024 have registered 97 million passengers travelling through Indian airports for both international and domestic trips.
• As of March 2024, domestic travel surged by 21% compared to 2019, while international travel experienced a 4% increase.
• Indian travellers are increasingly exploring key markets, with a substantial 53% surge in visits to Japan, a 248% leap in visits to Vietnam, and a remarkable 59% rise in visits to the United States, compared to 2019.
• Amsterdam, Singapore, and London are trending as the top three summer holiday destinations for Indian travellers in 2024.