High Travel Demand Expected in Se-Nov 2023

New Delhi's Inbound Travel Expects Strong Momentum

India's inbound travel is poised for significant growth until November this year, with a substantial year-on-year increase in travel during the festive season compared to 2022. A report by RateGain Travel Technologies Limited, a SaaS solutions provider for travel and hospitality firms, reveals key insights into this travel surge.

Key Findings

• Top Source Markets: The report identifies Australia, the US, Singapore, Canada, and the UK as the top five source markets for inbound travel to India during this period.
• Impressive Growth: International arrivals from September to November 2023 are expected to be 23% higher than the corresponding period in 2022. This growth is attributed to several factors.
• Business Travel: Business arrivals during this period are projected to be 53% higher than in 2022. This indicates a significant increase in corporate travel during this time.
• Domestic Demand: Factors such as a higher exchange rate, visa delays, and an unprecedented heat wave in Europe have contributed to affluent travelers staying back in India, boosting domestic travel.

Factors Driving Travel Demand

The robust momentum in inbound travel can be attributed to:

1. G20 Summit in Delhi (September 2023)

India's hosting of the G20 Summit has brought attention to the country's tourism potential. This international event has positively impacted India's image as a travel destination.

2. Upcoming Festive and Event Season

The period following the G20 Summit will witness several events, including the ICC Men's Cricket World Cup and the Miss World event, both hosted in the capital. These events are expected to attract a significant number of tourists.

3. Indian General Elections

Travel demand is expected to remain strong up to June the following year, thanks to the Indian General Elections. Improved public infrastructure and connectivity will benefit smaller cities in India.

Expert Opinion

Ankit Chaturvedi, vice president and global head of marketing for RateGain Travel Technologies Limited, highlights the extraordinary travel demand trend observed in the last 75 days, particularly in the National Capital Region (NCR). 

The G20 Summit's positive impact on India's tourism potential has made the country a popular topic of discussion, likely leading to increased travel in the coming years.

Dipak Deva, managing director of Travel Corporation of India Ltd., emphasizes the role of economic sentiment and the country's positive perception in driving travel to a destination. Currently, India enjoys a positive perception, contributing to the surge in travel demand.

Domestic Travel Surge

Apart from inbound travel, domestic travel in India is experiencing significant growth, with a 65% year-on-year increase in the same three-month period across key cities. This surge is driven by the ICC Men's Cricket World Cup and match-related travel demand.

Hotel Price Increases

Cities hosting cricket matches will witness substantial hotel price increases:

• Pune: 360% increase
• Ahmedabad: 308% increase (India-Pakistan rivalry)
• Dharamshala: 300% increase
• Hyderabad: 230% increase
• Chennai: 220% increase

Smaller hotel inventories in these cities have led to highly inflated hotel rates. Bangalore, Kolkata, and Lucknow will also see price increases of 205%, 210%, and 215%, respectively. Delhi will experience the lowest rise at 165%.

Airfare Increases

Top venues like Ahmedabad, Mumbai, and Kolkata will see airfares grow by 40%-60% compared to the previous year. Other host cities will experience 20%-30% increases in flight prices.

In summary, India is expected to witness a surge in travel demand from September to November 2023, driven by various factors including international events, domestic cricket tournaments, and positive economic sentiment. Travel and hospitality businesses in India are poised for a significant boost in the coming months.