“Travel sentiment across India is strong, but inbound travel remains an opportunity”

Kumar is speaking Mintpointed out that although there are fewer large events this year, the concert and festival period should maintain momentum for hotels and domestic tourism. “Apart from the elections, we had the Indian Premier League earlier this year. The overall situation domestically is good. Of course, the same is true outbound as every country that wants tourist inflow is increasingly focusing on Indian tourists. For those who want to bring India This also plays out in a very competitive way for Indian travel providers as tourists stay within our borders,” he said.

Domestic and international interests

While the company does not provide booking data, Kumar said searches for domestic and international destinations increased during the festive season. He pointed out that India is a market with more than 50 million tourists and that the country’s Gen Z population is increasingly turning to social media platforms such as Instagram instead of Google to search for travel destinations.

Despite these trends, he said inbound tourism has not yet returned to 2019 levels. “Inbound travel is definitely an area where we think we can continue to do more as a company and we also think the industry as a whole can do more,” he added. Last-mile connectivity in India has improved significantly over the past decade, with the number of airports and highways more than doubling, helping to improve customer experience, he said.

Tourist arrivals from India, Thailand and China lagged behind pre-pandemic levels, while France and Spain surpassed 2019 levels. Strategic plans such as Vietnam’s Tourism Development Strategy 2030 and Japan’s Tourism Plan can serve as models for India. The US, Hong Kong and the UK remain the top and potential travel markets to India in 2024, with new interest also emerging from Australia, Italy and the Netherlands, with major cities such as New Delhi, Mumbai and Bengaluru dominating searches.

But Kumar said India’s international traffic may not reach pre-pandemic levels until 2025 due to factors such as the U.S. election, which usually occurs during the peak travel season, and economic slowdowns in Europe and the United Kingdom. “Our best guess or estimate is that we will have about 10 million arrivals by the end of the year. When you compare that to the figures reported by the Ministry of Tourism in the first half, that probably means a slight increase in arrivals. Growth. But we probably won’t reach the 2019 numbers, probably in 2025.”

Peak season, peak rates

The upcoming quarter (October to December) is traditionally the peak period for domestic and inbound tourism in India due to favorable weather and holiday travel. Despite soaring hotel prices, with many operators charging at least 70% more than pre-pandemic levels, demand remains strong. “All the numbers we have seen so far and the data we have seen do not indicate any softening in demand for hotels. Yes, there are some ups and downs in some micro markets but overall the sentiment across India is that consumers are not It will be like, oh, suddenly something is too expensive, so I won’t spend that much and I will start staying in cheaper accommodation,” Kumar said.

While travelers pay more for accommodation, hotels are also encouraging direct bookings through platform bookings. Kumar noted that this shift does not pose a threat to Booking.com. “Even if the average daily rate at the hotel or the room charge per night at the hotel increases, it’s not a big factor for us. If they increase the cost, the commission we charge for booking the room will also increase. They still have room needs “While revenue per room has increased, there is still an urgent need for hotels to diversify their distribution channels and we adapt to this,” he said.

Kumar also said the alternative accommodation segment, including private homes and villas, is still emerging but shows potential for growth.

Number of room nights worldwide

Booking Holdings’ financial report shows that global room nights increased by 9% year-on-year by the end of the second quarter of 2024, driven by healthy demand in Europe and Asia. However, global room nights grew by only 7% in the quarter, reflecting slower growth in Europe compared to the first quarter of 2024. The company considers India a priority market in the Asia-Pacific region.

Hotels are the preferred accommodation option (63%), although homestays and villas are growing, with 300% growth, according to research data in a new report, How to Travel in India 2024 – Inbound Editor, produced by the company with consultancy Accenture . India’s goal of entering the world’s top ten tourist destinations hinges on public-private partnerships and visa reforms. As seen in Thailand and Vietnam, streamlining the visa process can boost tourism. Improved data reporting and real-time analysis are also critical to developing effective tourism policies.