travel industry future in india

• Take One: Big story of the day

Sky high: Despite hurdles, the travel and hospitality industry soars in 2023

Outbound travel surged, Indian travellers embraced spiritual journeys and fuelled sustainable trends this year. However, experts hope for a better revival for inbound tourism in 2024

• Most Popular

Anubhuti is a writer at Forbes India, currently working from Gurugram. She reports on startups, culture, hospitality, and gender. As part of the web team, she is responsible for running the website along with the team, and manages the LinkedIn page. An alumna of SCM Sophia, Mumbai, she has previously worked with Hindustan Times as a features writer and at The Swaddle, reporting extensively on gender and health. She is a Kathak enthusiast with seven years of training and a lifetime to go. When not working or dancing, she's making clothes out of Indian prints, which she hopes will turn into a small business after she retires.

• SC finally says there will be no ReNEET, leaving students in a lurch
• Budget 2024: Centre targets improving tourism in Bihar, Odisha
• The emotional cost of the NEET scam
• NEET Exam Row: Students in Kota helpless, frustrated, angry and confused
• More Indian women in senior roles, but their elevation to leadership positions still slow: Report
• The riskiest thing today is to be in a job: Ravi Venkatesan
• India now home to record 166 billionaires: Forbes list
• Beyond language barriers: Meet the social media influencers of the South
• Femtech: Making women's health sexy
• Work from home: This future of work may not be sustainable

Related stories

From Vietnam to Switzerland, top travel destinations searched by Indians in 2023

Living that luxe life: Around the world in a private jet

From Osaka to Quebec City: Top picks for winter travel in 2023

Trending in 2023.

• " class="general-icons icon-sq-googleplus popup">
• " class="general-icons icon-sq-youtube">

Profit with purpose can be a viable pursuit: Hero Future Energies' Rahul Munjal

Should the SEBI chief step down?

Photo of the day: 2024 US Open champion Arnya Sabalenka

Photo of the day: Ganesh Chaturthi

How pets can influence home renovations and even real-estate decisions

Cathedrals enjoy 'revival' in attendance: Church of England

From Uniqlo's global dominance journey to the evolution of GenAI, our top stories of the week

Air pollution declined in Europe and China in 2023: UN

Fans speak: Playful 'Astro Bot' shows what PlayStation lacks

Amazon-enabled exports from India set to touch $20 billion by 2025

Photo of the day: All smiles

How India Eats: Steep cuts in thali costs in August

Blueprints for tomorrow's workplace culture

Ayushmann Khurrana books 400% return on angel investment in The Man Company

The world that tech startups delivered to us is not what we were promised: Benjamin Shestakofsky

• Screen Reader
• Skip to main content
• Text Size A
• Language: English
• Case Studies
• EXIM Procedure

Media & Events

• Image Gallery
• Media Coverage

Other Links

• GI of India
• Experience India
• Indian Trend Fair 2022
• India Organic Biofach 2022
• Gulfood Dubai 2023

INDIA ADDA – Perspectives On India

IBEF works with a network of stakeholders - domestic and international - to promote Brand India.

• Agriculture (21)
• Automobiles (18)
• Banking and Financial services (28)
• Consumer Markets (29)
• Defence (6)
• Ecommerce (18)
• Economy (56)
• Education (12)
• Engineering (5)
• Exports (19)
• Healthcare (19)
• India Inc. (6)
• Infrastructure (23)
• Manufacturing (19)
• Media and Entertainment (7)
• Micro, Small & Medium Enterprises (MSMEs) (14)
• Miscellaneous (29)
• Perspectives from India (30)
• Pharmaceuticals (3)
• Railways (4)
• Real Estate (13)
• Renewable Energy (14)
• Research and Development (2)
• Services (5)
• Startups (15)
• Technology (44)
• Textiles (4)
• Tourism (9)

RECENT POSTS

India's Tourism Sector on the Rise

• Sep 01, 2022, 13:55

Significance of Indian Tourism Sector: India, one of the oldest civilisations in the world, is a multicultural melting pot. The nation is one of the most well-liked tourist destinations globally, owing to its extensive attractions and rich heritage. From the snow-capped Himalayas in the north to the tropical rain forests in the south, India spans an area of 3,287,263 sq. km. The country’s tourism industry has grown significantly due to its rich culture and diversified ecology. India's tourism sector ranks eighth in Gross Domestic Production (GDP) contribution. The revenue of India’s tourism industry stood at US$ 247.3 billion in 2018, representing a 6.7% increase as compared to the previous year and contributing 9.2% of the entire economy. The sector was also one of the largest foreign exchange earners (FEEs).

Rise of Indian Tourism Sector: After the COVID-19 pandemic, many reforms were implemented in India to promote tourism; these policies have significantly boosted the sector. Total FTAs in India surged by 406.6% to 2,764,975 from January-July 2022 compared to the previous year. During this period, the US was the top contributor to FTAs in India, at 25.88%, followed by Bangladesh (18.61%), the UK (10.99%) and Australia (5.16%); the US was among the top 15 source nations. In terms of foreign exchange, India's tourism sector earned US$ 6.96 billion in 2020. This is expected to increase further after the pandemic.

From January-July 2022, the Delhi Airport (among the top 15 major airports in India) accounted for the highest share in FTAs at 31.66%, followed by the Mumbai Airport (13.92%), Chennai Airport (10.41%), Haridaspur Land Check Post (8.82%) and Bengaluru Airport (6.70%). In 2021, India's domestic tourism rose by 11.05%, from 610.21 million to 677.63 million. The top states in terms of domestic visits were Tamil Nadu at 115.33 million, Uttar Pradesh at 109.70 million, Andhra Pradesh at 93.27 million and Karnataka at 81.33 million.

Growth Drivers for Tourism in India: India has seen a sharp rise in FTAs in recent months. This increase in FTAs could be ascribed to various government policies and India-based factors. A few of the major growth factors are described below.

• Vaccination Drive: On 16 January 2021, India began its vaccination campaign to immunise the population against COVID-19. The programme's major goal was to deliver free vaccines to every citizen. This campaign was highly successful – almost 200 crore vaccines were distributed in the first 18 months. This aided India's economic opening and made the country a safe tourism destination.
• Medical and Wellness Tourism: India boasts one of the world's cheapest healthcare systems, with world-class doctors and facilities. The country’s wellness industry is well known around the world. The combination of Eastern healthcare wisdom and Western medical expertise has considerably boosted medical tourism in India. The Indian Government announced the ‘Heal in India’ and ‘Heal by India’ campaigns in May 2022. These programmes’ main aim is to further strengthen the traditional medicine industry and make India a global medical value hub. In 2020, India had 1.83 lakh FTAs for medical purposes.
• Rise in Domestic Tourism: India’s domestic tourism has grown considerably after the pandemic. This growth could be majorly attributed to increasing dispensable income and a rise in India's working class. The country has registered higher spending on leisure tourism compared to business spending tourism.

Government Initiatives In recent years, the Indian Government has recognised tourism's importance in creating jobs and earning foreign exchange. Accordingly, it has taken various measures to boost domestic and international tourism, which has significantly helped the tourism sector. Some of these measures are described below.

• Swadesh Darshan Scheme The Swadesh Darshan scheme, a flagship programme, was launched by the Ministry of Tourism in 2014–15. The scheme aims to encourage theme-based tourism to promote, develop, and capitalise on India's tourist potential. As of March 2022, under this scheme, the Ministry of Tourism had invested Rs. 5,500 crore (US$ 687.84 million) and sanctioned over 76 projects in 31 states/union territories. Furthermore, the ministry developed tourism-related infrastructure at more than 500 tourist destinations. In April 2022, the ministry sanctioned 10 new projects under the heritage circuit theme.
• National Integrated Database of Hospitality Industry (NIDHI) NIDHI is an initiative towards Aatmanirbhar Bharat to use technology to empower businesses. This programme aims to understand the hospitality sector’s geographical spread, size, structure and capacity. As of 27 August 2022, a total of 45,152 accommodations were registered under this portal.
• E-tourist Visa The Indian Government launched this initiative in October 2014. This programme aims to simplify the process of obtaining a tourist visa for foreign nationals. This initiative has helped promote tourism in the country. In 2019, the government granted 2.36 million e-tourist visas.
• Advertising Campaigns The Indian Government has promoted tourism and showcased the country's rich cultural heritage to the world through its ‘Incredible India’ campaign. The campaign aims to promote tourism in India on an international scale. In recent months, the government has taken various initiatives to promote tourism. For instance, it launched the Italy edition of Incredible India Reconnect 2022, a virtual roadshow, to encourage international tourists to visit India. In May 2022, the Ministry of Tourism showcased India’s different tourism products in the Arabian travel market. 

Outlook The Government of India has taken several infrastructural measures to promote tourism in the country; this trend is likely to continue. According to the FICCI, India's travel market is projected to expand to US$ 125 billion by 2027. The tourism and hospitality industry is among the country's largest job providers. In FY20, the tourism sector provided 79.86 million direct and indirect jobs. This trend is expected to continue and help India generate foreign exchange earnings. Moreover, India is likely to focus heavily on the North Eastern states, tapping into the huge potential of the region’s rich culture and heritage and incredible landscape. In February 2022, the Ministry of Tourism sanctioned 16 new projects in the region worth more than Rs. 1,300 crore (US$ 162.58 million); projects like these are expected to promote tourism and help generate jobs and opportunities in the future.

Not a member

Travel market in India projected to reach $125 billion by FY27: FICCI

The pandemic has shone a greater light on the structural barriers holding india’s tourism industry back from reaching its full potential. seasonality is the biggest factor, which impacts the ability of tourism businesses to retain staff year-round and reduces economic productivity.

Now that Unlock 3.0 is underway, the question of how travel will be unlocked is still up in the air. The Federation of Indian Chambers of Commerce and Industry (FICCI) organised a conclave to discuss the Future of Travel and Tourism: What lies ahead', bringing together some of the industry's most renowned experts to provide insights and guidance on the way forward.

The two-day conclave began with an inaugural address by Prahlad Singh Patel, the Minister of State for Tourism and Culture, Government of India. Other industry leaders and policymakers participating included Meenakshi Sharma, Director General, Ministry of Tourism, Government of India, Rupinder Brar, Additional Director General, Ministry of Tourism, Government of India, Vishal Kumar Dev, Commissioner Cum Secretary, Tourism Department, Sports and Youth Service Department, Government of Odisha, Anbalagan Ponnusamy, Secretary, Tourism, Government of Chhattisgarh, Satpal Maharaj, Tourism Minister of Uttarakhand, Kadakampally Surendran, Tourism Minister of Kerala and Dr Jyotsna Suri, Past President, FICCI & Chairperson, FICCI Tourism Committee & CMD, The Lalit Suri Hospitality Group. CNT Editor Divia Thani moderated the opening discussion with an all-star panel comprising Meenakshi Sharma, Director General, Ministry of Tourism, Government of India, Suman Billa, Director, United Nations World Tourism Organization (UNTWO), Technical Cooperation & Silk Road Development, Sujit Banerjee, Secretary General, World Travel & Tourism Council, India Initiative (WTTCII), and Deep Kalra, Founder & Group Executive Chairman, MakeMyTrip. The topic of discussion was: The Future of Travel & Tourism: What lies Ahead.

Highlights of the conversation included:

1 . Safety and assurance must be the first priority

Secluded destinations that have managed to control the spread of the virus will undoubtedly become more popular. A CNT survey conducted in May 2020 found that the Maldives was number one on the list of international destinations people wished to visit, and others like Sri Lanka, Bhutan, Australia and New Zealand also ranked highly. But health and safety extends to cleanliness and sanitisation measures across the board. This is crucial not only for domestic tourism but in order for international tourists to return to India for holidays as well. It's not just enough to kill the virus, but it's important to kill the anxiety people have, said Suman Billa of the UNWTO which works closely with the World Health Organization (WHO). India will have to follow strong hygiene and standardised safety protocols from the time a person enters the airport to different touchpoints like restaurants, hotels, tourist attractions, etc.

Dr Jyotsna Suri, Past President, FICCI & Chairperson, FICCI Tourism Committee & CMD, The Lalit Suri Hospitality Group[/caption]\n\n

, Past President, FICCI & Chairperson, FICCI Tourism Committee & CMD, The Lalit Suri Hospitality Group[/caption]

2 . A negative COVID test result should be the new passport

Testing is the key, says Deep Kalra of MakeMyTrip, which was also deeply involved in the creation of the government's Aarogya Setu tracing app. The rate of flight departures in India is currently at 2 . percent, but the load flights are carrying is only 1 . percent, despite the fact that people are clearly tired of being home and wish to get out and travel. People need to feel more confident and safe about not interacting with other passengers who might be infected. Two-way testing making testing mandatory before departure as well as on arrival is one solution. This way passengers will not need to quarantine at the place of arrival. Testing prior to departure is even more crucial, as it will put people much more at ease. While many countries are now testing travellers on arrival, Kalra believes tests before travel is key to mitigating the risk of interacting with a person carrying the virus through the airport or flight. A negative Covid-19 test result should be considered the new passport to travel. In addition, Dipak Deva, Co-Chairman, FICCI Tourism committee, Managing Director, SITA, TCI and Distant Frontiers, noted that this should be mandatory for domestic travel too. In the same way that we are looking to create travel bubbles and corridors between countries, we could create them between Indian states.

3 . A uniform policy across all Indian states must be a priority

While many people want to set out on roadtrips , they are deterred because the norms in different states are unclear, Kalra said. At the moment, states differ dramatically in rules regarding quarantines upon arrival and movement within the state. In order to get tourism going again, states must agree on a uniform and consistent policy regarding quarantines, testing, etc. Once this is agreed upon, this must be clearly communicated to the public. Meenakshi Sharma, Director General, Ministry of Tourism, Government of India, agreed with this position, but also reminded the audience that the timing for such action is extremely important. Health and safety must come first, she said.

Interestingly, Kalra also stated that MakeMyTrip is working on new tech features, which will direct people to the places they can visit, the requirements and rules to enter the destination and other such information in real-time. It will almost be like a COVID-1 . travel search engine.

4 . This is an opportunity to make all tourism more responsible and sustainable

The pandemic has brought a wave of consciousness across the globe. People are much more aware of the impact of their lifestyles on the environment. A recent CNT survey found that an overwhelming 6 . percent of respondents were willing to pay higher rates if they knew that their travel providers (accommodation, transport, etc) had eco-friendly and sustainable practices.

It won't be business as usual when the world reopens, said UNWTO's Suman Billa. We will be factoring environmental costs over economic costs. We will look at destinations and establishments moving closer to zero-carbon footprint, zero-waste measures and zero-mile food. We will look for more community-centred and meaningful experiences. People will want to be more responsible and sustainable. The nature of tourism will change. Mass tourism that is high-volume, low-cost will take a backseat, he continued. This sentiment was seconded by Sharma. It will no longer be driven purely by the industry. The interests of the traveller will be different, she said. They are keen to explore new interests and experiences across India, especially those in off-the-beaten-track destinations that are not overcrowded. When the Ministry of Tourism launched Dekho Apna Desh , a series of webinars by tour operators on lesser-known destinations across India, Sharma admits she didn't expect it to go beyond 2 . episodes. However, they have conducted 4 . webinars to date.

5 . Partnerships will be the way forward

WTTCII's Mr Banerjee believes that jumpstarting tourism and building confidence in the minds of travellers will require partnership on multiple levels: states across India must agree on common rules; countries must adopt a united approach to maintain safety while allowing tourism to flourish and bring in revenue; and both the public and private sectors must work together to think innovatively, achieve the best industry standards, and implement the correct policies. We need to think of a more rational and standardised approach for airlines, airports, restaurants, retail sectors to make the travel experience more uniform. The WTTC has proactively made several recommendations and provided guidelines for destinations to follow to keep safety at the core of their actions while allowing tourism to restart.

Sujit Banerjee, Secretary General, World Travel & Tourism Council, India Initiative (WTTCII)

In addition to the above panel, speakers such as Dhruv Shringi, Co-Founder & CEO, Yatra Inc, Rohit Kapoor, CEO, India & South Asia, Oyo Hotels & Homes , celebrity chef Ranveer Brar, Tejasvi Surya, Member of Parliament, and Ajay Jadeja, former captain, Indian cricket team discussed other subjects such as Role of Technology & Innovation to Revive Travel & Tourism & Emergence of New Workforce model. A special session on Ethno Tourism: Exploring the unexplored culture and communities of India was discussed, focusing on Chhattisgarh and Odisha. The FICCI conclave succeeded in bringing together some of travel's most insightful and progressive minds for engaging discussions on the way forward. Now the action must start, too. must start, too.

Travel & Tourism - India

• The Travel & Tourism market in India is expected to generate a revenue of US$22.30bn in 2024.
• The projected annual growth rate (CAGR 2024-2029) of 8.87% is expected to result in a market volume of US$34.11bn by 2029.
• The largest market in India is the Package Holidays market, which is expected to reach a market volume of US$9.83bn in 2024.
• By 2029, the number of users in the Package Holidays market is expected to amount to 118.10m users.
• In 2024, user penetration is expected to be 7.4%, which is expected to increase to 11.8% by 2029.
• The average revenue per user (ARPU) is expected to be US$209.70.
• By 2029, online sales are expected to generate 60% of the total revenue in the Travel & Tourism market in India.
• In comparison to other countries, United States is expected to generate the highest revenue of US$214bn in 2024.
• India's tourism industry is currently focusing on promoting sustainable and eco-friendly travel options to attract responsible and conscious travelers.

Key regions: Malaysia , Europe , Singapore , Vietnam , United States

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

The market consists of five further markets.

• The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
• The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
• The Hotels market includes stays in hotels and professionally run guest houses.
• The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
• The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

For further information on the data displayed, refer to the info button right next to each box.

• Bookings directly via the website of the service provider, travel agencies, online travel agencies (OTAs) or telephone

out-of-scope

• Business trips
• Other forms of trips (e.g. excursions, etc.)

Travel & Tourism

• Vacation Rentals
• Package Holidays
• Analyst Opinion

India's Travel & Tourism market has been experiencing significant growth in recent years, attracting both domestic and international travelers. Customer preferences: Travelers in India are increasingly seeking unique and authentic experiences, driving the demand for off-the-beaten-path destinations and cultural immersion. Additionally, there is a growing preference for sustainable and eco-friendly travel options among Indian tourists. Trends in the market: One notable trend in the Indian Travel & Tourism market is the rise of digital platforms and online booking services, making travel more accessible and convenient for consumers. Another trend is the increasing popularity of adventure tourism and wellness retreats, catering to the evolving preferences of travelers. Local special circumstances: India's diverse cultural heritage, rich history, and scenic landscapes make it a popular destination for both domestic and international tourists. The country's vibrant festivals, bustling markets, and mouth-watering cuisine also contribute to its appeal as a travel destination. Underlying macroeconomic factors: The growing middle class in India, coupled with rising disposable incomes, has fueled the demand for travel and tourism services. Government initiatives to promote tourism, improve infrastructure, and simplify visa processes have also played a crucial role in driving the growth of the industry. Additionally, the increasing connectivity through air, road, and rail networks has made travel within India more convenient and affordable for travelers.

• Methodology

Data coverage:

Modeling approach:

Additional notes:

• Sales Channels
• Travel Behavior
• Destination Shares
• User Demographics
• Global Comparison
• Key Market Indicators

Mon - Fri, 9am - 6pm (EST)

Mon - Fri, 9am - 5pm (SGT)

Mon - Fri, 10:00am - 6:00pm (JST)

Mon - Fri, 9:30am - 5pm (GMT)

• Get immediate access to all Market Insights, reports & statistics
• Download data in multiple formats for collaborative research
• Includes usage & publication rights for sharing data externally

We use cookies to ensure best experience for you

We use cookies and other tracking technologies to improve your browsing experience on our site, show personalize content and targeted ads, analyze site traffic, and understand where our audience is coming from. You can also read our privacy policy , We use cookies to ensure the best experience for you on our website.

• Leaders Speak
• Brand Solutions
• Speaking Heads
• Indian Tourism in the next five years

• Mehul Sharma
• Updated On Aug 3, 2020 at 11:47 AM IST

The consequential catastrophic circumstances of the global wide pandemic followed by the subsequent lockdown have taken its toll on every sector, but perhaps, the travel, tourism, and hospitality sectors have been at the forefront of this crisis. Past several months of Covid, the tourism and hospitality industry is at the brink of adversity with a potential job loss of around 38 million. India's tourism sector loss is expected to be around a whopping INR 10 Lakh crore in keeping with the prevailing circumstances. With tourism, hospitality, and the aviation industry going hand in hand, its rejuvenation is of utmost primacy as it's growing prominence as an economic powerhouse and its potential as a tool for progress are inarguable. Amidst these perilous times, the growth of the tourism industry in the next five years completely pivots upon how the Indian Government, as well as the populace make efforts in revivifying it. In a recent interview Union Tourism Minister, Prahlad Singh Patel stated that the Indian government is focusing on rebooting the tourism economy through the comprehensive stimulus package of Rs 20,000,000 crore endeavored at reviving demand. The government is thriving to encourage domestic travel among people through it’s Incredible India and Dekho Apna Desh campaign, stemming from people adopting interstate travel to relieve the lockdown stress. In addition to this, the Ministry of Tourism has also established a task force for assessing the needs of the tourism sector. Virtual tourism could be a stepping stone to the near-term strategy for promoting international tourism in Covid times. India has already taken steps in this direction, by having virtual tours, webinars, among others. Advt In the unrelenting fight towards Covid, smart cities have amped up by turning their control rooms into Covid outposts to envision the impact and interpret the situation in the various cities of the country. Real-time surveillance, lockdown monitoring, and information-sharing capabilities, fostered by control rooms, are vital to contain the spread of the pandemic. Technology leaders like Tech Mahindra are working closely to empower smart cities like Kanpur, Gandhinagar, Nasik, among others, in the containment of the virus. Gaping at the future outlook Indians took 2 billion trips last year, and the overall spending on transportation amounted to nearly $94 billion. As a result, the size of the travel and tourism industry has been rapidly expanding over the last half a decade, making it the seventh biggest contributor to the Indian GDP currently. Leading up to 2021, the travel & tourism sector in India is expected to grow at a compound annual growth rate of 13.5%, reaching a staggering value of $136 billion. By 2029 India’s tourism sector is expected to grow 6.7% to reach Rs 35 trillion and accounting for 9.2% of the total economy . The tourism industry unscathed by Covid is expected to be the medical sector. The tourism ministry has said the country will continue to remain the safest, cheapest, and one of the most preferred destinations for medical tourism during and after the pandemic, even though the sector did bear the brunt of coronavirus and the subsequent lockdown. There is also a visible opportunity for the Indian healthcare industry in context to medical tourism, post Covid-19 Indian wellness system, Yoga and Naturopathy are likely to gain more popularity worldwide. Keeping in mind the necessary precautions, the government has sanctioned the Amarnath pilgrimage, also known as Amarnath Yatra, to be conducted this year with not more than 500 pilgrims allowed per day. In a high-level meeting in North Block, New Delhi, it was resolved that the pilgrimage to the cave, considered sacred by devotees of Lord Shiva, would be allowed for a fortnight starting July 21. Certain other sites such as the Golden Temple, the Char Dham Yatra has also commenced in hope of reviving the tourism lost during these times. Though the times are bleak, it is believed that through sustained efforts India could become one of the world’s premier tourism destinations and reach the desired numbers. India also has the potential to become a world leader in tourism having swathes of stunning natural scenery and natural parks. The industry which was at the brink of the crisis has now started to rejuvenate and is growing steadily. Travel and tourism will be the key driver for high-quality employment and unparalleled sustainable growth for the next 5 years. Hopefully, as tourism is restored, all the subsequent intermediaries like hospitality and aviation would be rehabilitated as well.

A hotel management graduate from IHM Pusa, Mehul Sharma , CEO and Founder of Signum Hotels and Resorts Pvt Ltd is a veteran of the industry, having worked in Taj, ITC, Park Hotels, IHG and Claridges. He has vast experience in managing hotels, including complete sales, marketing and revenue, spanning more than 16 years. Signum Hotels and Resorts operates 12 hotels in India and 18 aparments in London, UK under their brand.

• By Mehul Sharma ,
• By Mehul Sharma
• Published On Aug 3, 2020 at 10:55 AM IST

All Comments

By commenting, you agree to the Prohibited Content Policy

Find this Comment Offensive?

• Foul Language
• Inciting hatred against a certain community
• Out of Context / Spam

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis., download ethospitalityworld app.

• Get Realtime updates
• Save your favourite articles

• Char Dham Yatra
• founder of signum hotels
• coronavirus
• Prahlad Singh Patel
• Incredible India

The future of tourism: Bridging the labor gap, enhancing customer experience

As travel resumes and builds momentum, it’s becoming clear that tourism is resilient—there is an enduring desire to travel. Against all odds, international tourism rebounded in 2022: visitor numbers to Europe and the Middle East climbed to around 80 percent of 2019 levels, and the Americas recovered about 65 percent of prepandemic visitors 1 “Tourism set to return to pre-pandemic levels in some regions in 2023,” United Nations World Tourism Organization (UNWTO), January 17, 2023. —a number made more significant because it was reached without travelers from China, which had the world’s largest outbound travel market before the pandemic. 2 “ Outlook for China tourism 2023: Light at the end of the tunnel ,” McKinsey, May 9, 2023.

Recovery and growth are likely to continue. According to estimates from the World Tourism Organization (UNWTO) for 2023, international tourist arrivals could reach 80 to 95 percent of prepandemic levels depending on the extent of the economic slowdown, travel recovery in Asia–Pacific, and geopolitical tensions, among other factors. 3 “Tourism set to return to pre-pandemic levels in some regions in 2023,” United Nations World Tourism Organization (UNWTO), January 17, 2023. Similarly, the World Travel & Tourism Council (WTTC) forecasts that by the end of 2023, nearly half of the 185 countries in which the organization conducts research will have either recovered to prepandemic levels or be within 95 percent of full recovery. 4 “Global travel and tourism catapults into 2023 says WTTC,” World Travel & Tourism Council (WTTC), April 26, 2023.

Longer-term forecasts also point to optimism for the decade ahead. Travel and tourism GDP is predicted to grow, on average, at 5.8 percent a year between 2022 and 2032, outpacing the growth of the overall economy at an expected 2.7 percent a year. 5 Travel & Tourism economic impact 2022 , WTTC, August 2022.

So, is it all systems go for travel and tourism? Not really. The industry continues to face a prolonged and widespread labor shortage. After losing 62 million travel and tourism jobs in 2020, labor supply and demand remain out of balance. 6 “WTTC research reveals Travel & Tourism’s slow recovery is hitting jobs and growth worldwide,” World Travel & Tourism Council, October 6, 2021. Today, in the European Union, 11 percent of tourism jobs are likely to go unfilled; in the United States, that figure is 7 percent. 7 Travel & Tourism economic impact 2022 : Staff shortages, WTTC, August 2022.

There has been an exodus of tourism staff, particularly from customer-facing roles, to other sectors, and there is no sign that the industry will be able to bring all these people back. 8 Travel & Tourism economic impact 2022 : Staff shortages, WTTC, August 2022. Hotels, restaurants, cruises, airports, and airlines face staff shortages that can translate into operational, reputational, and financial difficulties. If unaddressed, these shortages may constrain the industry’s growth trajectory.

The current labor shortage may have its roots in factors related to the nature of work in the industry. Chronic workplace challenges, coupled with the effects of COVID-19, have culminated in an industry struggling to rebuild its workforce. Generally, tourism-related jobs are largely informal, partly due to high seasonality and weak regulation. And conditions such as excessively long working hours, low wages, a high turnover rate, and a lack of social protection tend to be most pronounced in an informal economy. Additionally, shift work, night work, and temporary or part-time employment are common in tourism.

The industry may need to revisit some fundamentals to build a far more sustainable future: either make the industry more attractive to talent (and put conditions in place to retain staff for longer periods) or improve products, services, and processes so that they complement existing staffing needs or solve existing pain points.

One solution could be to build a workforce with the mix of digital and interpersonal skills needed to keep up with travelers’ fast-changing requirements. The industry could make the most of available technology to provide customers with a digitally enhanced experience, resolve staff shortages, and improve working conditions.

Would you like to learn more about our Travel, Logistics & Infrastructure Practice ?

Complementing concierges with chatbots.

The pace of technological change has redefined customer expectations. Technology-driven services are often at customers’ fingertips, with no queues or waiting times. By contrast, the airport and airline disruption widely reported in the press over the summer of 2022 points to customers not receiving this same level of digital innovation when traveling.

Imagine the following travel experience: it’s 2035 and you start your long-awaited honeymoon to a tropical island. A virtual tour operator and a destination travel specialist booked your trip for you; you connected via videoconference to make your plans. Your itinerary was chosen with the support of generative AI , which analyzed your preferences, recommended personalized travel packages, and made real-time adjustments based on your feedback.

Before leaving home, you check in online and QR code your luggage. You travel to the airport by self-driving cab. After dropping off your luggage at the self-service counter, you pass through security and the biometric check. You access the premier lounge with the QR code on the airline’s loyalty card and help yourself to a glass of wine and a sandwich. After your flight, a prebooked, self-driving cab takes you to the resort. No need to check in—that was completed online ahead of time (including picking your room and making sure that the hotel’s virtual concierge arranged for red roses and a bottle of champagne to be delivered).

While your luggage is brought to the room by a baggage robot, your personal digital concierge presents the honeymoon itinerary with all the requested bookings. For the romantic dinner on the first night, you order your food via the restaurant app on the table and settle the bill likewise. So far, you’ve had very little human interaction. But at dinner, the sommelier chats with you in person about the wine. The next day, your sightseeing is made easier by the hotel app and digital guide—and you don’t get lost! With the aid of holographic technology, the virtual tour guide brings historical figures to life and takes your sightseeing experience to a whole new level. Then, as arranged, a local citizen meets you and takes you to their home to enjoy a local family dinner. The trip is seamless, there are no holdups or snags.

This scenario features less human interaction than a traditional trip—but it flows smoothly due to the underlying technology. The human interactions that do take place are authentic, meaningful, and add a special touch to the experience. This may be a far-fetched example, but the essence of the scenario is clear: use technology to ease typical travel pain points such as queues, misunderstandings, or misinformation, and elevate the quality of human interaction.

Travel with less human interaction may be considered a disruptive idea, as many travelers rely on and enjoy the human connection, the “service with a smile.” This will always be the case, but perhaps the time is right to think about bringing a digital experience into the mix. The industry may not need to depend exclusively on human beings to serve its customers. Perhaps the future of travel is physical, but digitally enhanced (and with a smile!).

Digital solutions are on the rise and can help bridge the labor gap

Digital innovation is improving customer experience across multiple industries. Car-sharing apps have overcome service-counter waiting times and endless paperwork that travelers traditionally had to cope with when renting a car. The same applies to time-consuming hotel check-in, check-out, and payment processes that can annoy weary customers. These pain points can be removed. For instance, in China, the Huazhu Hotels Group installed self-check-in kiosks that enable guests to check in or out in under 30 seconds. 9 “Huazhu Group targets lifestyle market opportunities,” ChinaTravelNews, May 27, 2021.

Technology meets hospitality

In 2019, Alibaba opened its FlyZoo Hotel in Huangzhou, described as a “290-room ultra-modern boutique, where technology meets hospitality.” 1 “Chinese e-commerce giant Alibaba has a hotel run almost entirely by robots that can serve food and fetch toiletries—take a look inside,” Business Insider, October 21, 2019; “FlyZoo Hotel: The hotel of the future or just more technology hype?,” Hotel Technology News, March 2019. The hotel was the first of its kind that instead of relying on traditional check-in and key card processes, allowed guests to manage reservations and make payments entirely from a mobile app, to check-in using self-service kiosks, and enter their rooms using facial-recognition technology.

The hotel is run almost entirely by robots that serve food and fetch toiletries and other sundries as needed. Each guest room has a voice-activated smart assistant to help guests with a variety of tasks, from adjusting the temperature, lights, curtains, and the TV to playing music and answering simple questions about the hotel and surroundings.

The hotel was developed by the company’s online travel platform, Fliggy, in tandem with Alibaba’s AI Labs and Alibaba Cloud technology with the goal of “leveraging cutting-edge tech to help transform the hospitality industry, one that keeps the sector current with the digital era we’re living in,” according to the company.

Adoption of some digitally enhanced services was accelerated during the pandemic in the quest for safer, contactless solutions. During the Winter Olympics in Beijing, a restaurant designed to keep physical contact to a minimum used a track system on the ceiling to deliver meals directly from the kitchen to the table. 10 “This Beijing Winter Games restaurant uses ceiling-based tracks,” Trendhunter, January 26, 2022. Customers around the world have become familiar with restaurants using apps to display menus, take orders, and accept payment, as well as hotels using robots to deliver luggage and room service (see sidebar “Technology meets hospitality”). Similarly, theme parks, cinemas, stadiums, and concert halls are deploying digital solutions such as facial recognition to optimize entrance control. Shanghai Disneyland, for example, offers annual pass holders the option to choose facial recognition to facilitate park entry. 11 “Facial recognition park entry,” Shanghai Disney Resort website.

Automation and digitization can also free up staff from attending to repetitive functions that could be handled more efficiently via an app and instead reserve the human touch for roles where staff can add the most value. For instance, technology can help customer-facing staff to provide a more personalized service. By accessing data analytics, frontline staff can have guests’ details and preferences at their fingertips. A trainee can become an experienced concierge in a short time, with the help of technology.

Apps and in-room tech: Unused market potential

According to Skift Research calculations, total revenue generated by guest apps and in-room technology in 2019 was approximately $293 million, including proprietary apps by hotel brands as well as third-party vendors. 1 “Hotel tech benchmark: Guest-facing technology 2022,” Skift Research, November 2022. The relatively low market penetration rate of this kind of tech points to around $2.4 billion in untapped revenue potential (exhibit).

Even though guest-facing technology is available—the kind that can facilitate contactless interactions and offer travelers convenience and personalized service—the industry is only beginning to explore its potential. A report by Skift Research shows that the hotel industry, in particular, has not tapped into tech’s potential. Only 11 percent of hotels and 25 percent of hotel rooms worldwide are supported by a hotel app or use in-room technology, and only 3 percent of hotels offer keyless entry. 12 “Hotel tech benchmark: Guest-facing technology 2022,” Skift Research, November 2022. Of the five types of technology examined (guest apps and in-room tech; virtual concierge; guest messaging and chatbots; digital check-in and kiosks; and keyless entry), all have relatively low market-penetration rates (see sidebar “Apps and in-room tech: Unused market potential”).

While apps, digitization, and new technology may be the answer to offering better customer experience, there is also the possibility that tourism may face competition from technological advances, particularly virtual experiences. Museums, attractions, and historical sites can be made interactive and, in some cases, more lifelike, through AR/VR technology that can enhance the physical travel experience by reconstructing historical places or events.

Up until now, tourism, arguably, was one of a few sectors that could not easily be replaced by tech. It was not possible to replicate the physical experience of traveling to another place. With the emerging metaverse , this might change. Travelers could potentially enjoy an event or experience from their sofa without any logistical snags, and without the commitment to traveling to another country for any length of time. For example, Google offers virtual tours of the Pyramids of Meroë in Sudan via an immersive online experience available in a range of languages. 13 Mariam Khaled Dabboussi, “Step into the Meroë pyramids with Google,” Google, May 17, 2022. And a crypto banking group, The BCB Group, has created a metaverse city that includes representations of some of the most visited destinations in the world, such as the Great Wall of China and the Statue of Liberty. According to BCB, the total cost of flights, transfers, and entry for all these landmarks would come to $7,600—while a virtual trip would cost just over $2. 14 “What impact can the Metaverse have on the travel industry?,” Middle East Economy, July 29, 2022.

The metaverse holds potential for business travel, too—the meeting, incentives, conferences, and exhibitions (MICE) sector in particular. Participants could take part in activities in the same immersive space while connecting from anywhere, dramatically reducing travel, venue, catering, and other costs. 15 “ Tourism in the metaverse: Can travel go virtual? ,” McKinsey, May 4, 2023.

The allure and convenience of such digital experiences make offering seamless, customer-centric travel and tourism in the real world all the more pressing.

Three innovations to solve hotel staffing shortages

Is the future contactless.

Given the advances in technology, and the many digital innovations and applications that already exist, there is potential for businesses across the travel and tourism spectrum to cope with labor shortages while improving customer experience. Process automation and digitization can also add to process efficiency. Taken together, a combination of outsourcing, remote work, and digital solutions can help to retain existing staff and reduce dependency on roles that employers are struggling to fill (exhibit).

Depending on the customer service approach and direct contact need, we estimate that the travel and tourism industry would be able to cope with a structural labor shortage of around 10 to 15 percent in the long run by operating more flexibly and increasing digital and automated efficiency—while offering the remaining staff an improved total work package.

Outsourcing and remote work could also help resolve the labor shortage

While COVID-19 pushed organizations in a wide variety of sectors to embrace remote work, there are many hospitality roles that rely on direct physical services that cannot be performed remotely, such as laundry, cleaning, maintenance, and facility management. If faced with staff shortages, these roles could be outsourced to third-party professional service providers, and existing staff could be reskilled to take up new positions.

In McKinsey’s experience, the total service cost of this type of work in a typical hotel can make up 10 percent of total operating costs. Most often, these roles are not guest facing. A professional and digital-based solution might become an integrated part of a third-party service for hotels looking to outsource this type of work.

One of the lessons learned in the aftermath of COVID-19 is that many tourism employees moved to similar positions in other sectors because they were disillusioned by working conditions in the industry . Specialist multisector companies have been able to shuffle their staff away from tourism to other sectors that offer steady employment or more regular working hours compared with the long hours and seasonal nature of work in tourism.

The remaining travel and tourism staff may be looking for more flexibility or the option to work from home. This can be an effective solution for retaining employees. For example, a travel agent with specific destination expertise could work from home or be consulted on an needs basis.

In instances where remote work or outsourcing is not viable, there are other solutions that the hospitality industry can explore to improve operational effectiveness as well as employee satisfaction. A more agile staffing model  can better match available labor with peaks and troughs in daily, or even hourly, demand. This could involve combining similar roles or cross-training staff so that they can switch roles. Redesigned roles could potentially improve employee satisfaction by empowering staff to explore new career paths within the hotel’s operations. Combined roles build skills across disciplines—for example, supporting a housekeeper to train and become proficient in other maintenance areas, or a front-desk associate to build managerial skills.

Where management or ownership is shared across properties, roles could be staffed to cover a network of sites, rather than individual hotels. By applying a combination of these approaches, hotels could reduce the number of staff hours needed to keep operations running at the same standard. 16 “ Three innovations to solve hotel staffing shortages ,” McKinsey, April 3, 2023.

Taken together, operational adjustments combined with greater use of technology could provide the tourism industry with a way of overcoming staffing challenges and giving customers the seamless digitally enhanced experiences they expect in other aspects of daily life.

In an industry facing a labor shortage, there are opportunities for tech innovations that can help travel and tourism businesses do more with less, while ensuring that remaining staff are engaged and motivated to stay in the industry. For travelers, this could mean fewer friendly faces, but more meaningful experiences and interactions.

Urs Binggeli is a senior expert in McKinsey’s Zurich office, Zi Chen is a capabilities and insights specialist in the Shanghai office, Steffen Köpke is a capabilities and insights expert in the Düsseldorf office, and Jackey Yu is a partner in the Hong Kong office.

Explore a career with us

We use cookies to ensure best experience for you

We use cookies and other tracking technologies to improve your browsing experience on our site, show personalize content and targeted ads, analyze site traffic, and understand where our audience is coming from. You can also read our privacy policy , We use cookies to ensure the best experience for you on our website.

• Leaders Speak
• Brand Solutions

Future of Tourism: Is India ready to supply quality talent?

Leaving aside the period of lockdown due to the COVID-19 pandemic, the tourism industry in India has always stood strong and continues to be one of the most trusted drivers of growth for the world economy.

• Vipul Solanki --> Vipul Solanki , Director, LivGlobal - Institute of Travel & Tourism ,
• Updated On Jan 16, 2021 at 11:10 AM IST

India is blessed with its beaches, mountains, lush jungles, monuments, palaces and a long list that offers a vast geographical, cultural and linguistic diversity, and puts the country in a unique position offering immense tourism potential.

Given that everyone enjoys a holiday, the tourism business in India has put together the necessary infrastructure in place to support this. With the economy slowly looking up with restrictions on the sector being eased, the tourism and hospitality industry is slowly looking up as people resume travel taking abundant precaution.

Employment generator

The travel and tourism trade has become a tool that supports employment generation along with human resource development across the sector be it the hotel industry, travel trade or other ancillary support businesses.

Data collated by the World Travel and Tourism Council shows that the Indian tourism and hospitality industryhas been one of the main drivers of growth in the services sector. The tourism industry created 39 million jobs in FY 20 making up for 8 % of all jobs generated in India, which is both a destination for inbound and sends outbound tourists.

By 2028, the World Travel and Tourism Council estimates a two percent per annum rise in jobs within the tourism industry. India, as per the Council’s findings, ranked in at the 10th position from a given 185 countries in terms of the total contribution of the travel and tourism industry in 2019. The report outlining this also pegs the contribution of travel and tourism to our GDP at Rs. 13,68,100 crore or 6.8 % of the total Indian economy.

Emerging Stronger

After coming to a total standstill during the lockdown, the easing of travel norms has ensured that tourism is now slowly picking up. Hotels are filling up inventory and airlines filling up flights to major tourist destinations across the country. Today, the tourism industry is in need of a skilled workforce, like never before. The industry has battled an unprecedented crisis and is now looking at emerging stronger in a post-pandemic world. This requires stakeholders to reskill their workforces as the constant supply of skilled workforce alone will let the industry maintain quality in terms of products and services that it offers.

A skilled workforce will help the industry emerge stronger and be back on its feet quicker. Enhancing proficiency with digital, cognitive or reasoning and resilience skill-sets to face challenges, will aid the vision of playing a catalytic role in promoting the cause of tourism in projecting and promoting it as a mainstream industry.

Supplying Talent: Is India Ready?

India has a rich talent pool, but there is a need to nurture the existing and develop the new ones. Now is an opportune time for skill development in the tourism and hospitality industry. This skill development among the workforce will help bridge the demand and supply gap while also preparing the sector for any future disruption on account of pandemic or recession. The industry has the potential to provide a livelihood for the best-class talent in the country and the industry’s objective should be to empower the youth by making them relevant. Like all other industries, only the ones who possess talent will be relevant.

Is India Ready? Yes, but there is work to be done. The industry needs to identify and educate employees by differentiating and updating itself through training. From talent in the form of experts on personal wellbeing, creator of content to someone who can tell a story, the digital disruption that the travel and tourism industry is witnessing is only calling for the supply of more talent.

A 2019 report by FICCI states that mobile applications, big data, artificial intelligence, virtual reality and augmented reality will shape the future of the travel industry. There are numerous courses available for new as well as existing talent to learn, upgrade and become available. The future of travel is being reshaped. Not just by the COVID-19 pandemic, but by a digital revolution in travel. Highly creative digital business models have been behind these reshaping exercises. Pursuing a programme in travel and tourism would allow candidates to enhance their skill-sets over a period of time and thus help in creating a much-needed pool of well-trained and professional tourism facilitators.

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis., download ettravelworld app.

• Get Realtime updates
• Save your favourite articles

• By Vipul Solanki --> Vipul Solanki , Director, LivGlobal - Institute of Travel & Tourism , -->
• Vipul Solanki

You are using an outdated browser. Please upgrade your browser to improve your experience and security.

Monday, 09 September 2024

Agenda - The Sunday magazine

• Cover Story

Sunday Edition

Unveiling the future of india’s hospitality and tourism industry.

Pradeep Shetty, President of the Federation of Hotel and Restaurant Associations of India (FHRAI), is currently preparing for the association's 54th annual convention, set to take place in October 2024. In an exclusive interview with Kumar Chellappan , Shetty shared insights into the immense potential of India’s hospitality and tourism sector, its challenges, and the expectations from both the central and state governments

What is the real potential of the hospitality and tourism industry?

India’s hospitality and tourism industry is on a remarkable growth trajectory. According to Mordor Intelligence, the sector is projected to reach a valuation of USD 247.31 billion by 2024, with forecasts indicating it could soar to USD 475.37 billion by 2029, growing at a compound annual growth rate (CAGR) of 13.96%. Key trends driving this growth include a shift towards sustainable tourism, with eco-friendly accommodations and community-based initiatives gaining traction. India’s rich cultural heritage, diverse landscapes, and geopolitical stability further bolster this expansion. However, to fully capitalize on its potential, the industry must address sustainability, infrastructure development, and adaptability to evolving consumer preferences.

How do you view the current and future employment trends in the hospitality sector?

Despite challenges posed by the COVID-19 pandemic, the hospitality sector is expected to rebound strongly. The India Food Services Report-2024 projects that by 2025, the sector will employ approximately ten million people. The industry's resilience, coupled with advancements in accommodation and government initiatives to promote tourism, supports its significant role in job creation.

What are the prospects for job creation in the hotel and restaurant industry over the coming years?

India’s hospitality and tourism sector has the potential to generate 50 million direct and indirect jobs in the next 5-7 years. This growth will depend on robust government support, including granting industry and infrastructure status at various levels. The sector’s resilience and strategic investments, along with effective policy implementation, are critical for shaping its employment landscape. Notably, the industry has already seen a 14% increase in Revenue Per Available Room (RevPAR) in the first half of the current fiscal year, with expectations of a further 15-20% growth in the latter half of FY24

What does the industry expect from the Government of India and state governments?

The industry seeks favorable policies that encourage investment, reduce regulatory burdens, and provide tax incentives. Essential infrastructure development, such as improved roads, airports, and connectivity, is crucial. State governments should align regional policies with national goals, streamline hotel project approvals, and support skill development through training programs. Promoting India as a global destination requires targeted campaigns that highlight its cultural diversity and unique experiences. Post-pandemic, enforcing health and safety protocols is vital for rebuilding traveler confidence, while state governments should foster sustainable tourism and create a business-friendly environment by simplifying licensing and permits. Public-private partnerships and engagement with industry stakeholders are also key to enhancing tourism growth.

Has the Government of India shown any commitment to granting infrastructure status to the hospitality sector?

The Government of India’s interest in granting infrastructure status to the hospitality sector is a promising development. If approved, this status could attract more investments and empower the sector to contribute to the development of the 50 new destinations recently announced by the government.

What benefits would infrastructure status bring to the industry?

Granting infrastructure status to the hospitality sector could provide access to more favorable financing options, including better interest rates. Currently, the lack of industry status in several states results in higher power tariffs and interest rates. Infrastructure status would incentivize both domestic and international investments, fostering stability and growth within the sector.

As the current President of FHRAI, how well is the Federation positioned to address these issues with regulators?

The Federation of Hotel and Restaurant Associations of India (FHRAI), founded in 1955, is the apex hospitality association in India and the third largest globally. It represents 55,000 hotels and 500,000 restaurants across the country. FHRAI advocates for the industry’s interests, engaging with government bodies, regulatory agencies, and other stakeholders to promote growth and address challenges.

What are the major issues facing the industry, and what do you expect the government to do about them?

The hospitality industry faces several critical challenges that require strategic solutions. First, GST rationalization is needed to implement a uniform rate of 12% across all hotels. Second, separating GST on food services from room rates would address high costs and complex regulations. Third, granting infrastructure status would provide access to better financing options and encourage investment. Finally, uniform sectoral reforms and streamlined business processes under the Business Reforms Action Plan (BRAP) would attract more investments. The government should simplify regulations, support infrastructure development, and provide incentives for training and technology to foster a vibrant and resilient tourism industry. Addressing these issues will enhance service quality and support industry growth.

Trending News

Pakistan's defence minister says evidence against Imran Khan points towards military trial

Praveen's record-breaking jump helps India hit a golden six in Paralympics

Rodrygo scores as Brazil beats Ecuador 1-0 in South American World Cup qualifying

Ganesh festival begins in maharashtra amid fanfare.

Cricketer Ravindra Jadeja has joined BJP, says MLA wife Rivaba

Mumbai: Over two hours on, firefighting still underway at Lower Parel commercial building

'Emergency' postponed, new release date to be announced soon, says Kangana Ranaut

Photo emerges showing Renukaswamy pleading for life before murder

Dharambir smashes Asian record for gold, Pranav takes silver in Paralympic men's F51 club throw

On Teachers' Day, Ramesh recalls Radhakrishnan's 'impartial role' as RS Chairman

ECOS Mobility shares jump over 17 pc in market debut

Indian para-athletes win five medals in a late evening rush

State editions, aap supporters don’t favour misfit, selfish alliance with congress in haryana: bharti, bjp launches membership drive in 252 slum clusters, will raise issue of imposition of gst on research grants: atishi, abvp announces its election committee for upcoming du students’ union polls, irani begins her organisational visit as part of bjp 2024 membership campaign, ngo executive director writes to gadkari, saxena, kejriwal on homeless people, india’s tourism boom: a journey beyond the icons, celebrate the spirit of onam with sadhya rooted in tradition, a fusion of luxury, tradition and culinary excellence, canvas of heritage and contemporary expression, thetuningfork | behave like a child when nature is your mother …, e-mail this link to a friend..

India’s Massive Growth in Online Travel: Which Companies Will Lead?

Saniya Zanpure , Skift

March 27th, 2024 at 9:51 AM EDT

The online travel landscape is poised for dynamic growth as local players strive to maintain their dominance and western OTAs take steps to tap into the opportunity.

Saniya Zanpure

In a country known for tradition, India’s travel industry is undergoing a rapid transition. The younger population and a rising use of smartphones is reshaping India’s traditional travel booking landscape.

These forces set the stage for substantial growth in online travel in the coming years.

Skift Research’s latest report, India’s Travel Booking Landscape , offers a 10-chart overview of Indian traveler preferences and the top companies in online travel.

Unlike other markets, where third-party booking platforms dominate, India is unique: There is a roughly balanced market between direct bookings and third-parties.

Competition Heats Up

India has emerged as a pivotal market. As Western travel booking platforms gain traction in India, the third-party online travel landscape has become increasingly diverse and fragmented. 

OTAs are poised to play a significant role in India’s growing travel market and tapping into its online travel opportunities.

MakeMyTrip has emerged as India’s leading OTA, capturing 54% of the country’s online travel market. But western companies, such as Booking and Airbnb, have been steadily gaining market share.

As online travel booking becomes the primary method for Indians, it will be interesting to observe whether local, home-grown players retain their dominance or if the space is overtaken by Western players.

Read our India’s Travel Booking Landscape Report for further insights.

India’s Travel Booking Landscape

India’s travel booking landscape is rapidly shifting online, driven by the younger demographic, rising smartphone penetration, and improving internet connectivity across the country. Currently diverse and fragmented, the online travel landscape, is poised for dynamic growth as local players strive to maintain their dominance and Western OTAs take steps to tap into the emerging opportunity.

Skift India Report

India is booming. Discover the subcontinent’s most important travel news here every Tuesday-Thursday.

Have a confidential tip for Skift? Get in touch

Tags: digital , india , online travel agencies , skift research , smartphones

We've detected unusual activity from your computer network

To continue, please click the box below to let us know you're not a robot.

Why did this happen?

Please make sure your browser supports JavaScript and cookies and that you are not blocking them from loading. For more information you can review our Terms of Service and Cookie Policy .

For inquiries related to this message please contact our support team and provide the reference ID below.

Best neighbourhoods to visit in Mumbai, India

Experience the best of Mumbai in 2025 by visiting its most vibrant and culturally rich districts. Photo / Getty Images

A modern city to rival the best metropolises in Asia , all eyes are on Mumbai for 2025 and beyond. Here are five of the city’s best neighbourhoods, writes Sarah Meikle.

Mumbai is a world of constant contrast. Once a series of islands now reclaimed, and home to more than 20 million people, Mumbai melds India’s past and future. Dominating skyscrapers are hugged by slums and high-end shopping malls. Massive infrastructure projects have seen colossal bridges slash travel times across the city, and a new network of underground tunnels has meant that the trip from the airport to the city has been cut by 40 minutes during peak times.

You probbly have an image in your head of what you think Mumbai is like, and that’s understandable … thanks to the movies you’ll have seen; Dharavi in Slumdog Millionaire, Asia’s largest slum, or the buildings echoing the time of the British Raj as a backdrop to Hotel Mumbai, but these are glimpses of the past. Mumbai is taking on Asia’s other great cities and offers an experience of fabulous culture, food, fashion, art, design and architecture that you’ve come to expect in Hong Kong, Tokyo or Singapore. Mumbai is a city going places and nothing is going to stop it – it is dazzling, intense and absolutely captivating.

Let’s check out some of Mumbai’s coolest neighbourhoods.

Home to a number of Bollywood stars and Indian cricket players, Juhu is an affluent beachside neighbourhood with a strip of five-star hotels lining the coast. The area comes alive on a Sunday afternoon with rows of busy snack stalls creating a buzzy atmosphere. Just a couple of streets back from the beach you’ll find boutique shopping, great dining and for culture buffs, the chance to see a live performance at the Prithvi Theatre or visit the extensive ISKCON Temple complex. Juhu is the perfect spot to sip a cocktail and watch a stunning Mumbai sunset. Try bars and restaurants like Estella , Dashanzi or Cecconi’s in the fabulous Soho House.

Bandra West

Close to Juhu Beach, Bandra West has become very fashionable in recent years with new restaurants and boutiques opening regularly. Known as the “Queen of the Suburbs”, Bandra West was originally a Portuguese settlement that maintained its influence despite the British taking possession of the “Bombay” islands further to the south. That influence is still clear today through the neighbourhood’s liberal attitudes making it a hot spot for celebrities and freethinkers. Ancestral Portuguese-style houses are dotted among more modern buildings, all home to great restaurants and bars, coffee spots, yoga studios and organic food stores. There’s a lot of great eating to be had, with Bandra Born and Izumi Bandra, definitely worth a visit.

At the heart of the most southern point of Mumbai is the neighbourhood of Fort, which derived its name from Fort George established here in 1769 by the British East India Company. Largely destroyed by fire in 1803, this part of Mumbai is home to some magnificent architectural relics of that time, including the stunning neoclassical Asiatic Society of Mumbai Town Hall, and the Victorian Gothic-style Bombay High Court and Chhatrapati Shivaji Terminus Railway Station. No visit to Fort should miss a stop in the Kala Ghoda Arts Precinct, a network of narrow laneways housing some of the city’s finest cultural establishments, including art galleries, boutiques and museums. A favourite stop to escape a warm day is the Kala Ghoda Café.

Lower Parel

This neighbourhood was once the centre of Mumbai’s cotton milling industry with derelict factories still in existence today. The Great Depression and competition from Japan in the post-World War II era, saw the end to many of these businesses which sat empty until around 30 years ago when Mumbai’s sprawl saw the need to redevelop these buildings into apartments and retail. Today this neighbourhood has been significantly modernised and is home to many five-star hotels, fabulous dining (many in those retrofitted mill buildings), craft breweries and huge, modern shopping malls. Don’t miss dining at the fabulous Bombay Canteen or stopping in to see the world’s largest outdoor laundry at the nearby Dhobi Ghat.

Malabar Hill

Once a thick jungle on a peninsula close to the south of Mumbai, Malabar Hill is now an exclusive residential suburb, home to many government officials. The suburb commands great views of “the Queen’s Necklace”, Chowpatty Beach and Marine Drive, from Kamala Nehru Park, and became a very popular neighbourhood after the fire that destroyed the Fort district in 1803. Many people visit the neighbourhood to take in the view or see the well-manicured Hanging Gardens (a respite from the city bustle), but the real highlight is to visit one of the many Jain temples in the area. The Babu Amichand Panalal Adishwarji Jain Temple welcomes visitors. If you are keen on a bite to eat, the nearby Soam and its new sister restaurant, Aamchee, are great.

MUMBAI, INDIA

GETTING THERE

Fly from Auckland to Mumbai with one stopover with Cathay Pacific, as well as Singapore Airlines and Air NZ on a Star Alliance Codeshare basis.

incredibleindia.org

allindiapermit.co.nz

Latest from Travel

Nz named one of the cheapest destinations in the world, fourth australian dies in bali in three weeks, welcome to the future: are hotel key cards a thing of the past, kiwi aussie love story heroed in new qantas commercial.

Our tomatoes might be eye-watering expensive - but we're cheap in one important area.

‘Female rage’: Is there merit to manspreading on flights?

Plan now and play later

Indian defence industry set for 14% CAGR growth by 2030: Report

About the Author

The TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world. Read More

Visual Stories

• Dr. Vibha Dhawan ,
• ETManufacturing
• Updated On Sep 5, 2024 at 08:44 PM IST

• By Dr. Vibha Dhawan ,
• Published On Sep 5, 2024 at 08:44 PM IST

All Comments

By commenting, you agree to the Prohibited Content Policy

Find this Comment Offensive?

• Foul Language
• Inciting hatred against a certain community
• Out of Context / Spam

Join the community of Top industry professionals

Subscribe to our newsletter to get latest insights & analysis., get updates on your preferred social platform, follow us for the latest news, insider access to events and more..

• aluminium industry
• fifth largest economy
• International Monetary Fund
• aluminium sector
• the metal of the future
• Vande Bharat
• low-carbon economy