Thomas Cook (India) Limited and its Group Company, SOTC Travel surveyed over 3500 consumers, covering a comprehensive market (including India’s metros, mini metros like Pune, Chandigarh, Coimbatore and key Tier 2-3 markets of Jaipur, Indore, Tiruchirappalli, Madurai, Nagpur, Surat, Baroda, Bhubaneswar, Lucknow, Mysore, Visakhapatnam, Guwahati, Patna, etc.) to release the India Holiday Report – May 2023. The survey was conducted over a period of one month and administered via the Companies’ online channels. The India Holiday Report – May 2023 reflects highly positive travel sentiment with insightful consumer behaviour and travel trends.
Key findings include:
Increased holiday intent: Travel is clearly back on the Indian consumer radar with over 84 percent respondents indicating increased intent to travel in the next 6 months Vs. 45 percent pre-pandemic
Multiple shorter trips/mini-cations: in addition to at least one/two long annual trips of approx. 10-12 days, 82 percent respondents indicated preference for multiple (3-4) shorter trips/minications (domestic and international short haul)
Higher spends: despite supply constraints leading to higher pricing, over 80 percent respondents displayed appetite for higher spends of approx. 20 percent Vs. pre pandemic
High growth segments: While multigenerational families (75 percent), Couples/DINKS (62 percent) continue to display a strong travel desire, high growth segments that are emerging include:
Rise of Young India: As the youngest demography in the world, approx. 65 percent of India’s population is below the age of 35. Young India (millennials and Gen Z) form the new powerhouse for the sector with highest intent to travel (95 percent). Concept of YOLO (you only live once) is driving travel demand
Gen S: India’s Silvers/Seniors have significant disposable income post retirement, topped up with funds from their children, and are displaying high travel appetite (58 percent), especially for premium holidays like cherry blossom tours in Japan and cruises
Regional India-Bharat: Rising disposable incomes + aspirational value of holidays is resulting in strong desire (60 percent)
Experiences driving demand: pandemic induced restrictions has increased appreciation for life. 78 percent respondents opted for experience led travel to create memories of a lifetime with deeper exploration and distinctive local elements Vs. regular sightseeing: bucket list destinations/elements (65 percent); gastronomy (45 percent); outdoor-adventure-fun (50 percent); culture and history (30 percent)
Surge across both – domestic and international travel: While only domestic holidays were preferred by 40 percent respondents and only international by 66 percent; a significant 90 percent opted for both
Domestic destinations favoured were Kashmir (60 percent); Himachal and Uttarakhand (50 percent), Ladakh (35 percent), North East (40 percent) Kerala (25 percent), Andamans (30 percent), Goa (30 percent); Bhutan in the Indian subcontinent (30 percent)
International tourism is witnessing a strong resurgence. Despite visa challenges, Europe is a clear favourite preferred by over 46 percent of respondents led by Switzerland, France, Spain and Italy. Short hauls (50 percent) are witnessing rapid growth with increased interest for Thailand, Singapore, Malaysia, Indonesia, Dubai, Abu Dhabi, Oman; island destinations like Maldives, Mauritius (28 percent). Strongly emerging on the radar are destinations like Japan and S. Korea (25 percent); also Vietnam-Cambodia due to new flights and increased connectivity (30 percent). Long hauls like Australia with end-to-end digital visa processes are seeing uptick of 20 percent. USA continues to face visa challenges and was selected by 8 percent.
Key considerations for travel:
Visa challenges: formed a barrier for 70 percent respondents
Flexibility: 66 percent respondents are keen on zero penalties for date changes/rebooking, etc.
Access to multiple/convenient payment options is of value to 35 percent respondents (Travel loans, EMI, BNPL…)
Health & Safety continues to be a consideration for travellers, however reduced to 30 percent respondents
Mode of travel: 85 percent respondents displayed clear return of confidence in air travel with increased demand for air-inclusive packages, 15% for drivecations; cruise holidays/sea-cations seeing a surge of 70 percent
Customers opting for Hybrid/Omni-Channel routes to choose their Holiday: while digital models continue to see uptick of 66 percent; 58 percent respondents require the guidance of a holiday expert and prefer to purchase their holiday through retail outlets; 95 percent prefer phygital channels (combination of physical+digital models), based on their convenience
Sustainability: 30-35 percent respondents are becoming more mindful about the environment/local communities
Mr. Rajeev Kale, President & Country Head – Holidays, MICE, Visa, Thomas Cook (India) Ltd., said, “Holidays are witnessing rapid rebound, with travel clearly emerging as a non-negotiable/ must-do for Indians! Our India Holiday Report – May 2023 reveals that not only are multiple mini-cations back for 82 percent respondents (in addition to 1-2 long holidays), but also that they are willing to pay 20 percent more. Also noteworthy is the rise of Young India’s Gen Z and millennials; equally Middle India/Bharat as significant power-centres in the evolution of the sector. The pandemic having created a deeper appreciation for life, the YOLO (you only live once) mindset is driving travel desire: Indians are now seeking immersive travel experiences and wanting to live like a local! This highly positive consumer sentiment will serve a key catalyst to our Teams in creating customized holidays and exceptional experiences – that build memories of a lifetime!”
Mr. Daniel D’souza, President & Country Head, Leisure, SOTC Travel said, “Our India Holiday Report – May 2023 showcases India’s strong and growing holiday appetite with 84 percent respondents reflecting increased intent. With experiential travel being a key driver for over 78 percent respondents, the deep desire to explore fresh and unique bucket-list opportunities resonated with 65 percent. The impressive travel appetite emerging from regional India-Bharat has accelerated our focus on this high potential segment via our expanded regional product and vernacular content/marketing. With the increasing demand for consumer convenience and the comfort of human-touch/expertise, omnichannel/phygital channels are clearly seeing high demand (95 percent). As Indian travellers becoming more discerning in their choices, as a leading travel company, we are committed to meeting their evolving needs.”