India Source Tourism Insight by Domestic and Outbound Tourism, Key Destinations and Tourist Profiles, 2023 Update

India Source Tourism Market Report Overview

The India source tourism market witnessed 17.4 million outbound trips in 2022. The domestic travel in the country was 1.9 billion in the same year. The fast growth in outbound tourism from India is due to the increasing middle class and tourists wanting to venture further afield, paired with flexibility in visa and entry requirements for different destinations has helped many Indians explore and experience many different countries. In 2022, the top international destinations for Indian travelers were based in the Middle East, with the UAE and Saudi Arabia being the most popular.

The India source tourism market research report provides a thorough insight into the Indian domestic and outbound tourism market. The report looks at the profiles of Indian tourists and summarizes the key reasons that they travel. It also offers an in-depth analysis of traveler flows, spending patterns, main destination markets, and current and future opportunities for tourism businesses seeking to tap into the Indian outbound travel market.

India Source Tourism Market Dynamics

Both domestic and outbound tourism expenditure increased in 2022. However, due to the significant increase in domestic trips, domestic expenditure experienced a greater increase. The transportation sector has continually commanded the greatest portion of domestic travel expenditure in 2022. Foodservice and retail follow as the next highest expenditure sectors.

Most Indians consider accessibility as a factor influencing holiday choice. This could be because Indian passport holders tend to need to apply for visas and experience lengthier procedures to access certain destinations. However, more destinations are easing this process, as the Indian source market becomes more valuable. Allowing them more flexibility when it comes to choosing holiday destinations. Moreover, recommendations by friends and family hold significant influence over the choice of holiday as most of the respondents perceived this to be important. This is because family and friends are reliable sources to receive recommendations from. Therefore, it’s important to make decisions on holiday destinations that would reflect the needs of everybody they’re traveling with. Consequently, travel companies would need to build a positive environment and reputation.

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India Source Tourism Market Segments

The key segments in the India source tourism market are domestic tourism and outbound tourism. Domestic tourism was the leading segment in the India source tourism market in 2022.

Domestic Tourism: India has one of the biggest domestic tourism markets with 1.96 billion domestic trips taken in 2022. VFR remains the most popular purpose for domestic travel, followed by leisure purposes. Many factors have resulted in VFR being the leading purpose for travel. The large population of 1.4 billion is the most apparent factor. Indians value quality time spent with friends and family, especially during religious festivals, holidays, and celebrations. Therefore, this plays a significant part as families often spend these occasions together. In addition, transportation continues to be the highest domestic expenditure sector.

Outbound Tourism: Business continues to be the leading motivation for outbound travel. The trend of outbound trips being dominated by couples and families continues, according to GlobalData forecasts. Traveling with family is very important for Indian tourists. Therefore, it is important for destinations that want to attract the Indian source market to market their offerings to be suitable for larger groups like families.  In 2022, travelers aged between 50 and 64 years are the largest group to take holidays, followed by 35 to 49 years. This can help to identify the different strategies needed to target these markets. In addition, the highest outbound expenditure sector continues to be retail in the source tourism market of India.

India Source Tourism Market Analysis by Segments, 2022 (%)

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India Source Tourism Market Segmentation by Holiday Types

The types of holidays preferred by India tourists are visiting friends or family, sun and beach holidays, city breaks, cultural holidays, cruises, adventure/sports holidays, multi-stop trips, wellness/medical holidays, eco holidays, religious holidays, gastronomical holidays, wedding related holidays, and LGBTQIA+ holidays, among others. Following the global market, sun and beach tourism is popular with Indian travelers. According to GlobalData’s consumer survey, more than 53% of Indians typically take a sun and beach holiday.

India’s hot climate is suited to attracting domestic tourists wanting to get away during the summer months to the beach, such as Goa, which is a state in western India with coastlines stretching along the Arabian Sea. Additionally, sun and beach holidays can be affordable to many, as transport in India can be relatively cheap. Therefore, this type of holiday can be catered to attract different tourists with different needs, such as budget or luxury holidays.

India Source Tourism Market Analysis by Holiday Types

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Segments Covered in the Report

India Source Tourism Market Segments Outlook

• Domestic Tourism
• Outbound Tourism

India Source Tourism Market Holiday Types

• Visiting Friends or Family
• Sun and Beach Holidays
• City Break
• Cultural Holidays
• Cruise
• Adventure/Sport Holidays
• Multi-Stop Trips
• Wellness/Medical Holidays
• Eco Holidays
• Religious Holidays
• Gastronomical Holidays
• Wedding Related Holidays
• LGBTQIA+ Holidays

Scope

This report provides an in-depth analysis of traveler flows, spending patterns, main destination markets, as well as current and future opportunities for tourism businesses seeking to tap into the India outbound travel market.

Key Highlights

Unlike many other source markets globally, where a common trend is for leisure to be the leading purpose of travel, the Indian source market takes a different position as business travel dominates and accounts for xx% of outbound travel in 2022.

The retail sector accounted for xx% of total outbound expenditure and will continue to command the largest segment of outbound tourism spending. However, the retail sector was one of the hardest hit by COVID-19 with spending declining by xx% from 2019 to 2021.

Yet in 2022, total outbound retail spending reached $xx billion. India also ranks as the fourth highest average overseas expenditure in the retail sector, with a spend of $xx per tourist, behind the US.

Reasons to Buy

• This report provides a clear insight into developments in India’s domestic and outbound tourism markets.
• The report uses data and analysis to discuss future trends related to domestic trips, international departures, traveler spending, and main destination markets.
• The report explores the different profiles of India tourists and the reasons that they travel, hence providing insight into the trends in different segments of the market.
• The reader gains a strong understanding of the opportunities in the country, as well as the risks, to support better business decisions.