The surge in international travel among Indians is being powered by an increase in spending power. Indian airlines are expanding their operations to cater to the growth in demand. A report by credit rating agency CRISIL Ratings predicts that Indian airlines will account for half of the country’s international passenger traffic by the 2027-28 financial year, up from 43% this fiscal year. The growth is being driven by factors such as increasing disposable incomes, easing visa requirements, and enhanced air travel connectivity, as well as the government’s focus on making India a tourism hub. This is expected to lead to annual growth of international passenger traffic at 10-11% over the next four years, compared to 5% pre-pandemic.
Indian carriers are responding to this growth by expanding their international network, entering into codeshare agreements with major international airlines, and capitalizing on their superior domestic connectivity. Over the past 15 months, domestic carriers have added 55 new international routes, bringing their tally to over 300. This includes direct flights to popular long-haul destinations, as well as codeshare agreements with airlines such as Malaysia Airlines and All Nippon Airways. India’s geographic location also positions the country well as a hub for air connections between the EMEA and Asia Pacific regions.
The hotel industry in India has seen a surge in hiring, with a 16% growth in April 2024 compared to the previous year. Positions such as front office managers, housekeeping supervisors, and food and beverage service professionals are in high demand, particularly in urban hubs like Delhi, Mumbai, and Bangalore. The Indian hospitality industry is expanding significantly, with Marriott International opening its 150th property in India, Indian Hotels Company having over 90 hotels in its pipeline, and Sarovar Hotels planning 70 to 80 new hotels.
Etihad Airways is set to start flying to Jaipur in June, adding to its network of 11 destinations across India. The airline has also increased its frequency to other Indian cities such as Kozhikode and Thiruvananthapuram as part of its summer plans. South Africa Tourism is focusing on the potential in tier-2 and 3 cities in India, aiming to attract 100,000 tourists from India in 2024. The country sees a massive opportunity in these smaller cities, as they are home to a new generation of eager travelers seeking unique experiences. Last year, South Africa welcomed nearly 80,000 visitors from India and hopes to surpass pre-Covid levels of 95,000 Indian travelers.
