India leads in Asia for recovery in tourism spends, to become fourth largest global spender

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"The Indian traveller is willing, eager and confident to keep going, travelling near and far in the search for new experiences. It is also encouraging to see that Indian travellers who are expected to spend USD 40 billion by 2023, are driving the global rebound," said Santosh Kumar, Country Manager, India, Sri Lanka, Maldives and Indonesia, Booking.com.

Alternate accommodations

There is a surge in demand for alternative accommodation options, such as hostels, campsites, vacation rentals, and chalets, the report noted. The growth rate of average daily rates (ADR) for these alternative accommodations outpaced traditional hotel and managed chains, indicating a shift in travel preferences.

In 2023, for every night booked at a camp, three nights were booked at villas and 14 nights were booked at guest houses. The growth in weekend bookings for alternative accommodation in top leisure and business cities such as Varanasi, Goa, Bangalore, and Delhi are 4 to 5 times higher in 2023 than in 2022.

Newer travel destinations

While metros have remained top destinations, tier II-III cities like Varanasi, Coimbatore and Kochi are gaining popularity.

Also read: Not so lean: Lower flight, hotel fares drive monsoon travel demand

A new trend is emerging, where the lesser-known destinations are now capturing the interest of travellers seeking a one-of-a-kind experience. Cities such as Varanasi, Gurugram and Coimbatore are increasingly showing up in bookings with remarkable growth.

While old favourites like Manali, Shimla and Lonavala remain popular among hilly destinations, off-beat locations like Panchgani, Madikeri and Mount Abu are topping the charts on growth for demand in 2023.

Indians are increasingly looking overseas for their next vacation with new destinations from Vietnam, Indonesia and Nepal entering the top ranks. Increasing air connectivity, greater awareness, easier bookings and visa ease are facilitating this.

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What's fueling travel

Mega events including sporting tournaments like the ICC Men’s Cricket World Cup 2023, diplomatic meetings like the G20 Summit 2023, music concerts like Lollapalooza and many more exert a pull on travellers, acting as compelling catalysts for their journeys.

The report further mentioned that Indian travellers’ interests are shaped by TV shows and Indian cinema, with more than half of the travellers indicating they would choose a destination showcased in a show or a movie.

Also read: Domestic airfares unlikely to rise from current levels as demand tapers

Social media also influences travel behaviour. In 2022, 91 percent of Indian travellers expressed that YouTube is their preferred social media platform for travel inspiration, followed by Instagram, which holds the interest of 85 percent of Indian travellers.