In the last couple of weeks, Indian carriers such as Indigo and Air India have announced an increase in flights to overseas long-haul destinations such as Europe and USA. The code-share agreement between Indigo and Turkish Airlines will enable Indian travellers to seamlessly connect from India to many European countries. It is a positive for the Indian outbound market as we head into 2023.
The Indian outbound travel market has been one of the fastest growing markets and it has attracted a large number of destinations eager to woo the growing number of Indian travellers to their shores. According to a FICCI-Nangia Anderson LLP study on the Indian Outbound market, in 2019, a total of 26.92 million Indians travelled overseas. However, Covid-19 put a halt to this runaway growth and in 2020, only a total of 7.29 million Indians travelled overseas. The total spending of Indians in 2019 was in the range of US $ 22.9 billion and this is a staggering amount by any standard. It is estimated that outbound trips from India will touch 29 million by 2025.
Though figures for 2022 have not been released as yet, one can safely assume that outbound travel from India to overseas destinations will see huge growth as more Indians find it affordable to travel. Recent reports on the three-year wait time for a US tourist visa appointment are an indication of the scale of the demand.
When it comes to travel, while Indians do not hesitate to take a short break at a short-haul destination, they always prefer long-haul destinations in Europe and USA for their cherished holiday. It is here where the challenge arises as in the peak summer months, airfares get expensive and force people to shell out huge amounts for their flight tickets. In this context, that it is heartening to note that airlines such as Indigo and Air India have already announced their expansion to these markets. Indian travellers have always relied on the Gulf carriers such as Emirates, Etihad and Qatar Airways for long-haul travel as Indian carriers were missing due to inadequate connections and hopefully, the move by Indigo and Air India would solve the problem to a certain extent.
From an Indian perspective, we need more Indian carriers flying non-stop to long-haul destinations, as this is the need of the hour. It will reduce the duration of travel and also enable Indians to plan in advance.
The Indian outbound market is poised to grow, and this is indicative of the response that trade shows such as SATTE receive. It is pertinent to note that over 50 destinations are present in India, all at the same time wooing the Indian outbound traveller. Indians are high spenders and destinations have realized it.
Hence, more airlines flying to long-haul destinations will boost the growth story of the Indian outbound market.
