Red Carpet Travels sees rising demand from smaller Indian cities, Scandinavia among top-performing regions

Rajesh Kakade shares agents in Tier II and Tier III markets aspire to sell destinations such as Switzerland and Norway for better margins and cater to aspirational travellers.

Red Carpet Travels is strengthening its international presence while focussing and investing in technology and AI-driven solutions to support travel agents, shared Rajesh Kakade, Founder & Global Director, in an exclusive interaction with T3. The company, which initially established its operations in the US, has since expanded into Canada and Mexico, while also growing its presence across Scandinavia, Europe, Australia and Dubai.

Detailed report below:

Expanding footprint with technology-led growth

Reflecting on the pandemic years, Kakade said the crisis prompted the company to rethink its long-term strategy and accelerate its digital transformation plans. “During the pandemic, we started focusing on understanding the future. That is when we began working on an online platform,” he said.

This led to the development of Red Planner Connect, the company’s dedicated platform for travel agents. While Red Carpet Travels continues to operate as a traditional DMC catering to MICE movements, groups and series departures, Red Planner Connect focuses on FIT business. “We now have more than 3,000 agents registered on Red Planner Connect,” Kakade shared.

Rising demand for long-haul destinations

Speaking about post-pandemic travel trends, he noted that 2024 witnessed a rebound in demand as travellers who postponed holidays during 2021 and 2022 resumed their international plans. However, he admitted that 2025 witnessed a slight slowdown, particularly in the MICE segment to the US due to visa-related challenges.

As a result, the company shifted its focus towards FIT travel to the US, designing new itineraries and promoting offbeat experiences.

“National Parks performed exceptionally well for us. After that, we started focusing on Alaska and managed to generate good numbers with smaller family groups and FIT travellers,” he said.

Scandinavia has also emerged as one of the company’s strongest-performing regions, supported by its operational presence in Norway. “There are very few DMCs with their own office in Scandinavia. We have an office in Trondheim, Norway, which gives us a strong advantage,” Kakade added.

Tier II & III markets driving new opportunities

Kakade believes India’s smaller cities are rapidly evolving into key outbound source markets, particularly for long-haul destinations.

“Agents in Tier II and Tier III markets aspire to sell destinations such as Switzerland and Norway because these destinations not only offer better margins but are also aspirational for travellers,” he said.

According to him, cities like Pune are increasingly demanding customised itineraries and premium destination experiences, while markets across western and southern India continue to generate strong business volumes for the company. Kerala, especially Kochi, has also emerged as a significant market, with increasing demand for high-end FIT holidays.

“Initially, I believed Kerala was primarily a strong group movement market, but recently we have seen a rise in luxury FIT enquiries from Kochi, which has been quite surprising,” he noted.

AI-led tools help agents save costs

A major focus area for the company has been the integration of AI-powered solutions into its booking ecosystem. Kakade revealed that the company recently introduced a technology feature that continuously tracks hotel prices even after an agent has completed a booking.

“If the AI detects that hotel prices have dropped after the booking is made, the agent receives an alert with the option to cancel and rebook at a lower rate,” he explained. According to him, the technology helps agents secure better pricing while maintaining service quality for clients.

Kakade believes the solution gives travel agents a distinct competitive advantage and claims that very few companies currently offer similar capabilities.

Highlighting the changing behaviour of travellers, Kakade said younger consumers, especially millennials and Gen Z travellers, are increasingly using online resources and AI tools before making bookings, forcing travel agents to upgrade their knowledge and response systems.

“Travellers today challenge agents with information they gather online, so agents are also becoming smarter and adopting AI tools to respond faster,” he observed. While he believes technology will fundamentally reshape the travel industry over the next few years, Kakade stressed that human interaction will continue to remain critical in the Indian market. “Personal touch will always remain important in India. However, it must now work alongside AI-based solutions and technology,” he said.

He added that AI tools are already significantly reducing response times for travel enquiries. “Earlier, reverting to a client could take 24 to 48 hours. With AI-powered systems through Red Planner Connect, we can now respond within three to five minutes,” Kakade said.