Skift Take
The younger generation in India are increasingly embracing an aspirational lifestyle that places a premium on travel and new experiences. This trend has led to a significant increase in first-time international travelers.
Catch Asia Editor Peden Doma Bhutia in conversation with Saniya Zanpure, Skiftâs research analyst, as they dive into the Skift Travel Health Index (STHI) â a tool that tracks and measures the performance of various travel sectors. They explore why the travel industry in 2024 is mirroring 2023, with insights into the factors driving this stability. Plus, they look at India’s rise as a major player in global travel and find out what’s fueling this rapid growth.
Key Points
Skift Travel Health Index: Tracks performance across all travel sectors, initially launched as the Skift Recovery Index during the pandemic to measure industry recovery.
Benchmarking Evolution: Originally compared monthly performance to 2019, but in 2024, it shifted to comparing performance year-over-year to capture current trends better.
2024 Stability: Travel performance in 2024 is stable, similar to 2023. Some sectors, like car rentals, have slowed, while others like aviation and hotels continue to grow.
India’s Outbound Market Growth: India is on track to become the fifth-largest outbound market by 2027, driven by favorable demographics, increased disposable income, and a young, aspirational population.
Visa and Connectivity: Improved visa processes and direct flights have boosted travel, especially to emerging destinations like Vietnam and Kazakhstan.
First-Time Travelers: For first-time travelers, international travel is not just about vacationing, itâs about personal growth, cultural enrichment, and the pursuit of unique experiences. This shift is influenced by several factors, including globalization, social media and exposure to diverse cultures.
Increased Spending: Indians are spending more on travel, especially on transportation and accommodation, while also maximizing value through travel hacks and credit card points.
Sports Tourism: Sports tourism is growing among Indians, with cricket, Formula One, and the Paris Olympics being top attractions.
Social Media Influence: Social media and travel influencers significantly shape travel preferences, particularly among younger generations.
Listen Now
Episode Summary
In this episode, Skift Asia Editor Peden Doma Bhutia and Saniya Zanpure, Skift research analyst, discuss the evolution and significance of the Skift Travel Health Index, a tool tracking the performance of the global travel industry. Initially launched as the Skift Recovery Index in 2020, the index benchmarked monthly travel performance against 2019 levels to gauge the industry’s recovery from the Covid-19 pandemic. However, in 2024, the index shifted its focus to year-over-year comparisons, providing a more relevant snapshot of current industry trends.
The conversation highlights the stability of travel performance in 2024, noting that while overall figures remain similar to 2023, different sectors show varied growth. For instance, the aviation and hotel industries are experiencing steady growth, whereas car rentals have seen a slight slowdown, affecting the overall Index.
The conversation also explores India’s rapid growth as an outbound travel market. This is attributed to favorable demographics, increased disposable income, and improved visa processes, positioning India to become the fifth-largest outbound market by 2027. The conversation notes that traditional destinations like the U.S. and UAE remain popular, but emerging destinations such as Vietnam and Kazakhstan are gaining traction due to easier visa access and better connectivity.
They further discuss the rising trend of sports tourism among Indians, with major events like the T20 World Cup and the Paris Olympics drawing significant interest. Lastly, the episode delves into the influence of social media and travel influencers on Indian travel preferences, especially among millennials and Gen Z, who are driving a cultural shift towards more frequent, experience-driven travel.
