India Market Overview

Market Overview

India: A Cultural and Economic Engine

India’s economic landscape is growing rapidly, with the country’s GDP ranking as the fifth largest in the world.1 Fueled by a growth rate of over six percent, India’s outbound travel market is expanding, and it was the fastest market to recover from the pandemic in the Travel South region in 2023.2 It is the fourth-largest international source market, following Canada, the UK, and Germany. By the end of 2024, Indian travelers are expected to spend $450 million, with more than 300,000 visiting the region. This amount is anticipated to rise to $500 million next year. 

So, what is fueling this growth? 

Cultural Lure

As the appetite for global exploration increases, Indian travelers are drawn to the Travel South region for its captivating mix of outdoor beauty, cultural richness, and friends-and-family experiences. Encouragingly, some 83% of Indian travelers indicated they are likely to visit the region in the next five years, and nearly all find it familiar and appealing.3 

There are over five million Indian Americans in the States, with a median annual income of $136,000. Population growth among this community has been significant, particularly in Arkansas, Georgia, and North Carolina, at over 70% from 2010 to 2020.4 Indian travelers frequently seek ideas and inspiration from friends and family, their most trusted sources. The Travel South region remains an appealing destination known for its friendly, trendy, and welcoming atmosphere. Unsurprisingly, personal safety remains a top concern for Indian travelers.5

Visa Improvements and Air Connectivity

The US Consulates in India have made significant improvements in visa wait times over the past year. Kolkata and New Delhi are currently the fastest at issuing visas for holiday or business travel, averaging 13 to 14 days for interview-waiver visitors.6 However, appointment wait times for visitors without the interview waiver are lengthy—often exceeding one year.

Regarding accessibility, Virginia’s Dulles International Airport continues to offer nonstop flights from New Delhi via Air India. November marks a significant milestone for Air India as it merges with Vistara, India’s leading full-service carrier and a joint venture between Tata Group and Singapore Airlines. The final Vistara flight is scheduled for November 11, 2024. By 2025, the market will see just two brands: Air India, a full-service carrier, and Air India Express, a low-fare airline.7  

Of the “big three,” American has a direct Delhi to New York JFK airport, and United has a direct connection through Newark and is soon to return to Chicago.  

Delta Air Lines is planning to reenter the market by 2026 with a new Airbus A350-1000 aircraft to reclaim its position in the Indian market. Prior to the pandemic, Delta offered service to the USA from Mumbai and plans a partnership with IndiGo, according to a recent interview given by Delta CEO Ed Bastain.

Digital Engagement Powered by Social Media 

Whether it is exploring the wonders of the outdoors, the South’s culinary scene, and traveling with friends and family, Indian travelers are new traveler archetypes. Indian travelers represent a new type of explorer—enthusiastic about discovering the outdoors, immersing in the South’s culinary scene, and traveling with friends and family. They are also highly engaged on social media. Engagement rates from Indian travelers surpassed those of the other international markets, with foodie and outdoor experiences leading in interest.8 Social media channels are not only sources of inspiration but also a vital source for travel planning. 

Leveraging College Towns and Weddings Destinations 

India presents an innate potential for Travel South’s college towns and wedding destinations at the individual destination level. India is the region’s largest student group signaling opportunities for regional travel, visiting friends and family from India, and cultural events.9

Indian weddings are known for their extravagant multi-day celebrations, which is also a potential for Southern destinations. According to Sartha Global Marketing – Travel South’s global partner – weddings are a significant investment for Indian families. By showcasing scenic venues and cultural hospitality, destinations offer a unique draw for travelers seeking memorable experiences.10  

Strategic Implications: 

  • Continue to Deepen Social Media Storytelling

Social media channels are virtual travel brochures and sources of inspiration that tell the stories of people and places. Continue to build genuine connections with Indian travelers through diverse social media channels and storytelling. 

Travel South recently launched Global accounts in India for Facebook and Instagram. Just since July, we have already seen a positive impact in India. Combined with Brazil, we have 100M impressions and 13.69M engagements at $.0002 CPM. Speak with our social media team and consider a Reels & Instant Experience campaign. 

  • Showcase the Travel South’s Cultural Hospitality

While Indian travelers find the region appealing and among the top ten source markets in search intent, personal safety and a lack of accessible information are barriers.11 By working together as a region and building partnerships with Indian travel entities, the region can build and strengthen trust.

Look for our delegation of Tour Operators/Buyers from India during the International Showcase. We have 6 top-qualified tour operators and a receptive operator who focus on India outbound travel in Atlanta to meet with suppliers and DMOs. We are continuing to explore more programs that will inspire, engage, and train the Indian travel trade and long-haul travelers in the coming months.

  • Monitor the Changing Digital Landscape and Intelligence Experiences

The rise of AI-powered travel planning adds an intriguing angle for engaging Indian travelers. 

India is emerging as the largest market for Meta AI across WhatsApp, Facebook, Instagram, and Messenger.12 From translating emails to summarizing information, AI is valuable for travel planning.

With ChatGPT’s Search announcement on October 31, 2024, you can anticipate that Indian travelers’ search behavior will evolve as intelligence experiences (IX) offer fundamentally different digital experiences. 

India’s significance as a user base for AI cannot be overstated. We are already witnessing how AI-enabled digital tools provide users with answers, the ability to ask follow-up questions, links to sources like news articles and blog posts, and multi-modal applications. According to OpenAI, India is the second-largest source of traffic, underscoring its critical role in shaping the future of digital travel behavior in the co-intelligence age.13 

In-Market Recruiters

Sartha Global Marketing
M6, First Floor, Sri Aurobindo Marg,
Block M, Kharera, Hauz Khas,
New Delhi, Delhi 110016, India

Sheema Vohra
Managing Director
[email protected]

Marketing & Sales Activities

Travel South USA has a year-round investment in research and travel trade strategies, along with earned, owned and paid media to amplify our efforts in-market. Commissioned research, along with monthly trend reports and a comprehensive tour operator analysis, is provided to state tourism offices participating in the Global Partner Program. Travel Trade strategies and tactics include sales missions, trade shows, workshops/training regional road shows, cooperative event marketing with Brand USA, and recruitment of tour operators’ buyers to International Showcase & Super FAMs. Earned, Owned, and Paid Media strategies and tactics include hosting visiting journalists, FAMs, social media campaigns and cooperative advertising efforts B2C.

Click here to download an extended podcast-style audio we’ve put together with Google’s NotebookLM.

References:

  • 1 International Monetary Fund (IMF). IMF Data. 2024
  •  2 Tourism Economics. International States Travel. August 2024.
  • 3  Future Partners. Travel South USA Research. April 2024. 
  • 4 U.S. Census Bureau. American Community Survey. 2020. 
  • 5 Brand USA. Consumer Insights. August 2023.
  • 6 U.S. Department of State. Visa Processing Times. November 4, 2024. 
  • 7 Air India. Vistara and Air India Join Wings. November, 2024.
  • 8 Sparkloft. Travel South USA Performance Report. Q1 2024.
  • 9 Open Doors. International Student Census. 2023. 
  • 10 Sartha Global Marketing. India Trending TSUA Report. October 2024.
  • 11 Expedia. Travel South USA Book/Search Data. January-July 2024. 
  • 12 The New Indian Express. India Emerging as largest market for AI Meta Usage. August 2, 2024. 13 Foundation. ChatGPT Stats for Marketers: Users, Growth and Demographics. July 8, 2024.