"Indian Summer Travel Boom 2024: Record Demand for Hill Stations and Beach Destinations"

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"Indian Summer Travel Surges: Hill Stations and Beach Destinations See Record Demand"

Team Finance Saathi

27/May/2024

Key Points:

40% Increase in Summer Travel: Indian travellers are escaping the heat with a 40% year-on-year rise in summer travel.
Family and Solo Travel Growth: Family travel up by 20%, solo travel by 10%, with Himachal Pradesh, Kashmir, Goa, Kerala, and the Northeast as top destinations.
Rising Retail Business: Hill and beach hotels see increased occupancy, with Mashobra and Mussoorie experiencing significant growth.

As the summer of 2024 unfolds, Indian travellers are keen to escape the scorching heat, leading to a remarkable 40% year-on-year increase in summer travel. This surge is creating robust demand for hospitality and travel services across the country. Despite the minor impact of the ongoing general elections on corporate and MICE (Meetings, Incentives, Conferences, and Exhibitions) business, the retail travel sector is experiencing a significant boost, with both beach and hill destinations vying for the top spots among holidaymakers.

Current Travel Trends: According to KB Kachru, President of the Hotel Association of India and Chairman-South Asia of Radisson Hotel Group, the industry is witnessing a 30 to 40% increase in summer travel this year compared to last year. This notable growth reflects a strong desire among Indian travellers to seek respite from the heat in cooler locales.

Rajesh Magow, Co-Founder and Group CEO of MakeMyTrip, highlights that summer has always been a peak travel season. This year, the sector continues to show buoyancy with a significant increase in travel searches compared to last year. MakeMyTrip's data reveals that the family travel segment has grown by 20%, and solo travel has increased by 10% over the summer of 2023. Popular destinations attracting these travellers include Himachal Pradesh, Kashmir, Goa, Kerala, and the Northeast, all known for their cooler climates and scenic beauty.

Hospitality Sector Insights: Chander K Baljee, Chairman and Managing Director of Royal Orchid Hotels Ltd, notes that while elections have slightly affected corporate and MICE business, there has been a substantial 20% rise in retail business compared to the same period last year. Hotels and resorts in hill stations and other leisure destinations are reporting increased occupancy rates. Specifically, Mashobra in Himachal Pradesh has seen its retail business grow nearly five-fold with slight price adjustments, and Mussoorie's retail occupancy has doubled. Additionally, Goa, a perennial favourite, has seen a 50% increase in retail occupancy compared to the previous year.

OYO, a prominent player in the hospitality sector, has reported that its bookings for May and June 2024 indicate a preference for beach destinations over mountains this summer. This trend underscores the diverse preferences of Indian travellers, with many opting for coastal getaways to enjoy the sea and sand.

Travel Motivations: Several factors contribute to the increasing trend of summer travel in India. The primary motivator is the desire to escape the intense summer heat prevalent in many parts of the country. Northern India, in particular, witnesses a significant movement of people heading towards the hills to find cooler climates. Meanwhile, residents of major cities are also travelling to nearby tourist or leisure destinations for short getaways.

The increase in family travel suggests that more households are taking advantage of school holidays to plan vacations together, seeking destinations that offer activities and amenities suitable for all ages. The rise in solo travel indicates a growing trend of individuals seeking personal retreats and adventures, likely spurred by the desire for solitude, self-discovery, and unique experiences.

Popular Destinations: Himachal Pradesh and Kashmir remain top choices for their breathtaking mountain landscapes and pleasant weather. Goa continues to attract a large number of visitors, thanks to its vibrant culture, beautiful beaches, and diverse entertainment options. Kerala's lush backwaters and tranquil beaches also make it a favoured destination, while the Northeast offers unexplored terrains and a refreshing escape from the mainstream tourist spots.

Economic Impacts: The significant increase in travel demand positively impacts the hospitality and travel industries, driving revenue growth and encouraging investment in infrastructure and services. The rise in occupancy rates for hotels and resorts translates into higher revenue per available room (RevPAR), fostering further development in these regions.

Local economies in popular tourist destinations benefit from the influx of visitors. Increased spending on accommodations, food, local transportation, and activities stimulates economic activity and creates job opportunities, contributing to the overall economic growth of these regions.

Future Prospects: Looking ahead, the Indian travel industry is poised for continued growth. The current trends indicate a robust and resilient market with diverse travel preferences. As travel restrictions ease and consumer confidence in travel returns, the sector is expected to maintain its upward trajectory. The focus on enhancing travel experiences and providing value-added services will be crucial in sustaining this growth.

Conclusion: The summer of 2024 marks a significant milestone for Indian travellers seeking to escape the heat, with a substantial increase in travel activity. The hospitality industry is witnessing strong demand, driven by family and solo travel segments. Hill stations and beach destinations are experiencing record occupancy rates, highlighting the diverse preferences of Indian tourists. As the travel industry continues to thrive, the economic benefits extend to local communities, reinforcing the importance of tourism in driving economic growth. The future of Indian summer travel looks bright, with continued buoyancy and evolving travel trends shaping the landscape for years to come.

Also Read : India's Coffee Exports Surge by 12.22% in FY24, Driven by Robust Demand for Robusta

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"Indian Summer Travel Surges: Hill Stations and Beach Destinations See Record Demand"

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