The first three months of 2024 have registered 97 million passengers traveling through Indian airports for both international and domestic trips
Sunainaa Chadha NEW DELHI
Indian wanderlust has reached new heights in 2024, according to the Mastercard Economics Institute’s “Travel Trends 2024: Breaking Boundaries” report. The report highlights a surge in air travel, with a staggering 97 million passengers (domestic and international combined) passing through Indian airports in the first quarter alone (January-March 2024). This figure surpasses the total number of travelers seen in a full year just a decade ago.
The report further details a robust travel market within India, with domestic traffic exceeding pre-pandemic levels by 21% in March 2024 compared to the same month in 2019. International travel also saw a positive trend, increasing by 4% in March 2024 compared to 2019.
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According to the report, Amsterdam, followed by Singapore, London, Frankfurt, and Melbourne are the top five trending destinations that Indian travelers are visiting this summer (June – August 2024), as measured by the change in share of flight bookings.
There’s a growing interest in exploring new destinations beyond traditional tourist hotspots. The data reveals a significant rise in visits to specific countries:
- Japan: A surge of 53% in Indian travelers compared to 2019.
- Vietnam: A remarkable 248% increase in Indian visitors compared to 2019.
- United States: A significant jump of 59% in Indian tourists compared to 2019.
Flights into Vietnam from India are even more incredible. By March 2024, the number of passengers relative to the same month in 2019 was up a jaw-dropping 248%.
Passenger traffic across India has also seen a range of interesting dynamics. Regionally, Chennai has just seen total passenger traffic exceed 2019 levels in March 2024 – an important milestone in the travel recovery. In Bangalore, domestic passenger traffic has remained steadily above 2019 levels for the past 12 months, partly due to workers returning to their offices and many services workers in the city.
Travelers continue to prioritize experiences over things
Consumers globally continue to prioritize experiences over material goods. This is playing out in the travel sector as spending on experiences, especially nightlife, totals 12% of tourism sales – the highest point in at least five years. Additionally, a burgeoning fine dining scene in India has translated to marginal outperformance of the fine dining category for in-destination tourism dining. As of March 2024, spending on casual dining rose by 49.2%, while fine dining saw a 55.2% increase compared to the previous year.
The Mastercard Economics Institute expects travel to become increasingly accessible for all Indians. This trend will be fueled by the growing middle class and the addition of new air routes connecting various regions.
Globally, nine out of the last 10 all-time record spending days in both cruise and airlines have happened in 2024.
Some noteworthy examples of this strength in 2024:
- Passengers traveling: An all-time high of about 15.9 million Americans traveled internationally in Q1 2024 while Japan welcomed over 3 million passenger arrivals in March 2024
- Consumer spending: As of March 2024, nine out of the last 10 record-setting spending days in the global cruise and airline industry were in 2024
- Leisure for longer: Tourists spend more time on vacation, by about one extra day relative to pre-COVID trends, particularly for lower-cost destinations
- Traveling for events: Memorable events are driving travel trends, whether it is for concerts or sporting events – look out for a rush of travelers to Munich for the opening game of the European Championship
- Top gainers: Japan, Ireland and Romania experienced the strongest growth in share of spending from tourists relative to last year
- This year, Munich, Germany, ranks as the top trending destination due to the European Championship.
- Consumers are traveling for memorable events ranging from Solar Eclipses to Taylor Swift shows, Carnival in Brazil, and the Cricket World Cup. These events provide strong incremental spending lift to businesses near and adjacent to the area. For example:
- The spending lift from tourists during the 2024 Carnival in Rio de Janeiro at restaurants, bars and grocery stores increased 156% above what would have happened without the event.
- During the US solar eclipse, hotel sales within the path of totality experienced a 71% sales boost over normal business.
- Restaurant sales within 2.5 miles of the Taylor Swift concerts in 2023 gained an incremental 68% above regular business.
Where have tourists been traveling to over the last 12 months?
- Japan emerges as a clear frontrunner, with a local economy benefitting from a surge in tourist activity with the foreign exchange working in the favor of Japanese businesses catering to tourists.
- Italy and Spain came in four and five respectively and have enjoyed strong demand for warm, sunny climates from travelers across the globe.
- Romania notably ranked high up on the list at number 3. This is in part thanks to Romania joining the Schengen Area, which prompted airlines to expand service to Romania. This move has brought in additional tourists notably from Spain, Sweden and Denmark.