With the festive season approaching, various sectors in India are looking forward to a much-needed boost in consumer demand. The festive season, particularly in India, has always been a time of increased spending, and 2024 is no exception. Among the sectors that stand to benefit the most during the festive season is India’s travel industry.
Tourism & Hospitality Industry’s Uptick Time
According to recent reports, the Indian economy is projected to grow by 7.3% in the current financial year, and a festive surge in demand is expected to boost sales by as much as 20%. Sectors such as tourism, retail, and hospitality are poised for a robust rebound as they prepare for the upcoming festivities. Recent statistics indicate that the Indian economy is predicted to grow by 7.3% in the current fiscal year, with the expectation of a notable 20% increase in sales during the Christmas season.
The sector took a significant hit during the first quarter of 2023, with the Indian Association of Tour Operators reporting a 30% decline in business, largely due to rising air ticket prices and inflation. However, the festive season offers a fresh start. Experts predict a 25-30% increase in travel bookings, which will give a much-needed boost to the sector. To help travellers make the most of the season, famous destinations like Goa, Rajasthan, and Kerala are offering packaged vacation bargains and cheap festive travel packages, which have been released by both IndiGo and Taj Hotels.
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Festive Travel Surging Up!
With domestic travel set to increase, leading airlines and hotel chains have announced special festive deals to entice travellers. Additionally, state tourism boards are working in tandem with private operators to promote destinations like Uttarakhand, Himachal Pradesh and more making the festive season a time of domestic travel resurgence. With inbound international tourism still recovering, domestic travel will be a primary driver for the hospitality sector’s recovery. The festive season in India is closely tied to religious and cultural celebrations, which often translate into a rise in pilgrimage travel. State governments and local tourism boards are also stepping up efforts to accommodate the increased demand.
From tourism to retail, hospitality, and entertainment, industries are preparing for a much-needed surge in consumer demand. As consumers embrace the festive spirit and look to make up for lost travel opportunities, the tourism industry is gearing up for a season of growth and resurgence.
Cover image credits: Canva