Luxury travel by Indian consumers expected to grow in future

The luxury hospitality sector has been growing and has seen an unexpected shift the past few years. There is a shift in consumer behaviour and consumption patterns which is leading hotels to adapt to the changing requirements of the consumers. The change is also due to the shifting of demographics. The new luxury consumer is younger, willing to spend on experiences and is well-informed.

One of the biggest opportunities for the industry in the coming few years is this demand surge for travel. There is a strong desire to go out and explore the world like never before. This presents a significant opportunity for hospitality and travel companies to capitalise on this demand and promote their destinations, accommodations and activities to eager travellers.

A report by the World Travel & Tourism Council (WTTC) predicts that India will become the world’s fastest-growing major economy in the travel and tourism sector, growing at an annual rate of 7.5 per cent between 2021 and 2031. The report also suggests that luxury travel will be a key contributor to this growth.

Indian travellers are increasingly looking for luxury experiences that are authentic and immersive rather than just high-end amenities. This has given rise to luxury alternate accommodation like homestays which are offering local experiences, be it cultural, adventure, wellness or culinary. 

Another opportunity for the industry is the growing trend of sustainable tourism. As consumers become more aware of the impact that travel can have on the environment and local communities, they are looking for ways to minimise their footprint and support sustainable practices. This presents an opportunity for companies to showcase their commitment to sustainability and differentiate themselves from the competition. The consumers can now differentiate those that are greenwashing to those who are genuinely making efforts on sustainability.

In the luxury hospitality sector, the Indian market has always had a strong demand for high-end accommodations, and this is unlikely to change in the coming years. With a growing middle class and an increasing number of high net-worth individuals, the demand for luxury hotels, resorts, and other forms of upscale accommodation is likely to continue to grow. This has also given rise to independent luxury hotels across the country which can capitalise on this demand and promote their services to this target market.

In summary, luxury travel by Indian consumers is expected to continue to grow in the coming years. Indian consumers are increasingly looking for luxury experiences that are authentic and immersive, with a growing interest in experiential and sustainable travel. As we move forward, I am confident that the Indian market will continue to thrive and provide countless opportunities for growth and success in the travel and luxury hospitality sector.

AUTHOR BIO: Hemant Mediratta is CEO, HM Corp