Indian Travel Industry Sees Sharp Surge in Consumer Confidence and Spending, Says Report

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NEW DELHI, India — The Indian travel industry is witnessing an unprecedented surge in consumer confidence, with 88 percent of travelers eager to travel and willing to spend more, according to a new report released Wednesday by Kantar for Google India.

The study highlights a major shift toward premiumization, value maximization, and heavy reliance on digital platforms throughout the travel journey — from inspiration to booking. The trend is clear: Indian travelers are spending more and seeking greater comfort and quality than ever before.

“Domestically, 72 percent of travelers cite cost as less of a consideration, and 81 percent expect to splurge,” the report stated. “This premiumisation is even more pronounced for international travel, where the average spend is 3.2 times that of a domestic trip.”

Shaurab Kapadia, Head of Travel and FoodTech at Google India, said travel has become a form of self-expression for many consumers, but the planning and booking process remains fragmented. Digital platforms, however, are increasingly helping travelers simplify these complexities.

“YouTube is the inspiration hub, search is the essential touchpoint for planning, and AI is emerging as the critical enabler for travelers,” Kapadia said. He added that Google’s AI-powered advertising tools and YouTube’s creator ecosystem help travel brands engage users with personalized messages at key decision moments.

Video content continues to dominate discovery. YouTube is now the top source of travel inspiration for Indians, used by 68 percent of travelers. Travel creators exert strong influence as well — 59 percent of travelers trust them while planning trips. Short-form videos are especially impactful, with two in five travelers using YouTube Shorts for quick inspiration.

The report also found that Indian travelers are highly digital: 85 percent prefer to book their trips online. Brand trust has become the top deciding factor when choosing hotels, airlines, and travel platforms.

With rising confidence, increased spending power, and rapidly growing digital engagement, the Indian travel industry is set to enter a new phase of growth driven by aspirational consumers and deeply personalized, AI-enabled planning tools. (Source: IANS)

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