The Rise of the Indian Traveler

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The story for the last decade at least has been China’s economic rise. And with a growing middle class, more and more Chinese are travelling the world. Indeed, China has been the world’s largest exporter of tourists since 2012 and consequently, tourism agencies, airlines and hotels from around the world have had to quickly adapt to this growth.

However in the past few years, another player has shown significant growth in the outbound travel market and perhaps this sleeping giant is not who you’d expect. With a soaring GDP growth rate at 7%, rising income levels and an evolving lifestyle, India will quickly become one of the fastest growing outbound travel markets in the world. Is the travel industry prepared?

Strength in Numbers

India’s population is projected to become the largest in the world sometime in the 2020s. This new status as the world’s most populous nation will have profound implications for everyone.

Population

2016

China

1.37 B

US

323 M

India

1.34 B

Middle Class Wealth

Now armed with disposable income, India’s rapidly growing middle class will have more opportunities to travel, both domestically and abroad.

Middle Class Consumption Growth

2015 - 2020

China

62%

US

0%

India

95%

Late-twenties

Currently, more than 50% of India’s population is younger than 25 and more than 60% is younger than 35. And India is projected to have the largest group of working-age individuals on earth by 2020 and a full 20% of the global workforce by 2025.

Average Age of the Population

China

37
Years

US

37.7
Years

India

26.7
Years
  • 50
  • 40
  • 30
  • 20

Travelers

The Bollywood movie “Zindagi Naa Milegi Dobara” set in Spain, secured a threefold rise in the number of Indian visitors to that country in the last five years. Indeed, the number of international trips for Indian nationals will continue to increase.

Outbound Travel Growth

2013 - 2015

China

19%

US

19%

India

23%

Passenger Forecast

Jumping by 21% in traffic, Delhi’s airport entered the top 10 busiest airports in Asia with 58 million passenger journeys. India’s total contribution of travel and tourism to GDP is set to double to US$4 billion by 2027.

Origin & Destination Passenger Journeys

China

US

India

520 M
680 M
120 M
  • 1500
  • 1200
  • 900
  • 600
  • 300
  • 0