Skift Take

The travel industry is making a global shift to capture India’s booming outbound tourism. From hotels and airlines to credit cards and digital platforms, everyone’s racing to cater to this surging wave of Indian travelers. As the market soars, the India opportunity is simply too big to ignore.

Peden Doma Bhutia

India’s tourism industry is undergoing a significant transformation. The Federation of Indian Chambers of Commerce and Industry (FICCI) projects the outbound travel market to reach $55.4 billion by 2034. At the core of this boom is India’s expanding middle class, driving both domestic and international travel as disposable incomes rise.

Indian tour and travel operators are also expected to see a 15-17% revenue increase in fiscal 2025, according to credit ratings agency CRISIL, which attributes this growth to improved infrastructure, rising incomes, evolving travel behaviors, and government efforts to boost domestic tourism.

India’s growing prominence on the global travel stage is further evident, with 2024 projections already at $18.8 billion. The surge of first-time tourists, as highlighted by McKinsey & Company, is a key factor. In 2023, 28.2 million Indians traveled abroad, surpassing pre-pandemic levels, while overseas spending hit $31.7 billion, with 54% dedicated to travel.

Global travel and hospitality leaders also recognize the potential of this burgeoning market. Skift analyzed recent earnings calls from these industries to gauge their outlook on India’s evolving role in global tourism.