Summer travel rises 40% this year, travel sector sees buoyant demand

As Indian travellers seek to escape the scorching heat, there has been a 40% year-on-year increase in summer travel, with hospitality and travel service providers reporting strong demand. The ongoing general elections have slightly impacted corporate and MICE (Meetings, Incentives, Conferences, and Exhibitions) business, but hotels are seeing a rise in retail business, with beach destinations competing with hill stations as preferred holiday spots. People in Northern India are heading to the hills to beat the heat, and there is also movement from cities to nearby tourist or leisure destinations. The Hotel Association of India, led by President and Radisson Hotel Group Chairman-South Asia KB Kachru, estimates a 30 to 40% increase in summer travel this year compared to last year.

MakeMyTrip Co-Founder & Group CEO Rajesh Magow noted that summer is always a peak season for travel, and this year shows continued buoyancy in the sector, with a significant increase in travel searches compared to last year. According to MakeMyTrip's summer travel trends, the family travel segment has grown by 20% compared to the summer of 2023, while solo travel has increased by 10%. Popular destinations include Himachal Pradesh, Kashmir, Goa, Kerala, and the Northeast, favoured for their cool mountain terrains.

Royal Orchid Hotels Ltd Chairman and Managing Director Mr. Chander K Baljee mentioned that while elections have had a minor effect on corporate and MICE business, retail business has risen by 20% compared to the same period last year. Hill hotels, resorts, and other leisure destinations are experiencing increased occupancy. Baljee added that Mashobra in Himachal Pradesh has seen its retail business grow almost five-fold with slight price adjustments, and Mussoorie's retail occupancy has doubled. Goa has witnessed a 50% increase in retail occupancy compared to last year.

OYO reported that, based on its bookings for May and June 2024, beach destinations are more popular among travellers than mountains this summer.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.