MUMBAI: India’s travel sector is poised for a festive boost this year, driven by strong demand from Gen Z travellers and a surge in spiritual tourism, despite broader growth being tempered by recent incidents and geopolitical tensions, according to a senior Cleartrip executive.
“The year began on a high note, with January through March witnessing unprecedented growth in yields, marking an excellent period for the industry,” Cleartrip Chief Growth and Business Officer Manjari Singhal told reporters here.
“However, June and July brought disruptions due to geopolitical tensions and the unfortunate Air India crash, leading to a slowdown. Domestic flying numbers have remained largely flat over the past four months, with yields also declining,” she added.
Since mid-August, demand has rebounded, although overall growth is expected to remain moderate. Gen Z travellers and interest in spiritual tourism are driving much of this resurgence.
“Spiritual destinations are seeing significant uptake, led by Millennials and Gen Z, who are driving the leisure segment. The festive season looks promising, and hotel bookings are expected to benefit from recent GST changes,” Singhal noted.
On government policies that could further boost the sector, she highlighted the potential for cost optimizations to positively influence consumer sentiment. “We anticipate more traveller-friendly policies, such as measures to reduce airport costs, which would allow airlines to enhance capacity,” she said.
Singhal also pointed to strong outbound travel demand. “Geopolitical events, including the ongoing Ukraine-Russia conflict and tensions in the Middle East, have impacted traveller sentiment. However, new destinations have opened over the past two years, giving Indian travellers more options. Southeast Asian countries like Vietnam and Thailand are seeing significant interest from India,” she added.
