Indian tourists have a higher demand for overseas travel than citizens of any other country, and Vietnam is a top destination for them.
According to CNBC, when it comes to the recovery of tourism in Asia, many people still only think about the return of Chinese tourists. However, Indian tourists were among the first to seek out overseas trips.
Regarding destinations, Indian tourists are showing interest in Thailand, Singapore, and Indonesia. Agoda data shows that from January 2019 to May 2023, hotel searches by Indian tourists in these three destinations increased by 147%, 215%, and 256%, respectively. Searches for Vietnam by Indian tourists increased by an additional 390% compared to 2019.
An Indian travel blogger took photos in Hue in 2022. Photo: Nehaa.nambiar
Omri Morgenshtern, CEO of Agoda, said that in 2019, Vietnam did not appear on the list of most searched destinations by Indian tourists. Vietnam is a market that has long been "forgotten".
The reason is that before 2019, there were no direct flights between the two countries. However, connections between the two countries have become much more convenient, with each flight lasting only 4-5 hours.
Mr. Morgenshtern stated that Southeast Asian countries continue to attract Indian tourists, but East Asian destinations are not. The number of searches for hotels and flights from India to Japan and Taiwan has decreased compared to 2019. However, the number of searches for hotels and flights to South Korea has increased.
One reason East Asian countries are less attractive to Indian tourists compared to Southeast Asian countries is the high cost of living. Outside of Asia, Indian tourists prefer to travel to the US and the UK – also two high-cost destinations.
Meanwhile, data from Morgenshtern's company also indicates that Indian outbound travel has boomed more than any other market. While searches for outbound travel from Asia-Pacific countries only increased by 30% to 60% compared to 2019, searches from Indians increased by 225%.
According to travel analytics firm Cirium, India's tourism industry is recovering thanks to domestic economic growth. The company's reports also indicate this growth is expected to continue into the second quarter.
Besides their interest in traveling abroad, Indian tourists' spending power has also increased. Previously, there was a view that Indian tourists did not have strong economic capabilities. However, Agoda representatives believe that this group of tourists may have spending power comparable to that of Chinese tourists when they travel to Asian countries.
Last year's data from the company showed that Indian tourists spent 30% more on accommodation when traveling internationally than before the pandemic, and 20% more than the average Chinese tourist. Vishal Suri, CEO of SOTC Travel, said that Indians tend to stay in 4- and 5-star hotels and hotels from brands they are familiar with. In addition, Indian tourists have reduced their consumption of fast food and are seeking out more upscale restaurants.
However, Mr. Suri also emphasized that the increase in international tourism by Indian visitors is only occurring among the wealthy. The rest, including the middle class, focus on domestic tourism with many low-cost airlines.
Tu Nguyen (According to CNBC )
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