As 2024 draws to a close, the travel, tourism, and hospitality sectors have experienced a spectrum of highs and lows, with notable booms in some areas and challenges in others. This story delves into the year’s key achievements, hurdles, and growth opportunities, offering takeaways from 2024 for industry professionals to reflect on and identify areas for improvement in 2025.
Here’s what industry leaders have to share with T3 readers.
TAKEAWAYS FROM 2024
From Industry Thought Leaders
Rajiv Mehra, President, IATO shared with T3 that in 2024 the rising global travel demand has created pressure to improve infrastructure, while sustainability has become essential as travellers prioritize eco-conscious choices. “For India, this presents an opportunity to harness its diverse cultural and natural wealth through sustainable practices”, expressed Mehra. He suggested that public and private sectors can work together to enhance eco-friendly infrastructure, promote offbeat destinations, and support local communities. “The government’s investments in digitalization, like e-visas and streamlined entry, can ease visitor experiences, while private stakeholders could drive sustainable initiatives by adopting green practices.”
Talking to T3, Ajay Prakash, President, TAFI, shared that outbound to inbound has always been in the ratio of 3:1 and while outbound travel has surpassed the pre-Covid levels, inbound numbers still lag significantly. “We need to take a long, hard look at our overseas marketing strategy”, suggested Prakash. However, the domestic market has boomed. This presents both an opportunity and a challenge. He further added that the challenge is to manage this huge increase, hill stations are inundated, and epic traffic jams confront intrepid city dwellers flocking to the hills. Prakash added, “Airlines carried a record 500,000 people a few days ago and this number will only increase. We need to disperse this traffic and induce people to visit lesser-known destinations within the country.”
On asking Arshdeep Anand, Vice President, ATOAI, Anand shared that inbound tourism struggled with slow recovery due to poor marketing, and without any positioning of India as a tourist destination, limited connectivity to remote destinations in India, and extremely high accommodation prices further hindered the growth. “Whatever inflow there is as of date in India, it is all due to the earlier promotions that were done in the earlier years. The inbound figures have been hovering at the same statistics with majorly business travellers coming into India and people visiting friends and family”, noted Anand. However, outbound tourism flourished with Indian travellers thronging destinations like Central & Southeast Asia and the Middle East. But as the disposable income is going up and the upper middle is growing, new destinations have caught the fancy of Indian travelers like Scandinavian and Arctic Circle countries and Latin American countries.
Sharing insights, Riaz Munshi, Former OTOAI President, added, in 2024, the surge in outbound travel contrasts with the relatively sluggish inbound tourism market. The tourism industry faced major challenges as there was an environment of economic uncertainty, safety concerns, environmental issues, complex visa requirements, and infrastructure gaps. However, despite this there were opportunities abounded. Demand for experiential travel grew, and also travellers looking for unique experiences and exploring international destinations. Easiness in digital payment solutions, while wellness, adventure, and luxury travel gained popularity. India saw surging demand for international travel, government infrastructure support, and growing digital travel platforms.
Dynamics of the Trade
Sharing the trade perspective, Neil Patil, Co-Founder, COO and CTO, Veena World, shared that 2024 has been a pivotal year for tourism, and Veena World has seen significant traction in inbound travel, especially from the US, UK and Australia. He added, “Travellers are increasingly drawn to India’s rich cultural experiences, luxury offerings, and wellness retreats. The steady increase in airline seat availability and improved connectivity, including more cities being linked to international routes, has further fueled growth. We are particularly optimistic about the two new airports near Mumbai and Delhi, which promise to elevate the inbound and outbound travel experience.” According to him, government campaigns like the G20 Summit and ‘Dekho Apna Desh’ have played a crucial role in reigniting interest in India as a destination.
Abdul Thingna, Vice President – Hotels & Holidays, TripJack added that India’s outbound tourism is experiencing a surge, while the inbound tourism sector faces challenges due to growing competition from other emerging markets. “However, this presents a significant opportunity to revitalize the inbound tourism market by focusing on promoting lesser-known domestic destinations, improving travel infrastructure, and ensuring a seamless, end-to-end experience for tourists—from booking to the actual travel experience”, added Thingna. “We have great culture and history to showcase but the same needs to be developed to as per international standards.”
Echoing Thingna’s perspectives, Rama Mahendru, Country General Manager- India, Intrepid Travel mentioned that India’s inbound tourism faces hurdles like safety concerns, pollution, and gaps in infrastructure, deterring some international travelers. Despite government efforts to improve transport and hospitality, challenges like lengthy visa processes, bureaucratic hurdles, and inconsistent policies persist. While the e-visa system has been a step forward, there’s still room for improvement. On the other hand, she added that outbound tourism is booming as Indian travelers explore global destinations, making them a key focus for international markets. “India’s rich cultural heritage, offbeat destinations, and wellness tourism hold immense potential. Campaigns like “Incredible India” have made strides, but targeted efforts can further highlight niche offerings like spiritual retreats and rural tourism”, shared Mahendru.
The Digital Tourism Narrative
Nishant Pitti, CEO & Co-Founder, EaseMyTrip shared with T3 that in 2024, there have been growing opportunities in experiential and destination-driven travel like sports tourism, holistic travel experiences, and emerging destinations like Shillong, Baku, and Langkawi. “Our takeaway is the need to diversify offerings, combining unique experiences with convenience for travellers”, shared Pitti. “Additionally, rising interest in wellness tourism and niche markets like gaming-inspired travel signals an opportunity to tap into younger demographics and HNIs.” He highlighted two prominent trends, firstly, experiential travel, eco-tourism, and offbeat destinations gained immense popularity, as travelers sought unique and sustainable experiences. Secondly, there was a significant surge in religious and spiritual tourism, fueled by landmark such as the Ram Temple in Ayodhya, projected to attract millions. Additionally, middle-class growth and digital innovations have further broadened accessibility and demand in the travel sector.
Highlighting the growing interest in traveling beyond India’s borders, Mohit Joshi, Destinations & Travel expert at Skyscanner, mentioned that from the Skyscanner Travel Trends Report, 86% of the respondents (Indian travellers) said that they want to spend more on flights, compared to previously, and 66% said they want to travel more. “This is a strong base which reflects that the industry for Indian travellers is in that upward trajectory and along with that, cost still remains the primary factor.” According to him, Indian consumers are cost savvy, looking for the best deal, 65% of the people prioritise cost for hotels before booking their destination, 62% prioritise flights before booking their next destination. He further highlighted top three most searched destinations, sharing that Shillong has seen an 828% surge increase compared to last year, then Baku in Azerbaijan which was number one last year and this year it is second trending destination with a 744% surge compared to last year. Third one is Langkawi in Malaysia which has seen a 433% increase in searches.
Manoj Dharmani, Group CEO, DuDigital Global expressed that in 2024, the Indian tourism industry experienced tremendous growth with more Indians eager than ever to explore international destinations. However, he mentioned that this growth comes with certain challenges. The most significant hurdles include an outdated visa processing infrastructure, limited accessibility to visa services in smaller cities, and cumbersome application procedures with long wait times. To address these challenges effectively, he suggested the need for strategic collaborations between the public and private sectors. Public-Private Partnerships (PPPs) could be pivotal in reshaping India’s visa infrastructure to be more efficient, accessible, and technologically advanced. By harnessing private sector investments, India can expedite the deployment of digital solutions such as eVisas, automated verification systems, and online processing channels that reduce paperwork and streamline the user experience. Besides, expanding visa services into smaller cities and right policy backing is also essential.
The Representation Arena
“By 2025 India will overtake Japan, and by 2027-28, Germany, to become the third largest economy. This growth is reflective of India’s outbound tourism growth too. It went unnoticed but India’s outbound travel, with 27.1 million overseas travels, registered its record year in 2023 itself, surpassing its pre-Covid peak of 26.9 million”, opined Noel Saxena, Co-Founder and CEO at BlinkBrand Solutions. India’s outbound travel recorded 1.3% growth in 2023 against around 85% recovery in international travel last year, which is an incredible testimony of this market’s dynamism and opportunity for destinations, National Tourism Offices and tourism suppliers such as hotels, according to Saxena.
“Look at the investment and market development activities that destinations from Middle East, Central Asia, ASEAN, Europe, North America, Australasia are undertaking today to corner a greater share of India’s outbound pie, and successfully too. Unfortunately, the same cannot be said for India’s inbound tourism. India’s inbound recovery was at par with the recovery in international travel at around 84-85% in 2023.” He further added, “2024 is expected to be no better, whereas international travel is now near total recovery. The key differentiator is lack of initiative in robust overseas marketing or publicity campaigns, new source market development, etc. Also, as a destination, we must prioritize cleanliness and hygiene as well as evoke a sense of security in the minds of travelers visiting or planning to visit India.
With one accord, Lubaina Sheerazi, CEO & Co-founder, BRANDit, added that India’s outbound travel has reached new heights and is projected to soar even further. The rise of long weekend travel and rising disposable incomes have contributed to a clear preference for short-haul international destinations. “This presents immense opportunities for global tourism and hospitality brands. Even homegrown brands can capitalise on the strong connection with Indian travellers. Oberoi Hotels and Resorts plans to open a boutique property in the UK by 2027. It’s a good move, signalling Indian luxury brands’ growing global footprint. The Air India and Vistara merger is a game changer. The combined fleet now operates over 5,600 weekly flights with 470 new aircraft to upgrade its fleet. These are good signs of readiness from brands to cater to Indian travellers”, expressed Sheerazi.
While India’s outbound success story is well-documented, there’s a pressing need to focus on inbound tourism, opined Sheerazi. The good news she mentioned is that despite challenges, both the government and private sectors are taking steps to secure a promising future. Indian Ministry of Culture and Tourism projects the inbound market to evolve into a $3 trillion industry by 2047. The government has allocated ₹2,479 crores to the tourism sector for FY25, recognising it as a key driver of economic growth.
The Hospitality Game
Unveiling the year review, Ashwani Khurana, Founder & CEO, Karma Lakelands shared that the tourism landscape in 2024 presented a unique contrast: a surge in outbound travel as Indian tourists explored international destinations more than ever, alongside a struggling inbound sector still grappling with post-pandemic recovery.
To address the inbound challenge, Khurana suggested that India must enhance its global perception through seamless visa processes, improved infrastructure, and targeted marketing campaigns showcasing its diverse offerings. “Collaboration between the public and private sectors is essential here. The government can focus on building robust frameworks by investing in infrastructure and incentivizing sustainable practices. Looking ahead, collaborative efforts and the integration of sustainability into the tourism narrative can turn these challenges into opportunities”, noted Khurana.
SHAPING THE VISION FOR 2025
Looking ahead to 2025, Mehra added that the tourism industry must focus on resilience and adaptability to remain competitive and sustainable. The post-pandemic rebound underscored the need for diversification, digital transformation, and sustainable practices. To support a balanced recovery, it’s vital to address both environmental sustainability and economic equity for communities dependent on tourism. He further suggested strategies like reinstating the MDA scheme to support tour operators; allocating substantial funds in the Union Budget for overseas promotion and marketing; reopening 20 closed overseas India tourism offices; increasing participation in international travel marts with larger spaces; launching an aggressive global marketing campaign across electronic, digital, and print platforms; and stablishing a National Tourism Advisory Board to guide tourism development.
The growth trajectory will continue unabated – barring any serious geo-political events, according to Prakash. “Artificial intelligence and AR will have a larger role to play in the marketing as well as in the actual experience. There’s also a need for skilled and sensitive manpower. We need people with the appropriate skills and aptitude”, mentioned Prakash. Going forward, sustainable tourism practices have to be at the heart of the anticipated growth. For him, the industry needs to rethink its business model; beyond profit and incorporate respect for the planet within their core business strategy. “An industry that thrives on the beauty and diversity of the Earth has a duty to protect it. Associations, too have a role to play here and the theme for TAFI Convention 2025 is “Tourism for Tomorrow: Protecting the Planet”.
For 2025, Anand suggested that India must simplify the visa processes, expand the e-visa eligibility, offer multiple-entry visas, and introduce visa-on-arrival for more countries. Better public transportation facilities and upgraded facilities at all tourist sites are important. There should be focus on safety such as setting up of tourist police, ensuring safe travel infrastructure, and promoting transparency in services will go a long way in building the confidence of the traveler. India must promote unique experiences highlighting cultural, spiritual, medical, and adventure tourism, and explore lesser-known destinations. In addition, training more tourism professionals in hospitality and language skills, sustainable tourism, global visibility, better customer service, are crucial to position India as a global tourism leader.
Munshi highlighted that the idea of targeted marketing campaigns, streamlined visa procedures, and investments in infrastructure can attract high-value travelers. To achieve this, effective public-private collaboration is vital. The government can simplify visa processes, enhance safety measures, and invest in infrastructure. Private players can develop innovative tourism products, adopt sustainable practices, and enhance skill development. Public-Private Partnerships can facilitate joint marketing, co-investments, and knowledge sharing. He also sees in the near future, key trends in the tourism industry includes personalized and luxurious experiences, eco-friendly accommodations, digital storytelling, and evolving visa policies. However, the rural and cultural tourism will grow, niche destinations will emerge, and sustainable practices will gain importance.
Patil also opined that the tourism industry’s resilience will depend on adaptability, innovation, and sustainability. Digitizing processes like visas, bookings, and travel experiences will enhance convenience and reduce barriers for travelers. AI-powered personalization and streamlined itineraries can further elevate the travel experience. Expanding budget-friendly options, particularly for family and group travel, will be crucial. In addition, from culinary tours to wellness retreats and eco-tourism, crafting authentic, meaningful experiences will drive engagement. He added that collaboration between the public and private sectors is essential and 2025 offers an opportunity to shape a tourism industry that’s inclusive, innovative, and resilient.
Sharing 2025 outlook, Thingna added that the tourism industry must adapt to changing global dynamics by prioritizing technology and sustainability. A major focus should be strengthening domestic tourism, which not only provides a steady revenue stream but also contributes to local economies. Integrating cutting-edge technology including adoption of AI into the tourism experience will be essential for driving growth. Investing in digital infrastructure and skill development for the workforce will be crucial. Travel as an entire industry needs to be more attractive to the youth and recent graduates, according to Thingna, so that they can be trained early and be skilled in providing world-class services.
“Tourism in 2025 will be more diversified, flexible, and resilient, driven by sustainability, wellness, and technology”, noted Mahendru. She added that personalized, responsible, and community-based tourism will take center stage as destinations and travelers focus on reducing climate impact and supporting local economies. In addition, sustainability will dominate the agenda, with destinations prioritizing eco-friendly practices like carbon neutrality and regenerative tourism. Travelers will seek authentic experiences and meanwhile, wellness tourism will continue to grow.
Technology will enhance resilience, with AI helping predict trends, personalize itineraries, and manage overtourism. Also, slow tourism will gain traction and emerging trends like sports and music tourism will further diversify the industry, according to Mahendru.
Pitti added that in 2025, the priority will be strategic expansion and innovation to maintain its leadership in the travel sector. “Our plans include accelerating the growth of our offline franchise network, targeting Tier-II and Tier-III cities to tap into underserved markets. We aim to enhance digital platforms with AI-driven personalization and automation, ensuring seamless booking and post-sale services”, shared Pitti. Leveraging data analytics, EaseMyTrip plans to offer curated experiences aligned with evolving traveller preferences. These initiatives will focus on driving profitability, market share, and customer retention in a competitive industry landscape.
“I believe the tourism industry will focus heavily on resilience and adaptability to navigate an ever-evolving landscape. The key to sustainable growth lies in embracing strategies that support both recovery and forward momentum”, added Dharmani. “This begins with an industry-wide commitment to digital transformation—particularly through expanded eVisa systems and automated verification tools.” Another essential element he mentioned is a stronger commitment to sustainable tourism practices. Collaboration among government agencies, private companies, and industry stakeholders will be crucial in realizing this goal. “In 2025, we envision a balanced tourism ecosystem where technological advancements and sustainable practices are standard, supporting robust recovery for both outbound and inbound travel”
Saxena shared his vision, added that to cash in on the burgeoning growth opportunities in Indian market, direct and enhanced air connectivity and facilitative visa processes like e-visa, visa-free or visa-on-arrival travel, as well as closer industry engagement, would be a game changer, as has been demonstrated by destinations like Saudi, Vietnam, Azerbaijan and more recently Georgia, to name a few. Also, a key strategic recommendation for the destinations and suppliers would be to leverage technology and data for efficiency, combined with deep human experiences and intelligence, for their marketing and promotion initiatives.
Sheerazi suggested that the tourism industry, both Indian and global, must address over-tourism by encouraging year-round travel and promoting lesser-known destinations to spread out tourist traffic. There is a need for eco-friendly accommodations and carbon-neutral travel options. Reaching travelers directly is also critical, and platforms like YouTube and social media can play an important role. “India should focus on offering experiential travel over traditional tourist spots to boost inbound tourism. Leveraging its G20 presidency can help position India as a top MICE destination, requiring collaboration between public and private sectors”, added Sheerazi.
Sharing suggestions & vision for 2025, Khurana added that the industry must diversify its offerings, embrace digital transformation, and prioritize sustainability. Strong public-private partnerships, supportive government policies as well as digitization are some of the critical areas to work on. Introducing smart solutions are important like streamlined digital visa processes and AI-driven personalization enhancing traveler experiences. Additionally, establishing resilient crisis management frameworks, including safety protocols and flexible policies, will prepare the sector for future disruptions.
