Indian travel industry experiencing massive surge in consumer confidence, spending
The Indian travel industry is experiencing a massive surge in consumer confidence and spending, with 88 per cent of travellers keen to travel, a report said on Wednesday.
The industry is experiencing a significant market shift toward premiumisation and value maximisation, along with a strong reliance on digital touchpoints across the traveller journey, from inspiration to booking, and the definitive trend is toward higher spending and comfort.
"Domestically, 72 per cent of travellers cite cost as less of a consideration, and 81 per cent expect to splurge. This premiumisation is even more pronounced for global trips, where the average spend is 3.2 times that of a domestic trip," according to the Google-commissioned Kantar report.
Travelling is now a form of self-expression, yet the booking path is often fragmented, and we are seeing our digital ecosystem simplify this complexity, Shaurab Kapadia, Head of Travel and FoodTech, Google India, said.
YouTube is the inspiration hub, search is the essential touchpoint for planning, with AI emerging as the critical enabler for travellers.
"At the same time, we are enabling brands with our AI-powered ads suite and the YouTube creator ecosystem to optimise for micro-moments, ensuring personalised messaging that converts peak interest into a booking, he added.
As per the report, Video has become central to discovery, with YouTube as the top source for travel inspiration, used by a massive 68 per cent of Indian travellers.
YouTube is fueling aspirational travel and deep engagement across formats: creators are highly influential, trusted by 59 per cent of travellers who rely on them during trip planning, while shorts are used for inspiration by 2 in 5 travellers.
The report noted that travellers are highly digital, with 85 per cent preferring to book online, and brand trust is the top factor in accommodation and airline choices.
