The discussion about the revival of travel in Asia continues to focus mainly on the return of Chinese travelers.
Nevertheless it is Indian travelers who are searching for international travel faster than travelers in every other market in the world, Agoda CEO Omri Morgenshtern told CNBC Travel.
“The entire thing is booming,” he said. “India outgoing [travel] grows much faster than every other.”
The corporate’s data shows that while outbound travel searches from most Asia Pacific countries have increased by 30-60% since 2019, travel searches in India have increased by 225%.
“India’s tourism industry has recovered significantly thanks to the country’s economic growth,” said Laitya Dhavala, a valuation consultant at travel analytics firm Cirium.
“The information shows a robust recovery in each domestic and international traffic compared to 2019 with … positive growth in scheduled capability in the next quarter,” he said.
Where are they traveling?
Thailand, Singapore and Indonesia are the hottest destinations for Indian travelers.
Agoda data showed that from January 2019 to mid-May this 12 months, Indian travelers increased hotel and flight searches to Indonesia by 256%, to Singapore by 215%, and to Thailand by 147%.
But searches in Vietnam, a rustic long ignored by Indian travelers, have increased much more. Agoda data showed a 390% increase over 2019.
“Vietnam is in the top five destinations and was never there in 2019,” said Morgenshtern.
Prior to 2019, there have been no direct flights from India to Vietnam, so connectivity between the two countries is now higher, said Vishal Suri, managing director of SOTC Travel.
“Vietnam is a spot that will not be very far from India and continues to be in the ASEAN region. It’s only a 4 or five hour flight from most parts of the country,” Suri said.
![The growing proportion of Indian travelers is in line with India's economic growth, says IndiGo CEO](https://image.cnbcfm.com/api/v1/image/107243785-16844717501684471743-29515441953-1080pnbcnews.jpg?v=1684473414&w=750&h=422&vtcrop=y)
Southeast Asian destinations remain popular with Indian tourists, but Agoda data suggests their interest in East Asian destinations has waned, said Agoda’s Morgenshtern.
Hotel and flight searches to Japan and Taiwan have declined since 2019, according to Agoda data. Nevertheless, searches for South Korea increased even before the pandemic.
“Travel to Southeast Asia is totally exploding, but East Asian countries are rather more expensive destinations,” Morgenshtern said.
But Morgenshtern expects interest in East Asian travel to increase soon. He also noticed two other expensive markets that are popular with Indians – the United States and Great Britain.
“I do not see why an Indian customer going to Europe would not rejoice going to Japan or Taiwan.”
Greater purchasing power
Whether it’s a brief trip to Asia or a protracted vacation in Europe, Indians spend money. They usually spend lots of money.
“There’s a perception that the economic power of Indian travelers could be very low. That could be true domestically, but when it comes to traveling abroad, I feel it’s on par with the Chinese once they visit other Asian countries,” said Agoda’s Morgenshtern.
According to Agoda data, travelers from India spent around 30% more on international accommodation last 12 months than before the pandemic and 20% greater than the average Chinese customer.
![Demand is not 'just a flash,' says an Indian hotel company](https://image.cnbcfm.com/api/v1/image/107231145-16824883581682488355-29183368373-1080pnbcnews.jpg?v=1682489111&w=750&h=422&vtcrop=y)
In Thailand, he said, travelers from China and India spend about the same on hotels.
“Indians like to stay in four- or five-star hotels and branded hotels with familiar names,” said Suri of SOTC. “They are also discovering suitable restaurants as a substitute of eating at fast food outlets.”
Cirium’s Dhavala identified that the increase in international travel is proscribed to wealthier Indian travelers.
“The remainder of the mid-range sector is concentrated on domestic travel, and low-cost airlines in India are well positioned to meet that demand,” she said.