This sector will become a money printing machine, middle class will be a game changer in 15 years!
India's growing middle class and the passion of growing rapidly growing in the youth are going to give a new direction to the global travel industry in the coming years. According to a recent report by the Boston Consulting Group (BCG), India is headed to become a major partner in the $ 15 trillion global travel industry by 2040.
According to BCG data, while in the year 2024, a total of 5 trillion dollars were spent on travel worldwide, while in the next 16 years this figure can increase three times to reach $ 15 trillion. The biggest reason for this boom is to increase income in developing countries and changes in people's priorities.
The report states that now people are preferring to spend more on experiences and memories rather than expensive goods or objects. For this reason, the growth of travel sector is happening fast worldwide. Especially in India, younger generations like Millennials and Generation Z are giving priority to holiday journey. Their interest in travel is 26% more than the old generations.
After the Kovid epidemic, domestic travel in India has made a significant comeback. Between 2019 and 2024, there has been a steady increase in travel expenses. According to the BCG, this pace will see further fast in the coming years:
At the same time, night trips (night -overnight travel) will also increase rapidly at the rate of 3% at the domestic level, 4% at the regional level and 6% at the international level.
According to BCG report, the total value of domestic journey can increase from $ 2024 to $ 11.7 trillion by $ 2040. Regional travel costs can cross $ 710 billion to $ 2 trillion. While international holidays can increase three times to 1.4 trillion dollars.
The number of stagnation throughout the world throughout the world will also increase at the rate of 4% annually by 2029, although this rate will be reduced to 3% by 2040.
India's economic progress, middle class expansion and inclination towards the experiences of youth can make India a powerful player in the global travel industry. In the coming years, India will not only be a consumer market, but will also define the global priorities of traveling.
