The Rise of Small-Town India Outbound Tourism: A New Focus for Global Travel and Hospitality
As the case may be, international tourism boards, hospitality, and travel companies are beginning to make concentrated efforts to cater to this emerging set of target customers with outbound travel from tier two and three cities of India. The substantial growth in outbound travel by the people from small-town India is not new and has been making noticeable inroads across the globe.
DET has said that between 19 and 23 Indian cities are connected to DET’s overall connectivity through flights; some of these places include Jaipur, Pune, Coimbatore, Lucknow, Kochi, and Surat. Bader Ali Habib, regional head (proximity markets) at DET, said that tier two and tier three cities in India have a huge potential for outbound tourism. He also said that a strategic focus should be brought about due to the higher demand from those regions for MICE (Meetings, Incentives, Conferences, and Exhibitions), weddings, honeymoons, and sports tourism.
The Singapore Tourism Board also emphasizes the significance of these markets. Markus Tan, regional director for IMESA, shared that Singapore has welcomed over 629,000 Indian visitors during the first half of 2024, hence representing India as its third-largest source market. Foodie markets in destinations like Jaipur and Coimbatore are increasingly serving as key feeder markets as consumers in these aspirant cities seek their own taste of world-class experiences.
Customized products and creative packaging aimed at specific markets
Liam Findlay, CEO, Miral Destinations, said he saw a 40 percent surge in visitation from India in 2023, where contribution was largely coming from tier two and three markets. The Yas Island Abu Dhabi has increased its expenditure in these cities, finding potential for higher disposable incomes and an increasing propensity for travel. Cities like Chandigarh, Jaipur, Rajkot, Kolhapur, Coimbatore, and Kochi are showing interest in international travel.
According to Rajeev Kale, president and country head for holidays, mice and visa at Thomas Cook, singles, DINK couples (Dual Income, No Kids), and child-friendly experiential travel help to build demand. This builds a good tailwind in demand from smaller towns, driven by rising disposable incomes and improved connectivity. The company has now designed special regional tours into its product portfolio catering to the Marathi, Bengali, Gujarati, and Tamil markets. This will offer them with the comfort of a regional language-speaking tour manager and enjoy regional delicacies.
Even regional India is growing phenomenally for SOTC Travel. Daniel D’Souza, president and country head for holidays, also says the opening of several holiday stores and franchises pan India, with presence of tier two and three cities, making accessibility for their customers easy. Regional Group tours for SOTC like ‘Gurjar Vishwadarshan holidays’ are guaranteed vegetarian and Gujarati meals across the key destinations making the traveler feel at ease while on the tours in the company of fellow regional passengers.
Technology and Regional Marketing Plays
Rajesh Magow, co-founder and group CEO of MakeMyTrip, stated that in this period of time, searches for outbound travel from tier two and smaller towns had grown by 38% year-on-year. This growth was reported at 25% from tier two cities and 67% from tier three cities. This trend is also being harnessed by Atlys, an online visa application company. Mohak Nahta, founder and CEO, announced that they are looking to increase their market share in tier two and three cities by up to 40% in the next one year through region-specific marketing campaigns and working closely with local influencers.
Traction is growing exponentially from tier two and tier three cities within Sri Lanka now, as Chamindra Goonewardene, VP Sales and Marketing of Resplendent Ceylon, confirmed. Demand is coming from places like Madurai, Surat, Coimbatore, Jaipur, Chandigarh, and new customers are looking for luxury travel experiences.
It is growing interest in traveling abroad from tier two and tier three cities in India slowly changing the landscape of travel outflows. With rising incomes and increased connectivity, the world tourism boards and hospitality companies now have their eyes set on those from the small cities of India as their next big focus. With these markets growing, the travel space will need to innovate and adapt equivalence to the diverse needs and wants of small-town India.
