Tourism is showing signs of a very robust recovery with people wanting to explore the country and the world, yet again. This accelerated demand has resulted in the sector becoming one of the fastest growing in the country, with a direct positive impact on the Indian economy, and is slated to support 400 million jobs by 2047. In 2021, the industry’s contribution to India’s GDP was USD 178 billion, which is expected to reach USD 512 billion by 2028. In India, the industry’s direct contribution to the GDP is projected to record an annual growth rate of 7-9 per cent between 2019 and 2030.
There has been a steady shift in trends fueling the sector. During the early stages of recovery, revenge travel and an increased disposable income were the key drivers for growth. While consumers have almost returned to their pre-pandemic office work routines, and a corresponding decline in hybrid work models, the urge to travel and see new places has been undiminished. This is being attributed to a “values reset” among people who are keen to make the most of the present by indulging the explorer within them.
Five trends influencing the travel industry are:
- Rise of young travelers: Millennials constitute a large and growing demographic group with an ardent desire to travel. The demand for self-planned travel with family and friends is becoming more popular among GenZ and millennials.
- Spirituality and cultural connect: Spiritually rich tourist destinations like Rishikesh, Varanasi, Tirupati, Puri, Amritsar, Haridwar, etc. are examples of destinations that have seen a spike in bookings over the past year.
- Growth of inbound tourism: India is becoming a more preferred choice of destination for international tourists for a variety of reasons ranging from great beaches to cultural experiences and as a growing medical and wellness destination.
- Outbound tourism: The trend to travel abroad has also started picking up since the pandemic. India reported around ten million foreign trips, with UAE (Dubai), USA, UK, Thailand, and Singapore being preferred destinations, with 70% of travelers preferring to plan trips within Asia.
- Sustainable travel: As tourism is a major contributor to climate change in more ways than one, 43 per cent look for are even willing to pay a little more to support sustainable travel options. Driven by demand from mindful, tech-savvy consumers, sustainability is beginning to move to the heart of the digital payment ecosystem. While all methods of payment have some environmental costs associated with them, it’s worthwhile to mention that digital payment solutions are estimated to produce up to 80% less CO2.
- Growth of the MICE segment: The MICE (meetings, incentives, conferences, and exhibitions) segment is a growing area of the travel and tourism industry as most companies have resumed physical work from the office. Travelers are finding small getaways amid business trips to explore the local area and extend their stay for some personal time.
While it is interesting to see some of the newer trends coming up in the travel sector, it is vital to plan your trip well in advance to eliminate last-minute hurdles. Here are some tips on how to plan a trip financially well with a credit card:
- Choose the right credit card for your own need: This is the most important and primary factor that a consumer should gauge. A first-time credit card user might get overwhelmed by the wide variety of cards available in the market. As a primary step, it is vital to understand your spending patterns, and then apply for the one which caters to your needs. For example, if you are a regular traveler, a travel-focused credit card might give you better benefits and miles.
- Have a budget: Once you’ve chosen a credit card, set a budget for your trip. This will help you to stay on track and avoid overspending. It’s important to track your spending so that you don’t overspend. Many credit cards offer online tools that can help you to track your spending which makes you a responsible cardholder.
- Plan your trip well in advance: Planning your travel in advance will not only help in saving some money but in getting the best offers and cashback on flight and hotel bookings.
- Maximize credit card rewards: Utilize your credit card rewards to their fullest potential. If your credit card offers cashback or travel rewards, redeem them strategically to offset your travel expenses.
- Card controls: The RBI has provided an added layer of safety and security for cardholders by instituting card controls. Travelers must make sure they understand how to turn on and off relevant controls on their bank application or Netbanking, specifically to enable eCommerce (booking travel online), Contactless payments, and International POS transactions.
In summary, the key to making the most of your credit card is to be a responsible user i.e., keep track of the expenses incurred, and maintain the discipline to pay off the credit card bill amount on time, while optimising for the benefits that a credit card offers in terms of lounge usage at airports, travel offers on the card, and reward points.The author is the Business Head, Cross Border Payments, India & South Asia at Visa.
DISCLAIMER: The views expressed are solely of the author and ETTravelWorld.com does not necessarily subscribe to it. ETTravelWorld.com shall not be responsible for any damage caused to any person/organisation directly or indirectly.
