India's travel market exemplifies the potential of localization. 

The Indian travel market has experienced increased growth, contributing 10% more to Indian GDP from 2019 to 2023. Recent data indicates a significant surge in passenger traffic through Indian airports, with 97 million passengers recorded in the first quarter of 2024 alone. 

This growth is driven by a rapidly expanding fintech sector and significant investments in aviation infrastructure, including the construction of new airports and the acquisition of new aircraft, as well as an expanding middle class and increased route capacity.

Market Size and Growth Trends

The travel and tourism market in India is poised for substantial growth with expected revenues of USD 23.72 billion in 2024 according to Statista. The market is projected to grow at an annual rate of 9.62% from 2024 to 2028, reaching a volume of USD 34.25 billion by 2028. This growth is supported by increased spending on tourism infrastructure, which saw a significant rise in the financial year 2024.

Projections suggest that India will also see a substantial increase in its affluent population over the next five years, with over 20 million new middle-class individuals and nearly two million high-income earners. This demographic shift is driving a surge in demand for luxury travel experiences, leading to growth in the outbound travel segment. For instance, Indian travelers to Japan, Vietnam, and the US have increased significantly compared to pre-pandemic levels. India is also on track to become one of the top global spenders on travel by 2030. 

How to Tap into Localization 

With the growing travel industry in India, smart business leaders are preparing to embrace this market in their loyalty programs – whether it be unlocking new opportunities for their customers, or tapping into a larger global audience.  

Leaders that want to leverage localization efforts should consider the following tips for their platforms: 

Expand Your Network: Before entering any new market, it’s important to first expand your network. Leaders should take note of the decision-makers in the space and the companies that have high partnership potential. This approach aims to create a robust business development infrastructure and foster healthy inbound opportunities.

Find Strategic Partnerships: Who are the big players in the space? Finding a partner that is able to help share the nuances of the business landscape in a new culture is key – whether it’s looking for a supplier to tap into the market or finding a partner to create targeted messaging strategies for a new audience.   

Learn Consumer Behavior: Knowing how consumers behave is key to developing a localization strategy that works, and can inform how you go to market. At Rocket Travel by Agoda, we work to identify the way users shop and the way that local competitors address users. For example, we’ve seen that Indian consumers are highly responsive to bank offers. By adding on a bank offer at the end of the user journey, we hope to increase conversions and create incrementality.

It is challenging to change the user behavior in an existing market. In order to grow in a market, your platform needs to correlate with the way consumers shop – whether it be  through the support languages used, customer service offered, local payment methods supported, or tech solutions created. 

Companies that offer tailored solutions to resonate with diverse customer bases can see increased growth in different markets. By understanding and leveraging the unique dynamics of markets like India, businesses can unlock new opportunities and achieve sustainable growth, as well as deliver exceptional experiences for travelers worldwide.