We’ve observed 20-25% growth in domestic travel: Sabina Chopra, Yatra Online

The year 2023 has started on a rollercoaster note, with an accelerated adoption of generative AI, AI chatbots, and digital innovations. This is bringing in new operational efficiencies, stronger strategies, a far greater emphasis on building deep bonds with various stakeholders and consumers. In keeping with the current market ecosystem, technology and a human approach are seen as going hand in hand.

As part of our annual TRENDING NOW series, Adgully has been approaching key industry leaders to Crystal Gaze into 2023 to highlight the major trends and developments that they see dominating the industry in the year ahead.

In conversation with Adgully, Sabina Chopra, COO - Corporate Travel and Head - Industry Relations, Yatra Online, speaks about the key trends in the travel industry this year, the growing shift towards wellness and spiritual travel, in-demand tourist destinations in India as well as globally, and more.

Key trends dominating the travel industry in 2023

Spiritual & Wellness Travel - Wellness and improving quality of life is fuelling travel in 2023. What was once considered a luxury, wellness, and well-being have now become essential investments for individuals. After being confined to home during the Covid period, the trend of people investing more on self-care and health is on the rise. According to Yatra’s travel experts, there has been a significant surge of 90% in the number of bookings for wellness resorts and hotels.

In 2022, we saw spiritual travel pick up strongly and expect the trend to dominate this year as well. We have seen numbers for religious, spiritual and wellness grow by 100%. In fact, cities like Varanasi are the most searched cities for hotels, topping over the ever popular Goa. Amritsar, Katra, Shirdi, Tirupati, Ujjain, etc., are now very much in the consideration set of travelers.

Book Now Pay Later - Domestic and international travels have picked up since the pandemic, but be it budget travel or solo backpacking, there are no free lunches anywhere. Rising hotel rates and inflation have also increased the cost of travel. Consequently, travel companies and their payment partners are providing tourists with ‘Book Now, Pay Later’ (BNPL) options, enabling them to experience travel without immediate payment. These BNPL schemes for travel offer interest-free EMI payment plans for 3 to 6-month payment tenures.

Cancellation Protection, with zero cancellation fee! - While most booking apps offer free cancellation, they often add a premium fee to the total cost of the booking. Yatra is providing an extra advantage to customers by offering “free cancellation protection” for all domestic flight bookings. This means that customers can cancel their booking without incurring any additional charges.

Flexi-stay - Travelers are currently facing an issue where they have to pay for an entire day’s stay at a hotel, even if they only need a few hours. To address this, flexi stays have been introduced, allowing customers to pay only for the duration of their stay, whether it is as short as 4 hours or spans over a period of 3 days. This means that travelers can now enjoy their stay without incurring additional charges for extra hours.

Sustainable Travel & Responsible Tourism - From an economic standpoint, sustainable travel and responsible tourism are two major keywords that are transforming the way people travel and the impact that tourism has on the world. Sustainable travel and responsible tourism involve reducing carbon footprints, supporting local communities, and preserving natural and cultural resources. As more and more people embrace these trends, travel companies are also adapting by offering sustainable and responsible travel options that align with these values.

Major expectations from 2023

The travel industry is dynamic, and trends can vary based on multiple factors like season, destination, and type of travel. As a leading travel company, we at Yatra.com continuously monitor these trends and adapt its offerings to cater to the changing needs and preferences of its customers.

Regarding flights, while premium economy and business class have their loyal clientele, economy class continues to be the most sought-after segment. This trend can be attributed to the fact that more people are looking for budget-friendly options when it comes to air travel.

When it comes to hotels, there has been a noticeable inclination towards luxury and boutique accommodations, especially during long weekends or festive seasons. These types of hotels have been consistently in high demand, followed by 4 and 5-star establishments. This can be attributed to the fact that people are willing to splurge on travel experiences after being confined to their homes for a long time due to the pandemic. Travelers seek to indulge in luxurious amenities and experiences that these hotels offer.

In the Indian travel market, wellness retreats are gaining more prominence as consumers become increasingly mindful of improving their health and well-being following the pandemic. We, at Yatra.com, have witnessed that this trend is seeing more traction amongst domestic travelers as compared to international tourists. Ayurveda, yoga, meditation, and rejuvenation are the main aspects that the country takes pride in and the plethora of destinations offering this is also a factor contributed to the rise of wellness travel. With more people planning trips to wellness destinations, Udupi has emerged as a popular destination preferred by travelers. Accommodation options such as hotels that offer facilities including Yoga, Ayurveda, Naturopathy, and Spirituality initiatives are being preferred by people and witnessing higher bookings. As people are now looking forward to relaxing and unwinding from the humdrum of regular life, we are optimistic that this trend will be the talk of the town and sustain in the market.

In terms of long-haul travel, Switzerland and France continue to be preferred destinations, supported by relatively quicker visa appointments, in comparison to other European countries. But given the overall visa challenges for European countries, Indians are actively exploring destinations where visa processing is not a hassle, hence outbound destinations such as Mauritius, Maldives, the UK, UAE, Ireland, Turkey, Bali, Thailand, Singapore and Vietnam, are gaining high traction on our platform. In terms of domestic destinations, Andaman, Goa, Ladakh, Himachal Pradesh, Kerala, Jammu & Kashmir and the North-East are considered as the preferred destinations.

Key focus areas for Yatro Online in 2023

We have observed a growth of 20-25% in domestic travel and 15-20% in international travel compared to the pre-Covid levels. To reassure our customers and enhance their travel booking experience, we are providing features such as Book Now, Pay Later, FlexiStay, Interest Free EMI options, and Zero Cancellation.

Additionally, this year we plan to focus on religious travel and increase awareness about religious-specific packages such as Char Dham and Do-Dham. To achieve this, we aim to penetrate regional markets using vernacular communication and collaborate with tourism boards to promote lesser-known destinations.

Strategy to sustain the growth momentum

At Yatra Online Limited, we aim to differentiate ourselves from our competitors not only by offering discounts and deals, but also by providing customers with convenient and unique features for their travel bookings. We intend to alleviate the stress associated with travel planning by offering valuable features that enhance convenience for the customers. We believe that this strategy has the potential to set itself apart in the market.