Luxury Tribe India Goes From Strength to Strength

The second edition of the travel Illume, by Luxury Tribe highlighted the strong market growth for the affluent Indian traveller and the abundant opportunities in this rapidly flourishing sector.

September 27, 2022

Spearheaded by Sheetal Rastogi,Founder of Luxury Tribe and the Editorial Director of World Travel Magazine, the travel forum ILLUME hosted its second virtual edition on World Tourism Day. With a mission to bring to light the latest trends in the multi-billion dollar Indian luxury travel market through insightful conversations, Illume returned thanks to the success of its first iteration in February 2022. That achievement has also laid the groundwork for in-person Luxury Tribe events in 2023, with the first in India from February 21-23 and the second planned for Thailand from September 26-28.

The four panels, broadcast to an audience of travel specialists and insiders, brought together award-winning broadcast journalists, seasoned hoteliers, the top echelon of travel designers, and DMCs from Europe, all profoundly knowledgeable of the affluent Indian traveller market.

The day’s proceedings were opened with an introduction by Sheetal. “As we all know, the luxury travel market is constantly evolving, and it’s critical for those in the industry to remain one step ahead, to be keenly attuned to what lays not just on the horizon, but also beyond it,” she remarked.

Panels, moderated by award-winning journalists Rajan Datar and Sharanjit Leyl, explored themes central to the affluent Indian traveller, covering everything from habits, desires and preferences to the meaning of hospitality to how to put together the ultimate trip for these HNWIs. Throughout the thoughtful, insightful discussions, a number of threads recurred. For example, the affluent Indian traveller prizes good service, warmth in hospitality, and places great importance on food.

For some travel designers, their roles have greatly expanded since the pandemic. “In the last six months, we have become doctors and lawyers,” remarked Amit Kalsi, Founder of Experiential Travel Journeys, noting that travel designers are required by their clients to be up to date on the vaccine and Covid entry requirements, and the minutiae of cancellation policies from hotels, airlines, and travel providers. Kalsi also noted that while destinations differ in their openness to visitors, at the first opportunity that any did, clients immediately were out there travelling, showing the pent-up appetite to voyage again. And geopolitical conflicts have done little to dampen demand from affluent Indian travellers. “Our clients can avoid places that they don’t want to be in, or are in the news for the wrong reasons. They have been travelling every two or three months for the past six months,” observed Sanjar Imam, Founder Director, Panache World. “It’s important to listen to clients. You have to match people to the product, and you can only do that if you listen more and talk less. And research is so important as a travel adviser. If you haven’t done something yourself, you are in no position to advise clients.”

Addressing the issue of sustainability and eco-consciousness was a key part of the conversations. “We are asking clients more subtly if they want to try more eco-friendly resorts; that initiates the conversation,” said Anshul Shah, Partner, All 4 Seasons. That said, it was evident that affluent Indian Gen Z travellers are much more socially conscious of where they stay, what they do, and their experiences.

In India, the food and feeling of warmth and sincerity are key components of domestic hospitality. “That personal touch and love you get, it is very true to Indian hospitality,” said Rakhee Lalvani, Founder, RL&A Communications, and even though hospitality has changed in the last decade because consumers have changed, these fundamentals are still critical. “[In India] we are spoiled because we have domestic help and drivers. And we want that personal touch.”

Tekla Maira, Founder and Managing Director, And The Story Continues, noted how in 2035, India expects 70 million outbound travellers, and catering to them is important. “We are demanding; we don’t mince our words. When we want something, we ask for it,” she said, touching on a point many in the industry have made that affluent Indian travellers are demanding. While affluent Indian travellers are willing to try new dishes, seeing one Indian dish on a breakfast buffet, for them, that “creates that warmth, gives them a thrill. This food thing will take us a little while to get out of, maybe because our food is different from everything else.” Maira also mentioned that Indians are very inquisitive and social, and meeting a hotel general manager makes a huge difference to them. Other key factors on a trip for affluent Indian travellers, according to panellist Christine Galle‐Luczak, Founder and Managing Director, Heavens Portfolio, are access via direct flights, diverse activities, and opportunities for shopping. “[Indians now] have rooms and a voice in the travel scene, that’s a great change.”

Hemal Jain, General Manager, Alila Villas Uluwatu, Bali, identified a shift in the age group. “Guests are now 29-45; previously [before the pandemic] they were 45++. These new guests want to go out in the destination and have experiences. They go long-haul and don’t mind splurging on activities. With G20 around the corner [in November 2022], demand is not expected to go down until March next year.” Jain described affluent Indians as well travelled as any other guests, and warned travel providers not to overlook this segment. Jain also added some words of wisdom for anyone trying to get into the market. “For the affluent Indian traveller, be honest about what you are offering, don’t decorate things. Indians have seen it all; we have seen a lot that goes on in our own country.”

Tourism in Sri Lanka has rebounded since the political unrest earlier this year, but for Malik J. Fernando, Managing Director, Resplendent Ceylon, the perception of danger still persists, largely due to media misinformation. “Our biggest challenge now is to convince the Indian traveller. People think there is still unrest, but that had gone three months ago.” Indians have rediscovered the southern neighbour in the last six years, thanks to the opening of a number of high-end properties in the last decade, and the convenience of travelling somewhere close by where a visa is not required. “Sri Lanka offers the diversity of a continent. It is a multi-elemental destination, not like the Maldives. We have crocodile safaris, leopards, blue-whale watching, mask making, and planting tea bush. That variety for younger travellers is important.” Fernando noted that when it comes to shopping in Sri Lanka, affluent Indian travellers want something that reminds them of their holiday, nicely branded and well packaged, and they will pay for a premium product if there is provenance of the item to a local area. “Indian travellers are more exposed [to the world]. They are English speaking, more adventurous, and more of a global traveller than the Chinese. They will be the most important group in luxury travel for the next decade.”

Two leading Destination Experts from Finland and Italy, both of whom work with Indian and international celebrities, rounded out the day’s talks. Both spoke about the connections that affluent Indian travellers make, whether with local people and the wilderness of Lapland, or something simple as the experience of coffee in a cafe in Rome, which can be turned into an extravagant episode with the right story. “Narrative is the foundation of what we do. Not where you take [clients] and what they see, but how you present it,” explained Fulvio de Bonis, Founder and CEO of Imago Artis Travel. “The story behind is more interesting.” Travel planning requires creativity, patience, knowing yourself, and working with the right people. And of course offering something unique.

“We want to take out guests to have most authentic experiences you can have,” explained Jaane Honkanen, Founder of Luxury Action, the leading DMC for Lapland and the Arctic. “Lapland is more than Santa Claus, there are real experiences here. You can eat with local people, feed the reindeer with a local herder, see what his regular day at work is. Our supermarket is our back yard. It is quite an experience, in the middle of nowhere, and that is luxury.” De Bonis shared the simple side of luxury that can elevate a guest’s trip. “We have access to a private palace in Rome and we make clients leave their phone on the table before they go in. We don’t want them to record it or share pictures. It sounds strange, but sometimes it’s better not to change the atmosphere, then it’s really exclusive.”

Top Trends Identified Among Affluent Indian Travellers During Illume Autumn / Winter 2022

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Know the Client

The discerning Indian traveller is no different from similar travellers in other countries, so don’t assume they aren’t skiers or divers or won’t climb mountains. If you think like that, you will lose lucrative clientele.

Back in Business

Affluent Indians are back to travelling, and demand is high. The past six months matched what was done pre-pandemic; the next six months will be only more.

Go off the Beaten Path for an Authentic Travel Experience

There is a paradigm shift away from cities, with a rise in travelling to nature, and destinations with fewer tourists. Puglia instead of Umbria, for instance, or Africa with independent villas or luxury tents. The Maldives was a huge hit because guests could stay in a villa and not deal with the people around them.

Access Drives the Destination

Access will drive destinations. Australia made a strong move by introducing a Sydney-Bangalore direct flight this month, and direct flights from Ahmedabad to Vietnam have put that country on the radar of affluent Indian travellers in these regions of India.

Changing Travel Landscape

Gen Z & affluent millennial travellers, the greatest growth in the market, are more eco-conscious than their parents, and they are very clear on what they want. They care about the type of experience they want and want sustainability to be taught to their kids when they take the trip.

Money is No Object

Affluent Indian travellers and not afraid to travel now, and are not afraid of spending. Pre-pandemic, they might have spent $500 a night on a hotel, but now they will happily spend $2000 a night, as long as they feel they are getting value.

India Leads the Way

With China’s outbound travel ground to a halt, every tourism board is counting on India as the biggest one chunk market, putting India in a very sweet spot.

Travel More and for a Longer Period

Taking five or six breaks is the new normal, and one break is typically dedicated to wellness, either solo or through mindful journeys. In addition, travellers are extending the length of stay on longer haul trips, often combining business with pleasure.

Home Away from Home

Villa rentals and home stays are booming, letting travellers have their own bio-bubble.

Domestic Tourism Rising

Affluent Indian travellers have discovered the domestic offerings, with visitors from Tier 2, 3 and 4 cities now exploring the country. Bike trips around Ladakh, for instance, are popular now, and yet, were unheard of a decade ago among affluent Indians. Domestic tourism is here to stay.