India - Travel & Tourism: A developing market (Strategy, Performance and Risk Analysis)
India is well known for its natural beauty, catering to the needs of a variety of travellers looking for wellness, yoga, spiritual bliss, culture and heritage, adventure, and unique cuisines. India ranked eighth globally in terms of tourist volume and ranked fifth in tourist volume growth. Total tourist volume increased at 9.9% CAGR from 1,051.6 million in 2012 to 1,536.2 million in 2016 and is forecast to increase at 7.1% CAGR over 2017-2021 to 2,118.4 million.
In the passenger airlines segment, the country improved upon the number of seats sold and seats available, which is attributed to an increase in the number of international arrivals. International arrivals increased from 6.58 million in 2012 to 8.57 million in 2016, and are expected to grow to 12.4 million by 2021.
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Increase in airline occupancy rates to drive revenue
Total revenue increased at 9.3% CAGR during 2012-2016, from US$8,987.1 million in 2012 to US$12,846.8 million in 2016. Revenue is expected to increase at 7.3% CAGR over 2017-2021 to US$18,158 million in 2021. The increase is mainly attributed to the increase in full services airline revenue.
Leisure trips to drive increase in car rental value
The value of leisure trips increased at 4.7% CAGR during 2012-2016 to US$97.2 million in 2016 and is forecast to increase at 5.1% CAGR over 2017-2021 to US$124.4 million in 2021 due to an increase in adventure sports and destination sports such as trekking, scuba diving, rafting, jungle safaris, food trails and rural, wellness and heritage tourism.
Various facilities account for luxury hotels revenue
Total revenue increased at 1.1% CAGR during 2012-2016, from US$5,646.2 million in 2012 to US$5,897.4 million in 2016 and this is expected to increase at 3% CAGR over 2017-2021 to US$6,859.6 million in 2021. This is primarily due to the increase in luxury hotels revenue. Luxury hotel revenue increased at 2.6% CAGR during 2012-2016 to US$2,213.7 million in 2016 and is estimated to increase at 4.4% CAGR over 2017-2021 to US$2,723.0 million in 2021.
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