Domestic tourism in India surges as new travel companies seek to capitalize.

Domestic tourism in India surges as new travel companies seek to capitalize.
India’s domestic tourism sector remains resilient. This is despite Kashmir, one of the country’s top tourism hotspots, gradually recovering from the impact of recent closures following the Pahalgam attacks less than two weeks ago.

Reports indicate that 16 out of 48 tourist parks, shut shortly after the terrorist incident in the valley, have now reopened—thereby making Pahalgam, Betaab Valley, and Badamwari in Srinagar available to travelers once more.

While the effects of the terror attacks linger, and Kashmir aims to regain its attractiveness to tourists, some travel companies believe new destinations are emerging. This strength in India’s domestic tourism market has attracted new entrants, even as established companies increase their investments.
Also read | Tourist facilities in Jammu and Kashmir to receive a makeover, according to Tourism Minister Shekhawat

Chennai-based online travel start-up PickYourTrail has ventured into domestic trips, beginning with customizable itineraries for Kashmir. Historically focused on international travel experiences (with a brief detour during COVID-19), the start-up sees this as an opportune moment to shift its focus locally.

“Kashmir attracts 35 lakh visitors annually compared to 15 lakh Indians visiting Thailand,” explains Hari Ganapathy, co-founder and CEO of PickYourTrail. “Our objective is to replicate the same customer experience we offer internationally in domestic markets.”

Expanding beyond Kashmir, the start-up is exploring three major domestic destinations—the Andaman and Nicobar Islands, Northeast India, and Rajasthan. The company anticipates that domestic trips could boost its revenue, reportedly above ₹100 crore.

Also read | Shikara rally held on Dal Lake to enhance confidence in Jammu and Kashmir’s tourism sector

However, Ganapathy and his team at PickYourTrail recognize the challenges ahead. As competition intensifies in the Indian domestic tourism sector, hotel room availability has seen a significant increase, especially in markets like the Andaman Islands, which often experience a shortage of hotel accommodations. “Larger OTAs hold a strong market position in the domestic arena and often buy out inventory,” notes Hari, “These are obstacles we are aware of.”

Such competition has led significant events like the Pahalgam attack and the ensuing three-day armed conflict with Pakistan to become mere footnotes in the broader narrative of the country’s tourism industry.

According to the World Travel and Tourism Council (WTTC), domestic tourists in India spent ₹15.5 lakh crore in 2024, reflecting a 22% increase over spending levels in 2019, with projections to reach ₹16.8 lakh crore this year. GDP figures also present encouraging insights: Domestic tourism contributed nearly ₹21 lakh crore to the overall GDP, marking a 20% rise compared to 2019 contributions.

In Bengaluru, amusement park and hospitality operator Wonderla Holidays has opted to broaden its resort offerings. Recently, Wonderla opened The Isle in Bengaluru, a 39-key resort that chairman and managing director Arun Chittilappilly stated is part of a series of new resort launches the company is undertaking.

“Our goal is to provide diverse experiences for our guests and develop resorts that connect them with nature,” explains Arun, “We aim to expand to other cities and ultimately establish a presence in all cities with our amusement parks.”

Even as an amusement park operator primarily, Wonderla anticipates that the resort segment will significantly impact its top-line revenues. “Amusement parks will remain our core business, while resorts will serve as a valuable complement,” Arun affirms, “We expect the resort segment, which currently accounts for less than 5 percent, to rise to between 10 and 15 percent of our total revenue.”

IndiGo is also focusing on the domestic market, enhancing regional connectivity with a new direct flight between Indore and Ghaziabad starting July 20. This route, bypassing Delhi’s crowded airport, will connect Devi Ahilyabai Holkar and Hindon airports, both emerging aviation centers, facilitating quicker access to Delhi NCR, Noida, Meerut, and Ghaziabad.

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