India overtook China last year to become the fastest growing major
economy in the world and is set to continue this in 2017 according to
forecasts. However, the GDP percentage growth pales in comparison to the exploding
growth in domestic travel. IATA reported that in 2016 India was the leading
market for domestic air travel growth, with
Revenue Passenger Kilometers (RPKs) soaring by 23.3% according to IATA.
In more good news, 2017 is expected to continue the trend in Indian domestic travel. Journey
numbers, occupancy and Revenue Per Available Room (RevPAR) are all expected to
grow in the country across the year, particularly for the latter, as hotel room construction
has slowed recently according to Knight Frank.
It is also important to remember that the market is coming from a very
low base. IATA’s figures note that India’s domestic air travel market had a
market share of just 1.3%, compared to 8.7% for China. This means that even if
the global economy performs badly, India’s travel growth should remain one of,
if not the, world’s strongest in
percentage terms.
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