India is becoming a market for luxury travel, with advanced economies such as the US and Europe slowing down. International luxury travel operators are setting up shop in the country, while domestic travel houses are starting dedicated luxury travel divisions. As per a report in Mint by P.R. Sanjai & Sapna Agarwal, Travel firms bet big on rich travellers as economic slowdown has minimum impact on their spending or travel plans.
Global luxury travel firm Abercrombie and Kent has started full-fledged operations in India under Abercrombie and Kent India Pvt. Ltd, according to travel consultants, and more such firms are expected to follow suit.
In March, InterGlobe General Aviation Pvt. Ltd, a subsidiary of InterGlobe Enterprises Ltd, renamed itself InterGlobe Established Products Pvt. Ltd and expanded its portfolio from a private jet service to a one-stop shop for luxury lifestyle solutions. The firm will sell luxury items such as super cars, yachts and high-end motorcycles.
India will double the number of HNIs to 403,000 by 2015, said Swiss wealth manager Julius Baer in a 31 August Reuters report. It said an average HNI takes at least two holidays a year—one short and one long. Total revenue in the Indian luxury travel industryis estimated at $1.7 billion (around Rs.7,800 crore).
Indians are spending more on holidays and have taken a fancy to explore exotic locations, luxury experiences, local culinary delights and shopping holidays, according to Kashmira Commissariat, chief operating officer (outbound division) at Kuoni India, which has a specialized luxury division.
“Exotic and unique destinations like Egypt, Turkey, (South) Korea, Vietnam and Cambodia are gaining popularity with the Indian travellers. Exotic castles and villa holidays in Ireland, Switzerland and Greece have received very good response from luxury travellers,” she said.
According to the most recent American Express Business Travel Monitor report, India is witnessing increased activity in the luxury space, with the country retaining the most attractive investment destination tag. The report said the past two years saw some of the biggest luxury car launches, entry of premier labels and accessories, and hotel brands in India.