Elevating the airport experience for domestic travel in India

More Indians are traveling in 2024 than in any time in history. According to the Mastercard Economics Institute’s Travel Trends 2024, travel is democratizing rapidly in India, bolstered by the robust growth of the economy and a growing middle class with an appetite for travel. Nearly 20 million more people are expected to enter the middle class in the next five years and given the cache airport travel holds, the future is bright for the travel industry in India.

Domestic travel in India dominates travel trends

The main driver of India’s travel industry is domestic tourism, which is in line with the trend in many countries in Asia Pacific. Especially since the pandemic, Indians have increasingly travelled to destinations closer to home. Of the 1.7 billion trips taken by Indian travelers in 2022, 99 percent were domestic and one percent were international.

Summertime and school holidays herald the arrival of the busy travel season. According to the Mastercard Economics Institute, domestic air travel passenger traffic in India will be outpacing international traffic. Domestic travel has become increasingly popular in India, with weekend getaways, luxury stays and adventure travel becoming popular. In fact, passenger traffic in domestic airports has grown much faster than pre-pandemic levels, outpacing traffic at international airports.

The number of flights by departure has increased by nearly 2.5 times since September 2021, as airlines accommodate the rising travel demand, according to data from Airports Authority of India. Apart from high passenger traffic in the tier one cities – which could also be on account of business travel - some of the smaller cities that have seen an increase in airport traffic include Srinagar, Leh Ladakh and Jodhpur. Improved flight connectivity to Leh Ladakh has encouraged the adventure traveler, while luxury stays and destination weddings may have led to a surge in passenger traffic to Jodhpur. Kashmir has regained popularity as a tourist destination, increasing traffic in Srinagar.

The chart below shows the percentage change of passenger traffic in airports by month, both domestic and international.

We have also looked at the number of Indian residents visiting monuments/historical sites across India as a proxy for domestic tourism. According to the data from the Ministry of Tourism, the monuments in Agra (home to the iconic Taj Mahal), Delhi and Mumbai are the top destinations in terms of number of visitors. Sites that are gaining popularity post the pandemic are Jaipur, Thrissur and Srinagar. Jaipur, famous for its luxury stays and heritage sites, offers a quick weekend get-away from the neighboring city of Delhi while Thrissur in Kerala is a popular destination for holidays and visiting religious sites. As Indians explore new destinations for domestic tourism, they could be beneficial for these local economies as well as the travel and hospitality industries in these cities.

To meet the demand for domestic travel, airlines have been ramping up flight supply. In the chart below, it’s apparent that the number of flights for both domestic and international departures has increased by more than two times since September 2021, as airlines accommodate the rising travel demand, according to data from Airports Authority of India.

Demand for airport amenities grows with increased domestic travel

Airport infrastructure is improving significantly, but the growing volume of travelers is taking a toll on the airport experience. Airport amenities from restaurants to lounges are being stretched to their limits as they accommodate increasing numbers of domestic travelers. Consumers want to enjoy greater comfort and efficiency but lines for check-in and security can be long and extended wait times can make for a stressful experience.

Leaving home on time, finding a cab, queuing in traffic to enter the airport and going through the security check can be among the most demanding parts of travel. Passengers’ patience can be stretched along with check-in lines that can snake seemingly forever. Those long waiting times at check-in and security and worry over excess baggage or removing and putting items back on after security adds to the pressure.

Once through security, travelers can breathe a sigh of relief – they’re well on their way! There’s waiting time before the flight when anticipation for the trip ahead grows. Travelers may opt to grab a bite to eat, enjoy a coffee or squeeze in some last-minute shopping, from souvenirs to skin care, cosmetics to candy. Those with lounge access may opt to head there for some quick bites and drinks and a respite from the hustle and bustle. Lounges convey a sense of prestige and exclusivity, giving travelers a chance to rest and feel like they’re part of a premium travel experience.

From getting to the airport through check-in and boarding, a good airport experience can generate a sense of excitement for the flight and anticipation for the trip ahead.

How can banks enhance the domestic travel experience for cardholders?

Banks have an opportunity to help alleviate some of the most challenging aspects of domestic travel. Assisting cardholders who are navigating the complexities of modern travel is a role banks can play to become an integral part of a better travel experience and ultimately, to increase customer loyalty and engagement.

Mastercard Airport Experiences

Mastercard’s new Airport Experiences provides cardholders with access to preflight and postflight benefits seamlessly. Cardholders enjoy instant access to relevant travel benefits such as baggage assistance with priority check-in on selected domestic routes in India and one-time lounge access across more than 53 domestic and international lounges in India. Airport Experiences is a digital solution with curated, scheme-agnostic travel benefits that address traveler needs.

For banks, there is an end-to-end solution without the heavy lifting and investment in technology. Airport Experiences requires minimal lift from banks to leverage Mastercard-sourced benefits. Banks simply allocate benefits of their choice for cost optimization. It’s seamless to deploy and simple for cardholders to enjoy. To learn more, reach out to your Mastercard representative or contact us here.

Essential benefits that consumers are seeking include:

Arriving at the airport

• Baggage transfer is a highly appealing benefit that ensures a passenger’s baggage gets transferred to the flight that they board. A bag tracker can offer extra reassurance that the bags are near and arrive safely at baggage claim. No more traveling with multiple or heavy bags!
• Domestic meet-and-assist can save time with buggy service and express entry into airport. It can be helpful for senior citizens, unaccompanied minors and less experienced travelers.

Check-in

• Priority check-in represents real time savings. With it, travelers don’t need to go to the airport as early and can enjoy shorter wait times at check-in and baggage claim.

Shopping, dining and lounges

• Lounge passes appeal to mass leisure travelers. Families particularly enjoy bringing everyone into the lounge, including children. All travelers welcome the ability to transfer lounge passes and/or bring a family member or colleague to the lounge. 
• Quick service restaurant food vouchers offer travelers an easy on-the-go option and provide a refueling alternative to the lounge. Pre-ordering while in the check-in queue is another appreciated bonus.
• Shopping and browsing while exploring the airport facilities are a pleasant way to fill time while waiting for a flight to board. Shoppers can enjoy stores selling apparel, jewelry and gifts, books and sweet treats.
• Dine-in vouchers appeal to travelers looking for more than a quick bite or when airport lounges are hectic. People can choose from eligible restaurants that offer a sit-down dining experience.

Arriving at the destination

• Global concierge offers meet-and-greet services that provide reassurances in a new city. Not only that, but the service can also provide limo transport, dining and sightseeing deals, too.

Conclusion

With summertime and school holidays, the busy travel season is here and domestic air travel passenger traffic in India will be booming, far outpacing international traffic. A growing influx of travelers brings challenges to the airport experience. Demand for an enhanced check-in and security process and improved access to airport amenities is strong. Banks can help cardholders improve their travel experience and engage their loyalty by offering cardholder access to elevated airport experiences, from priority check-in to lounge access and food and beverage vouchers. Making travel easier and more enjoyable can build customer loyalty and is a win-win for both banks and cardholders.

To speak to us to learn more about how we support a range of brands in the travel industry, reach out to your Mastercard representative or contact us here.