Nikhil Kamath has raised questions regarding the potential of India’s tourism sector, highlighting that the country boasts 45 UNESCO World Heritage sites and a rapidly growing middle class. Despite these advantages, India attracts only approximately 10 million foreign tourists annually, which is notably less than the number of visitors to Albania, a country with a population of just 3 million. This discrepancy prompts contemplation about the underlying factors hindering India’s tourism growth.

In a recent episode of the podcast “WTF is Travel,” Kamath engaged in a conversation with MakeMyTrip’s Founder and Group Executive Chairman, Deep Kalra, and IHCL’s Managing Director and CEO, Puneet Chhatwal. They pinpointed that while India has developed substantial infrastructure—including airports, highways, and railways—the traveller’s experience upon arrival often fails to meet expectations due to various logistical challenges.

Both experts noted that the country has made significant advancements in transportation infrastructure, yet issues such as parking difficulties, long queues, inadequate washroom facilities, and poor accessibility can detract from the overall visit. Kalra emphasised the importance of addressing these friction points. Currently, 95 per cent of MakeMyTrip’s bookings are made by Indian customers, with domestic travel representing around 70 per cent of booking revenue, suggesting a prevalent reliance on local tourism.

Challenges in Hotel and Accommodation Sector

Chhatwal identified a critical gap in the hotel sector, particularly in finding the right types of accommodations in suitable locations. High demand during peak seasons results in many hotels being fully booked, leading to increased prices and unhappy travellers opting for alternative destinations. He posits that there is a significant opportunity in the market for boutique, experiential, and mid-scale hotels that offer a balance of quality and affordability.

According to Chhatwal, emerging concepts are often developed by individuals who do not have traditional backgrounds in the hospitality industry, which may lead to innovative approaches in hotel management. This raises the question of whether outsiders may effectively reinvent the hotel experience to better align with traveller expectations.

In light of technological advancements, particularly in artificial intelligence, the travel landscape could soon shift. MakeMyTrip’s AI assistant, Myra, currently handles a substantial volume of voice-based interactions daily. Kalra sees potential for AI to make travel more intuitive for users, particularly as new generations of Indians engage more with digital platforms.

Strategies for Boosting Tourism Numbers

During the discussion, Kamath asked Kalra and Chhatwal how they envision elevating India’s tourism numbers from 10 million to 100 million over the next five years. Their response centres on systemic changes, advocating for tourism infrastructure to receive industry status, while addressing last-mile connectivity issues and promoting India as a premier global destination.

Moreover, the pair suggested digitising and professionalising India’s attractions and experiences, in addition to fostering better collaboration between central and state governments. They stressed the need to diversify tourism beyond a few popular destinations, thus creating more reasons for travellers to explore and stay longer.

Chhatwal concluded with advice for future entrepreneurs in the tourism sector, urging them not to simply replicate existing travel technology solutions. Rather, he encouraged the development of hotels, experiences, and infrastructure that remain elusive, suggesting that the future of India’s tourism narrative might revolve around enhancing the existing experiences rather than discovering new locations.

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