The Future of Travel: Why Subscriptions Could Be India’s Next Big Leap
You know what surprised me while reviewing our family’s yearly expenses?
Travel turned out to be one of our biggest expenses, and I couldn’t help but wonder: is this just us, or is it becoming the norm for Indian families?
Naturally, I dove into a research rabbit hole, and what I found was eye-opening. Turns out, we’re not alone in this.
I uncovered some compelling insights. For instance, about 76% of Indian travelers keep their domestic travel budget under ₹50,000 per person. But here’s where it gets interesting - families with kids like ours? We’re spending around ₹75,000 per person. And families traveling with senior citizens bump it up even more to ₹80,000 per person. For international travel, the average spend is ₹1 lakh per person. Acko’s survey found that Indians are willing to spend anywhere from ₹1 to ₹6 lakhs on such trips.
Here’s what I discovered: India’s travel expenditure is expected to hit $410 billion by 2030. That’s billion with a B. And it’s being driven mostly by the middle class, people like us who’ve decided that experiences matter just as much as that new car or home renovation. Influencer content has transformed travel from an aspirational activity into a perceived necessity.
So, what’s driving this surge in spending? Millennials, primarily. We’re the generation shaped by India’s economic boom, and we’ve made travel a lifestyle choice rather than a once-in-a-while luxury. But here’s the thing, with all this money flowing into travel, there are real pain points that nobody’s addressing.
Consider this: spending ₹75,000 per person on a family trip makes the stakes feel high. You spend hours researching hotels, comparing flight prices, reading reviews, trying to make sure you get value for money. Planning becomes stressful. One wrong choice can derail a major investment. Then there’s the unpredictability. One year, you might find great deals and stay under budget. The next, everything’s expensive and you overspend. It turns budgeting into a guessing game.
This is why subscription-based travel models make sense, and they’re already working well in countries like the US and parts of Europe. However, I feel this model can scale much more in the Indian subcontinent. Imagine paying a fixed annual fee for curated travel experiences, no research stress, guaranteed value, and benefits from bulk purchasing power.
Why does India seem perfectly positioned for this model? India seems perfectly set up for this kind of model, as we love predictable expenses and value for money. Millennials are already comfortable with subscription services for everything from Netflix to gym memberships. And families – especially those with kids and senior citizens who are spending the most, would probably love someone else handling the complex planning.
Here’s a straightforward way to visualize the opportunity: if just 1% of India’s upper middle-class families subscribe to a travel service at ₹10,000 annually, you’re looking at a ₹5,000 crore market. And considering families are already spending ₹75,000-80,000 per person on domestic travel, a subscription that offers multiple trips at predictable pricing starts looking attractive.
The beauty of this model is that it could easily match the spending patterns we’re already seeing. A domestic travel subscription around ₹50,000 annually, premium family packages at ₹75,000-80,000, and international travel subscriptions at ₹1 lakh and above, it all aligns with what people are already willing to spend bit more for convenience. I feel Q-commerce has proven this already. The top 1% of the middle class value convenience over discounts.
I keep coming back to this thought: Indian families are already spending serious money on travel. We crave predictable budgeting, we want guaranteed experiences, convenience of travel and we’re tired of the planning stress. The spending behaviour is there, the willingness exists, and the demographics are perfectly aligned.
But hasn’t this already been tried? Some players have tried subscription travel, mostly focusing on hospitality. But that’s just a small slice of the pie. The true potential lies in connecting all travel services including flights, hotels, last-mile connectivity, local attractions, restaurants, shopping everything under one roof.
Think about Tata’s Neu super app consolidating multiple offerings under one app. It was not a reality 2-3 years ago, but today. Other conglomerates like Ambani, Adani are also developing My Jio, Adani One. Quick commerce did not exist before COVID and in 5 years it is a big thing. Then why not in the travel space? One subscription model that caters to all travel need of the travellers? Travel in India is still largely unorganized. Cracking this code isn’t easy, but it’s not impossible. Standardization of services is likely be one of the key factors here. Companies like OYO scaled it and now we see SaffronStays, Lohono Stays are coming up with standardised, luxury, exclusive stay options. On the mobility side, platforms like Savari.com, Carzonrent, and Shoffr are providing standardized experiences.
Imagine someone traveling four times a year for business, often facing seasonal price spikes. With a subscription, they’re covered. The average subscription fee smooths out those spikes, creating a win-win scenario for both travellers and travel providers. It boosts subscriber loyalty and brings predictable cash flow to providers.
Someone is bound to solve this puzzle soon. When they do, they’ll tap into a market that’s not just huge, it’s growing exponentially. By 2030, India will have about 75 million middle-class and 25 million rich households. Whoever solves this problem will become part of India’s economic growth journey.
For families like mine, subscription travel isn’t just a cool idea, it’s the peace of mind we’ve been searching for. What about you? Would your family consider a travel subscription? What features would make it irresistible for you?
Note: Some form of subscription travel exists, but issues like broken promises, hidden fees, and mis-selling have given the model a bad reputation. The space is complex, but that doesn’t mean it’s impossible. Let’s watch closely to see who solves this puzzle, and how soon.
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