Startup capital Bengaluru now emerging into leisure travel destination: Thomas Cook

Bengaluru, often hailed as the startup capital, is now emerging as a significant source market in the travel segment, particularly for leisure travel. According to Thomas Cook, one of the top online travel aggregators (OTA), South India, with Bengaluru at the forefront, is the largest contributor to the holidays business. In contrast, contributions from West and North India hover around 20-25%, and the East holds an 8-9% share.

Bengaluru, as a source market, has exhibited remarkable growth, recording a 60% increase in travel demand compared to 2019 levels. The spending appetite has surged by 25-30% from pre-Covid levels, and the average length of stay for travelers from Bengaluru has extended from three to seven nights.

Popular international destinations for Bengaluru travelers include Europe, Australia-New Zealand, Japan-Korea, Indonesia, Mauritius, Singapore, Dubai, Vietnam, Azerbaijan, and Georgia. Domestically, Andamans, Kashmir, North East, Rajasthan, and Kerala, along with nearby hill stations like Coorg, Chikmanglur, Kabini, and Ooty, are favored destinations.

The cruise segment is also witnessing robust growth, with an 80% increase in demand. Thomas Cook expresses optimism about the Bengaluru and Karnataka market, planning to expand its footprint in the region. The company has launched a charter flight to Bhutan from Bengaluru, a move aimed at opening up the Bhutan market for South India.

To support this expansion, Thomas Cook is hiring tour managers in Bengaluru who can communicate in Kannada. Despite the challenges posed by the pandemic, the South India market benefits from better international connectivity, facilitating outbound travel.

The company is capitalizing on the growing interest in spiritual journeys, experiencing 100% year-on-year growth in its spiritual tourism segment. With the inauguration of the Ram Temple in Ayodhya, Thomas Cook has introduced more pilgrim packages, expecting a surge in demand. The Ayodhya pilgrimage packages have garnered significant interest, not only from individuals but also groups and corporates.

While the domestic holiday business has surpassed pre-pandemic levels, the overall domestic plus international business has achieved 70% recovery. Constraints in airline capacity, visa capacity, and manpower in international markets have impeded full recovery, but the company anticipates improvement in these aspects in the coming year.