Will millennials' travel bug drive the tourism industry?

We must briefly pause and reminisce why the idea of celebrating 'World Tourism Day' came into being. The 27th of September of every year, is celebrated with an objective of creating global awareness on the significance of tourism and educate consumers on tourism's impact on culture, economy and society.

India stands at the 34th position in the global Travel and Tourism Competitiveness Report 2019. According to a recent FICCI-Yes Bank report, Indian tourism sector is expected to touch Rs 35 lakh crore by 2029 and provide jobs to nearly 5.3 crore million people directly and indirectly. Growth in Indian tourism can happen only when we start supporting ourselves and over the past few years, the Indian tourism market has seen several ups and downs.

Now let us get to the fact that who will fuel Indian tourism?

40% of Indian population are millennials and it is no hidden fact that travel goals form a significant part of millennials bucket list. To help them fuel this aspiration, many digital NBFCs in India are now offering pocket friendly Holiday loans. Along with the travel portals promoting the ideas, vacation planning, online lenders are infusing this growth by playing significant role as immediate credit facility to consumers.

While the tourism industry shows a slow and steady growth, a fair share of contribution is fueled by aspirational millennials today. Millennials are a pro-loan generation and are increasingly on the lookout to travel to unique destinations, have offbeat and memorable travel experiences. They prefer prioritizing their experiences and find ways to meet their goals.

For those who do not have sufficient savings, Holiday Loans are available, that come with flexible repayment plan and is a great solution for the enthusiasts for a couple of reasons. One, they have freedom to choose interest only repayment or EMI based repayment schedule making it easy on their pockets. Two, these loans are simple and easy to avail with online application, minimal documentation and fast disbursal. Post the necessary verifications, the loan disbursal is done instantly within 24- 36 hours by the lender. Three, it helps them build financial discipline as well. Needless to say, it gives them the freedom to enjoy the travel experiences without worrying about exceeding the budget.

Government's push to NBFCs and tourism industry

The recent initiatives by the Government of India will propel tourism in our country. Initiatives such as introduction of e-visas will open doors to more consumers prioritizing travel goals because of the easy and convenient procedures. The expansion of visas-on-arrival offerings will simplify procedures for people entering the country, attracting more foreign tourists. Furthermore, the government has also proposed to introduce a one-month e-visa and make charges more flexible as well. Expensive charges were one of the reasons that was making India less attractive to tourists; fee reduction hence will trigger an increase in footfalls for the tourism industry. New initiatives like expanding the airport capacity more than five times to handle a billion trips a year will eventually instill growth to the economy. These initiatives will encourage more customers to travel internationally, as well as fuel domestic travel, leading to increased loan demand in the segment. Digital NBFCs are surely geared up for the same and will see growth in their customized offerings. Based on changing customer needs, digital NBFCs are able innovate products quickly an offer customized products and services to the customers.

Tourism sector has enormous potential to grow with the wide range of natural and rich cultural heritage. Government and hospitality sector working together will give it desired impetus and are heading in the right direction to put considerable measures in place that will benefit all relevant stakeholders of this market.

The writer is co-founder & CEO, LoanTap