​We are family: #Vacay with Grandpa & Mummy-Papa to trend in 2017

The year gone by has been a tumultuous one to say the least led by plummeting oil prices, unexpected political results and drastic economic measures. If nothing else, 2017 will make us be prepared for constant change which is now the "new normal".

Despite the global uncertainty, the Indian domestic story remains a shining beacon, particularly for the Indian hospitality market that appears to be on the cusp of an upswing. While nation-wide supply crossed 10 per cent in 2016 and is expected to continue to do so at around the same rate for the next few years, demand is also expected to continue to grow, which will result in an increase in both occupancy and average room rate.

The year will see more of leisure travel, which will certainly continue to be a major driver for domestic tourism. Recent research has revealed that of the top 25 rate leaders in India, 23 of the hotels operate in leisure markets. With corporate incentives, weddings, social events and off-sites taking place all the year round, mature leisure destinations such as Goa no longer have an off-season.


2017 will see more of leisure travel, which will certainly continue to be a major driver for domestic tourism. (Image: BCCL)

Purpose apart, what makes the Indian tourism market a force to reckon with is the sheer size of the market. A large proportion of India's 850 million domestic tourists now also have the ability and access to travel abroad, thanks to the availability of affordable travel packages and proliferation on low-cost airlines.

India has emerged as the second-fastest-growing outbound market in terms of visitor numbers with 20.38 million Indian outbound travelers in 2015. UNTWO expects this number to cross 50 million by 2020. Singapore alone received 1.1 million Indian tourists last year and this is expected to grow further in 2017. Dubai has already registered over 1.2 million Indian tourists in 2016, overtaking the traditional markets of the United Kingdom, Russia and K.S.A. Catering to this price-sensitive and demanding market requires finesse and countries like the United States, Australia, Thailand and Sri Lanka are gearing up to cater to the demand that is growing by double digits year on year.

Multi-generational travel (trips involving at least three generations of a family) is one of the hottest trends stimulated by the fact that extended families are living farther apart today than at any other time in history. The annual holiday has thus replaced Sunday-night dinners as the only chance to get together. A place they haven't visited before and the availability of outdoor group activities were the two attributes identified by research into choice of destination.
Furthermore, fuss-free programs that included multi-room packages, group pricing, family style dinners and itineraries for bonding are the key drivers in the decision-making process. Other similar trends with similar requirements pertaining to group leisure travel include reunions and milestone celebrations.

There are several other global trends that are disrupting the hotel industry on a global scale. The consolidation of hospitality majors has made the need for a clear identity more important and the "soft" or lifestyle brands are enjoying the popularity enjoyed by the boutique brands in the early days.

The experience-driven millennials are also eating out more and "fast casual" restaurant concepts are replacing gourmet meals. Technology that gives hotels the data they need to personalise service and receive feedback will have to replace legacy systems as the need for deeper interactions and better understanding of behaviour increases.

What 2016 has taught us is that those who adapt, survive and while the year 2017 promises to be full of more surprises all we can do is be better prepared!