India needs to fix travel experience to attract more foreign tourists, Nikhil Kamath ignites tourism debate

India needs to improve the experience tourists get after reaching a destination if it wants to increase foreign tourist arrivals, MakeMyTrip Group CEO Rajesh Magow and IHCL Managing Director and CEO Puneet Chhatwal said during a discussion with Nikhil Kamath. The conversation, featured on the latest episode of WTF is Travel, focused on why India, despite having 45 UNESCO World Heritage sites and a wide range of travel experiences, attracts only around 10 million foreign tourists a year.

The discussion moved beyond airports, highways and hotel infrastructure. The participants discussed issues such as queues, parking, public washrooms, accessibility and the lack of reliable connections between railway stations and local transport as factors that can affect the tourist experience.

India's tourism opportunity goes beyond infrastructure


Magow said the opportunity for India is two-sided: attracting more international tourists while also encouraging Indian travellers to explore destinations within the country. MakeMyTrip currently gets 95% of its bookings from Indian customers. International traffic is growing, but Magow pointed to the potential of increasing foreign exchange earnings through inbound tourism and reducing the amount spent by Indians travelling overseas.

Thailand, Vietnam and Indonesia were discussed as examples of destinations that can be easier for tourists to experience. The discussion suggested that India's challenge is not necessarily a lack of attractions but the friction travellers can face during a trip.

Hotel shortage adds pressure during peak seasons

The tourism discussion also highlighted India's shortage of hotel rooms. The country is estimated to have between 1.5 million and 1.67 million rooms. The shortage becomes more visible during peak travel periods, when rooms become difficult to find and prices rise. This can push travellers towards other destinations.

Chhatwal pointed to boutique, experiential and mid-scale hotels as an opportunity for the industry. The discussion described this segment as “lean luxury”, involving smaller properties that focus on design and experience without the cost structure of conventional luxury hotels.

The conversation also noted that some new hospitality concepts are being developed by entrepreneurs who do not come from traditional hotel businesses.

Unbranded hotels offer another opportunity

Treebo co-founder and CEO Sidharth Gupta highlighted the opportunity in India's large unbranded hotel market. He pointed to the potential for consistent accommodation that offers value to travellers across different parts of the country.

The discussion also addressed factors outside the hotel industry. Civic behaviour, cleanliness, public spaces, safety and reliability can all influence how visitors experience a destination. The participants noted that infrastructure improvements alone may not be enough if tourists continue to face uncertainty after reaching their destination.

AI could change how people plan travel

The discussion also examined the role of artificial intelligence in the travel industry. MakeMyTrip's AI assistant, Myra, handles between 80,000 and 90,000 voice-based conversations a day, according to Magow. He said conversational AI could make travel planning easier, particularly for consumers in Tier 3 and Tier 4 cities where language and familiarity with technology can remain barriers. The shift could take travel planning from search and comparison towards a more conversational process.

Specialised travel and experiences are growing

The discussion highlighted the expansion of specialised travel as another area of opportunity. Indiahikes co-founder Sandhya UC said the organisation has grown from around 200 trekkers a year to 45,000. Demand has also expanded into specialised groups, trekking equipment and destinations that are less explored.

Boketto co-founder Bhaveeka Bakshi described a similar change in the travel market. The invite-only travel club creates trips around emerging formats, including games inspired by Traitors, making the activity itself part of the travel experience.

StayVista co-founder Amit Damani said younger travellers, particularly Gen Z, are placing greater importance on experiences. A ₹50,000 travel experience can compete with a ₹50,000 traditional purchase, he said. Travel is also increasingly being used to mark personal occasions, including birthdays, festivals, intimate weddings and even resignation parties.

Can robots replace human hospitality?

The role of technology in hotels was another part of the discussion. Chhatwal sees opportunities for AI in areas such as contracts, data collection and internal processes. However, he made a distinction between automating back-end work and replacing human interaction in hospitality. Robots, according to the discussion, could have a role in standardised and budget hotels. In luxury hospitality, however, the human element remains important.

India needs more destinations, not just more tourists

They also discussed the need to distribute tourist demand across a wider range of destinations. India's tourism growth cannot depend only on the destinations that already attract large numbers of visitors. Expanding the number of places that tourists can discover could help increase the length of stays and encourage repeat visits.

Understanding how a new generation of travellers chooses destinations, spends money and uses travel to celebrate important occasions can help grow Indian travel industry, they said.