Indians mostly spend USD75-150 per day per room on overseas holidays

More than 50 per cent of Indian travellers budgeted USD75-150 per room per night for leisure travel, reports a study by CAPA India and Expedia titled ‘The Inflection Point for Indian Outbound Travel’. Hotels have been the standard option for the Indian traveller in the past, however, travellers are now exploring other accommodation options, with 38% of survey respondents having rented a villa or apartment while travelling overseas. This has been made more accessible by online platforms such as Airbnb and others, which offer homestays. Traditionally at short-haul destinations, Indian travellers spend one-third of their holiday budget on accommodation. Indians visiting Singapore spent around 35% of their trip cost on accommodation, compared to Chinese and Indonesians who spent only about 18% in 2015. For medium to long-haul destinations, the spend on accommodation can increase to up to half of the total trip budget. Indians visiting Mauritius in 2016, spent around 56% of expenses on accommodation while those visiting Switzerland spent around 48% of their budget on accommodation.
International leisure travellers from India are drawn mostly from high and upper-middle income economic segments. They are used to a certain standard of living and expect similar conditions and conveniences when travelling. Given the high quality of hotels in India, there is an assumption that equivalent levels of luxury and service will be available overseas, which is not always the case. Leading hotel chains have shared that they find it difficult to replicate their customer proposition at overseas destinations because of the much higher cost of labour and different service cultures. This can result in expectations being disappointed.