In 2019, tourism was worth nearly 9 trillion USD and consisted of 10 percent of the global GDP. However, in 2020, Covid-19 struck. The pandemic triggered an unprecedented crisis for the tourism sector, and a year later it is still limping back.
However, for Mahindra Holidays and Resorts, 2021 seems to be a promising year. In an interview with the Financial Express (FE), Kavinder Singh pointed out four ways in which the domestic leisure tourism segment is set to change.
1. Growth in the domestic leisure holiday segment
The pandemic changed the way people travel, and international destinations seem off the itinerary for at least the next couple of years. Instead, this will spur more opportunities for domestic travel. Mahindra Holidays has already seen a sharp surge in its occupancies.
2. Increased spending on leisure
According to Singh, people are expected to spend on leisure, which signals big opportunities in terms of scaling up member and inventory additions. Mahindra Holidays expects to add over 18,000 members this year.
3. Experiences will matter
Travellers are keen on having different kinds of experiences and want to explore the outdoors. Singh says that he sees people valuing experiences, including outdoor experiences, far more than earlier. “Destinations within driving distance are seeing more traction of tourists. However, Goa is an exception,” he said to FE.
4. Holidaying behaviour will change
Even the way guests stay on properties has undergone a change. The average length of stay has increased from three to around four nights. As he explained in his interview, “People will stay longer at our resorts as they are in a position to work from anywhere, and that is a trend that I am seeing.” The other big change has been an increase in spends on food at restaurants in the resorts since people are wary about eating at smaller or cheaper options outside.
You can also share your thoughts in the Comments section below!