India’s travel economy moves closer to ASEAN as tourism links deepen

India’s rising outbound travel is prompting ASEAN destinations to adapt with flexible offerings, digital solutions, and experience-driven tourism products.

India’s outbound travel market is showing strong signs of deepening its ties with Southeast Asia, with Thailand and its ASEAN neighbours positioning themselves to capture a growing share of Indian tourism demand. Speaking at the ASEAN-India Forum held in Bangkok this month, Santosh Kumar, Head of the Indian Sub-continent and Indonesia at Booking.com, outlined current patterns and future expectations in a conversation recorded for the Trends series hosted by David Barrett.

Kumar’s comments come at a time when India’s position in the global travel economy is becoming more pronounced. Outbound travel from India is rising steadily, with ASEAN countries increasingly prioritising the Indian market through relaxed visa policies, targeted destination marketing, and expanded air connectivity.

Kumar highlighted a shift in consumer behaviour across India’s emerging middle class. Travellers are increasingly digital-first, favour short lead times when booking, and show interest in experiences beyond conventional city breaks and beach holidays. According to Booking.com’s internal data, international trips from India are often booked just one to two months in advance, compared to much longer booking windows seen in traditional Western markets. This pattern, Kumar noted, requires destinations to be responsive with flexible availability, late-booking options and dynamic pricing.

Thailand remains one of the key ASEAN markets benefiting from this trend. Visa-free access for Indian travellers, along with well-developed hospitality infrastructure, has helped the country maintain its position as a leading regional destination. In 2024, Thailand welcomed 2.1 million Indian visitors to the kingdom, according to the Tourism Authority of Thailand. However, Kumar said the current phase of growth is less about volume and more about aligning offerings with evolving traveller expectations, particularly among younger demographics.

Booking.com has observed a notable increase in demand for alternative accommodation, with approximately one-third of global bookings now involving non-hotel stays, such as homestays and serviced apartments. This shift reflects a preference for more localised, experience-driven travel, which Kumar said is also taking root in the Indian market. For ASEAN destinations, there is an opportunity to adapt accommodation portfolios and tourism experiences accordingly.

Kumar also pointed to the broader context in which this travel trend is unfolding. India’s domestic economic growth, combined with expanding aviation capacity and growing disposable incomes, is driving outbound mobility. ASEAN destinations are responding in kind, with countries such as Vietnam, Indonesia and Malaysia investing in tourism infrastructure and market access strategies aimed at Indian visitors.

Beyond leisure travel, there are growing flows of business, educational and wellness travel between the two regions. Thailand, in particular, has positioned itself as a hub for medical tourism, and this is beginning to attract Indian travellers who seek specialised treatments combined with hospitality.

The ASEAN-India Forum, hosted by the Tourism Authority of Thailand, sought to advance these connections through a series of policy and private-sector dialogues. While trade and investment discussions dominated much of the agenda, tourism was singled out as a key enabler of bilateral cooperation. Kumar described the forum as a timely platform to align cross-border efforts in visa policy, flight capacity, and digital marketing.

From a commercial standpoint, Kumar sees further integration between digital platforms and tourism stakeholders as essential. Booking.com is expanding its support for smaller accommodation providers through training, visibility tools and user-generated content. Kumar argued that the democratisation of distribution channels allows small-scale operators to compete more effectively and meet demand from Indian travellers seeking authentic and affordable options.

Sustainability also emerged during the interview as a consideration for the next phase of growth. Kumar acknowledged growing consumer awareness around the environmental and social impact of travel and suggested that destinations able to implement practical sustainability measures, such as waste management, community-led experiences and energy efficiency, are likely to retain long-term relevance.

For Thailand, and particularly for Thai tourism businesses operating in the global tourism space, India’s outbound travel market represents both a competitor and a case study. India is not only sending tourists abroad but also reshaping the way tourism products are packaged and consumed. Mobile-led planning, experience-driven stays and short booking windows are trends that have implications for hospitality operators and travel agencies beyond Asia.

The expansion of the ASEAN-India travel corridor also presents logistical and financial opportunities. Airlines, payment systems and digital services companies may find scope to grow market share as demand for cross-border services accelerates. Kumar indicated that Booking.com is already adjusting its product offerings in response to these movements, focusing on improved user interfaces, loyalty programmes and content localisation tailored to Indian users exploring ASEAN destinations.

In summary, India’s outbound travel growth, particularly into Southeast Asia, is less speculative and more structural in nature. It is being driven by demographic realities, improved infrastructure and digital adoption. For destinations Thailand and other nations within ASEAN, the strategy appears to be shifting from simply attracting Indian arrivals to adapting products and services to meet specific expectations. The result may not be a rapid transformation of the global tourism map, but rather a steady realignment of regional priorities and a redefinition of what travel from India looks like in the coming decade.

Source: Travel Daily News