The YOLO and FOMO generation has done it again. Indian Millennials are now taking travel loans over actual financial planning and savings. Recent studies discovered that as many as 85% salaried and self-employed individual who applied for travel loans ranging between Rs. 30,000 to Rs. 2.50 lakh were millennials.
The study that was conducted ahead of the World Tourism Day covered both salaried and self-employed Indians across six major metropolitan cities of Mumbai, New Delhi, Bengaluru, Hyderabad, Chennai and Kolkata. Out of the total loans received in the demographic group, Hyderabad received a total of the 20%, followed by Mumbai at 19.7% and Bangalore at 19%.
With around 50 million Indians estimated to have travelled abroad in 2019, which has doubled since 2017, domestic and international tourism has said to increase multifold. According to FICCI-Yes Bank report, the Indian tourism sector is expected to touch Rs. 35,000 Billion by 2029 and provide jobs to nearly 5.3 million people directly and indirectly.
Millennials have fuelled India’s travel industry
While the tourism industry shows a gradual and steady growth, a fair share of the contribution is fueled by aspirational and travel-hungry millennials. With a pro-loan attitude, the generation with inspirational travel goals, are increasingly on the lookout for unique travel experiences and destinations all paired with flexible and easy online loan services.
Also Read: Who Are Millennials, And What Do They Want?
According to IndiaLends, millennials usually choose countries that offer visa on arrivals such as Thailand, Dubai, Sri Lank, Indonesia, Nepal, The Maldives, and Bhutan. Also called generation Y, Indian millennials are applying for loans to luxury destinations such as Europe, USA, South Africa, Australia and New Zealand.
Financial planning now includes a desire to enrich travel experiences
Holiday Loans now being vastly available with the freedom to choose interest-only repayments or EMI based repayment schedules, these loans are simple and easy to avail with an online application, minimal documentation and fast disbursal. Even though there is a clear shift in the financial planning trends among Gen Y, digital loans are embedding a sense of financial discipline in travel by allowing millennials to set up their individual travel budgets with absolute freedom.
Given the recent initiatives by the Government of India to propel tourism in the country, efforts to prioritize easy and convenient travel procedures including expansion on airport capacity and fee reduction on Indian e-visa will encourage more customers to travel internationally and fuel domestic travel leading to an increase in loan demand for travel purposes, benefiting both the government and hospitality sector.