Cruise tourism in India has long had a dedicated base of enthusiasts, yet it is the increasing integration with the MICE (meetings, incentives, conferences, and exhibitions) segment that is propelling the industry further.

The Indian government is taking proactive steps to develop the rapidly growing cruise tourism sector by focusing on both coastal and river cruise tourism through initiatives such as the Cruise Bharat Mission and the Maritime India Vision 2030. By the year 2029, the government has set an ambitious goal: to elevate cruise passenger traffic in India to 1 million, a significant increase from the 471,000 passengers recorded in the fiscal year 2024.

Officials from the Indian government have expressed optimism, stating, The cruise market in India has the potential to grow by 800% over the next decade, driven by rising demand and increasing disposable incomes.

The Indian travel industry shares this positive outlook. Rajeev Kale, president and country head for holidays at Thomas Cook India, elaborated on this potential during an interview with Skift. He noted that with a sprawling coastline of 7,500 kilometers and over 14,000 kilometers of navigable rivers, India stands to become a major player in both ocean and river cruise tourisma largely untapped dual opportunity. Kale highlighted that there has been a noticeable surge in interest for both domestic and international cruise holidays, remarking, Cruises have emerged as a highly viable travel option for Indian consumers by eliminating the complexities of multiple visas.

The MICE segment related to cruises has also seen an uptick. Kale mentioned, We are observing a strong demand for shorter cruise getaways, such as our two-night, three-day packages, catering to offsite meetings and reward programs.

SOTC Travel, another prominent travel company, has reported similar growth trends, especially from smaller markets beyond just major metropolitan areas. SD Nandakumar, president and country head for holidays at SOTC Travel, indicated a growing appetite for cruise vacations emerging from aspirational Tier 2 and 3 markets, including cities like Hubli, Mangalore, Jaipur, Udaipur, Chandigarh, Nashik, Guwahati, Raipur, and Indore. He further noted that destinations such as Singapore, Malaysia, the Middle East, and parts of the Mediterranean are becoming increasingly popular among younger Indian travelers.

In response to the burgeoning demand for cruises, Cordelia Cruises, an Indian cruise line, recently signed an agreement with Norwegian Cruise Line for the acquisition of Norwegian Sky and Norwegian Sun, intending to expand its operations across more ports in India, Southeast Asia, and the Middle East.

Furthermore, the governments Cruise Bharat Mission is placing a significant emphasis on river cruise tourism, forecasting that the number of river cruise passengers will rise to approximately 1.5 million across more than 5,000 kilometers of navigable waterways in India.

Raj Singh, founder and chairman of Antara Cruises, expressed enthusiasm for the governments investments in enhancing the nation's rivers and developing the necessary infrastructure for optimal usage. He urged the government to consider constructing larger jetties to accommodate river cruising vessels and stressed the importance of providing shore power and other essential infrastructure to ensure a premium river tourism experience. Singh suggested that the Brahmaputra River has the potential to emerge as a standout attraction in the river cruise sector.

However, the vibrant tourism sector in Kashmir faces a grave challenge following a tragic attack on tourists in Pahalgam, which resulted in the loss of 26 lives. In response, major airlines such as Air India and IndiGo announced additional flights from Srinagar to Delhi and Mumbai to facilitate the safe return of tourists. SpiceJet also introduced an extra flight service on the same day. These airlines have instituted waivers on rescheduling or cancellation fees for bookings made until April 30, 2024, to ease the travel concerns of their customers.

The attack, which occurred near the Baisaran Valley, marks one of the most devastating incidents involving civilians in recent years within the sensitive Kashmir regionan area long embroiled in conflict between India and Pakistan.

Air India Express is offering a complete waiver on date change fees and fare differences associated with rescheduling flights, as well as providing full refunds for cancellations. All airlines involved assured travelers that they would maintain their scheduled flights. Additionally, online travel agency EaseMyTrip is allowing free changes or cancellations for travel up to April 30, while Cox & Kings is extending a 100% refund policy with full flexibility on all Kashmir travel bookings.

In a bid to support travelers affected by the incident, the government has also announced a special train service from Katra to Delhi, scheduled to operate on the evening of the attack.

Tourism organizations have condemned the terrorist attack, emphasizing its negative implications for the growing tourism industry in the fragile Jammu and Kashmir region. Rajiv Mehra, president of the Indian Association of Tour Operators (IATO), highlighted that such attacks on innocent tourists could severely hamper domestic tourism and have repercussions for international tourism in Jammu and Kashmir, despite the already limited foreign tourist arrivals due to travel advisories from various countries. Mehra noted that it is currently uncertain whether there have been significant cancellations in bookings to the region.

The Federation of Associations in Indian Tourism & Hospitality has raised concerns that the attack could adversely affect local residents who rely on tourism for their livelihoods, such as houseboat owners, hotel operators, local guides, and artisans. The association anticipates that there may be some immediate booking cancellations in the wake of the attack.

In parallel, the Indian hotel industry is making strides into new territories, expanding into cities such as Amritsar, Udaipur, Pune, Jammu, Guwahati, Jim Corbett, and Ayodhya where demand is rising. The industry is also exploring previously untapped destinations like Siliguri, Gangtok, Barnala, Chail, Daman and Diu, and Lakshadweep. Recently, IHG Hotels & Resorts has signed a Holiday Inn Express in Hapur, Uttar Pradesh, capitalizing on its proximity to National Highway 9, despite the city lacking a significant presence of branded hotels. Sarovar Hotels is similarly eyeing the growing highway network across India to bolster its portfolio.

Lemon Tree Hotels has announced the opening of a new hotel in Siliguri, while Hilton has launched its first DoubleTree by Hilton in the same city. The Indian Hotels Company (IHCL), which operates the Taj brand, has also signed a Gateway property in Barnala, Punjab, and another in Kandla, Gujarat, a key industrial hub and port city.

The reshuffling of leadership continues within the airline sector, as Air India CEO Campbell Wilson prepares to step down as chairperson of the airlines low-cost subsidiary, Air India Express. Nipun Aggarwal, who currently serves as Air Indias chief commercial officer, will take over Wilsons position.

Basil Kwauk, Air Indias chief operating officer, will join the board of Air India Express as Wilsons successor. Despite these changes, Aggarwal and Kwauk will retain their existing roles within the company.

This leadership transition is part of a broader restructuring initiative aimed at revamping the airline under Tata Groups ownership following the acquisition from the Indian government in 2022. The ongoing transformation includes fleet upgrades, a revised loyalty program, and significant leadership changes, particularly in light of the merger with Vistara that occurred last year.

Furthermore, the ITC Hotels group has made significant strides, signing 14 new properties under its Fortune Hotels brand for the fiscal year 2024-25. These new properties are strategically located in popular regions such as Goa, Kolkata, Chennai, Rishikesh, Indore, Bhimtal, Mukteshwar, Gorakhpur, Mohali, Surat, and Ayodhya.

Over the past year, seven new properties under the Fortune brand have opened, including hotels in Puri, Palampur, Ekta Nagar, and the companys first international hotel in Bhaktapur, Nepal. As of the end of March this year, the Fortune brand boasted 56 operational hotels, with an additional 22 properties in the development pipeline.

On the international front, India and Saudi Arabia are looking to strengthen their tourism ties through collaboration in capacity building, knowledge exchange, and sustainable tourism practices. This partnership was highlighted during Indian Prime Minister Narendra Modi's recent visit to Saudi Arabia.

Saudi Arabia is targeting a significant increase in Indian tourists, aiming to attract 7.5 million visitors annually by 2030. Last September, the Kingdom launched an exclusive marketing campaign aimed at Indian tourists, titled Shaandaar (Spectacular) Saudi, which focuses on promoting Saudi Arabia as a year-round destination for Indian families, culture enthusiasts, adventure seekers, and food lovers.

Meanwhile, Cygnett Hotels and Resorts has announced the opening of Cozzet Mahad in Maharashtra, a property designed to cater to both business and leisure travelers. The first phase of this development includes 55 rooms, with plans for an additional 55 keys in a subsequent phase.

Currently, Cygnett operates a portfolio of 50 hotels spread across various locations, offering over 3,500 rooms. As part of its ambitious expansion plan, the company aims to add a minimum of 1,000 keys annually over the next five years, ultimately reaching a portfolio of over 100 hotels with 9,000 rooms by 2029.