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Indians love to travel. The success of travel based start ups is proof enough. Moreover, the disposable income of young Indians is what has made global travel companies like <keyword id="719382" type="COMPANY" weightage="20" keywordseo="Airbnb">Airbnb</keyword> and Booking.com focus heavily on Indian market. Just when you thought, it’s the people from metro cities like Delhi, Mumbai, <keyword id="6354925" type="COMPANY" weightage="20" keywordseo="Kolkata">Kolkata</keyword> and Chennai, who are defining travel in India, surveys are here to prove you wrong. As we see, <keyword id="529840" type="UNKNOWN" weightage="100" keywordseo="tier-2-cities">Tier 2 cities</keyword> compete with the metros in terms of job availability, education and health care, the people there have similar exposure to travel as well. <a href="http://www.businessinsider.in/Travel-on-a-shoestring-budget-Seychelles-at-Rs-20000/articleshow/57465613.cms" data-type="tilCustomLink">ALSO READ: Travel on a shoestring budget: Seychelles at Rs 20,000</a> According to <keyword id="4632339" type="UNKNOWN" weightage="20" keywordseo="travkart">Travkart</keyword>.com, a unit of Holidays by Sahibji Pvt. Ltd, which has recently partnered with the franchise business consulting company, Sparkleminds to help with its expansion plans in India has recently brought out a fantastic statistics of how Indians in Tier 2 and Tier 3 cities travel.How many people travel abroad?Almost 40% of outbound travel happens from these cities. So there are plenty of people from Tier 2 and 3 cities, whom you see queuing up in visa offices. <a href="http://www.businessinsider.in/Europe-trip-on-a-shoestring-budget-Flanders/articleshow/58207248.cms" data-type="tilCustomLink">ALSO READ: Europe trip on a shoestring budget: Flanders</a>International and domestic destinations they travel toThey majorly travel to Goa, Kerala, Kashmir, Ladakh, <keyword id="107932" type="CITY" weightage="20" keywordseo="PORT-BLAIR">Port Blair</keyword> within India.For Outbound, Thailand, Singapore, Malaysia, Sri Lanka, Europe, Russia, UAE are among their bucket lists. What kind of hotels do they stay in?Accommodation preferred by these travellers is mostly 4 and 5 star. Price range depends on destination to destination. But the quality travel is in demand.ActivitiesTravellers from Tier 2 &amp; Tier 3 cities look for exotic destinations now with different themed holidays such as Cruise, Self Drive, and Adventure are in trend. Long hauls destinations are also in demand.

Travelers from Tier 2 and Tier 3 cities are more outbound! Here’s how they travel

Budget 2017 by the <keyword id="6355261" type="POSITION" weightage="20" keywordseo="Finance-minister">Finance Minister</keyword> <keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> wasn’t much of an excitement for the tourism industry except for announcing establishing of five special tourism zones in the next financial year. 
 
<a href="http://www.businessinsider.in/budget/common-man-budget">ALSO READ: COMMON MAN'S BUDGET</a> 
 
Prior to the budget, <a href="http://www.businessinsider.in/budget/common-man-budget">Business Insider had discussed</a> what the hurdles in this industry are. What needed to be done like tax-free bonds and income tax exceptions on profits used in re-investment in the tourism sector, development of tourism infrastructure at heritage site, setting up centres for adventure activities and experiential zones weren’t addressed. More support to drive job creation in this industry will help improve the <a href="http://www.businessinsider.in/budget/common-man-budget">poverty alleviation</a> in the country. 
 
Travel industry without sunshine 
"The Budget 2017 has once again disappointed the <a href="http://www.businessinsider.in/budget/common-man-budget">travel industry</a>. Despite being a key sector of the economy that brings multiplier benefits, the travel and tourism sector stands largely ignored. Our concerns about high tax rates are valid concerns and we are dejected that the government paid no heed to them. Across the world, governments provide huge incentives and tax breaks to the travel industry to encourage <a href="http://www.businessinsider.in/budget/common-man-budget">inflow of tourists</a>. However, in India we continue to be a highly taxed sector which makes us less competitive as compared to other destinations,” said <keyword id="4127681" type="UNKNOWN" weightage="20" keywordseo="kapil-goswamy">Kapil Goswamy</keyword>, CEO and Managing Director, <keyword id="4127680" type="UNKNOWN" weightage="20" keywordseo="bigbreaks">BigBreaks</keyword>.com 
 
Silver lining 
However he added that the announcement to improve road infrastructure also has latent benefits for the tourism sector as it encourages travelling. 
 
Apart from that, there are some silver linings in the industry, though. 
 
“The 5% tax cuts proposed for MSMEs is one welcome step in this direction. <a href="http://www.businessinsider.in/budget/common-man-budget">Speeding up of infrastructure development </a>for airlines, rail &amp; highways will also help to boost more inter-state business activity,”said Adarsh Manpuria, Co-Founder , FabHotels. 
 
Cash less travel <keyword id="265813" type="PERSON" weightage="20" keywordseo="Vikram-Ahuja">Vikram Ahuja</keyword> of Byond Travel, a boutique travel start up feels, “Focus on digital payments and encouraging online payments (Via BHIM and other initiatives) is a huge plus for a tech-first company like ours. Also the cap on cash deposits hopefully creates more transparency in the way travel services and packages are offered since the scope for inbuilt “cash-led” services will hopefully reduce.” 
 
 Better railways and broadband 
“The <a href="http://www.businessinsider.in/budget/common-man-budget">announcement for increase in railway connectivity </a>to the remote areas and upgradation of airports in Tier 2 cities, a huge number of people will be able to travel smoothly from Tier 2 and Tier 3 cities. The high speed internet connectivity in rural areas will be the biggest advantage to them. This will help them to do more purchasing and online bookings. We are expecting more travel coming ahead. Along with this, reducing the income tax to 5% for the people having an earning bracket of 2.5 lac -5 lacs, it will be a crucial factor in their saving. This will increase their budget to travel and will also motivate youngster and young entrepreneurs to pay taxes, " said Gursahib Singh Sethi, Co-Founder, Travkart.com. <a href="http://www.businessinsider.in/budget/common-man-budget">ALSO READ: CAN YOU OWN A CAR AFTER THIS BUDGET?</a>

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Travelers from Tier 2 and Tier 3 cities are more outbound! Here’s how they travel

Suchayan Mandal

Budget 2017 didn’t promote much of tourism in India. Here’s why

Suchayan Mandal

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