Pilgrimage Tourism Rebounds in India, Driving Growth for Travel Companies

The pilgrimage season in India has begun with great enthusiasm despite the summer heat, with travelers heading to popular pilgrimage destinations like Ayodhya, Varanasi, Prayagraj, Uttarakhand, the Char Dham circuit, and Tirupati. Travel agency Thomas Cook (India) Ltd has witnessed a remarkable 100% surge in bookings for its Char Dham yatras compared to last year, with a notable increase in interest from younger, millennial travelers. To cater to this trend, the company has introduced a ‘Pilgrimage Plus’ offering that combines temple visits with local experiences like cuisine trails and outdoor activities. In collaboration with the Uttarakhand Tourism Board, the company has also launched aerial helicopter ‘darshans’ (view) of the Adi Kailash and Om Parvat mountain peaks, which are already sold out for this summer. The surge in pilgrimage tourism has prompted travel agencies and hotel companies to enhance their offerings. Sarovar Hotels & Resorts, with properties in key pilgrimage locations like Ayodhya, Bodh Gaya, Badrinath, Haridwar, Somnath, Junagarh, Mathura, Vrindavan, and Tirupati, expects this segment to contribute significantly to its revenue, with about a 15% share coming from these destinations. Ajay Bakaya of Sarovar Hotels highlights the distinction between religious and spiritual tourism, emphasizing that religious tourism primarily involves destinations like Ayodhya and Varanasi, which have recently witnessed “remarkable growth”. He points out that demand for religious destinations has always been high, with a greater market for mid-market hotels and lower-end accommodations. The hotel industry is projected to experience a 7-9% revenue growth in FY25, largely driven by domestic leisure travel, including pilgrimage tourism. Earlier this month, Indian Hotels Company (IHCL) opened a 160-room Gateway hotel in Sarnath, Uttar Pradesh, while Sarovar Hotels & Resorts inaugurated a Tulip Inn in the pilgrimage city of Shravasti in the same state. Harleen Mehta, Senior Vice President of Sales at Lemon Tree Hotels Ltd., observes that pilgrim tourism is less impacted by economic downturns and that the company’s hotels in pilgrimage destinations like Haridwar, Katra, Rishikesh, and Dwarka are performing well. The company has also witnessed growth in occupancy and room rates in key markets like Dehradun (for Badrinath), Dwarka, and Bhubaneswar (for Puri) with the commencement of the Char Dham dates this month. Online travel agency Yatra Online reports a steady increase in the number of Char Dham pilgrims, with a particular focus on Ayodhya, and has recorded exceptional numbers this year due to the novelty factor of the Ram temple inauguration in January and a general shortage of inventory. The agency also highlights that there are no registration slots left for the Char Dham yatra. Other popular religious destinations like Tirupati, Vrindavan, Ujjain, and Amritsar have also witnessed an increase in footfall, while Badrinath and Varanasi continue to be major pilgrimage hubs. Data from the Union Ministry of Tourism reveals that India had approximately 173.1 crore domestic tourists in 2022, indicating a 55% growth over 2021 but still falling short of the 232.2 crore tourists recorded in 2019. In Uttar Pradesh, 24 flights operate from Ayodhya to various cities, with multiple routes being serviced twice or four times a week. While Ayodhya is still in its early stages of development as a pilgrimage destination, the state’s tourism board reports that Varanasi’s Kashi Vishwanath temple attracts the highest footfall among religious tourism sites in Uttar Pradesh. Madhya Pradesh tourism has surpassed its 2019 inbound tourist numbers by approximately 2.3 crore visitors and recorded a footfall of 11 crore in the calendar year of 2023, with 5.2 crore travelers visiting Ujjain alone. Of the top ten most visited sites in the state, five are religious destinations: Ujjain, Maihar, Chitrakoot, Omkareshwar, and Salkanpur. Shekhar Shukla, the state’s Principal Secretary of Tourism and Culture and Managing Director of the Tourism Board, highlights their focus on promoting religious tourism and enhancing tourism infrastructure, cultural heritage, and showcasing. Rajesh Magow, Co-founder and Group CEO of MakeMyTrip, states that searches for spiritual destinations on their platform have surged by 97% in the past two years. He notes that the contribution of spiritual tourism to their holiday business has steadily increased from 7% in 2022 to 10% in 2023 and over 13% in 2024. MakeMyTrip has observed significant year-over-year growth in the top spiritual destinations, with Uttar Pradesh (Ayodhya and Varanasi) showing a 110% growth, Uttarakhand (Char Dham, Haridwar, Rishikesh) a 42% growth, and Gujarat (Somnath and Dwarka) a 37% growth. Magow also mentions that pilgrimage bookings consist of 45% families, with most bookings coming from individuals aged 36-50 years and the average trip duration being five nights. He anticipates further investments in hospitality and infrastructure to support the growing interest in spiritual tourism. Booking.com reports a 550% surge in searches for Ayodhya during the summer season, indicating an uptick in traffic of devotees looking to visit the Ram temple. Other destinations like Ujjain, Badrinath, Varanasi, and Shirdi have also experienced significant growth in searches.

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