HVS report – Caravan Tourism – Discover the roads less traveled

Caravan Tourism – Discover the roads less traveled


Caravan or trailer tourism has long been a popular niche segment in experiential tourism around the world, but its appeal has grown in the post-pandemic era. Holidays in motorized destinations and caravan tourism have grown in popularity since restrictions were eased and people started to travel again as it offers people affordability, flexibility and freedom, as well as the security, privacy and the possibility of complete isolation, all of this. have become important considerations for travelers in the COVID world.
Caravan tourism is already well established in countries such as the United States, Australia, New Zealand and parts of North America and Europe and has been one of the fastest growing recover after the pandemic. Caravan holidays, for example, contribute £9.3 billion to the UK economy each year, employing over 130,000 people. Meanwhile, a recent study shows that the RV tourism market has contributed around €14 billion to the German economy over the past two years, with overnight stays increasing by 50% to more than €10 million in 2020. Similarly, Australia’s camping and caravanning industry, which employed 53,000 people and generated 12 million trips before COVID, has rebounded faster than other travel segments, with one in three Australians taking a trip in caravan or camping in the first quarter of 2021.
The concept of caravan travel is relatively new in India and still in its infancy. Although initially pitched as a friendly activity for inbound travellers, the concept of camping and hiking to explore offbeat destinations is also catching on with Indian travellers, thanks to the country’s improved road infrastructure. As the culture of road trips, slow travel and experiential travel gains traction, the demand for caravan tourism is also expected to accelerate in India. Caravan tourism can become a viable option in remote tourist destinations that lack quality accommodation or in places where building hotels is not possible.
Lack of basic campgrounds, infrastructure and amenities, lack of standard rules and compliances across states, non-uniform designs and lack of consistent pricing are some of the challenges that have previously hampered acceptance of this segment. The Ministry of Tourism has put in place a ‘caravan tourism’ policy to help address some of these concerns. In addition, over the past two years, tourism boards in some states such as Karnataka, Maharashtra and Kerala have also introduced policies and initiatives to promote sustainable caravan tourism in their respective states, having achieved the potential of this niche segment, especially by taking unexplored journeys. locations in attractive tourist destinations. Some of the incentives on offer include the construction of caravan parks to park motorhomes and motorhomes under public-private partnerships, exemption from electricity charges and stamp duty, and reimbursement of the GST for tour operators etc. While these policies and initiatives are a step in the right direction, government agencies and industry stakeholders should collaborate to assess some of the best global practices while executing the next steps to ensure the success of caravan tourism in the country. .

Additional contributor to this article: Kavya JainIntern at HVS ANAROCK

Mandeep S.Lamba, President – ​​South Asia, oversees the HVS practice in South Asia. Mandeep has spent over 30 years in the hospitality industry having worked with international hotel companies such as Choice Hotels, IHG and Radisson Hotels before becoming President of ITC Fortune Hotels in 2001. After successfully building the Fortune brand in medium-sized hotel sector in India, Mandeep ventured on an entrepreneurial journey for over 8 years, establishing JV companies with Dawnay Day Group UK and Onyx Hospitality Thailand before joining JLL in 2014, as Managing Director, Hotels & Hospitality Group – South Asia. A recognized industry leader, Mandeep has won several awards and accolades for his accomplishments. Recently, it was featured in the Hotelier India Power List of India’s Most Respected Hoteliers for the second consecutive year. Contact Mandeep at +91 981 1306 161 or [email protected]

Dipti Mohan, Senior Manager – Research with HVS South Asia, is a seasoned knowledge professional with extensive experience in creating research-based content. She is the author of several “point of view” papers such as thought leadership reports, expert opinion pieces, white papers and research reports. Contact Dipti at [email protected]

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