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SUVs and Gen Z Boost Self-Drive Travel in India’s Tier 2 and 3 Cities

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Zoomcar Holdings, a prominent player in India’s self-drive car rental market, has released its Travel Trends 2025 report, highlighting evolving consumer behavior in road travel across the country. The findings are based on internal booking and usage data comparing financial year 2024 (FY2024) with financial year 2025 (FY2025).

The report indicates a growing preference for short-duration trips, with 71% of all bookings involving journeys of less than two days—an increase from 66% in 2023. At the same time, longer trips lasting over seven days saw a 28% rise year-on-year, potentially reflecting an uptick in work-related travel and extended stays enabled by remote work arrangements.

A notable shift in user demographics is also evident. Travelers aged 18 to 25—classified as Generation Z—accounted for 31% of total trips in FY2025, up from 22% the previous year. This group is increasingly opting for solo travel and visiting less conventional destinations, often with flexible travel schedules.

Vehicle preferences are also changing. Bookings for SUVs rose from 30% to 36% of total rentals, while demand for hatchbacks declined from 57% to 51%. Vehicles with higher seating capacity (6–7 seater models) saw their share grow from 16% to 18%, suggesting a rise in group and family travel.

The trend is not limited to major metropolitan areas. Self-drive rental demand from Tier 2 cities increased by 30%, and bookings from Tier 3 cities rose by 14%. Cities such as Jaipur, Indore, Siliguri, and Madurai recorded significant growth in rental activity, indicating broader geographic adoption of self-drive travel.

Festive weekends—including Holi, Republic Day, and Gandhi Jayanti—saw a 125% increase in bookings compared to regular weekends, underscoring a growing tendency for spontaneous, occasion-based travel rather than pre-planned vacations.

Abhilash Kasliwal, Business Head at Zoomcar, commented on the findings: “The data reflects a maturing self-drive market, where flexibility and accessibility are key drivers. Whether for short breaks, family trips, or income generation through car sharing, the ecosystem is expanding beyond urban centers and traditional travel patterns.”

Customer satisfaction levels remain high, with 80% of trips receiving ratings of four stars or above in 2025, up from 76% in 2023. This suggests increasing user confidence in the reliability and quality of the service.

Zoomcar’s peer-to-peer car sharing model continues to gain traction as a source of supplemental income. By May 2025, hosts on the platform had earned a cumulative ₹640 crore. Nearly 49% of active hosts held a rating of 4.5 stars or higher, and top-performing hosts earned up to ₹7 lakh per year per vehicle. The platform is increasingly seen as a viable option for micro-entrepreneurship.

Additionally, home delivery services gained popularity, with a 33% increase in such bookings during the first five months of 2025 compared to the same period in 2024. This reflects a growing preference for convenience and contactless access to rental vehicles.

As self-drive travel becomes more integrated into everyday mobility, Zoomcar emphasized its focus on expanding a sustainable, host-supported network that supports diverse travel needs across India.



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SpiceJet, IndiGo, Air India Issue Travel Advisories As IMD Predicts More Showers  

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Heavy rains across the national capital in the last two days disrupted flight operations, prompting airlines and the Delhi airport to issue travel advisories for passengers. Multiple airlines cautioned that adverse weather could cause delays and cancellations, while urging travellers to plan in advance and monitor their flight status.

Airlines issued advisories after intense rainfall in parts of Delhi-NCR on Sept. 3, which led to waterlogging, traffic congestion and slower movement to and from the Indira Gandhi International Airport.

The India Meteorological Department (IMD) has predicted further spells of rain for the next two days in Delhi and the National Capital Region (NCR), keeping fliers on alert.



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TBO acquires Classic Vacations to expand global reach

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TBO has officially announced its agreement to acquire Classic Vacations, a U.S.-based luxury travel wholesaler, from Phoenix-headquartered Najafi Companies. The deal is valued at up to USD 125 million (INR 1,100 crore) and marks a major milestone in TBO’s expansion strategy. This acquisition combines TBO’s advanced technology-driven platform with Classic Vacations’ robust network of luxury travel advisors and suppliers.

Classic Vacations generated USD 111 million in revenue and an operating EBITDA of USD 11.2 million for the fiscal year ending December 31, 2024. With nearly five decades of brand recognition, Classic Vacations has built strong relationships in the premium travel sector, making it an ideal fit for TBO’s vision of scaling its global footprint.

According to Gaurav Bhatnagar, co-founder and joint managing director of TBO, “Classic Vacations has consistently delivered outstanding service, earning the trust of over 10,000 travel advisors across the U.S. Their expertise aligns perfectly with our mission of redefining global travel through innovation and scale.” Bhatnagar emphasised that the Classic Vacations brand will continue independently while leveraging TBO’s extensive technological and distribution strengths.

Ankush Nijhawan, co-founder and joint managing director of TBO, added that the acquisition underlines the company’s broader strategy of pursuing both organic and inorganic growth. He highlighted that TBO is actively open to future strategic partnerships that strengthen its portfolio and further position it as a global leader in premium and luxury travel solutions.

Melissa Krueger, CEO of Classic Vacations, expressed enthusiasm for the partnership, stating, “TBO’s technology-first solutions are designed to empower travel advisors with unparalleled tools, resources, and insider access. This integration ensures we bring even more value to our advisors and clients.” Krueger stressed that the collaboration enhances Classic Vacations’ role as the premier luxury travel partner while expanding its global reach.

This acquisition signals a new phase for both companies, bringing together complementary strengths to serve an evolving luxury travel market. With demand for high-end travel projected to surge worldwide, the partnership positions TBO and Classic Vacations to accelerate growth, maintain brand trust, and deliver seamless experiences to customers, suppliers, and employees across the globe.



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Centrum Air to launch Delhi–Tashkent direct flights

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Centrum Air, Uzbekistan’s largest private airline, has announced the launch of direct scheduled flights between Delhi and Tashkent, starting from October 3, 2025. The new service aims to strengthen air connectivity between India and Uzbekistan, offering travellers an affordable, comfortable, and time-efficient travel option.

The flights will operate twice weekly, every Tuesday and Friday, providing flexibility and convenience for both business and leisure travellers. Centrum Air’s modern fleet, including Airbus A320neo, A321neo, and the wide-body A330-300, will be deployed on this route to ensure a safe and comfortable journey.

According to the announced schedule (local time), flights from Delhi will depart at 12:10 and arrive in Tashkent at 14:50. From Tashkent, flights will leave at 06:55 and land in Delhi at 10:55. These timings are designed to offer smooth connections and ease of travel for passengers.

Abdulaziz Abdurakhmanov, Founder and CEO of Centrum Air, expressed pride in opening the direct Delhi–Tashkent route. He emphasized that the service would not only improve travel convenience but also enhance Uzbekistan’s role as a regional hub, linking India to Central Asia, Europe, and the Middle East.

Abhishek Goyal, Executive Director & CEO of Aeroprime Group, highlighted the significance of being Centrum Air’s exclusive GSA in India. He stated that the partnership would bring immense opportunities for tourism, business, and trade, while ensuring competitive fares and strong support for passengers and cargo operations.

With Aeroprime Group managing sales, marketing, and customer services in India, travellers can expect seamless experiences. Additionally, the new service offers convenient onward connections from Tashkent to destinations such as Almaty, Istanbul, Dubai, Tel Aviv, and Copenhagen, making it a valuable option for both direct and transit passengers.



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