A new KPMG-EEMA report reveals that over 54% of Indian event-goers now travel outstation, with the trend reaching 74% in Tier-2 cities. This shift in consumer behavior is creating a direct economic ripple effect, benefiting the hospitality, travel, and aviation sectors. Investors may note that professional networking has become the primary driver for this increased discretionary spending.
A shift in consumer habits is transforming the Indian events industry into a significant driver for the travel and hospitality sectors. According to a recent report by KPMG and the Event and Entertainment Management Association (EEMA), more than 54.4% of event attendees now travel from outside their home cities to participate in events. This trend is even more pronounced in Tier-2 cities, where 74.2% of surveyed individuals reported traveling outstation, significantly outpacing the 45.7% seen in Tier-1 locations.
The economic impact of this mobility is notable. The report highlights a multiplier effect where every ₹1 spent on events generates over ₹2.03 in broader economic activity. This suggests that event-driven tourism is providing a consistent revenue stream for hotels, local transport services, and retailers, as attendees often plan entire trips around these gatherings. For over 51% of those surveyed, the event itself was the primary reason for the trip, leading to substantial spending on accommodation and travel.
From a business perspective, the data signals a potential growth area for companies in the travel, hospitality, and event management sectors. Professional networking has emerged as the most significant motivation for attendance, cited by 65% of participants. This indicates that business-to-business events and corporate gatherings may be more resilient and attract higher-spending demographics compared to purely entertainment-focused events.
Investors monitoring these sectors should consider the underlying economic dependencies. The report notes that discretionary spending on travel and events is sensitive to external factors. Specifically, ticket prices and time constraints are identified as the primary barriers to attendance. If economic conditions tighten or if event organizers face rising operational costs, consumer appetite for traveling for events could soften. Additionally, while the expansion of infrastructure in Tier-2 cities is a positive factor, the sustained growth of this trend will depend on the continued affordability of travel and the ability of the hospitality sector to cater to this specific segment of business and leisure travelers.
Moving forward, the key monitorable for market participants will be how effectively companies in the hospitality and travel space align their services with the needs of these event-goers. Monitoring trends in corporate travel spending and the volume of large-scale event bookings in regional hubs may provide insight into the durability of this discretionary spending trend.