In the autumn of 2023, Thailand and Malaysia extended visa-free entry to Indian nationals in the hope of attracting tourists from the country at a time when they were travelling overseas like never before. Slow post-pandemic economic recovery in China had evidently hit tourist inflows to Southeast Asian hotspots, while India’s recovery in terms of international passenger traffic was booming. Meanwhile, emerging destinations in other regions, particularly Central Asia and the Caucasus, also picked up in terms of interest among Indian tourists.

A year on, both Southeast Asian nations appear pleased, so much so that they decided to extend the visa-free entry facility for Indian passport holders further. Aviation and travel industry insiders say the visa waivers have stimulated demand for travel to Thailand and Malaysia, which airlines have recognised.

Data shows that the number of Indians travelling to the two countries has grown substantially in the wake of these measures, and airlines have jumped at the opportunity by significantly increasing capacity between India and the two countries by adding flights and destinations.

Taking off

In the December quarter of 2024, the total number of flights in both directions between India and the two countries rose 29.2 per cent year-on-year (YoY) to 14,409, with the deployed seat capacity rising 26.6 per cent to 28.02 lakh, according to an analysis of data from aviation analytics firm Cirium.

In the upcoming January-March quarter, the number of flights is set to rise further to 16,131 (up 43.7 per cent YoY), with a cumulative seat capacity of 31.44 lakh seats (up 41.1 per cent YoY).

While capacity deployment is not the same as the actual passenger load, it is representative of growth in passenger traffic and airline demand estimates. India’s official data for international air passengers is available only until the June quarter of the current fiscal, and even that shows a significant increase in traffic over the corresponding period last year.

In the past year or so, Indian airlines as well as those from Southeast Asia have launched a number of new flights, densifying the network between the two regions. These include IndiGo’s Chennai-Penang and Bengaluru-Langkawi flights; Air India Express’s flights to Bangkok from Pune, Lucknow, Surat, and Amritsar, and its Hyderabad-Phuket service; Air India’s Delhi-Kuala Lumpur and Delhi-Phuket flights; Thai AirAsia X flights between Delhi and Bangkok; Thai AirAsia’s Hyderabad-Bangkok and Chennai-Phuket flights; AirAsia’s Kuala Lumpur-Port Blair service; and Malaysia Airlines’s flights from Kuala Lumpur to Amritsar, Thiruvananthapuram, Ahmedabad, and Kolkata.

“With the inclusion of these flights to Penang (from Chennai), IndiGo will now operate 28 weekly flights to Malaysia from two cities in India. The country’s recent visa waiver for Indian citizens is bound to create an even greater demand and easy access for business as well as leisure travellers,” IndiGo’s head of global sales Vinay Malhotra said recently when the airline launched its Chennai-Penang service.

“We are seeing rising demand in the international sector, supported by measures like visa-free entry, which have made travel more accessible and cost-effective. We thank the Indian government for the successful negotiation of an additional Air Service Agreement between India and Thailand, along with visa exemptions for Indian tourists and the waiver of Thai tourist visa fees,” Thai AirAsia X CEO Tassapon Bijleveld said on the launch of the airline’s Delhi-Bangkok service a few weeks ago.

Hop and go

Apart from being popular destinations in themselves, Thailand and Malaysia’s major cities – Bangkok and Kuala Lumpur – are significant international aviation hubs. Visa-free entry also encourages Indian travellers to explore destinations beyond these countries by using these airports for connections and adding a stopover to their broader itinerary without much hassle. Industry insiders say this, too, is adding to heavy passenger flows to these countries.

Flights between India and Thailand in October-December jumped 35.5 per cent YoY to 8,782, while deployed seat capacity was higher by 31.4 per cent at 17.44 lakh. In the January-March quarter, flights are set to rise to 9,821 (up 48.3 per cent YoY), while deployed seat capacity is seen at 19.48 lakh (up 44.3 per cent YoY).

As for flights between India and Malaysia, the December quarter saw a 20.5 per cent YoY rise in number of flights to 5,627, and seat capacity was higher by 19.3 per cent at 10.58 lakh. In the March quarter, flights are expected to rise further to 6,301 (up 36.8 per cent YoY), and seat capacity is seen at 11.92 lakh (up 35.7 per cent YoY).

Official international passenger traffic data released by the Directorate General of Civil Aviation (DGCA), while available only until the June quarter, also suggests that visa-free entry to Thailand and Malaysia has bumped up the number of Indian travellers visiting these countries.

The number of passengers who flew on direct flights between India and Thailand in April-June rose 21.8 per cent YoY to 11.61 lakh. Passenger traffic on direct flights between India and Malaysia jumped 35.3 per cent YoY to 8.42 lakh, shows an analysis of international passenger data released by the DGCA.

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