Budget tourism gains traction in Kerala

Affordable luxury tourism is gaining traction among travellers in Kerala as the State rebounds from post-pandemic period.

In 2021, the State government introduced two distinct tourism products to win the hearts of tourists and to diversify the State’s tourism landscape by attracting different segments of travellers. Caravan tourism introduced by Kerala Tourism was envisioned as a high-end, luxury tourism experience targeting affluent tourists seeking exclusivity and comfort. Meanwhile, budget tourism, coined by the Kerala State Road Transport Corporation (KSRTC), was designed to make travel accessible to all categories of people.

Four years on, the outcomes of two district initiatives tell a sharply contrasting story. While budget tourism has emerged as a roaring success, gaining wide acceptance and participation among the people across the State, caravan tourism continues to struggle to stay afloat, facing operational and market challenges.

The budget tourism cell of the KSRTC has netted a cumulative revenue of ₹106 crore till January 2026, with the highest annual operational revenue of ₹42 crore in 2025; of this, around ₹17 crore constituted profit.

Among the various types of tourism services offered by the budget tourism cell, the most popular is pilgrim tourism service, which clocked a revenue of ₹5.71 crore in 2025. The pilgrims’ services included Nalampala darshan, Pancha Pandava temple darshan, Attukal Pongala, Thiruvairanikulam temple festival, Kottiyur mahotsavam, Kripa sanam package, Sabarimala pilgrimage, and Thirunavaya Kumbha mela. Even the newly added Kumbha mela package brought ₹55 lakhs in revenue to the ailing public utility.

On the other hand, caravan tourism is struggling, with hardly 13 caravans starting services in Kerala, despite the State government offering a subsidy of up to 15% of the investment or ₹7.5 lakh, whichever is lowest, for investment in the caravan tourism segment.

Only two caravan parks are operational in the State, while work on the caravan parks on Kerala Tourism Development Corporation (KTDC) properties at Bekal and Bolgatty Palace still under way.

‘Safe and engaging’

Speaking to The Hindu, R. Udayakumar, the chief operating officer, KSRTC, said, ‘The most significant aspect of the popularity of budget tourism is its economic and competitive budgets for trips, which no one can offer. Further, the trips specially curated by the KSRTC staff are safe, engaging and informative. Travellers ranging from solo to groups can take part without any effort, and travellers would be – be it senior citizens or women or children – handheld during the entire trip by our staff,” said Mr. Udayakumar.

In the case of caravan tourism, although it may not be as comfortable as staying in a hotel, camping is definitely a different experience, according to industry insiders. However, a lack of enthusiasm from travellers and investors is hindering industry investment, despite growth in the luxury segment.