Here are 10 key points about The Great Indian Traveller: Trends Shaping Travel in India:
- Travel Boom in India – The Indian tourism sector experienced rapid growth in 2024, a trend expected to continue in the coming years.
- Rise of Tier II & III Travelers – Travelers from smaller cities are driving growth, thanks to increased disposable income, better connectivity, and digital influence.
- Changing Traveler Demographics – Two main traveler groups are emerging: Gen ACE (under 40) seeking adventure and social experiences, and Gen LUX (over 40) prioritizing luxury and comfort.
- Growth in Travel Spending – 80% of Travel Service Providers (TSPs) report higher travel budgets, with international travel expenses increasing the most.
- Popular Travel Choices – Domestic travel focuses on beaches, mountains, and religious sites, while international travel is on the rise among Tier I & II travelers.
- Online Bookings Dominate – 69% of travelers prefer booking through online platforms, with solo travelers booking last-minute and groups planning months in advance.
- Luxury vs Budget Travel – Luxury travel is growing in India, but budget hotels are more preferred abroad due to high international travel costs.
- Factors Influencing Destinations – Airline connectivity, visa ease, and discounts play a major role, especially for older travelers.
- Future of Indian Tourism – India ranked 39th in the World Economic Forum’s Travel & Tourism Development Index 2024, with projections showing 12%-15% annual growth over the next five years.
- Expanding Travel Interests – Indian travelers are exploring sports tourism, entertainment, cruises, wellness, and adventure tourism, redefining how they choose destinations.
The Great Indian Traveller: Trends Shaping Travel in India
A Look Back at 2024: A Year of Travel Boom
The year 2024 was transformative for India’s travel sector, offering insights into the evolving landscape of tourism. The industry witnessed remarkable growth, a trend that is set to continue in the coming years. Several factors, including the rise of new travel markets, an increase in both domestic and international travel, technological advancements, and shifting traveler preferences, played a pivotal role in redefining tourism in India.
This article has been co-authored by Divya Harwani, Manager, Consulting, EY India.
The Rise of the Indian Traveller
A new wave of Indian travelers is reshaping the industry, particularly those from Tier II and III cities. Empowered by technology, rising disposable incomes, and a growing desire to explore, they are fueling a diverse range of travel trends. From cultural immersion and religious pilgrimages to beach getaways and mountain retreats, Indian travelers are broadening their horizons.
The surge in travel is primarily driven by leisure travelers who are benefiting from improved connectivity and digital innovation. This evolution is also influenced by generational shifts: younger travelers seek adventure and social connections, while older generations prioritize luxury and comfort. Social media, credible travel narratives, and easy access to online booking platforms are further shaping preferences.
Also Read: Top 12 Famous Tourist Destinations in India to Visit
Key Trends in Indian Travel
- Growing Travel Demand: 57% of travel service providers (TSPs) reported an increase in bookings since 2022.
- Visa Preferences: Travelers from Tier I and II cities are opting for international destinations, while Tier III travelers show a stronger inclination for domestic trips.
- Changing Travel Groups: Younger travelers often journey with friends or partners, whereas older travelers prefer family vacations.
- Longer Trips: The average length of stay has increased by one day for domestic trips and two days for international travel compared to 2022.
Indian Traveler Spending Patterns
Indian travelers are spending more, with a greater willingness to invest in experiences.
- 80% of TSPs have observed an increase in travel budgets since 2022.
- A quarter of them report a rise of over 20%.
- International trips are seeing the highest budget increases.
- Domestic trips typically stay under INR 50,000 per person, while international travel costs often exceed INR 1,00,000.
- Spending on international trips is nearly four times higher than domestic travel.
- While Tier I cities still lead in travel expenditure, the gap between Tier I and Tier II cities is narrowing.
The Growth of Luxury & Budget Travel
As travelers age, they tend to spend more on premium experiences, with airfare and accommodation accounting for nearly two-thirds of total travel expenses. While luxury travel is expanding, budget-friendly hotels remain more popular for international trips than domestic ones.
- 69% of travelers prefer using online aggregators for bookings.
- Solo travelers often book last-minute, while larger groups plan well in advance.
- Older travelers prioritize amenities such as breakfast and family-friendly activities.
Popular Destinations & Influencing Factors
- Beaches, mountains, and religious sites continue to be top choices.
- Interest in cruises, wildlife, and natural phenomena is on the rise.
- Younger travelers rely on social media for inspiration, while older travelers trust established media sources.
- Airline connectivity and visa ease play a significant role in destination selection.
- For travelers over 60, travel deals and discounts remain a major draw.
Generational Travel Trends: Gen ACE vs. Gen LUX
Two key traveler segments are shaping the industry:
- Gen ACE (Under 40): Adventurous, social, and experience-driven, this group prefers to travel with friends or peers. Their decisions are heavily influenced by social media and trending destinations.
- Gen LUX (Over 40): Focused on comfort, exclusivity, and unique experiences, these travelers usually embark on family vacations and prioritize luxury stays, deals, and planned itineraries.
The Future of Indian Tourism
India’s tourism sector made a significant contribution to the country’s economy in 2023, generating US$231 billion in GDP. The nation ranked second in Asia-Pacific for tourism GDP contribution and improved its position on the World Economic Forum’s Travel and Tourism Development Index from 54th in 2021 to 39th in 2024. By 2027, India is expected to become the fifth-largest outbound travel market, up from tenth in 2019.
With an estimated annual growth rate of 12% to 15%, India’s travel industry is on a strong trajectory, supported by economic expansion, a rising middle-income population, and political stability. Government initiatives like the National Digital Tourism Mission (NDTM) will further accelerate this growth, particularly in niche tourism segments.
The Role of Tourism Boards & Industry Stakeholders
To sustain this momentum, tourism boards and travel agencies must adapt to evolving traveler expectations:
- Foreign tourism boards should offer tailored experiences for Indian travelers.
- State tourism boards must focus on holistic travel packages and improved infrastructure.
- Collaboration with travel agents and fair pricing in local transport can enhance visitor experiences.
Redefining Indian Travel Preferences
Indian travelers are no longer content with traditional tourism—they seek adventure, wellness, entertainment, and immersive experiences. Travel is no longer viewed as a luxury but as an essential part of well-being and personal growth.
The sector also reflects India’s unique consumer behavior, where discounts and value-driven travel remain significant. As online aggregators continue to dominate the booking space, local operators must find ways to stay competitive.
Final Thoughts
With evolving preferences and an increasing appetite for diverse experiences, Indian travel is set for exponential growth. Whether it’s leisure, adventure, or luxury, the industry must adapt to cater to the needs of both domestic and international travelers. As 2025 approaches, India’s tourism landscape promises exciting opportunities, with trends that will continue to reshape the way the country travels.
Also Read: Top 12 Beautiful Islands in India in 2025
Check Latest Stories:
