India Travel Trends 2025

India Travel Trends 2025 and a Booming Tourism Economy

India’s travel industry has entered a new chapter. In 2024, an already-strong post-pandemic recovery gave way to full-blown momentum, driven by young, tech-empowered travelers, shifting generational values and an appetite for unique experiences. In 2025, this growth is accelerating even further.

International travel was primarily associated with affluent travelers from metro and tier 1 cities. However, in recent years, this trend has shifted dramatically. Increasing numbers of travelers from India’s tier 2 and tier 3 cities are now venturing abroad, fueled by rising aspirations, greater access to information, and improving economic conditions.

Visa applications from first-time travelers have surged by 32%. From 2014 to 2023, over 10.09 crore passports were issued in India and the number of Passport Seva Kendras (passport application centres) has grown from 153 to 523 during this period. This further highlights the shift, broadening the market share of Indian international travelers and redefining the country’s global tourism footprint. 

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A Snapshot of the Tourism Economy

According to the India Holiday Report 2025 by Thomas Cook India and SOTC Travel, Indian travelers are showing record enthusiasm:

• 85% plan to increase their holiday frequency in 2025.
• 84% plan to raise their travel budgets by 20–50%.
• Over 60% are seeking bucket-list or experiential travel.

Meanwhile, the 2025 Global Travel Trends Report from American Express reveals that:

• 92% of Indian travelers want one-of-a-kind items that reflect their trips.
• 81% plan to purchase high-quality local goods during international travel.
• 50% are taking international trips specifically to buy a luxury product.

Gen ACE & Gen LUX

Two distinct generations now define the travel landscape:

Gen ACE (under 40): Digital natives who value spontaneity, adventure, and peer influence via social media. They are planners who rely on vlogs and Instagram for discovery, and tend to book last minute using online travel company apps.

Gen LUX (over 40): Discerning, family-oriented travelers who value luxury holidays, loyalty rewards and concierge-style services. They favor longer stays and emotionally meaningful travel, often motivated by “doing with intent,” not just seeing sights.

How Indian Tourists Are Spending

Spending is increasing across the board:

• Domestic travel still dominates in terms of volume, but international destinations like France, Australia, Japan, and Thailand attract the highest budgets, with many cases exceeding ₹100,000 per person.
• Indian tourists are “savvy spenders,” with 79% planning to use credit card or loyalty rewards for travel and 84% believing combining rewards offers the best value.
• The travel economy is shifting toward experience-rich purchases, from food to boutique shopping to niche concerts and sporting events.

Destination and Format Shifts

New travel patterns are emerging:

• Cruises (45%), scenic train journeys (20%) and self-drives (35%) are rapidly gaining popularity, driven by a desire for slower, immersive travel.
• International travel is changing: Central Asia (Uzbekistan, Kyrgyzstan), Morocco and South Africa are rising, while phenomenon travel (e.g. Northern Lights, Cherry Blossoms) becomes more mainstream.
• Domestically, Himachal, Kashmir, Uttarakhand and the North East remain top choices. Spiritual tourism is booming among both Gen Z and Baby Boomers.

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Technology and Phygital Journeys

Indian travelers are digitally savvy but still value personal guidance:

• 68% book online, yet 59% still rely on retail or phone consultations.
• “Phygital” journeys, where digital research is paired with human expertise, are shaping the booking experience for modern consumers.
• 79% download apps before travel; 48% complete the entire booking process on smartphones or tablets.

Travel as a Lifestyle

As Sanjay Khanna, CEO of American Express Banking Corp India, puts it:

“Indians are more informed and discerning than ever before. They seek holistic experiences during their travel - emotion, story and quality matter more than traditional markers of status.”

According to the FINN Partners–GSIQ report, 81% of Indian international travelers now prefer luxury holidays over weddings and 74% would rather travel than buy designer goods. This marks a powerful shift toward travel as self-expression.

Key Takeaways for the Travel Industry and Luggage Brands

Indian travelers are changing how they plan and experience holidays. They are looking for more than just a destination - they want trips that feel personal, exciting and meaningful. Travel companies should focus on offering experiences that connect emotionally, like adventure, relaxation or cultural discovery.

Travelers now see luggage as part of the travel experience, not just something to carry their things. They want bags that are practical, stylish and fit different types of trips, from weekend getaways to long international holidays.

Indian travelers also like to buy items that remind them of their trips, so luggage can be part of that story. More people care about sustainability too, but they still want their luggage to be useful and long-lasting.

Indian travelers in 2025 are doing more, spending more and expecting more. They're shaping global demand - from mountain retreats and vineyard trails to curated shopping trips and wildlife cruises.