Indians are increasingly moving away from short weekend trips and opting for longer, more luxurious holidays abroad, a trend that has surged strongly in the post-pandemic period. Travel operators report a 35-40% growth in luxury bookings, reflecting a clear preference for immersive experiences over traditional, short-haul vacations.
This shift is underpinned by rising household incomes, a growing appetite for experiential travel, and a desire to explore unique destinations. Over the last three years, Indians have spent a record $50 billion on foreign holidays, with average trip budgets increasing by 20-30%.
Popular Destinations and Experiences
Classic European destinations such as Switzerland and France continue to attract Indian travellers, while island paradises like the Maldives and Bora Bora remain highly sought after. There is also a rising demand for immersive luxury travel, where experiences take priority over the number of destinations.
Travel enthusiasts are exploring activities such as Northern Lights safaris in Iceland, European culinary tours, shopping trips in Dubai, and diving at Australia’s Great Barrier Reef. Additionally, wellness retreats in Malaysia and Thailand are gaining popularity among those seeking relaxation combined with adventure.
Rajeev Kale, President & Country Head, Holidays, MICE, Visa at Thomas Cook (India), noted,
“We are seeing growing interest in curated experiences — private villa stays in Bali, gourmet trails in Tuscany, polar expeditions in Iceland, and wellness retreats in Malaysia and Thailand. Indian travellers are now opting for multiple holidays through the year and longer stays, moving from traditional 3-day breaks to 6-12 day holidays.”
Also Read: Retail Inflation Eases to 1.54% in September 2025 on Softer Food Prices
Luxury Travel Boosted by Policy and Financing
Several factors have supported this luxury travel boom. Visa relaxations for Indian tourists have made foreign travel more accessible, while financing options like Travel Now and Pay Later schemes have enabled more families to spend on high-end experiences.
The RBI’s data on the Liberalised Remittance Scheme (LRS) reflects this surge. Before FY22, Indians spent an average of $3-4 billion annually on foreign holidays. This figure has jumped to $17 billion annually in the last two years, accounting for 55% of all LRS outflows. This demonstrates a significant rise in overseas travel spending, highlighting the growing economic power and aspirations of Indian travellers.
Emerging Trends in Travel Preferences
Indian travellers are increasingly focusing on curated and experiential luxury holidays. There is a clear preference for longer stays, multiple trips in a year, and high-quality experiences that go beyond sightseeing. From private villas in Bali to wellness retreats in Thailand, and from polar expeditions in Iceland to gourmet tours in Tuscany, the trend is moving towards personalised and premium travel experiences.
Furthermore, the increase in average trip budgets by 20-30% indicates that travellers are willing to invest more in comfort, convenience, and unique experiences rather than sticking to budget options or shorter holidays.
Key Takeaways
Indians are increasingly choosing luxury and longer holidays abroad, moving away from short breaks.
Spending on foreign holidays has reached a record $50 billion over the last three years.
Popular destinations include Europe, the Maldives, Bora Bora, Dubai, and Australia.
Average trip budgets have increased 20-30%, reflecting a willingness to spend on premium experiences.
Factors such as visa relaxations, accessible financing, and growing disposable incomes are boosting the trend.
The shift in travel preferences is clear: Indian tourists are now prioritising experiences, comfort, and luxury, signaling a transformation in the country’s outbound tourism landscape. With rising incomes and supportive policies, this trend is expected to continue, further strengthening India’s position as a global luxury travel market.
Retail inflation in India, measured by the Consumer Price Index (CPI), moderated significantly in September 2025, easing to 1.54% from 2.07% in August, according to official government data released on October 13. This marks the lowest inflation level since June 2017.
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