India’s Luxury Travel Boom: What the New Generation of Travellers Wants in 2025 and Beyond

Over the past 15 years, Indian travel spending has witnessed an astonishing surge, from just US$17 million annually to a staggering US$17 billion. By 2030, 50 million Indian travelers are projected to travel abroad, according to CAPA India. As these trends unfold, the dynamics of the Indian luxury traveller are evolving. At the TravMedia Summit Asia 2025, experts delved into these changes, revealing how the market is rapidly shifting, especially in the luxury travel sector.

Luxury Spending on the Rise in India

India’s growing affluence, particularly concentrated in cities like Mumbai, New Delhi, and Bangalore, has seen a major shift in the spending priorities of wealthy Indian households. According to The Mercedes-Benz Hurun India Wealth Report 2025, travel and experiences are now the top lifestyle expenses, surpassing categories like dining, wellness, and luxury goods. This shift in priorities reflects the changing mindset of the Indian luxury traveller, who values life experiences over material possessions.

With 65% of India’s population under 35, millennials are leading the charge in this travel boom. These younger generations are more inclined to pursue purpose-driven and experience-focused travel, marking a shift away from traditional luxury goods towards immersive, high-quality travel experiences.

The Millennial Influence on Travel Trends

Millennials, driven by a desire for meaningful travel experiences, are reshaping the Indian travel market. Their preferences for adventure, family vacations, and honeymoon trips are pushing destinations to cater to new types of travellers who seek more than just luxury. These travellers want stories, experiences that connect emotionally, and memories that last a lifetime.

As travel becomes more accessible, the demand for unique and personalized experiences continues to grow. Indian millennials seek trips that align with their values, like eco-tourism, cultural immersion, and sustainable travel. For destinations, understanding and appealing to these emotional needs is key to engaging this segment.

Generational Preferences and Travel Segments

The Indian traveller market is diverse, with distinct preferences across generational segments:

• Millennials: Families, honeymooners, and adventure seekers looking for unique and emotional experiences.
• Gen X and Boomers: Financially secure travellers seeking a mix of family visits and independent getaways.
• Gen Z: Often students traveling overseas, they frequently return for multiple family visits and are driven by the desire to explore the world.
• Gen Ace: Individuals under 40 from tier-two and tier-three cities, seeking adventure, exploration, and unique social experiences like “fake weddings.”
• Gen Lux: The elite experience-seekers, these individuals prioritize exclusivity, often indulging in private tours, glamping experiences, and luxury travel via private jets.

Quality Over Price: The New Indian Traveller Mindset

Indian travellers are increasingly willing to spend more for superior experiences. According to Sheema Vohra, co-founder of Sartha Global Marketing, “The Indian mindset is such that if you give them a reason to spend more—such as a better experience or a lasting memory—they will do it.” This shift highlights the growing importance of quality, rather than cost, in the decision-making process for Indian luxury travellers. For them, it’s not just about reaching a destination; it’s about the memories they create along the way.

Digitally Savvy and Spontaneous Travelers

Indian travellers are known for their digital savvy. With smartphones and social media at their fingertips, these travelers often make last-minute travel decisions, searching for real-time, relevant content. Digital platforms that can offer instant booking options, local travel guides, and up-to-the-minute recommendations are essential for engaging this connected, on-the-go audience.

Travel brands that succeed in this market must prioritize seamless digital experiences, ensuring they can capture the attention of tech-savvy travellers at the right moment.

The Importance of Emotional Honesty in Building Trust

Service recovery and transparency are key to building long-term loyalty among Indian travellers. Indian consumers are quick to forgive when brands acknowledge their mistakes and openly communicate about issues. This emotional honesty helps in turning setbacks into opportunities for trust and brand loyalty, a crucial factor in a competitive travel market.

The Future of Indian Luxury Travel

The future of Indian luxury travel is bright, with increasingly sophisticated travellers seeking richer, more meaningful experiences. As the demand for personalized and high-quality travel experiences grows, destinations and brands will need to stay ahead of these shifting expectations.

By 2030, India’s travel market will be one of the largest in the world, and understanding these trends will be crucial for destinations and brands hoping to attract this new breed of luxury traveller.

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