Big trends in travel in 2025 are driven by tech upgrades, huge investments, and next-gen infrastructure. The travel industry is gearing up for explosive growth this year —but not without a dose of caution.
From MICE tourism (hello, business meets!) to leisure escapes and spiritual journeys, India’s travel story is evolving across every segment. But watch out—unexpected challenges and surprises are reshaping the game. The numbers don’t lie—this is your sneak peek into the trends shaping 2025 and beyond. 2025 is calling, and it’s anything but predictable.
To begin with, we take outlier trends that are showing up, but are still in a nascent stage and present themselves as more pronounced in 2025.
Outlier trends:
- Travel will dominate all leisure spending in 2025 and beyond.
- Domestic travel will slow down: High costs for flights and stays will pause its growth.
- Tier 2 & Tier 3 Cities will continue the tourism and travel momentum. Big-ticket growth will see these cities shining as top destinations, booming source markets, and fresh hospitality hubs with the most hotel openings.
- Workforce shake-up: Hybrid models and changing norms mean a manpower crunch for travel, aviation, and hospitality.
- Comfort over couture: Travellers will embrace chill vibes—casual outfits, cosy destinations, and relaxed hotels.
- Luxury in simplicity: Millennials seek peace in quiet retreats with family or solo.
- Culture shock, anyone? 70% of Indian travellers want something new, and 96% are excited to push their limits. The unfamiliar will be the new frontier.
- Travel meets tech: 70% of travellers will explore vacations via virtual reality. Metaverse wanderlust? Yes, it will be a thing now!
- Hotels rethink ownership: Big brands will go asset-light with franchising and management—and it will work like magic.
- Power of homegrown: The unorganized accommodation sector (a massive 60% of the market!) will come together under AI-driven powerhouses.
- Investor buzz: Hospitality will be officially a hot ticket for fund managers and investors with big returns on the horizon.
Building Bridges to Travel Dreams: India’s Infrastructure Boom!
India’s travel game is levelling up! With 350 new airports, next-gen railways, and the Bharatmala road project, the country is connecting every corner like never before. Luxury trains like the iconic Palace on Wheels are wooing travellers, while enhanced connectivity is fueling a domestic travel boom set to hit 700 million passengers annually by 2030.
The aviation sector is soaring with airlines like Indigo and Air India expanding routes, making even the most remote destinations just a flight away. And it’s not just about speed—it’s about sustainability! Hotels are going green with energy-efficient practices and eco-friendly initiatives, paving the way for conscious travellers to explore India responsibly. The future is here, and it’s connected!
Spoiler alert: High aviation and hotel costs in India are making international travel increasingly appealing. Domestic flights are becoming less affordable due to rising fuel costs and demand. Luxury and mid-range accommodations in India are hiking prices, making foreign destinations more economical. For the same or lower price, Indian travellers can enjoy better deals and experiences abroad, especially in destinations like Southeast Asia and Europe. Unless domestic travel becomes more cost-competitive, India risks losing tourism revenue to global markets. Affordable options are key to reversing this trend.
India On The Move: Domestic Tourism’s Epic Comeback
Local travel is stealing the spotlight. By 2024, India’s domestic tourism is projected to reach a staggering ₹18.3 trillion, up 9.6% from last year. International visitor spending? Set to rise by 17%, hitting ₹2.85 trillion. In 2023, domestic spending soared 15% above pre-pandemic levels, totalling an impressive ₹14.64 trillion. With 2.5 billion domestic trips, local travellers are fueling this massive comeback.
In 2024, India is expected to record approximately 2.5 billion domestic travel trips. Projections indicate this figure could rise significantly, reaching around 3.5 billion trips by 2030. This growth is driven by increasing disposable incomes, improved connectivity, and a focus on domestic tourism, positioning India to become the world’s fourth-largest domestic travel market by that year.
India’s domestic tourism is unstoppable. Initiatives like Dekho Apna Desh and improved connectivity are turning dreams into journeys. From Uttar Pradesh’s heritage wonders to Tamil Nadu’s temples and Karnataka’s scenic escapes, every state’s calling card is experiential travel. Short weekend getaways are trending big-time, with IRCTC bookings up 15% in 2023. Hill stations, wildlife sanctuaries, and cultural hubs are now the go-to vibes for urban explorers.
The bigger picture? Travel and tourism are expected to contribute ₹21.15 trillion to India’s GDP in 2024—a true testament to its vibrant recovery.
Spoiler Alert: Soaring interest rates in India are creating ripples across the economy, influencing both markets and spending habits. High borrowing costs are driving Indians to spend abroad, where competitive pricing and favourable exchange rates offer better value. Meanwhile, rising domestic costs are making local travel and shopping less appealing.
Urban spending and private investment remain sluggish, while slow job growth and cautious corporate investments add to concerns. Economists foresee potential relief through policy changes in 2025, but a slower economic pace seems likely for now. India’s economy is in a balancing act as consumers and markets adapt to these changing dynamics.
India Calling: Rebounds with purpose
The world is rediscovering India, albeit not with the speed with which it should! With 6.19 million foreign visitors in 2023—a 72% surge from 2022—India is on track to recovery. Thanks to the e-visa for 160+ countries, it’s easier to experience the magic of India. Visitors from the US, UK, and Germany are top source markets, flocking to iconic spots like the Taj Mahal, Jaipur’s royal palaces, and Kerala’s dreamy backwaters.
But it’s not just about the views—$9 billion in medical tourism proves India is the go-to for high-quality, affordable healthcare. However, while travellers are flocking in, the numbers are still low, so scaling international campaigns and keeping the momentum alive is the real challenge.
Spoiler Alert: However, the recovery pace remains slower than expected. While the numbers show progress, India faces the challenge of scaling international campaigns and sustaining this momentum to fully revive its tourism potential. The world is watching, but India must act faster to meet its true potential.
Indians Outbound – Exploring the World!
The travel bug has bitten India! In 2023, 27 million Indians packed their bags and explored international destinations, up from 23 million in 2022. Top picks? UAE, Thailand, and Singapore—all thanks to visa-on-arrival perks and seamless flight connectivity. Long haul? The United States has seen one of the fastest recoveries in the Indian outbound market with traffic in 2022 crossing 80 pc of the 2019 levels. , South Africa welcomed 79,774 Indian travellers in 2023, marking an increase of 43% in visitors from India on a year-on-year basis.
And it’s just the beginning! By 2030, India is set to be a top 5 global outbound market, with 35 million trips annually. Cruise getaways and international shopping sprees are trending, but that’s not all—many travellers are choosing eco-friendly and sustainable tourism for their adventures.
India’s MICE Game Gets Strong
India is redefining the art of incentive and MICE travel! In 2023, the country hosted over 2,000 mega conferences and exhibitions, raking in an impressive $5 billion in revenue. With Hyderabad, Bengaluru, and Delhi NCR leading the way, these cities are now global hotspots for MICE (Meetings, Incentives, Conferences, Exhibitions).
Corporate Incentive travel is making waves, contributing 65% to the MICE boom, as companies up their game with larger events and incentive trips. Ranked 28th globally by ICCA, India is on track to become a business events powerhouse, with growth projected at 8% annually through 2025.
India’s Leisure Travel Renaissance
Leisure tourism is redefining travel goals in India! In 2023, it brought in a massive $210 billion, with hill stations, serene beaches, and heritage sites topping every traveller’s list. For luxury seekers, it’s all about exclusivity. With brands like Oberoi, Taj, and Leela, high-end travellers are splurging $1,500+ per trip for curated, unforgettable stays.
Bring in the wellness boom —15% annual growth—and states like Kerala and Uttarakhand are becoming global healing escapes.
And for the adrenaline junkies? Adventure tourism is booming at 12% annual growth, adding $3 billion to the mix. Think trekking in Himachal, rafting in Rishikesh, or a wild safari in Rajasthan’s deserts. From tranquil escapes to thrill-packed journeys, India’s leisure travel is on a whole new level.
Find Your Zen: India’s Spiritual Tourism Boom
India’s spiritual vibe stays unmatched! In 2023, destinations like Varanasi, Rishikesh, and Tirupati drew millions, making spiritual tourism a $30 billion powerhouse—20% of domestic travel and growing at 10% annually.
From the massive Kumbh Mela with 120 million pilgrims to serene yoga retreats in Uttarakhand and wellness escapes in Kerala, the journey to inner peace is as diverse as it is transformative. Be it temple tours or holistic healing, India is the ultimate destination for the soul.
Check Into The Future: India’s Hospitality Surge
India’s hospitality sector is levelling up like never before. In 2023, the country boasted 165,000 branded hotel rooms, and by 2027, that number will hit 200,000. With 94,000 more rooms by 2029, India is cementing its spot as a global hospitality giant.
Investments are flowing in too. In 2023, hotel investments skyrocketed to $401 million—a 4x leap from the year before. A fresh boost of over Rs 80 billion by Q4 2025 through IPOs is on the cards.
Tier 2 and Tier 3 cities are the real stars, claiming 54% of new hotel signings as they attract tourists and investors alike. Tier 2 & Tier 3 cities are also stealing the spotlight with 40% occupancy growth in 2023, and places like Indore, Lucknow, and Coimbatore are the new hospitality hotspots.
From big-city business stays and branded residential apartments to charming boutique getaways, chalets and villas to new-age products like Moxy and affordable lodging like Ginger and Sparks, the Indian hospitality scene is ready to welcome the world.
From a number perspective, IHCL is leading the charge with a ₹50 billion investment to double its portfolio to 700+ hotels by 2030. Hilton is on track to quadruple its presence, while Marriott is expanding to 42,000+ rooms across 50 cities by 2025, with 81 new hotels in the pipeline. Meanwhile, Radisson is doubling up to 150 hotels by 2025, and Wyndham is boosting its portfolio by 35% by 2025, focusing on affordable and mid-scale options.
On the luxury side, IHG and Oberoi are crafting unforgettable experiences, bringing bespoke stays to India’s most scenic destinations. And with 350 new airports by 2030, getting to even the most remote hospitality gems is easier than ever.
Spoiler Alert: Challenges like high GST rates, pollution, and a 3M talent gap loom, but the opportunities are boundless.
Next-Gen Travel: A game changer
India’s travel game is getting a major tech upgrade! AI is the star of this revolution, with adoption growing at a 12% annual rate by 2025. Think chatbots, smart booking engines, and personalized travel tips—no wonder 68% of Indian travellers prefer AI for planning their adventures. The AI in tourism market in India is projected to grow from $2.95 billion in 2024 to $13.38 billion by 2030, reflecting a CAGR of 28.7%
Enter Gen Z, the experience-first travellers shaping the future! In 2023, they made up 34% of online bookings, with 70% prioritizing experiences over things. From eco-resorts to adventure tourism, they’re all about meaningful moments.
Spoiler Alert: Next-gen Indian travellers face challenges like affordability, balancing sustainability with over-tourism, managing rising travel costs, and navigating poor infrastructure in emerging destinations. They must also deal with digital decision fatigue, evolving travel regulations, and ensuring health and safety, particularly for solo travellers. Preserving cultural authenticity amid commercialisation and balancing remote work with leisure add further complexity. Adapting to these hurdles will be key to shaping meaningful and sustainable travel experiences.
Incredible India 2025
India’s tourism and hospitality sector is on the cusp of a massive transformation! Powered by big investments, infrastructure developments, better connectivity, and smart tech, the industry is gearing up to set new global benchmarks.
Whether it’s domestic travel, inbound adventures, or outbound explorations, India is growing across the board. The rise of MICE events, luxury leisure, and spiritual escapes shows just how dynamic and versatile this space is becoming. Challenges like regulations and environmental concerns remain. With emerging tier 2 and 3 markets and booming niches like spiritual, adventure, and wellness tourism, India is all set to redefine the global travel map by 2025.
Despite the positive outlook, the sector faces challenges, including manpower shortage in hospitality and tourism, regulatory hurdles and environmental concerns. Addressing these issues is crucial to sustain growth and ensure the industry’s long-term success.
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