Luxury, business class, and extravagant retreats are becoming increasingly popular among Indian travellers. Once known for their resourcefulness and practical approach to travel, Indians today prioritise travel like never before, and they’re doing it in style – with a taste for luxury.
“I am ready to shell out a few extra bucks, but when I travel, it has to be comfortable. Brownie points if I can find luxury with that extra money,” says Muskan Agarwal, a 25-year-old student from Delhi NCR, while sharing why she prefers to travel in luxury.
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Such is the mindset not only of Muskan but also of many Indians who are shifting from being budget travellers to embracing the idea of luxury travel.
What data tells us
Luxury travel among Indian tourists is no longer a rare occurrence. In fact, recent statistics reveal a clear shift in how Indians are approaching their travel plans. India Today analysed several year-end reports by various travel agencies, and all indicate the same.
According to data from Skyscanner, an online travel agency, 37 per cent of Indian travellers plan to upgrade their flights to business or first class in 2024. Additionally, 44 per cent intend to purchase access to airport lounges to ensure their trips begin on a luxurious note.
Another MakeMyTrip (an online travel agency) data shows the same. In fact, it shows a 50 per cent year-on-year increase in business class bookings, with international flights witnessing a whopping 80 per cent jump, while domestic flights saw a 27 per cent rise.
It also shows that India’s contribution of domestic hotel bookings priced above INR 10,000 has increased to 22 per cent as compared to 20 per cent in the same period last year. This number is almost double for international hotel bookings (a jump of 57 per cent from 51 per cent).
These figures paint a compelling picture. For a demographic once known for cost-cutting and resourcefulness, this surge in premium travel choices marks a significant change. It’s not just about getting from point A to point B anymore; it’s about doing so in style, comfort, and with a dash of indulgence.
Experts also agree
Louis D’Souza, director at Tamarind Global, says, “Luxury travel among Indian travellers has seen an extraordinary rise and this trend shows no signs of slowing down in 2025.” D’Souza explains that today’s Indian traveller craves unique, bespoke experiences that go beyond traditional sightseeing.
“From unwinding in a private villa on an exclusive island to a gastronomic adventure at Michelin-star restaurants in Tokyo, or indulging in bespoke art and fashion tours in Paris, the essence of luxury is shifting toward experiential and meaningful travel,” he adds.
Prabhakar Kamat, business head at Red Dot Representations, echoes this sentiment, and says the trend seems to be growing even more strongly for next year.
“India is rapidly emerging as a powerhouse in the global luxury travel market, and this trend will only solidify next year,” he says.
Kamat attributes the surge to changing preferences among Indian tourists, who are now focused on exclusivity and indulgence. “The contemporary Indian traveller is seeking experiences that feel personal and enlightening,” he adds.
Both experts identify several key factors behind the shift, which include growing economic prosperity, increased exposure to global lifestyles, and the influence of social media. Let’s break down these reasons one by one.
Why Indians prefer luxury
Several factors have converged to drive the rise in luxury travel among Indians, transforming it from a niche market to a mainstream aspiration. Here’s a closer look at what’s behind this change:
- Rising disposable incomes: Experts suggest that economic growth in India has created a more affluent middle and upper class, enabling a larger section of the population to afford premium travel experiences.
- Change in priorities: Experts like D’Souza suggest that the younger generation has prioritised travel as an essential part of their lives being the key contributors (Not 70 hours work week). Rajesh Magow, the co-founder and group CEO of MMT, says, “The trend toward premiumisation is becoming increasingly pronounced, as travellers are willing to spend more for a memorable holiday.”
- Exposure to global lifestyles: Thanks to the rise of social media and digital platforms, Indian travellers have a front-row seat to the luxury experiences enjoyed by people around the world. This exposure has cultivated a taste for indulgence and exclusivity.
- Celebration tourism: Destination weddings, milestone anniversaries, and large family reunions are on the rise. Grand occasions now call for equally grand destinations, and luxury travel provides the perfect setting for such celebrations.
- Post-pandemic priorities: Privacy, safety, and bespoke experiences have become crucial considerations for travellers. Exclusive itineraries and private accommodations naturally align with these needs, making luxury travel a more appealing option. Moreover, ever since the pandemic, there has been a change in the mindset of many people, with them prioritising experiences over anything else. This has led to the rise of a very specific type of travel known as ‘revenge travel‘.
- Desire for unique experiences: As D’Souza points out, modern travellers are seeking experiences that go beyond sightseeing. Private villas, Michelin-starred dining, and immersive art and fashion tours have become the new definition of luxury.
Looking ahead, the future of luxury travel for Indians seems brighter than ever. As Kamat says, “The growing appetite for such experiences is a clear indication that luxury travel will only continue to flourish in the coming years, with Indians playing a key role in shaping its future.”
Gone are the days when Indians were stereotyped as “budget travellers”. Today, they are shaping the global luxury travel landscape with their evolving tastes and growing influence. Vacation from the hustle and fast-paced lifestyle is coming to Indians in the form of luxury. And from the looks of it, this shift is only just getting started.
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