As Indians look to travel more in 2025, overseas holidays likely to pick up further
According to Thomas Cook India and SOTC Travel's India Holiday Report 2025, which was released Wednesday, not only are Indians planning to go on more holidays, they are also looking to spend more, with around 84 per cent of respondents considering spending anywhere between 20 per cent and 50 per cent more on travel this year 2025.
'The survey…reflects a significant shift driven by rising disposable incomes and the growing aspirational value of travel, including experiential holidays,' the report said.
Growing number of globetrotters
Indians are travelling overseas like never before, with international departure numbers recovering rapidly since the pandemic ebbed, and now at record levels. Among other factors, driving this surge is the growing international footprint of Indian airlines and various countries offering simplified and hassle-free visas to Indians. The number of countries offering visa-free entry to Indian citizens has also grown over the past three years.
In 2024, Indian nationals' departures to foreign countries rose 8 per cent to 3.02 crore after 2023 saw a 29 per cent year-on-year jump to 2.79 crore, crossing the pre-pandemic peak of 2.69 crore that was achieved in 2019, as per Ministry of Tourism data. In the first two months of 2025, 50.9 lakh Indians travelled abroad, up 6 per cent from the corresponding period last year, tourism ministry data showed.
According to the report, 44 per cent respondents are more likely to visit countries offering simplified visa processes like e-visa or visa-on-arrival options such as Thailand, Malaysia, the UAE, Sri Lanka, while countries that issue long-term visas—like Australia, Japan, and the US—are also seeing an uptick.
More international trips, while indicative of premiumisation in travel preferences, does not necessarily mean that Indian travelers have become spendthrift. As many as 39 per cent of the 2,500 survey respondents said that they actively seek promotions, discounts, and special offers while making their travel decisions.
In fact, according to Reserve Bank of India data, Indians' outward remittances for travel under the central bank's Liberalised Remittances Scheme (LRS) edged down by 2 per cent to $16.71 billion in 2024, accounting for 57 per cent of total outward remittances under the scheme.
There does seem to be a discernible premiumisation of Indians' travel plans, as has been the case in the domestic market for goods and services in the post-pandemic years. According to the survey, more than 36 per cent of respondents want 'premium experiences' such as luxury cruise holidays in Scandinavia countries, the Mediterranean, and the US, private island dining in Australia, stays in boutique hotels and chalets and heritage properties in India.
Where to next?
In terms of preferred international destinations, Europe continues to top the list with half of the respondents naming the continent among their destination preferences. Switzerland, France, Austria, Germany lead the European pack, with Eastern European destinations like Czech Republic, Hungary, and Croatia also gaining popularity.
'Short-hauls like Southeast Asia follows with favourites like Thailand, Malaysia, Indonesia, Singapore (46%); also Dubai, Abu Dhabi, Oman, Ras Al-Khaimah (37%); Japan & South Korea (35%) and Australia-New Zealand (26%); Island locales – Mauritius, Maldives, Bali, Sri Lanka (22%); South Africa & Kenya (12%),' the report said.
Central Asian countries like Uzbekistan, Kazakhstan, and Kyrgystan were among other emerging destinations mentioned by respondents, while Morocco, Iceland, and Greenland 'emerging on the radar'.
Inbound tourism still behind pre-pandemic levels
While Indians are now travelling overseas in droves, foreign tourist arrivals are yet to reach pre-pandemic levels. In 2024, total foreign tourist arrivals rose to 97 lakh, well short of the 1.09 crore arrivals witnessed in 2019.
Foreign tourists are a key source of earnings for the domestic tourism economy, with 2024 seeing total foreign exchange earnings rising 18 per cent to $33.19 billion. In rupee terms, this was equivalent to Rs 2.78 lakh crore. According to the government, the tourism sector contributed 5 per cent to India's GDP in 2022-23, with the total number of jobs supported directly and indirectly due to tourism rising 9 per cent to 7.6 crore.
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