Indian travellers want luxury that feels worth it: Booking.com’s Santosh Kumar on how value defines premium travel in 2025

"Luxury is not just about money anymore — it’s about meaning," says Santosh Kumar, Regional Head – South Asia, Booking.com.

As Indian travellers become more experience-driven and digitally savvy, their idea of luxury is rapidly evolving. It’s no longer just about five-star stays or designer suites, but about getting the best value, meaningful experiences, and personalised touches that make every trip memorable.

In an exclusive conversation with Moneycontrol.com, Santosh Kumar, Regional Head – South Asia, Booking.com, shares how this shift is reshaping both domestic and international travel, and what destinations are emerging as the new favourites.

“Luxury travel demand is still very resilient,” says Kumar. “In fact, it continues to grow year after year. Indians don’t mind paying a premium — but they want to feel that what they are getting in return truly matters.”

It’s a sentiment reflected in Booking.com’s 2025 travel data. Average daily rates and revenue per room have continued to rise across luxury properties, but what’s changed is how travellers perceive value. “Even a small gesture — a room upgrade, a complimentary meal, or a fruit basket — can go a long way,” Kumar adds. “It’s not about the cost, but the thoughtfulness. Travellers want to feel understood.”

The Rise of the “Luxury-for-Less” Generation

Today’s Indian traveller is no longer content with two vacations a year. Kumar reveals that the number of annual trips per person has jumped to three to five, driven by long weekends, remote work flexibility, and a cultural shift toward “micro breaks.”

But while planning starts early, bookings don’t. “The average domestic booking window is now less than 10 days,” he notes. “Indians are comparison shoppers. They explore all platforms and options before hitting ‘book’. That’s part of the value-seeking mindset — getting the best possible deal for the experience they want.”

This balancing act between indulgence and intelligence has created what Kumar calls the “luxury-for-less” movement — travellers who want premium stays without feeling extravagant. “The mid-segment still has massive potential,” he says. “Many Indians compare domestic travel costs with short-haul international destinations like Thailand or Dubai. The opportunity for Indian hotels is to match that value proposition and retain travellers within India.”

Experience Is the New Luxury

Ask Kumar what defines luxury for the modern Indian, and his answer comes without hesitation: “Experience.”

“Luxury today is a blend — price, aesthetics, and experience all matter. But at the heart of it, it’s about meaning. Travellers want to connect emotionally with their trips. It’s not enough to just stay somewhere nice; they want to know why they are there.”

That need for meaning is reshaping the way hospitality brands design experiences — from wellness retreats in Rajasthan to culinary trails in Kerala. It’s also blurring the line between luxury and mid-scale travel, with boutique stays and experiential resorts drawing guests who might once have chosen five-star hotels.

When Social Media Turns Unknown Spots into Hotspots

Social media, unsurprisingly, plays a starring role in shaping this behaviour. Nearly 45% of travel decisions in India are now influenced by what people see online.

“We have seen properties become aspirational destinations overnight because of viral content,” Kumar explains. “When White Lotus aired, people actually started travelling to those filming locations. In our own data, we have seen similar examples — places that were once under the radar now trending because of social visibility.”

Phu Quoc, Da Nang and the Shift East

When it comes to destinations, the data tells its own story. The top domestic favourites remain familiar — Goa, Kochi, Jaipur, and Udaipur. Delhi also features prominently for its mix of business and leisure travel.

But internationally, a quiet revolution is underway. Alongside the ever-popular Dubai, Bangkok, and Singapore, a new contender has emerged: Phu Quoc, a picturesque Vietnamese island that’s turning into the “new Goa” for Indian travellers.

“It’s affordable, visa-free, and offers a beach experience that feels both exotic and familiar,” says Kumar. “Better connectivity and visa ease have made Southeast Asia incredibly attractive. In some cases, flight prices to Vietnam or Thailand are almost the same as flying domestically.”

He adds that Da Nang is another Vietnamese hotspot seeing sharp growth, echoing the broader trend of Asia-Pacific destinations.

All-Time Favourite Destinations of Indians

Despite new names entering the charts, certain destinations never fade. “Goa, Rajasthan, and Kerala continue to be evergreen favourites,” Kumar says. “During summer, hill stations and spiritual spots rise in popularity — it’s a very seasonal pattern.”

ALSO READ: India's Top 10 Most Searched Travel Hotspots of 2025

Internationally, the “starter pack” of global travel remains the same. “For most Indians getting a passport for the first time, their first international trip is still to Dubai, Bangkok, or Singapore,” he laughs. “And during summer, London and other European cities join the mix.”

ALSO READ: Top 10 International Destinations Indians Loved in 2025

Tips: How to Travel Luxe on a Budget

So how can travellers enjoy a luxurious holiday without burning through their savings? Kumar’s advice is simple: plan ahead and travel smart.

“Book early to get the best rates, and travel during the shoulder season,” he suggests. “If a destination is popular in May, go in March. Or visit right after peak season. You will find better prices, fewer crowds, and a completely different charm.”

The Surprise Destination of 2025

Among all the emerging trends, Kumar points to one standout story. “In 2024, we saw a big spike in Indian travellers to Baku, the capital city of Azerbaijan, and Georgia — mostly because of direct flights and easy visas. But this year, the real surprise has been Vietnam's Phu Quoc island. It’s like discovering Goa, but abroad.”

As more Indians seek experiences that blend luxury, accessibility, and authenticity, destinations like Phu Quoc may well define the new era of travel — where a getaway is not just about where you go, but how it makes you feel.

“Indians will continue to travel more, explore wider, and spend smarter,” Kumar concludes. “Luxury is not just about money anymore — it’s about meaning.”