Indians travelling abroad for holidays are increasingly opting to shift away from shorter breaks to longer and more luxurious experiences, as captured by a 35-40 percent growth in luxury bookings, according to data from travel operators. The trend has extended the post-pandemic travel surge and is backed by rising household incomes, that has seen Indians spent a record $50 billion on foreign holidays in the last three years. Industry experts said the average trip budgets have increased by 20-30 percent during this period.
The emerging focus has been on the so-called immersive luxury – ranging from Northern Lights safaris, European culinary tours, shopping in Dubai and diving at the Australia’s renowned Great Barrier Reef, travel industry experts have said. The trend has been helped by visa relaxations for Indians and accessible financing options such as Travel Now and Pay Later.
This spending surge is evident in the latest RBI data. Before FY22, Indians spent on an average $3-4 billion annually on holidays via the Liberalised Remittance Scheme(LRS) route, which has soared to an annual average of $17 billion in the last two years, accounting for 55 percent of all LRS outflows.
"We are seeing growing interest in curated experiences - private villa stays in Bali, gourmet trails in Tuscany, polar expeditions in Iceland, and wellness retreats in Malaysia and Thailand." said Rajeev Kale - President & Country Head, Holidays, MICE, Visa - Thomas Cook (India). “It is interesting to note that the average spends is also increasing as Indian travellers opting for multiple holidays through the year and longer stays - moving from traditional 3-day breaks to 6-12 day holidays,” added Rajeev Kale.
Where are Indians travelling?
Classic European destinations like Switzerland and France continue to be in demand, as are islands of Maldives and Bora Bora, but the demand by Indian tourists is going beyond these destinations, seeking experiences such as cruises, culinary tours and Safaris.
"Premium and luxury travel bookings have grown 35–40 percent on-year, with destinations like Switzerland, France, Maldives, and Japan dominating the segment," said Govind Gaur, Founder and CEO WanderOn, a global travel services company.
Dubai is a destination that many tourists seek, both as solo and family travellers, given the short flight duration from major cities and ease of entry and exit, making it a favourite among Indians, said experts.
"We have observed a significant uptick in travel to Dubai, along with a 36.9 percent increase for Vietnam and a 43.9 percent increase for Singapore over the past three years," said Hari Ganapathy, Co-founder, Pickyourtrail, a company that offer customized international holidays, adding that it reflects a growing preference for family-friendly yet globally vibrant destinations.
When it comes to outdoor experiences, Australia and New Zealand rule the charts. "Australia-New Zealand remain favourites for outdoor adventure experiences and wildlife while Japan and South Korea appeal to travellers with their blend of tradition and pop culture," Thomas Cook’s Rajeev Kale said.
MakeMyTrip’s assessment showed that Indians are preferring destinations that offer easier visa access. “Of the top 15 international destinations that attracted the highest traffic on our platform in July, five offered visa-free or visa-on-arrival entry, another six had e-visa and only four required a physical visa,” a spokesperson of MakeMyTrip told Moneycontrol.
MakeMyTrip added that among top destinations offering visa-free or visa-on-arrival entry, bookings to Thailand rose by 32 percent on year while Indonesia and Sri Lanka recorded a 21 percent and 64 percent increase in booking respectively, during July this year.
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