Summary of this article
BCG projects India’s leisure travel spend rising 10–12 per cent annually.
Domestic trips drive growth, with millennials and Gen Z leading.
Tech platforms, AI, and social media shape Indian travel choices.
India is set to rank among the world's fastest-growing travel markets in the next 15 years. In a new report by Boston Consulting Group (BCG), Indians' leisure travel spending will rise by 10 to 12 per cent every year till 2040. The growth places the country among the principal drivers of the 15 trillion dollar opportunity in the global leisure travel industry.
Even as more developed economies like the US and the UK experience slower growth, India is on the threshold of accelerated growth in domestic as well as foreign tourism. Increasing middle class, more disposable incomes, and young travellers with their preference for experiences over material possessions are driving India to the top of international travel demand.
Changing Travel Trends
Travelling behaviour among Indians is changing too. Multigenerational vacations, including grandparents, parents, and kids together, are becoming popular. Solo travel, previously uncommon, is now mainstream, especially among younger travellers who are increasingly interested in cities, culture, and festivals.
Spiritual and religious tourism remains a big contributor, with millions going for pilgrimages annually. On the other hand, wellness tourism is also on the rise, with yoga retreats, ayurveda spas, and holistic resorts eliciting domestic and international attention.
Domestic Travel Drives The Growth
BCG analysis indicates that domestic tourism will continue to be the largest growth driver. Travel spend within India is likely to grow by 12 per cent annually. In 2024, global domestic leisure travel spend was 4.1 trillion dollars, and India's contribution to that amount is likely to shoot up steeply by 2040.
From Himalayan treks to beach holidays in Goa, India's diverse travel destinations attract students, young professionals, and families alike. Low-cost flights, improved road and rail connections, and increasing tourism infrastructure are driving demand. Domestic trips of shorter durations are also gaining traction among travellers who prefer staying closer to home instead of splurging on foreign trips.
Increasing Interest In Offshore And Foreign Trips
With the domestic boom, Indians are also travelling more within and outside Asia. Asian regional travel expenditure is likely to increase by 8 per cent a year and international expenditure by some 10 per cent.
Millennials and Gen Z are leading this transformation. Impacted by social media, international events, and online booking websites, they are more keen to visit places beyond India. South-East Asia, the Middle East, and Europe are already witnessing continuous growth in Indian inflows.
At the same time, India itself is drawing more international visitors, as a two-way movement that reflects the nation's increasing role in international tourism.
Technology And Travel Decisions
Online platforms are at the heart of Indians' trip-planning habits. Social media, peer reviews, and influencer endorsements greatly impact decisions. The BCG report further adds that tourists from emerging economies such as India interact with a greater number of online touchpoints than their counterparts, frequently switching between social media and apps to book a trip.
As conversational booking platforms and artificial intelligence tools become more popular, there will be a need for the travel companies, hotels, and airlines to adapt their strategies to engage effectively with Indian consumers. Digital loyalty schemes, personalised offers, and easy bookings are now minimum expectations and not extras.
