Indians are spending big on travel. An survey by Thomas Cook (India) and group company SOTC Travel published earlier this year saw 85% of respondents mentioning their plan to travel more frequently in 2025, doubling or tripling the number of holidays they take. The survey also showed 84% tourists intending to increase their travel budget by 20–50%, with around 18% planning a significant rise. But it’s not just travel, but how they travel that’s also undergoing sea change.
According to industry experts, Indian consumers are spending more on experiences than possessions. The narrative is no longer about luxury versus value – it is about luxury and value, coexisting, colliding, and reshaping the contours of India’s hospitality and aviation economy.
According to experts, India’s luxury hotel market touched an estimated ₹72,000 crore in 2024 and is projected to grow at a brisk 14% CAGR through 2030. At the same time, mid-market and independent accommodations still account for nearly 58% of the hospitality share, supported by a surging middle class and Gen Z road-trippers seeking “value-plus” experiences. “It’s not a binary choice between Oberoi and a budget lodge, it’s coexistence,” observes Sahil Pandita, CEO and Founder, Promiller Group.
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Luxury As Lifestyle: Personalisation Beyond Price
Luxury travel is also witnessing a signficant change. The affluent traveller no longer equates luxury to chandeliers and marble lobbies; it is measured in time saved, privacy assured, and experiences tailored to the individual. “Luxury travel today is no longer just about opulence or extravagance; it’s about crafting experiences that are seamless, personal, and entirely tailored to the traveller’s lifestyle,” says Justinas Bulka, CEO of KlasJet. The appetite for curated indulgence, from private aviation with flexible schedules to hotels that anticipate needs before they are expressed, has created a market where “the ultimate indulgence is a journey that respects both comfort and efficiency.”
Increasingly, travellers are refusing to accept a trade-off between indulgence and conscience. Sustainability, once a peripheral demand, has become central to the definition of “premium.” “We are observing that today’s traveller is no longer choosing between luxury and value, they want both in a meaningful way,” says Suprabhath Roy Chowdhury, General Manager, voco Jim Corbett.
Also Read: Travel Bucket List: 10 Incredible Places To Visit In India To Satisfy Your Wanderlust – In Pics
Value Travel: Key Factor Behind India’s Travel Boom
While luxury travel is getting redefined, value travel remains the core of India’s travel industry. According to Pandita, “Middle-class and Gen Z travellers are flying regionally, road-tripping, and choosing unique, independent stays, not just big brands.” In fact, independent hotels continue to dominate share even as chains expand, signalling that travellers still seek discovery, local flavour, and affordability. This is not about compromise; it’s about maximising value in ways that enrich the experience.
