Indian Travellers In Demand: Why World Wants Them More Than Ever

As destinations worldwide recognize the potential of Indian travellers, tailored strategies, from visa relaxations to digital booking enhancements, are reshaping the sector. While global tourism faces uncertainties—from economic shifts to AI-driven transformations—India’s strong demand ensures its continued influence in shaping travel trends

Newer destinations are actively seeking Indian travellers because of the rapidly growing Indian outbound tourism market, fuelled by rising disposable income, a young demographic, and a growing desire for diverse travel experiences, making them a lucrative customer base for destinations looking to expand their tourism reach, especially when offering attractive visa policies, unique cultural experiences, and good connectivity with India; essentially, Indian travellers are increasingly looking for new and exciting places to explore, opening doors for less well-known destinations to attract their attention.

While Chinese tourists may still be the leader in global tourism spending, India is seen as the fastest-growing market for outbound tourism, expected to grow at 11 per cent annually for the next decade.

According to Euromonitor, international leisure and business travel generated 4.7 trillion US dollars worldwide in 2024, a figure that Bremner estimates could rise to around 5 trillion US dollars in 2025.

It is worth noting that the inflation of recent years, with some airlines, tour operators and the hotel industry experiencing significant double-digit price increases, has hardly slowed down the strong demand. Despite tighter budgets in many cases, the decision to take a vacation trip lasting several weeks remains a very high priority for most households. The pent-up demand of many people as a reaction to the lockdown and travel restrictions of the coronavirus years is still having a reinforcing effect here. As this special effect is likely to weaken in the future, many observers expect the momentum to level off in 2025, but at least stabilize under similar conditions. “Growth will slow, but it will continue,” predicts Mitra Sorrels, Senior Vice President of the New York-based market research institute Phocuswright, with regard to the US travel market. India’s unique blend of history, culture, and natural beauty continues to captivate visitors from all corners of the world. With its growing popularity, simplified travel processes, and government support, the country is poised for even greater achievements in the global tourism sector.

The Indian outbound market has emerged as a significant player in the global tourism industry with over 2 million Indian national departures recorded each month in the last financial year.

India’s outbound tourism industry has witnessed remarkable growth in recent years due to factors such as increasing disposable incomes, greater connectivity, and a burgeoning middle class. India is now among the fastest-growing outbound tourist markets globally. As the desire to travel to foreign destinations remains strong among Indians, the sector is expected to grow at a rapid pace with increasing collaborations and technology driven solutions. We hope this report serves as a valuable resource for stakeholders across the tourism industry, including policymakers, businesses, and researchers, enabling them to better understand and navigate the nuances of the Indian outbound tourism market.

Important growth impulses for global tourism in 2025 are expected to come from regions with strong economic dynamics, but also from the increasing influence of players from outside the industry. The massive expansion of air traffic infrastructure in the Gulf States, the rapidly growing travel budgets of a new Indian middle class and the entry of financial investors and private equity firms into tourism are phenomena that the ITB Berlin Convention 2025 will analyse as part of its own panel events.

However, the challenges posed by advancing digitalization and the new applications of artificial intelligence will also be general topics in 2025 that companies will have to address at almost all levels of the industry. The media and booking behavior of consumers has long been setting the pace of development here. According to Mitra Sorrels from Phocuswright, 66 percent of all travel bookings are now made online. Sorrells expects this proportion to rise to over 70 percent by 2027. Traditional business models of travel agencies and tour operators are coming under further pressure as a result.

The pressure to innovate and adapt therefore remains high on many levels. The growing desire of many holidaymakers for individual and “authentic” travel experiences, the diverse challenges of climate change, the opportunities and risks of complex new technologies, but also the growing instability of geopolitical factors are putting pressure on tourism from many different directions. Caroline Bremner from Euromonitor sums up the situation: “The industry is strong, but in 2025 it faces a number of uncertainties. AI and Donald Trump represent a new age of disruption. It's all pretty exciting, but also extremely challenging.”