Indians in Tier-II cities bring 'faster growth' for travel industry: Report

Indians from Tier II cities are driving faster growth in the travel industry, exploring both domestic and international destinations, according to the "India Holiday Report 2025" by Thomas Cook India and its subsidiary, SOTC Travel. The report credits this trend to rising discretionary spending and improved connectivity. Indian travellers’ holiday budgets have surged by 20–50% compared to previous years. President and Country Head of Holidays and Corporate Tours at SOTC Travel, Mr. S. D. Nandakumar, highlighted that while Tier I cities still contribute higher travel volumes, Tier II cities are witnessing significantly faster growth. This growth is not limited to domestic trips but also extends to international travel.
President and Group Head (Marketing, Service Quality, Value-Added Services, and Innovation), Thomas Cook India, and SOTC Travel, Mr. Abraham Alapatt, noted a 4% YoY increase in average summer season spending in 2025. He added that travellers increasingly seek better experiences. While summer and Diwali-New Year periods once dominated travel patterns, the rise in short and long vacations has made travel a year-round activity. Social media and Over-The-Top (OTT) content now influence 60% of travel decisions, overtaking the earlier role of films. Emerging segments include mother-daughter and cousin-sibling groups, senior female solo travellers, and ‘GenS’ or empty nesters. Despite solo travel’s popularity, 90% of Indians still prefer company. Among preferences, 45% favour cruise holidays, 35% prefer driving vacations, and 20% opt for scenic train journeys. Top domestic destinations this summer include Kashmir, Himachal Pradesh, Uttarakhand, the Northeast, Rajasthan, Kerala, Andaman and Nicobar Islands, and Lakshadweep. International favourites among Indian travellers are Europe (particularly Switzerland and France), South East Asia, Dubai, Japan, Bhutan, and South Korea. The report is based on a digital survey of 2,500 respondents conducted over a month.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.