Indian travellers now prioritise luxury holidays over designer goods

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Indian travellers now prioritise luxury holidays over designer goods

June 4, 2025

A new report reveals that the majority of Indian travellers now prefer luxury holidays over traditional status symbols, with emotion-driven journeys replacing sightseeing as the primary motivation for international trips. Olivia Palamountain reports

India's outbound travel market is undergoing a fundamental shift, with luxury experiences becoming more valued than traditional markers of success such as weddings or designer purchases, according to new research by FINN Partners and GSIQ.

The Future of Travel 2025, based on a survey of 2,000 Indian international leisure travellers, found that 81% prefer luxury travel over lavish weddings, whilst 74% would choose it over designer purchases. Additionally, 56% prioritise hotel upgrades over flight upgrades.

"Indian travellers are no longer just dreaming. They are doing with intent, emotional clarity, and rising global fluency. Travel has become the ultimate expression of self, more valued than traditional markers of success like weddings or luxury goods," says Shivani Gupta, managing partner at FINN Partners.

The research reveals that today's Indian travellers are planning journeys based on emotional outcomes rather than traditional sightseeing. The top motivations for travel in 2025 are fun and adventure (48%) and cultural discovery (47%), with emotional rejuvenation particularly important among Gen Z.

Gen Z is driving this transformation with what researchers describe as a "Live the dream now" mentality. This digitally native generation makes spontaneous, content-fuelled travel decisions, with 95% including international travel in their financial planning. They favour boutique stays and emotional storytelling over traditional luxuries.

Digital content plays a crucial role in travel inspiration, with 53% of travellers citing YouTube vlogs as most influential. Gen Z relies heavily on Instagram, valuing spontaneity and aesthetics, whilst Gen X prefers detailed planning tools and blogs.

"Every global travel brand now needs an India strategy. Indian travellers have emerged as world-shaping consumers of culture, luxury and story-rich experiences," says Debbie Flynn, managing partner and global travel practice leader at FINN Partners.

Eva Stewart, managing partner at GSIQ tourism insights, adds: "From local startups to global airlines, travel brands are customising offerings to meet Indian travellers' needs with more flight options, better prices, and services that resonate and will help fuel India's outbound trips."

The report identifies five distinct traveller personas, including Fun-Seeking Explorers (22%), Self-Improving Idealists (16%), and Balanced Indulgers (21%), suggesting travel brands must tailor their approach to emotional motivations rather than demographics alone.

For more on this fascinating subject, subscribe to VOLT and download the "Indian Ignition" edition.

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