Indians residing in Tier-II cities are emerging as a key growth driver in the country’s travel industry, fueling faster expansion both in domestic and international tourism, according to the India Holiday Report 2025 published by Thomas Cook India and its subsidiary, SOTC Travel. This upward trend is attributed to rising discretionary incomes and improved connectivity across smaller cities.

The report highlights that holiday budgets of Indian travellers from Tier-II cities have surged between 20% to 50% compared to previous years, signaling increased spending power and a growing appetite for travel experiences. While Tier-I cities continue to generate higher overall travel volumes, Tier-II cities are witnessing a significantly faster rate of growth. This growth encompasses both domestic vacations and international travel, showing a broadening travel base.

Mr. S. D. Nandakumar, President and Country Head of Holidays and Corporate Tours at SOTC Travel, emphasized this dynamic growth. Additionally, Mr. Abraham Alapatt, President and Group Head (Marketing, Service Quality, Value-Added Services, and Innovation) at Thomas Cook India and SOTC Travel, noted a 4% year-on-year increase in average summer season spending for 2025. Travellers are increasingly seeking superior and diverse holiday experiences.

The report also points out a shift in travel seasonality. Traditional peaks like the summer holidays and Diwali-New Year festive season still dominate but there is growing popularity of short and long vacations year-round. Social media and OTT content influence 60% of travel decisions, surpassing films which once held sway over holiday choices.

Emerging traveller segments include mother-daughter pairs, cousin-sibling groups, senior female solo travellers, and “GenS” (empty nesters). Despite the rise in solo travel, approximately 90% of Indian travellers prefer to journey with company. In terms of holiday types, 45% prefer cruise holidays, 35% enjoy driving vacations, and 20% opt for scenic train journeys.

Among the top domestic summer destinations favored by Indian travellers are Kashmir, Himachal Pradesh, Uttarakhand, Northeast India, Rajasthan, Kerala, Andaman and Nicobar Islands, and Lakshadweep. On the international front, Europe (notably Switzerland and France), South East Asia, Dubai, Japan, Bhutan, and South Korea remain popular.

The findings of this report are based on a digital survey of 2,500 respondents conducted over one month, offering a comprehensive snapshot of evolving travel trends in India’s growing market.

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