International destinations and spiritual connections shaped India's travel sector in 2024
Uttar Pradesh, Maharashtra, Tamil Nadu, Karnataka, and Rajasthan have emerged as top destinations for domestic travel, benefiting from cultural festivals, wildlife tourism, religious pilgrimages, and rural tourism.
Indians’ appetite for travel grew in 2024. The country is also witnessing a shift in travel preferences, with more people opting for offbeat destinations and eco-tourism, as well as a surge in solo and women travelers.
According to the MasterCard Economics Institute’s latest report launched in May 2024, there has been a 21% increase in international travel compared to 2019, with a notable 4% increase in the first quarter of 2024.
Specifically, the number of visitors to the United States increased by 59% compared to 2019 while Japan saw a 53% increase in the number of Indian visitors compared to 2019.
The highest though—at 248%—were Southeast Asia countries. Vietnam has also become one of the main attractions for Indian tourists, according to the report.
"As we approach the year-end holiday season, we’re seeing a fascinating shift in travel preferences. Destinations like Thailand, Vietnam, London, and Bali have emerged as the top picks for international travel this winter witnessing an 80-100% YoY growth in bookings,” Aloke Bajpai, Group CEO, , told YourStory.
“Interestingly, for the first time, Maldives has not featured in the top 10 most-searched destinations for year-end travel, reflecting a growing preference for more varied and immersive vacations over traditional hotspots,” he added.
The Gurugram-based OTA listed platform saw strong growth in flights at +43% YoY GTV (Gross Transaction Value) and buses at +46 %YoY GTV in Q2 FY25 vs Q2 FY24.
“Our Monthly Transacting Users (MTUs) increased by nearly 43% YoY, reaching 3.43 million for the quarter. Flights and buses together now contribute about 60% of our company’s margins,” adds Bajpai.
The travel-tech company made a stellar debut on the exchanges on June 18, 2024, with shares surging 78.2% from its IPO price of Rs 93 per equity share. The IPO, which raised Rs 740 crore was oversubscribed 98.34 times, driven by strong demand from institutional, HNI, and retail investors.
Domestic travel
Bajpai shared that more travellers from Tier II and III cities are choosing international destinations.
“For example, airports like Varanasi, Vijayawada, Rajkot, and Jharsuguda have grown over 50% in passenger segments YoY for us. Additionally, our international flight GTV has grown at an impressive 47%, outpacing domestic flight growth,” he mentions.
Recently at the BOTT Knowledge Conclave: Tourism@2025 in New Delhi, Union Tourism Minister Gajendra Singh Shekhawat discussed India's significant tourism growth.
Key states like Uttar Pradesh, Maharashtra, Tamil Nadu, Karnataka, and Rajasthan have emerged as top destinations, benefiting from cultural festivals, wildlife tourism, religious pilgrimages, and rural tourism.
Initiatives like the ‘Dekho Apna Desh’ campaign and state-level tourism promotion efforts have played a crucial role in this remarkable growth, further enhancing India’s appeal as a domestic travel destination.
According to the Ministry of Tourism, domestic tourist numbers have seen a remarkable increase of 95.64%. India’s ranking in the global travel and tourism development index (TTDI) has improved from 65 to 39.
A biennial report published by the World Economic Forum, the TTDI measures the factors and policies that enable a country's travel and tourism sector to develop sustainably and resiliently.
He also mentioned that over Rs 6,800 crore has been invested in destination development, with Rs 3,295.76 crore approved to promote lesser-known tourism sites across states.
"On the domestic front, destinations like Jammu, Srinagar, and Dehradun are seeing a huge spike in bookings, highlighting a growing interest in mountain escapades this year. This contrasts with last year’s trend, where beachside getaways dominated year-end travel plans. The appeal of scenic winter landscapes and the charm of snowfall seem to be drawing more travelers to the mountains this season," says Bajpai.
According to data for travel between 16-31s December, Andaman, Kerala, Goa, Himachal and Kashmir saw double-digit growth in bookings for holiday packages for the upcoming year-end holiday season.
Seeking spirituality
India’s spiritual destinations are getting popular. According to digital travel platform Agoda, cities such as Bangalore, Hyderabad, and Chennai are leading domestic destinations for spiritual travel during the last quarter of the year.
For inbound travelers, Kochi and Varanasi are among the most popular spiritual destinations.
Both destinations attract international spiritual travelers because of their deep-rooted cultural, historical, and religious significance. Travelers from the USA, Singapore, Japan, and Australia are contributing to the rise in inbound interest, drawn to India's unique fusion of spirituality and culture during the festive period.
Krishna Rathi, Senior Country Director, India Subcontinent and MEA at Agoda, commented on the growing trend, saying, “The rising interest in spiritual destinations throughout India reflects travellers' evolving preferences for more enriching and culturally immersive experiences.”
Tech in travel
In 2024, technology is also playing a key role, as travel companies leveraged mobile apps, smart bookings, and real-time travel updates to make travel easier.
“ixigo was the first OTA in India to launch a Generative AI-based travel planning tool named PLAN in 2023 to help travellers plan their trip, get itineraries and real-time information and recommendations based on input criteria,” says Bajpai.
Online travel aggregator, says it uses AI/ML-based algorithms and a WhatsApp booking bot along with other tools.
“Technology has become increasingly central to travel planning and execution, with 84% of Indian travelers now leveraging AI tools for their journey planning. This technological integration extends to sustainable travel practices, with a growing emphasis on carbon offset programs and eco-friendly accommodations, reflecting the industry's adaptation to environmentally conscious consumer preferences,” added Nishant Pittie CEO and Co-founder of EaseMyTrip.
Edited by Affirunisa Kankudti