2025 Luxury Travel Trends in India: How the Sector is Evolving for 2026 and Beyond

India’s luxury travel sector is booming, and 2025 marks a pivotal year for the country’s hospitality industry. As domestic and international travel flourishes, the luxury segment is maturing rapidly, shifting from mass-market tourism to premium experiences that cater to more discerning travellers. As we approach 2026, India’s top-tier resorts, luxury stays, and heritage experiences are playing a crucial role in this transformation. With growing demand for immersive, sustainable, and personalised travel, luxury travel in India is embracing new dimensions. Let’s explore the trends driving this growth and what the future holds.

“2025 has confirmed what we have sensed for a while now; luxury travel in India is maturing, and fast. We are seeing a hospitality sector that is growing in double digits, with occupancies, rates, and RevPAR all firmly ahead of last year, and luxury experiences have been a contributor to this growth. But the more important shift is qualitative. 

Domestic guests are choosing shorter, more frequent breaks closer to home, and they are no longer satisfied with simply ‘seeing’ a destination; they want to inhabit it. The stay itself has become the hero, and decisions are being driven by the promise of immersion, storytelling, and a sense of place rather than by star ratings alone.

At the same time, our guests are asking sharper questions about how we operate. Sustainability, once a differentiator, has quietly become a baseline expectation ranging from how we use water and energy to how we treat landscapes and local communities. From discovery, personalisation, to seamless service, technology, too, is now woven into the experience without taking away from the warmth and human connection that define true luxury.

As we look to 2026, the opportunity for Indian luxury hospitality lies in holding these threads together –  harnessing growth in domestic travel and new destinations, embracing digital tools intelligently, and deepening our commitment to environmental and cultural stewardship. If we can continue to create places where guests feel both cared for and connected to nature, to local culture, and to themselves, I believe the coming years will be among the most exciting decades our industry has seen.” Jose Ramapuram, Executive Director Marketing, Evolve Back Resorts

India’s Booming Luxury Travel Market

India’s luxury travel market is on track to surpass USD 72.9 billion in 2024 and is expected to grow to USD 102.8 billion by 2033, as affluent travellers from both domestic and international markets seek out unique, high-end experiences. According to industry experts, India’s branded luxury hotels are seeing impressive compound annual growth rates (CAGR) of 8–11%, indicating strong potential for further expansion in the next decade. This growth is fueled by rising disposable incomes, greater access to premium services, and a heightened demand for luxury and personalised experiences.

The expansion of India’s luxury travel sector is also reflected in the increasing number of global tourists choosing the country for a premium escape. From tropical beach resorts in Goa to luxury heritage properties in Rajasthan, India is firmly establishing itself as a key global luxury destination. Whether it’s world-class resorts, wellness retreats, or cultural explorations, the country’s luxury sector is set to soar.

A Shift in Domestic Travel Preferences

One of the most significant changes in India’s luxury travel scene is the shift in domestic travel patterns. Indian travellers are opting for shorter, more frequent trips, with a desire to stay closer to home. As Jose Ramapuram, Executive Director of Marketing at Evolve Back Resorts, aptly put it, the country’s luxury travel market is not just maturing in terms of volume, but also in its qualitative shift. Domestic guests are increasingly interested in experiential travel that allows them to “inhabit” a destination, not just visit it. This shift from passive tourism to immersive, hands-on engagement means travellers are seeking stories, cultural connections, and a sense of place, rather than just luxurious amenities.

This transformation in guest preferences has led to a significant rise in experiential and eco-tourism offerings in destinations like Tulum and Oaxaca. Here, guests immerse themselves in local culture and traditions, whether it’s through wellness experiences, local gastronomy, or activities that connect them to the surrounding nature. For example, wellness retreats in Kerala, heritage hotels in Rajasthan, and eco-resorts in the Andaman Islands are all designed to offer guests more than just a comfortable stay—they are designed to create lasting memories.

Sustainability and Cultural Stewardship: Expectations and Realities

Sustainability has gone from being a differentiator to a baseline expectation in the luxury travel market. Today’s guests are highly conscious of the environmental and social impact of their travel choices. Whether it’s water usage, energy conservation, or community engagement, travellers are asking sharper questions about how resorts and hotels operate. As Ramapuram highlights, sustainability is no longer an optional luxury feature but a core expectation that drives bookings.

India’s top luxury resorts are already rising to the occasion, implementing eco-friendly practices, supporting local communities, and striving for zero-waste operations. At the same time, they continue to provide world-class amenities and personalised services. For example, resorts across Kerala, Goa, and the Himalayan foothills are incorporating sustainable sourcing of food, eco-conscious designs, and community-based tourism initiatives. These efforts resonate with a new generation of travellers looking to connect with nature and culture, making sustainability an integral part of their luxury experience.

The Role of Technology in Enhancing Luxury Stays

The rapid integration of technology in the luxury hospitality sector is another critical trend. From AI-powered booking platforms to smart rooms and virtual concierge services, technology is seamlessly woven into the fabric of modern luxury travel. However, as Ramapuram emphasizes, technology does not overshadow the human connection—rather, it enhances it. Guests are increasingly seeking personalisation in their experiences, and technology is allowing resorts to deliver it at a scale never before possible.

For instance, mobile apps that provide tailored recommendations, automated check-ins, and room preferences are making it easier for luxury travellers to experience seamless service. At the same time, smart hotel rooms offer guests control over their environment, from temperature to lighting, ensuring a highly personalised stay. In addition, technology-driven wellness services such as virtual meditation sessions, AI-based fitness routines, and smart spa treatments are gaining popularity, offering guests a tech-savvy yet relaxing experience.

International Tourists Flocking to India’s Luxury Escapes

With 2025 and beyond expected to bring an influx of international tourists, India’s luxury destinations are positioning themselves to be the top choices for well-heeled travellers seeking a unique, culture-rich holiday. From Cancún’s eco-tourism model to Oaxaca’s world-class food tourism, global travellers are eager to explore India’s mix of traditional charm and modern luxury.

Resorts in destinations like Goa, Rajasthan, and Kerala have seen significant increases in the number of international visitors, with many coming for long stays that allow them to immerse themselves in Indian culture, cuisine, and natural beauty. With the global travel market increasingly interested in sustainability and authentic cultural exchanges, India’s luxury market stands to grow exponentially.

Looking Ahead: India’s Luxury Tourism in 2026

As the luxury travel market in India continues to evolve, the 2026 outlook is exceptionally promising. Cities like Goa, Rajasthan, Kerala, and Himachal Pradesh are set to see continued growth, with new luxury hotels and boutique resorts opening across the country.

Infrastructure expansion and international marketing campaigns are expected to drive global interest even further. For instance, the development of eco-luxury retreats in remote Himalayan locations or coastal wellness resorts in Kerala will attract guests from around the world seeking wellness, adventure, and cultural immersion in India’s diverse landscape. As the demand for personalisation and sustainability grows, India’s luxury sector is poised to meet these expectations and deliver some of the most memorable travel experiences globally.

Key Trends for 2026 and Beyond:

1. Rise of Experiential Travel: Shorter stays focused on immersion, rather than sightseeing alone.
2. Sustainability at the Core: Guests expect eco-conscious practices and community involvement.
3. Technology Integration: Smart services, AI, and personalised experiences enhancing the guest journey.
4. Culinary Tourism: A rising focus on food as an essential part of luxury travel in India.
5. New Luxury Destinations: Lesser-explored areas, like the Andaman Islands and Himachal Pradesh, emerging as luxury hotspots.

India’s Future as a Luxury Travel Powerhouse

With the luxury travel sector in India expanding rapidly and evolving to meet the demands of a new generation of travellers, the country is set to become one of the world’s top destinations for luxury, sustainability, and cultural immersion. The fusion of personalisation, eco-tourism, and technological innovation will define India’s luxury tourism landscape in the years to come. As destinations like Tulum, Oaxaca, and Cancún continue to lead the charge globally, India is prepared to offer an exciting, unforgettable, and immersive experience for luxury travellers in 2026 and beyond.

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