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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Nishant Agarwal Takes Over as VP of The Leela Palace Bengaluru – A New Era of Luxury and Excellence Begins!

In a significant announcement in December 2025, The Leela Palace Bengaluru appointed Nishant Agarwal as its new Vice President and General Manager. Known for its outstanding luxury services, The Leela is set to reach even greater heights under Mr. Agarwal’s leadership. His appointment is anticipated to bring fresh ideas, innovations, and a continued commitment to service excellence, which has long been a hallmark of the hotel.

A Seasoned Leader in Luxury Hospitality

Mr. Agarwal’s career in hospitality spans over two decades, with extensive experience in the luxury hotel industry. His expertise lies in both operational management and strategic vision. With a solid foundation built upon previous roles across leading hotel brands worldwide, Mr. Agarwal is poised to guide The Leela Palace Bengaluru into its next phase of excellence. Throughout his career, he has consistently focused on delivering exceptional guest experiences and fostering teams that embody a culture of warmth, professionalism, and commitment.

Before assuming his new role at The Leela Palace Bengaluru, Mr. Agarwal served as Vice President & General Manager of The Leela Palace Chennai, where his leadership was instrumental in elevating service standards. During his tenure, he helped enhance the hotel’s reputation by maintaining an ideal balance between operational efficiency and the personal touch, which earned him wide recognition within the industry.

A Vision for the Future

Under Nishant Agarwal’s leadership, The Leela Palace Bengaluru is expected to continue its pursuit of innovation while honoring its rich tradition of luxury. His deep understanding of the intricacies of hotel operations will support the hotel’s ambition to redefine luxury hospitality in Bengaluru, a city renowned for its burgeoning hospitality industry.

Mr. Agarwal’s approach combines operational rigor with a focus on guest satisfaction and team development. His leadership style is expected to reinforce The Leela’s commitment to gracious hospitality, an ethos that has defined the brand for years. The hotel’s service excellence is expected to be further refined, fostering even deeper connections with guests and setting a new benchmark for luxury hotels in India.

Enhancing the Brand Positioning

During his tenure in Chennai, Mr. Agarwal’s efforts led to a significant enhancement of the property’s brand positioning. His ability to strengthen the brand’s reputation while adhering to operational excellence has made him a respected figure within the hospitality sector. The Leela Palace Bengaluru will benefit from his strategic insights, especially as the city competes to be a leader in the global luxury hotel market.

The Leela Palace Bengaluru’s reputation for unparalleled luxury is expected to be further bolstered with Mr. Agarwal’s leadership, continuing to attract discerning business and leisure travelers from across the globe. His leadership will ensure that The Leela Palace Bengaluru remains synonymous with sophisticated elegance and superior guest service.

Delivering Luxury and Innovation Together

As Vice President and General Manager, Nishant Agarwal brings a blend of operational expertise and strategic foresight to The Leela Palace Bengaluru. Under his guidance, the hotel will strive to set new standards for luxury hotels in India, offering guests a combination of tradition, elegance, and forward-thinking innovation.

Mr. Agarwal’s focus on innovation will enhance guest experiences, pushing the boundaries of what a luxury hotel can offer while maintaining the signature warmth and professionalism that The Leela is known for. His leadership will align seamlessly with The Leela Palace Bengaluru’s vision, continuing its legacy of luxury hospitality while looking forward to new opportunities in the hospitality sector.

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Thailand Tourism Revitalizing The Hospitality Sector And National Economy Through The Expansion Of Regulated Nighttime Activity Hubs

The landscape of international travel is being reshaped as Thailand strategically implements measures to invigorate its nighttime economy. It is observed that the extension of operating hours for entertainment venues has become a pivotal component of the national tourism recovery strategy. By allowing establishments in key zones to remain open until 4:00 AM, a significant surge in tourist spending and overall economic activity is being fostered by the government. This shift is designed to cater to the evolving preferences of global travelers who seek diverse and extended experiences beyond traditional daylight hours.

The Policy Shift and Its Immediate Impact

A deliberate decision was made by the Thai cabinet to pilot extended nightlife hours in prominent destinations including Bangkok, Phuket, Koh Samui, Chonburi, and Chiang Mai. It is noted that these locations were selected due to their high density of international visitors and established infrastructure. By shifting the closing time from 2:00 AM to 4:00 AM, a broader window for consumption and entertainment is being provided. This policy is not merely about late-night revelry; it is framed as a comprehensive approach to maximizing the utility of existing urban spaces and hospitality assets.

Since the implementation of these regulations, a noticeable increase in the vibrancy of these zones has been reported. The streets are seen to be occupied by visitors for longer durations, which directly correlates to higher revenues for local businesses. It is argued by industry experts that the extra two hours of operation contribute significantly to the daily turnover of bars, restaurants, and transportation services. The ripple effect of this increased activity is felt throughout the supply chain, benefiting food vendors and service staff alike.

Economic Contributions of the After-Dark Sector

The economic significance of the nighttime economy is being emphasized by government officials and financial analysts. It is estimated that a substantial portion of the tourism revenue is generated after the sun sets. By facilitating a legal and regulated environment for late-night activities, the informal economy is being integrated into the formal financial structure. This transition allows for better tax collection and the implementation of standardized safety protocols, which are essential for maintaining the country’s reputation as a safe destination.

The hospitality sector is being revitalized through this initiative, with hotels and resorts reporting higher occupancy rates in areas adjacent to entertainment hubs. It is observed that tourists are more likely to extend their stays when a diverse range of nighttime activities is available. Furthermore, the diversification of the tourism product is being achieved, moving away from a reliance solely on beaches and historical sites. The cultural richness of Thailand’s night markets and street food scenes is being elevated to a primary attraction status.

Safety Measures and Regulatory Oversight

While the expansion of hours is being celebrated for its economic potential, the importance of safety and order is not being overlooked. Enhanced security measures are being deployed by local authorities to ensure that the extended hours do not lead to an increase in crime or public disturbances. Increased patrolling by police and the installation of additional surveillance equipment in key districts are being prioritized. It is understood that the sustainability of this growth is dependent on the maintenance of a secure environment for both locals and visitors.

Strict regulations regarding alcohol consumption and noise levels are also being enforced. Establishments are being required to adhere to specific guidelines to minimize the impact on residential areas located near entertainment zones. By balancing the needs of the business community with the well-being of the local population, a more harmonious integration of the nighttime economy into the urban fabric is being sought. The collaboration between the private sector and government agencies is seen as a crucial element in the success of these measures.

Enhancing the Visitor Experience

The traveler experience is being significantly enhanced by the flexibility offered by longer operating hours. It is recognized that many international tourists come from time zones that differ greatly from Thailand’s. By providing late-night options, the needs of these “night owl” travelers are being met, allowing them to adjust to the local environment at their own pace. The availability of high-quality dining and entertainment options at all hours is being marketed as a premium feature of the Thai tourism experience.

In addition to traditional nightlife, the promotion of cultural events and festivals that take place after dark is being expanded. Night marathons, light festivals, and late-night museum openings are being integrated into the tourism calendar. This holistic approach ensures that the nighttime economy appeals to a wide demographic, including families and business travelers, rather than being limited to a younger audience. The richness of Thai heritage is being showcased through these innovative nocturnal formats.

Future Prospects and Regional Competition

As Thailand continues to refine its approach, the nighttime economy is being viewed as a long-term driver of growth. Observations are being made regarding how other regional competitors are responding to Thailand’s success. It is noted that neighboring countries are also exploring similar measures to capture a share of the post-pandemic travel market. However, the unique combination of Thai hospitality, world-class infrastructure, and a vibrant street culture is believed to provide a competitive edge that is difficult to replicate.

Data is being continuously collected to monitor the social and economic outcomes of the extended hours. These insights will be used to determine if the policy should be expanded to other provinces or if further adjustments are required. The commitment to data-driven policymaking ensures that the tourism sector remains resilient and adaptable to global trends. The vision of Thailand as a 24-hour destination is gradually being realized, positioning the nation as a leader in the global tourism landscape.

Conclusion and Sustainability

The journey toward a robust nighttime economy is being characterized by a blend of innovation and caution. It is concluded that the strategic leverage of after-dark activities is providing a much-needed boost to the national economy. By focusing on safety, regulation, and diverse offerings, a sustainable model for tourism growth is being built. The transformation of Thailand’s nights into a period of high economic productivity and cultural expression is a testament to the country’s proactive stance in the face of global challenges. The future of Thai tourism is being illuminated, quite literally, by the glow of its vibrant and inclusive nighttime economy.

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AI Adoption Transforms Tourism Across the Middle East: A Future Shaped by Technology

AI adoption in the tourism and hospitality industry across the Middle East is advancing rapidly, reshaping the way travellers experience destinations. Saudi Arabia, the UAE, and other regional leaders are deploying artificial intelligence (AI) to enhance guest services, streamline operations, and elevate the visitor experience. With AI at the core of Vision 2030, the region is positioning itself as a global leader in smart tourism.

According to recent findings from PwC Middle East, an impressive 91 percent of hospitality leaders in the region are already piloting or using AI technologies. This signifies a major step towards smarter travel experiences. However, while progress is strong, the journey is far from complete, as only 3 percent of organisations have fully integrated AI into their operations.

Saudi Arabia’s Vision 2030 and AI-Driven Tourism Growth

Saudi Arabia’s Vision 2030 plan is pivotal to the growth of its tourism sector. AI plays a key role in reaching the ambitious goal of welcoming 150 million visitors annually by the end of the decade. The nation is working to increase tourism’s contribution to its GDP from 3 percent to 10 percent, using AI as a catalyst for transformation. From predictive analytics that anticipate guest needs to personalised travel experiences, AI enables seamless, tailor-made journeys for visitors.

AI’s potential is not limited to just automating processes; it’s about enhancing the very fabric of the tourism experience. Through AI-powered chatbots, voice assistants, and real-time data insights, Saudi Arabia is improving customer interactions and providing timely, relevant information to travellers, whether they are in the planning phase or at the destination itself.

The UAE as a Global Leader in AI-Powered Hospitality

In the UAE, AI is driving the evolution of the hospitality industry. The nation has long been at the forefront of using cutting-edge technology to redefine its tourism sector, and AI is no exception. As the UAE positions itself as a global leader in AI-powered hospitality, the country is integrating AI to enhance guest satisfaction, automate service delivery, and optimise hotel operations.

From AI-driven room service and personalised recommendations to smart hotel rooms equipped with the latest digital tools, the UAE is using AI to make every stay more memorable. Additionally, AI is helping businesses manage large data sets efficiently, enabling more informed decision-making and fostering stronger connections between guests and hotels. Real-time insights empower the tourism sector to cater to the dynamic needs of international travellers, ensuring that the UAE remains an attractive destination for both business and leisure.

AI’s Role in Enhancing the Guest Experience

AI is transforming the guest experience, offering tailored recommendations and streamlining interactions. With predictive insights, AI anticipates traveller needs before they arise. Whether it’s suggesting personalised itineraries or offering special deals based on user preferences, AI empowers businesses to create unique, bespoke travel experiences.

In hotels, AI’s ability to process data has become indispensable. By connecting fragmented systems and automating various tasks, AI enables smoother check-ins, enhanced security, and more efficient customer service. This level of integration ensures a seamless journey for travellers from start to finish.

Impact on Human Resources and Workforce Empowerment

As AI becomes increasingly integral to the hospitality sector, its impact on the workforce is undeniable. In Saudi Arabia and the UAE, the shift towards AI-driven systems is not about replacing jobs but empowering employees. Through AI-enabled training, workforce analytics, and adaptive learning systems, staff members are better equipped to handle complex tasks and focus on value-added services that enhance the customer experience.

AI also helps businesses optimise human resources by improving the hiring process, matching skills to roles, and fostering professional development. This technology enables organisations to cultivate a future-ready workforce that thrives in an AI-enhanced environment.

Channel Management and Smart Pricing

AI’s ability to optimise pricing models and manage online reputation is another game-changer for the hospitality sector. By analysing market trends, competitor pricing, and customer feedback, AI allows businesses to make smarter decisions in real-time. This leads to more accurate pricing, better visibility across digital platforms, and enhanced online reputations.

With the tourism sector becoming more competitive, AI helps hotels and travel agencies adapt to the ever-changing dynamics of global travel. Whether it’s adjusting rates during peak season or promoting special offers to the right audience, AI ensures that businesses stay ahead of the curve.

A Future of AI-Enhanced Travel Awaits

The Middle East’s commitment to AI in the tourism sector is poised to redefine global travel experiences. From Saudi Arabia’s Vision 2030 to the UAE’s leadership in AI-powered hospitality, AI is at the forefront of transforming the region’s tourism landscape. As AI technologies continue to evolve, travellers can expect smarter, more personalised journeys, from planning their trip to enjoying every moment at their destination.

AI not only promises to enhance operational efficiencies but also ensures that the hospitality experience is more intuitive, personalised, and seamless. The Middle East is rapidly becoming a model for how AI can elevate the tourism sector, offering a glimpse into the future of travel.

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