Indian travellers are continuing to travel abroad for holidays but are increasingly shifting away from long-haul destinations such as Europe and Australia, opting instead for shorter and more cost-effective international locations in Asia, according to a Moneycontrol report.
The change in travel patterns is being driven by rising airfares, a weaker rupee and ongoing global uncertainty, which have collectively made long-haul travel significantly more expensive. As a result, demand is moving towards nearby destinations that offer shorter flight durations and lower overall travel costs.
Countries such as Thailand, Vietnam, Indonesia, Sri Lanka, Maldives and Malaysia are emerging as key beneficiaries of this shift. Japan is also seeing sustained demand, particularly among premium travellers, while destinations like Cambodia and the Philippines are gaining traction among those looking for newer travel experiences.
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At the same time, traditional long-haul favourites like Europe are witnessing softer demand, alongside some slowdown in parts of the Middle East and North Africa. Despite this, overall outbound travel demand from India has not declined sharply, but is instead being redirected toward alternative destinations.
Major travel booking platforms indicate that cities such as Bangkok, Phuket, Singapore, Hanoi and Ho Chi Minh City continue to dominate international booking trends for Indian travellers. Gulf destinations including Dubai, Riyadh and Muscat remain relatively stable, even as European bookings ease.
Visa application trends also show this shift, with rising interest in countries such as Vietnam, Sri Lanka, Indonesia, Japan and China, signalling a redistribution of outbound travel rather than a contraction.
Outbound travel inquiries for the April–June period are down by around 15–20% year-on-year, while nearly 35–38% of bookings are now being made within a month of departure, indicating shifting booking behaviour, the report mentioned.
Another emerging trend is the rise in last-minute bookings, with a growing share of travellers finalising international trips closer to their departure dates in order to secure better pricing.
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At the same time, domestic tourism is benefiting from spillover demand, with destinations such as Goa, Kerala, Himachal Pradesh, Meghalaya and Coorg seeing increased interest during the summer travel period.
Overall, the Indian outbound travel market is undergoing a clear realignment, with affordability, proximity and value-for-money becoming the key factors shaping destination choices.
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First Published on June 2, 2026, 15:41:00 IST
AloJapan.com