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Indian travellers are redistributing their travel budgets towards quality experiences, opting for smart luxury over indulgent splurges this festive period, according to a report by Thrillophilia, an AI-powered travel and experiences platform.
Affordable leisure stays priced between Rs 2,000 and Rs 6,000 per night have surged 22 per cent year-on-year (Y-o-Y), accounting for 48 per cent of all bookings, the report said. Across travel segments, the average spend on domestic trips ranges between Rs 25,000 and Rs 45,000, while short-haul international holidays average between Rs 60,000 and Rs 95,000.
Travellers choose ‘smart luxury’ and experience-led holidays
“Travellers are not necessarily cutting back; they're redistributing their budgets, spending less on rooms and more on meaningful experiences. This ‘smart luxury’ mindset, driven by tax savings and a refreshed sense of affordability, is shaping a new phase of travel growth in India,” the report said.
It added that this marks a shift from high-end vacations to value-driven, experience-rich escapes, a trend catalysed by the GST 2.0 rollout and the festive season.
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With travellers becoming more conscious about spending, air travel trends recorded a 21 per cent rise in the use of miles and upgrade vouchers, while premium-cabin share dipped by 2.8 percentage points compared to Diwali 2024.
Experiences, trekking and local tours gain traction
“Rather than splurging on business class or five-star hotels, people are choosing boutique stays and redirecting their savings toward premium day experiences. Trekking bookings are up 27 per cent, local sightseeing by 24 per cent, and cultural and culinary activities by 22 per cent, with the average activity basket now at Rs 3,600. The result: a redefined idea of luxury — one that’s rooted in experiences rather than excess,” the report said.
Jaipur, Lucknow, Bhubaneswar lead India’s affordable travel map
Jaipur has emerged as India’s most affordable-stay market, with stays in the Rs 2,000–6,000 band up 26 per cent Y-o-Y. Lucknow leads in family short-breaks, where two to three-night trips account for 59 per cent of all stays.
Bhubaneswar has seen activity-led growth with adventure and cultural bookings up 31 per cent Y-o-Y, averaging Rs 3,200 per trip. Chennai recorded the highest increase in miles and voucher usage, while Kolkata dominated short-trip bookings, with 61 per cent of stays lasting two to three nights, the report added.
Short breaks and weekend trips dominate festive travel trends
Short breaks and weekend getaways are driving the festive season, with two to three-night trips making up 58 per cent of all stays, up six percentage points from last year.
Abhishek Daga, co-founder of Thrillophilia, said that as travel feels more affordable, people are increasingly open to taking extra trips or upgrading their stays — a healthy sign for both travellers and hospitality operators in emerging leisure destinations.
“Bhopal has recorded the highest weekend occupancy at 81 per cent, while Hyderabad is India’s top early-planning market, with the average booking window stretching to 24 days compared to 19 last year. Patna shows the fastest festive booking velocity — Diwali-week inventory sold out three days earlier than last year — while Panaji leads the boutique-stay trend, where boutique and homestay properties now account for 54 per cent of all nights booked,” the report said.

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