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Unlocking India’s Rapidly Expanding Travel Economy

Unlocking India’s Rapidly Expanding Travel Economy

One of the most exciting markets right now is India - a market that has rapidly become Skyscanner’s second largest market worldwide and a driving force for the global travel industry.

 

India is entering a unique growth phase

The Indian economy is on track to become the 3rd largest by 2027 (EY), with travel growing 15% annually (EY). The government is investing heavily in infrastructure with $11 billion committed and they’re doubling airport capacity and which is on track to reach 200 airports within the next two years (Skift). Travel is scaling fast. Passenger numbers have grown from 60 million to 165 million in the last decade and are projected to double again to 350 million in the next five years (WTTC). This sets the stage for one of the most exciting growth markets in global travel.

 

 

66%
of Indian travellers plan to take more trips abroad in 2025 as they did in 2024 and 58% are planning to budget more on their flights, higher than the global average.

 

Year on year we are seeing huge increases across new and popular routes. Malaysia is up more than 83%. Vietnam is seeing growth of over 93%. Travel to the UAE is up nearly 85% where searches also grew from 24 million in the first half of last year to 45 million in the first half of this year. To give you a sense of scale, in any given day in India, 115k people are searching for flights to the UAE, 68k are searching for Thailand, and 53k are searching for the UK. Indian travellers are not only travelling more, but they are also expanding their horizons, choosing both traditional favourites and new destinations in impressive numbers.

 

 

In 2025, Indian travellers are doubling down on both value and experience. Two-thirds plan to take more international trips compared to last year. Over half are budgeting more for flights and nearly half for accommodation.

37% say they’re willing to upgrade cabins and 57% would pay for better inflight meals, the highest globally. This shows us that in India value is still king, but premium touches are the crown. Advertisers should lead with affordability, that’s what earns attention, but layer in premium upsell moments to drive incremental spend. It’s about moving from deal-first to experience-rich storytelling.

Travel demand in India is no longer confined to Delhi, Mumbai, and Bangalore. We’re seeing strong growth from tier-2 and tier-3 cities — travellers who are younger, digitally savvy, and aspirational. They’re looking for cooler climates, alternative destinations, and experiences outside the mass-tourism mainstream.

For advertisers, this means untapped potential. Reach these audiences with local language creative, highlight regional airports, and showcase shoulder-season destinations. By getting ahead of this shift, you’re building loyalty with India’s next wave of travellers — before your competitors catch up.

 

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Why the excitement now?

A few major shifts have reshaped India in recent years. First the payments revolution. India now has one of the most sophisticated payment systems anywhere in the world. For travellers that means booking a trip or paying for services online has never been easier.

Second is the mobile data revolution where India is now the cheapest country in the world for data. Online penetration has skyrocketed from 200 million people to 850 million in just a few years. Today, more than 70% of all Skyscanner sessions globally happen on mobile. In India it’s closer to 80%. Travellers are scrolling, swiping, and booking in between WhatsApp messages and cricket highlights. That creates a design imperative: advertising has to perform at thumb-speed. The creative that wins is fast-loading, high-contrast, and built for action.

Travel has quickly become the new status symbol for affluent Indians. The top 10% of the population has seen a surge in disposable income, and one of their main areas of spending is international travel. This segment accounts for around 150 million people, the size of a major country. Visa restrictions have eased, disposable incomes are rising, and the growth in outbound demand has been nothing short of phenomenal.

 

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Tapping into the excitement of first time travellers

International travel today is still fragmented, under-served, and a huge untapped opportunity. One of the most exciting groups we are focusing on is the First Time International Traveller. And this audience is exploding in India right now. If you’ve flown on an Indian route recently, you’ll often see groups of people taking selfies as they board. At first, it may seem unusual, but it’s actually a clear signal: for many, it’s their very first flight. That sense of excitement, of travel as a new milestone, is something we want to tap into.

 

Indian travellers are seeking travel inspiration

One of the biggest shifts we’re seeing is that people don’t come to Skyscanner with a single destination in mind, they come for ideas. Globally, more than half of our users arrive in ‘browse mode’. In India, this is even stronger: our ‘Everywhere’ feature — where you simply type your home airport and see where in the world you could fly — is consistently in the top five searched ‘destinations’.

That tells us discovery is the new starting point of the journey. And for advertisers, it means your role isn’t just to capture bookings, but to fund inspiration. Think smart, context-rich formats: seasonal deals that nudge the undecided, itineraries that help shape trips, and creative that turns inspiration into intent. And travellers are also open to being spontaneous. According to our internal search data, 41% of travellers are searching for flights a month before departure and are ready to be inspired.

 

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84% of Indian travellers are confident using AI for travel planning.

Globally, 56% of travellers say they’re confident using AI for travel planning but in India that number is almost double at 84% (Horizons). More than half describe themselves as ‘very confident’. And they’re not just experimenting — they’re using AI to build itineraries (51%), research destinations (46%), and compare flights and hotels (42%).

This is a fundamental behaviour change: the Indian traveller is leapfrogging into AI-powered planning. For advertisers, that means your creative needs to plug into intent signals shaped by AI prompts. Serve itinerary-ready bundles. Highlight time-sensitive fare drops. Retarget travellers based on the themes they’re actively exploring. If discovery is the homepage, AI is quickly becoming the travel agent.

 

Conclusion

All this tells us that India is no longer an emerging market for travel, it’s a growth engine. With rapid economic shifts, affordable data and payments infrastructure, and record aircraft orders, the conditions are set for explosive outbound demand. For advertisers, this means a unique opportunity:

A 150 million–strong affluent segment entering international travel for the first time. Double-digit year-on-year growth in searches and demand to key markets. We’re excited to shape this next chapter — helping India’s travellers explore the world, and helping partners capture the opportunity.

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