NEW DELHI, May 31: Leading luxury hospitality players such as ITC Hotels and Radisson Hotel Group are reporting robust demand for domestic leisure travel this summer as affluent Indians increasingly choose destinations closer to home amid geopolitical tensions in West Asia.
While outbound travel continues to remain an important aspiration for wealthy Indian travellers, factors like convenience, predictability and the expanding range of premium domestic experiences are encouraging more travellers to spend their summer holidays within India, top hospitality executives told PTI.
“While affluent Indian travellers continue to maintain strong long-term interest in international travel, near-term geopolitical uncertainty, airline disruptions and elevated travel costs have encouraged many consumers to increasingly explore premium domestic alternatives,” The Leela Palaces, Hotels and Resorts CEO Anuraag Bhatnagar said.
At ITC Hotels, booking trends are running ahead of last year in several leisure markets.
“The summer travel season is progressing well, with booking trends across our leisure portfolio remaining encouraging and demand tracking ahead of the same period last year in several destinations,” said Anil Chadha, Managing Director, ITC Hotels.
He shared that while international travel remains important for affluent Indian travellers, recent geopolitical developments have encouraged some consumers to reassess travel plans and look closer to home.
Nikhil Sharma, Managing Director & COO, South Asia, Radisson Hotel Group, said the company is seeing measurable gains from domestic travel demand.
“We are witnessing a strong summer travel season across our India portfolio, with overall occupancy levels up 5 per cent compared to the same period last year. Leisure destinations, in particular, have emerged as key growth drivers, with average occupancies currently trending close to 75 per cent, and weekends witnessing even stronger demand.”
According to Sharma, while ongoing geopolitical developments and disruptions across parts of West Asia have had some impact on international travel sentiment, Radisson is observing a degree of demand shifting towards domestic destinations as travellers continue to prioritise meaningful, high-quality experiences closer to home.
Sharma said the strongest growth for Radisson is coming from Indian destinations that offer either climatic relief or deeper cultural and spiritual experiences.
“The strongest momentum this summer is coming from hill stations and spiritual destinations. Hill station properties have recorded a 69 per cent growth over last year, while spiritual destinations have grown by 41 per cent, reflecting travellers’ increasing preference for experience-led journeys that combine relaxation, culture, wellness and meaningful connections,” he shared.
Destinations such as Jammu & Kashmir, Manali, Mussoorie, Udaipur and Ayodhya have emerged as standout performers within Radisson’s network, while beach destinations including Goa and coastal resorts in South India continue to attract strong demand.
Luxury hotel chains are also reporting a deeper shift toward experience-led tourism, where travellers are choosing destinations based on wellness, culture, food and local immersion rather than traditional sightseeing.
According to ITC Hotels MD Chadha, travellers are increasingly seeking “heritage-inspired stays, wellness retreats, forest and nature-led experiences” while also showing a growing appetite for “immersive experiences that combine wellness, gastronomy and destination storytelling”.
The Leela is observing a similar trend.
“Demand this summer has been highly diversified, although experiential luxury resorts, heritage destinations, wellness retreats and nature-led escapes are seeing particularly strong traction,” Bhatnagar said.
One of the more notable shifts this season is the rise of emerging destinations beyond India’s traditional tourism hotspots.
ITC Hotels reports growing demand in Tier-2 and Tier-3 locations, driven by travellers seeking less crowded and more authentic experiences. The company says destinations such as Prayagraj, Katra, Amritsar and Bhubaneswar are benefiting from increased interest in spiritual tourism and cultural exploration.
Radisson’s data also points to the growing importance of faith-based travel. The company’s strongest growth after hill destinations has come from spiritual tourism hubs, reflecting a broader national trend that has gathered momentum in recent years.
Executives at standalone luxury resorts and hotels are also witnessing the shift towards travel to domestic destinations this summer season.
Avni Tripathi, CMO, Aahana Resort & Spa, shared, “We are seeing a clear uptick in domestic summer travel this year, but the sharper shift is in the destinations travellers are choosing. Demand is moving towards wildlife, wellness, spiritual circuits and experiential luxury, where the stay offers more depth than a conventional holiday”.
Hari Sukumar, General Manager, Jaypee Palace Hotel & Convention Centre, Agra, said, “This summer season has been significantly stronger compared to last year, with occupancy levels across our portfolio witnessing a growth of approximately 8 per cent year-on-year. There is a much deeper appreciation today for the richness and diversity of Indian travel experiences. Affluent travellers are increasingly viewing India as a luxury destination in its own right”. (PTI)
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