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Leading luxury hospitality players such as ITC Hotels and Radisson Hotel Group are reporting strong demand for domestic leisure travel this summer as affluent Indians increasingly choose destinations closer to home amid geopolitical tensions in West Asia.
Top hospitality executives told PTI that while outbound travel remains a key aspiration for affluent Indian travellers, factors such as convenience, predictability and an expanded range of premium domestic experiences are encouraging more travelers to spend their summer holidays within India.
Anurag Bhatnagar, CEO, The Leela Palaces, Hotels & Resorts, said, “While affluent Indian travelers continue to have long-term interest in international travel, near-term geopolitical uncertainty, airline disruption and higher travel costs have encouraged many consumers to seek premium domestic options.”
At ITC Hotels, booking trends in many leisure markets are ahead of last year.
“The summer travel season is progressing well, booking trends across our leisure portfolio remain encouraging and demand in many destinations is tracking ahead of the same period last year,” said Anil Chadha, Managing Director, ITC Hotels.
He shared that while international travel remains important for affluent Indian travelers, recent geopolitical developments have encouraged some consumers to reevaluate travel plans and look closer to home.
Nikhil Sharma, managing director and COO, South Asia, Radisson Hotel Group, said the company is seeing measurable gains from domestic travel demand.
“We are seeing a strong summer travel season across our Indian portfolio, with overall occupancy levels increasing by 5 per cent compared to the same period last year. In particular, leisure destinations have emerged as key growth drivers, with average occupancy currently running close to 75 per cent, and weekends are seeing even stronger demand.” According to Sharma, while ongoing geopolitical developments and disruptions in parts of West Asia have had some impact on international travel sentiment, Radisson is seeing a shift in demand towards domestic destinations as travelers continue to prioritize meaningful, high-quality experiences close to home.
Sharma said the strongest growth for Radisson is coming from Indian destinations that either offer climate respite or deep cultural and spiritual experiences.
He shared, “The strongest momentum this summer is coming from hill stations and spiritual destinations. Hill station properties have recorded a growth of 69 per cent over last year, while spiritual destinations have grown by 41 per cent, reflecting travelers’ growing preference for experience-based trips that combine relaxation, culture, wellness and meaningful relationships.”
Within Radisson’s network, destinations such as Jammu & Kashmir, Manali, Mussoorie, Udaipur and Ayodhya have emerged as outstanding performers, while beach destinations including Goa and coastal resorts in South India continue to attract strong demand.
Luxury hotel chains are also reporting a deep shift toward experience-based tourism, where travelers are choosing destinations based on wellness, culture, cuisine and local immersion rather than traditional sightseeing.
According to Chadha, MD, ITC Hotels, travelers are increasingly looking for “heritage-inspired stays, wellness retreats, wilderness and nature-led experiences”, while also showing a growing appetite for “immersive experiences in wellness, gastronomy and destination storytelling”.
A similar trend is being seen in Leela also.
“Demand has been highly diverse this summer, however, with experiential luxury resorts, heritage sites, wellness retreats and nature-led escapes seeing particularly strong traction,” Bhatnagar said.
One of the more notable changes this season is the rise of emerging destinations beyond India’s traditional tourism hotspots.
ITC Hotels reports that there is a growing demand from travelers seeking less crowded and more authentic experiences in Tier-2 and Tier-3 locations. The company says destinations like Prayagraj, Katra, Amritsar and Bhubaneswar are benefiting from the growing interest in spiritual tourism and cultural exploration.
Radisson’s data also points to the growing importance of faith-based travel. After mountain destinations, the company’s strongest growth has come from spiritual tourism centers, reflecting a broader national trend that has gained momentum in recent years.
Executives at standalone luxury resorts and hotels are also seeing a shift toward travel to domestic destinations this summer season.
Avani Tripathi, CMO, Ahana Resort & Spa, shared, “We are seeing a clear growth in domestic summer travel this year, but the sharpest change is in the destinations that travelers are choosing. The demand is shifting towards wildlife, wellness, spiritual circuits and experiential luxury, where the stay offers more depth than a traditional holiday”.
Hari Sukumar, General Manager, Jaypee Palace Hotel & Convention Centre, Agra, said, “This summer season has been significantly stronger than last year, with occupancy levels across our portfolio seeing an increase of almost 8 per cent year-on-year. There is a much deeper appreciation today for the richness and diversity of Indian travel experiences. Affluent travelers are increasingly looking at India as a luxury destination in its own right.”
