According to a report by AI travel platform Thrilophilia, more and more travelers are opting for affordable options this holiday season as the trend shifts away from pure luxury trips to “smart luxury.” He added that budget-friendly weekend getaways were also the top choice among holiday travelers.
The report said stays in the middle class jumped by as much as 22 percent (y-o-y), with “a clear shift away from luxury vacations…catalyzed by the rollout of GST 2.0 and the exuberant festive season.”
Travelers aren’t necessarily cutting back, but rather spending less on rooms and more on experiences, he added. As holiday demand peaks, Trillophilia data has shown that Indians are traveling “smart” and planning better.
22% jump in ‘smart luxury’ bookings, budget destinations win
The report said mid-range stays jumped 22 percent year-on-year as travelers opted for “smart leisure” bookings priced between ₹2,000-6,000 per night, this holiday season. These bookings also accounted for 48 percent of all bookings on the platform, he added.
Across all categories, average domestic travel expenses range between ₹25,000– ₹45,000, while international short-haul holidays average between ₹60,000– ₹95,000.
“India’s new default is smart luxury, save on the bed, splurge for the day… With travel a little more affordable, people are more open to taking another trip or upgrading their stay. This is a healthy sign for both travelers and hospitality operators in emerging holiday destinations,” said Abhishek Daga, co-founder of Trillophilia.
Short breaks, weekend getaways: What does the data show?
- Two- and three-night trips accounted for 58 percent of all bookings, up 6 percentage points year-on-year, as short breaks and weekend stays led the travel choices this festive season, data from Thrilophilia showed.
- The average length of trips booked on the platform – 2.6 nights – indicated that travelers were choosing more frequent and shorter trips over longer holidays.
- Booking behavior also indicated that travelers are now planning trips in advance, with the average booking time at 21 days, three days earlier compared to last year.
- In terms of spending behaviour, there was a 21% increase in passengers choosing to use miles and upgrade vouchers when traveling by air; further, there is a 2.8 percentage point drop in premium cabin ticket sales this Diwali.
Travelers spend for experiences, not luxuries
The data also showed that instead of splurging on business class or five-star hotels, people are redirecting their savings to premium experiences, with the average basket now ₹3,600.
- The number of trekking reservations increased by 27 percent,
- Local inspection by 24 percent, and
- Cultural and culinary activities by 22 percent.
Festive Travel: Which Cities Make the Best List?
Further, in terms of destinations, the data showed that weekend stays and short, affordable trips were preferred, with tourist cities like Jaipur, Lucknow and Bhopal drawing crowds.
