Looking Ahead to 2025: Entering a Transformative Era in Travel and Hospitality

2024 was particularly revolutionary; we saw record-breaking domestic tourism, with religious destinations experiencing enormous footfalls and business travel returning to pre-pandemic levels. More importantly, we witnessed a significant shift in customer behaviour, with travellers increasingly prioritising quality over convenience. The modern traveller seeks authenticity combined with comfort, a trend that gained traction in 2024 and is currently influencing the industry in a variety of ways.

What is particularly fascinating is the rise in religious tourism in India. While pilgrims visited Ayodhya and Varanasi in unprecedented numbers in 2024, 2025 promises even more growth. From Puri to Tirupati, we find travellers embarking on spiritual journeys with cutting-edge expectations. This combination of tradition and modern comfort creates a one-of-a-kind potential for the tourism and hospitality industries.

‘Slow travel’ is another area that will gain momentum in 2025. In today’s fast-paced world, travellers are increasingly opting to stay longer, immerse themselves in local cultures, and work remotely from their destination. This shift necessitates an alternative approach to hospitality, one that creates spaces suitable for both work and relaxation.

As these trends gather prominence, they will undoubtedly create new opportunities for small business owners and local operators to grow, serving as an incentive for entrepreneurship on a large scale. To effectively leverage this prospect, the travel and hospitality industries must focus on developing ecosystems in which technology, human interaction, and authentic cultural diversity coexist in tandem.

Himanshu Patil, President, Outbound Tour Operators Association of India (OTOAI):

“I believe 2025 will be a transformative year for the travel industry, with several key trends shaping the future of outbound tourism. Travelers are increasingly seeking unique, immersive experiences that go beyond traditional sightseeing. Culinary tours, adventure activities, cultural exchanges, and wellness retreats are gaining popularity. Technology will continue to play a central role, with AI-driven personalisation, virtual reality tours, and streamlined digital booking systems enhancing the traveller experience. Travellers are moving away from crowded hotspots to explore lesser-known, offbeat destinations that offer tranquillity and unique experiences.

We must remember that travellers will go somewhere – whether to Europe, the Far East, Islands or Australia. Countries that face visa challenges risk losing potential visitors to those that are more visa-friendly. Travellers are increasingly favouring destinations that offer e-visas or online visa applications, as they reduce paperwork and processing time. An E-visa destination like Vietnam is very popular amongst travellers as now it has two airlines that directly connect India with Vietnam at two different ports. India’s outbound travel story is just beginning, and the future is incredibly bright. With a young, aspirational population eager to explore the world, we are on the cusp of a new era in global tourism. Indian travellers are known for their curiosity, generosity, and love for new experiences, and they will undoubtedly leave a positive imprint on the destinations they visit.”

Rajiv Mehra, President, Indian Association of Tour Operators (IATO):

“The travel and hospitality sector is poised for transformative growth in 2025, driven by innovation, sustainability, and evolving traveller preferences. As the world continues to recover from the disruptions of the pandemic, the industry is adopting new strategies to cater to a more conscious and tech-savvy traveller base. Sustainability is no longer optional; it has become a key driver of consumer choices. From eco-friendly accommodations to carbon-neutral travel options, businesses are focusing on reducing their environmental impact. Travellers, particularly millennials and Gen Z, are seeking immersive, eco-conscious experiences, encouraging operators to prioritise local culture, biodiversity, and community-driven initiatives.

The blending of business and leisure travel—termed “bleisure”—is a growing trend. With remote and hybrid work models, professionals are extending work trips to explore destinations. This has created opportunities for destinations to market themselves as ideal hubs for both work and relaxation. Wellness tourism continues to gain momentum, with travellers prioritising mental, physical, and emotional well-being. Yoga retreats, spa experiences, and health-focused travel packages are increasingly popular, providing opportunities for hotels and tour operators to cater to this demand.

On the flip side, challenges persist. Visa processing bottlenecks, infrastructure limitations, and rising travel costs remind us that there’s still plenty of room for improvement. Yet, the industry’s adaptability shone through. Stakeholders doubled down on sustainability, digital innovation, and collaboration, paving the way for future growth. 2025 will see the rise of niche segments like medical tourism, religious tourism, and even sports and music travel, reflecting a shift towards specialised experiences. Meanwhile, domestic hotspots and international favourites like South East Asia will continue to attract Indian travellers despite fluctuating airfares and hotel prices.”

Sanjeev Mehra, President, Skål International India:

“As we welcome 2025, I extend my warmest wishes for a year filled with unforgettable journeys and happiness. The travel and hospitality industry is poised for remarkable growth, with various trips such as family vacations, MICE events, solo adventures, luxury long stays, and student exchange programs gaining momentum.

Key international destinations like the UK and Australia, especially the scenic Victoria region, are drawing longer stays. In the USA, popular states such as California, Texas, Florida, and the Eastern seaboard are bustling with travellers, while South American countries like Mexico, Panama, Costa Rica, Peru, and Argentina are captivating explorers. New destinations like Cuba are also stepping into the spotlight. Asia remains a vibrant travel hub, with South Korea, Japan, the Philippines, and Thailand continuing to thrive. Singapore is set to make waves in 2025 with the launch of new luxury cruise liners. Neighbouring countries such as Sri Lanka, Nepal, Bhutan, Myanmar, the Maldives, and Mauritius are gaining attention for their unmatched hospitality and luxurious offerings.

In India, travellers are exploring offbeat destinations like Kashmir, the North East, Himachal Pradesh, Uttarakhand, Kanyakumari, and Central India gems like Varanasi. These unique locations offer serene experiences beyond traditional cityscapes. Adventurous tours, winter escapes, religious pilgrimages, gastronomy-focused trips, and vibrant music festivals are creating excitement across the travel market. The addition of new and innovative destinations promises an exceptional year ahead.”

Neeraj Dhawan, Director, Falcon Exhibitions Pvt. Ltd.:

“The travel and hospitality sector in India in 2025 is poised for robust growth, driven by a combination of rising domestic travel, technological advancements, innovative offerings, economic recovery post-Covid, enhanced infrastructure, and evolving consumer preferences. As one of the fastest-growing economies globally, India is leveraging its rich cultural heritage, diverse landscapes, and government initiatives to attract domestic and international travellers and shall remain a key player in the global tourism industry. Government initiatives like Chalo India, Dekho Apna Desh and the UDAN (Ude Desh ka Aam Naagrik) regional connectivity scheme continue to encourage domestic travel. Tier-2 and Tier-3 cities are emerging as popular destinations, supported by enhanced infrastructure and better accessibility.

India has solidified its position as a premier destination for wedding tourism, attracting both domestic and international clients. Iconic locations such as Rajasthan’s palaces, Goa’s beaches, and Kerala’s backwaters offer unmatched venues for grand celebrations. Hotels and resorts are increasingly tailoring packages to include pre-wedding events, cultural experiences, and luxury accommodations, making weddings a key revenue driver. Key Drivers of wedding tourism in India include diverse venues, cultural richness, cost-effectiveness, strong support ecosystem and celebrity influence.

India is emerging as a hub for Meetings, Incentives, Conferences, and Exhibitions (MICE). Cities like Delhi, Mumbai, and Hyderabad have multiple options for hosting international level Exhibitions, Conventions and it is further supported by improved transportation networks. While the sector faces challenges such as regulatory hurdles, environmental concerns, and fluctuating exchange rates, government initiatives like the National Tourism Policy, National MICE Board, 100% FDI in hospitality, and the development of new tourist circuits offer significant opportunities. Additionally, the focus on wedding tourism and niche segments like adventure and religious tourism is unlocking new revenue streams.”

Ajay Prakash, President, Travel Agents Federation of India (TAFI):

“The tourism industry globally has seen excellent growth and recovery post-COVID and India being one of the fastest-growing economies in the world is no exception. In fact, domestic tourism has done phenomenally well. Outbound numbers have surpassed pre-COVID levels, but inbound still lags. Hopefully, 2025 will see a recovery and a resurgence beyond the pre-COVID numbers for inbound tourism as well. Responsible, inclusive, and sustainable tourism practices are among the most important concerns the sector must deal with in the coming years, beginning in 2025. Being one of the largest global industries, they must preserve, develop, and revitalise the planet since it thrives on its diversity and natural beauty.

In the future, this is a crucial issue that needs to be incorporated into the business processes of every stakeholder involved. Serious elements include the geopolitical instability in the Middle East, Russia, Ukraine, and Sudan. Since tourism depends on peace to thrive and can serve as an instrument for promoting acceptance, understanding, and world peace, we hope these problems will be addressed. Although 2025 may bring some challenges, the tourism industry is extremely resilient, and I am sure we will continue to grow.”

As we journey ahead to 2025, it is visible that the tourism industry is evolving to accommodate new perceptions and objectives. The rise of eco-tourism hotspots, purpose-driven travel, slow travel experiences, wellness retreats, and driven by AI travel technologies is poised to change the way we see the world. By adopting these trends, tourists can embark on travels that are not only enjoyable but also meaningful and sustainable. The future of travel is filled with opportunities for connection, reflection, and personal growth.