The travel and tourism sector may witness major gains this year as nearly 42% of millennial and 89% of Gen Z travellers in India plan to increase their travel budgets, far above the APAC average of 24%, revealed a new report by Booking.com. It added that millennials and Gen Z are reshaping the way the country travels, with younger generations prioritising meaningful connections, mindful spending, and shared experiences.

Travellers remain value-conscious, with many preferring multiple shorter trips over a single long holiday. More than half of respondents admitted they would stretch their budgets for an unforgettable experience, the report added.

The survey showed that a majority of young travellers are willing to pay not only for their own trips but also for those of their families and friends. About 89% of the millennial and 88% of Gen Z travellers surveyed said they were prepared to cover the travel costs of their partners, parents, or children. 

Among Gen Z, 83% even expressed willingness to fund their friends’ holidays, compared to 75% of millennials and 58% of Gen X. Family remains central to travel decisions, with 62% of millennials preferring to holiday with their immediate family, higher than the Asia-Pacific average of 53%. “Today’s Indian traveller is driven by a desire for meaningful connection,” said Santosh Kumar, regional manager, South Asia at Booking.com. “Travel is no longer just about reaching a destination; it is about investing in memories with loved ones.”

With a growing appetite for travel, the findings underline how India’s young travellers are shaping a market projected to generate $26.24 billion in revenue in 2025, according to Statista. At a CAGR of 15.67%, the market is estimated to touch $54.34 billion by 2030.

Travel motivations differ slightly across generations. Nearly 68% of Gen Z and 65% of millennials plan solo trips to recharge. While Gen Z travellers are most motivated by adventure and cuisine, culture is an added attraction for millennials. Safety continues to be a priority for both groups, followed by value for money and good weather. Nearly 70% of respondents from both generations also said they plan to revisit destinations they already know.