India’s long-standing habit of saving first and spending later is beginning to loosen, especially among younger consumers who are choosing to finance experiences rather than defer them. Travel is emerging as one of the clearest expressions of this shift, with startups like Scapia building products around a customer who is as comfortable using credit as they are booking their next trip.

“People are moving towards understanding credit and borrowing responsibly,” said Anil Goteti, the founder of Scapia, a Bengaluru-based travel fintech startup. “If I can go travel somewhere but pay it over time instead of saving up for it, there are more and more individuals who value that.”

This behavioural change is unfolding alongside a steady rise in travel demand. Indians are not only travelling more frequently but also for a wider range of reasons, from weddings and concerts to wellness breaks and sporting events. 

India accounts for 1.40% of total international arrivals and contributes 2.02% to worldwide tourism receipts. Government data shows that outbound travel from India continued its upward trajectory in 2024, with 30.89 million departures, up 10.79% over the previous year. Domestic tourism is expanding even faster, with 2,948.19 million visits recorded in 2024, a 17.51% increase from 2023, according to the India Tourism Data Compendium 2025 by the tourism ministry.

From one annual trip to many reasons to travel

“People used to travel maybe once or twice a year. Now they travel four to five times a year,” Goteti said. “Even if it’s not always international, it could be a weekend getaway or visiting friends. Travel has become more accessible and more affordable.”

A significant portion of this demand is coming from outside India’s largest cities. About half of Scapia’s users are from beyond metros and tier one markets, reflecting how rising incomes, better connectivity and easier access to passports are expanding the traveller base.

The company says its users travelled to 130 countries through its platform, while its card was used across 175 countries last year. Domestic travel is also widening, with growing interest in offbeat destinations and event-led trips. “People are travelling for IPL matches, for concerts, for reunions. Ten years ago this didn’t happen in India,” the founder shared.

Underlying this trend is a broader “structural change” rather than a short-term post-pandemic surge that Goteti attributes to higher disposable incomes, expanding infrastructure and the influence of social media in shaping aspirations.

At the same time, India remains hugely underpenetrated in credit. Credit card penetration stands at about 6-7%, with around 75 to 100+ million cards in circulation as of early 2026, compared with 60 to 80% in more mature markets. That gap is what many new-age financial platforms are targeting, especially among younger users.

Scapia’s model ties credit directly to travel, allowing users to earn rewards on everyday spending and redeem them within its travel ecosystem. It also offers no-cost instalment options for bookings, a feature that is gaining traction. “Almost 20% of our travel booking value goes through this no-cost EMI option,” said Goteti.

According to Global Travel Trends Report 2025 by American Express findings nearly 86% of Indians consider it important to maximise travel rewards when planning their next vacation, while 82% intend to use credit card points to cover travel expenses.

The bet is that as more consumers begin to see credit as a tool to enable experiences, usage will deepen. “India is still a savings-led country, but that is changing. As incomes rise and more people become credit worthy, this will grow,” he said.

For now, the shift is most visible among younger consumers. A majority of Scapia’s users are under 35, and they are spending significantly more than the national average on categories such as travel, dining and shopping.