Despite geopolitical uncertainty, travel stays on 88% of Indians priority list in 2027

Economic uncertainty may be making Indians more careful with their money, but it is not making them give up their holidays. As many as 88% of Indian travellers plan to travel abroad either more or as much as they did in 2026, according to Skyscanner’s Travel Trends 2027 report, with just 5% planning fewer overseas trips.

But how Indians intend to spend is interesting. Travellers are protecting the essentials such as flights and accommodation while becoming more selective about discretionary extras, pointing to a more value-conscious international travel market in 2027. The report draws on Skyscanner’s proprietary search data and research among more than 2,000 travellers in India.

“It’s clear that people are continuing to invest in and prioritise travel, with a keen focus on optimising the value of their bookings,” said Bryan Batista, CEO of Skyscanner.

Gen Z is expected to be at the forefront of this overseas travel push. About 63% of Gen Z travellers said they plan to take more international holidays in 2027 than in 2026, compared with 60% of Millennials. Gen Z is also willing to spend more on flights, with 57% planning to increase their flight spending, even as travel costs rise.

The resilience comes against a backdrop of geopolitical tensions, volatile airfares and a broader cost-of-living squeeze, which have made consumers more cautious about discretionary spending. Yet the data suggests that rather than dropping holidays altogether, Indians are trimming the extras and looking harder for value.

Skyscanner India’s searches have grown 22% year-on-year and 91% since the company started its India office two years back, which Neel Ghose, Travel Trends and Destinations Expert, Skyscanner India, said makes him “very bullish and optimistic” about the outlook as more aircraft and routes come into the market.

India today is Skyscanner's largest market globally.

Travellers protect the trip, not the extras

In terms of spending priorities, 56% of Indians plan to spend more on flights, while 44% expect to increase spending on accommodation and 32% on car hire, fewer are willing to splurge on add-ons. The share planning to spend more on better-quality food on flights has fallen to 46% from 54% in 2026. Spending more on tours and activities has dropped to 37% from 49%, while room upgrades have declined to 30% from 39% and flight upgrades to 22% from 34%.

Cost is also influencing destination choices, with flight prices emerging as the biggest consideration for 25% of Indian travellers, followed by accommodation at 16% and tourist attractions at 14%.

Ghose said geopolitical disruptions and macroeconomic factors are influencing travel, but appear to be secondary to a broader shift towards practicality and value. “It's more about the traveller being more resilient, irrespective of capacity,” he said, noting that destinations such as Japan, Vietnam and Central Asia are gaining traffic as travellers look for better experiences within a limited budget. While factors such as rupee depreciation and the broader macroeconomic environment are “uncontrollable factors”, Neel said they are feeding into travel decisions only to a limited extent. “What we heard from our travellers, that it is more to do with travelling more, but spending money better,” he said.

Yet Indians are not necessarily planning much further ahead. The average booking window remains just 28 days, or four weeks, while March, April and December are the peak booking months.

AI acts as helping hand

AI is also becoming part of this value hunt. About 87% of Indians say they are confident using AI to help plan and book travel. More than half, or 53%, plan to use it for destination research, while 50% will use AI to compare flights, accommodation and prices. Nearly four in 10, or 39%, plan to use it to book flights.

Globally, the most popular prompt on Skyscanner’s Explore with AI over the past six months has been “cheap flights”.

“Travellers are increasingly looking beyond the transaction and thinking more carefully about the value they gain from every journey,” said Ghose. With travel searches from India up 22% year-on-year, he said travellers are increasingly using discovery-led tools to explore destinations before deciding where to go.

About 42% plan to seek quieter places, while 39% expect to visit over-touristed destinations during shoulder seasons and another 39% prefer less crowded destinations nearby.

Travel inspiration is increasingly social too. YouTube leads at 78%, followed by Instagram at 69%, while 30% of Indians are already turning to AI chatbots and tools for inspiration. Among Gen Z, Instagram is used by 74%, Pinterest by 36% and Snapchat by 32%.

At the same time, newer travel behaviours are emerging. About 80% of Indians have travelled to a destination or store specifically to buy a location-exclusive product, while 69% consider currency strength when choosing a holiday destination. History and mythology are also powerful travel triggers, with 89% saying these have inspired their travel plans. Meanwhile, 91% are interested in hotels offering nutritional dining and 53% prioritise access to quality fitness facilities.

“As AI continues to influence travel planning, the brands that come out on top will be those that combine intelligent technology with trusted data, transparent pricing and experiences that genuinely help people travel with confidence. Meeting the next generation of traveller expectations will require the industry to move beyond transactions and become a trusted partner,” shared Batista.