Tier 2 & Tier 3 India Power the Great Outbound Surge

India’s outbound travel landscape is undergoing a decisive transformation — and the growth engine is no longer confined to metro cities.

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Tier 2 & Tier 3 India Power the Great Outbound Surge

Tier 2 & Tier 3 India Power the Great Outbound Surge

India’s outbound travel landscape is undergoing a decisive transformation — and the growth engine is no longer confined to metro cities. The India Outbound Travel Index 2025, released by TravClan, reveals that Tier 2 and Tier 3 cities now contribute 63% of India’s outbound international travellers, marking a structural shift in how and where international travel demand is being generated.

Based on real booking behaviour across TravClan’s nationwide travel agent network, the Index analyses data from approximately 2,47,000 international passengers, representing over ₹500 crore in booking value across 170+ global destinations. The findings point to five structural shifts that are reshaping outbound travel from India.

Non-Metro India Becomes the New Demand Epicentre

The most defining insight from the Index is clear: non-metro India has emerged as the primary driver of outbound travel growth. While traditional hubs such as Delhi and Mumbai remain important, momentum is increasingly anchored in emerging cities.

Cities including Ahmedabad, Lucknow, Kochi, Amritsar, and Pune rank among India’s fastest-growing outbound markets. This expansion is underpinned by rising disposable incomes, growing passport penetration, and significantly improved regional air connectivity.

Arun Bagaria, Founder and CEO, TravClan

Commenting on the findings, Arun Bagaria, Founder and CEO, TravClan, stated: “The center of gravity for India's outbound travel has shifted. Travel Businesses cannot build strategies just around Delhi and Mumbai anymore as we see consistent growth from Tier 2 and Tier 3 cities, driven by travellers who are digitally confident and decisive. Airlines, destinations, and travel brands need to embrace the next phase of outbound growth that will be built around these emerging markets.”

The data signals not just incremental growth, but a fundamental rebalancing of India’s outbound ecosystem — one that demands localised strategies, regional partnerships, and sharper market segmentation.

Vietnam emerged as fasted growing destination

Beyond source markets, destination preferences are also evolving. Indian travellers are increasingly favouring countries that combine strong air connectivity, competitive pricing, and diverse experiences.

Vietnam has emerged as the fastest-growing destination, gaining 4.01 percentage points in market share. Strong hotel booking growth was also recorded in Egypt, Japan, the Philippines, and Georgia, reflecting broader diversification beyond traditional Southeast Asian favourites.

Booking behaviour further underscores this transformation.

  • Over 42% of outbound trips are booked within seven days of departure, signalling compressed planning cycles.
  • 21.9% of trips are planned more than a month in advance, indicating predictable and price-responsive behaviour, particularly on short-haul and high-frequency routes.

Affordable connectivity remains central to this growth story. Low-cost carriers account for nearly 70% of bookings on key leisure routes such as the Maldives and Thailand, reinforcing the role of competitive airfares in expanding international travel access.

At the same time, travellers are extending average stays across multiple destinations — suggesting a shift toward deeper, experience-led travel rather than quick international getaways.

A Structural Shift, Not a Cyclical Spike

The India Outbound Travel Index 2025 makes one conclusion unmistakably clear: the next phase of India’s outbound expansion will be shaped by regional source markets, faster booking cycles, and differentiated travel intent.

For airlines, tourism boards, hospitality brands, and travel businesses, long-term relevance will depend on how effectively strategies align with these structural shifts. The rise of non-metro India is not a temporary surge — it is the new foundation of outbound growth.

TravClan is a global B2B travel tech platform that empowers travel agents to sell travel online while providing comprehensive end-to-end on-ground travel services. Focused on cutting-edge technology and seamless customer experiences, TravClan is reshaping how travel agents conduct business worldwide.