Traditionally, Indian festivals have been celebrated at home or in ancestral houses, with families gathering under one roof. Recently, Indian consumers have also been choosing to travel and celebrate festivals with multi-generational family units and friends.

Thomas Cook India and SOTC Travel’s India Holiday Report 2025 highlights this shift in consumer behaviour, with demand for longer festive breaks, higher holiday spends and interest in experiences ranging from heritage and luxury stays to cruises and new destinations.

To tap into this growing festival travel trend, Thomas Cook (India) Limited, an omnichannel travel services company, and its Group Company, SOTC Travel, have introduced a specially curated range of holidays for the upcoming festive season, featuring special group tour departures from Kolkata for Durga Puja and Karnataka for Dussehra, as well as from high-potential markets of Gujarat and Maharashtra. In addition, the companies have also announced special Diwali departures across key pan-India markets.

The companies have also announced a special offer: discounts of up to Rs.10000 per transaction across select holidays via HDFC credit cards.

Festive tourism trends

Longer stays and increased spends: From the traditional 3 days Indians are now extending their stays to 6-12 days (multi-generational families combining school vacations like Dussehra, Durga Puja and Diwali). Young India’s millennials/GenZ and working professionals are embracing extended trips, combining weekends with festival holidays for a 5-6 day break

Favourite destinations:

• Domestic & Indian Subcontinent: Andaman, Kerala, Kashmir, Himachal Pradesh, Rajasthan, Goa, Karnataka, North East, Sri Lanka, Bhutan and Nepal

• International: Thailand, Singapore with Bintan, Malaysia, Sabah, Indonesia, Vietnam, Oman, Australia-New Zealand, Switzerland, France, Finland, Japan, Georgia, Germany, Spain, Austria, Kenya, South Africa, Dubai, Abu Dhabi, Maldives, Mauritius, South Korea

• Visa-Free, Visa-on-arrival and easy-visa destinations in demand: Thailand, Malaysia, Philippines, Sri Lanka, Nepal, Bhutan; Dubai-Abu Dhabi, Indonesia, Maldives

• Spiritual Journeys: Leveraging festive sentiment, Thomas Cook and SOTC have curated spiritual journeys through their Spiritual Journeys & Darshans portfolio – featuring Char Dham, Kashi, Ayodhya, Rameswaram, Tirupati, Amritsar, Varanasi, Prayagraj, Dwarka and Sri Lanka with special themed tours such as ‘Ramayan Anant Yatra’ and ‘Ramayan Trails’
• Premium/affordable luxury travel: Customers are opting for luxury resorts and spas, with destinations like France, Switzerland, Scandinavia, South Korea, Japan, Singapore, Australia, New Zealand, Oman, Morocco, Seychelles
• Cruising: Strong interest for sailings across South East Asia and the Middle East (Costa Cruises, Resorts World Cruises); premium sailings like Disney Cruise Line in Australia and Singapore; domestic (Cordelia)
• Festival regional group tours: The companies are witnessing strong interest in their regional tours: Adhbhut Asia, Alokik Asia, Ashadharon Vietnam, Duronto Dubai O Abu Dhabi, Akorshonio France O Swiss with departures accompanied by regional tour managers; on-tour puja and curated vegetarian meals on select tours

Rajeev Kale, President & Country Head, Holidays, MICE, Visa – Thomas Cook (India) Limited said, “Travel has become non-negotiable and festive tourism serves as a cultural driver. We are witnessing a strong and exciting trend—Indians are no longer staying at home but increasingly choosing to celebrate festivals while travelling. This is reiterated in our India Holiday Report 2025 that also reveals a strong shift—85% of Indians are increasing their travel frequency and budgets, driven by a desire to celebrate culture in immersive, meaningful ways.

Hence, to maximise this opportunity we have launched innovative festive regional groups tours like Adhbhut Asia, Alokik Asia, Ashadharon Vietnam, combining local and authentic experiences to meet the aspirations of India’s new-age travellers.”

S.D. Nandakumar, President & Country Head – Holidays and Corporate Tours, SOTC Travel Limited said, “India’s festive calendar is fast emerging as a travel driver. Families and friends are increasingly using these breaks to create multiple holidays rather than a single long annual holiday. Significantly, this trend is not restricted to customers from metro cities, but also from India’s tier 2 and 3 markets, reflecting a strong, nationwide aspiration to travel. Travellers are also embracing new formats—cruise holidays, boutique and heritage stays, luxury villas and immersive experiences like culinary trails and adventure activities. At SOTC, we have designed our festive portfolio to blend celebration with exploration—curating domestic and international tours that allow Indians to experience their festivals in unique settings, while creating deeper connections and lasting memories.”

India’s Goods and Services Tax (GST) Council Wednesday night proposed changes to its tax levies across industries. These include proposed revisions that would impact the tourism industry in India:

Hotel accommodations charging up to INR 7,500 ($85) per day for a room will now attract a tax of 5% as against the previous 12% tax levy. 

GST on air tickets for cabin classes other than economy class has been increased from 12% to 18% under the proposed changes. The tax levy on economy class has been retained at 5%.

There has also been a significant increase in tax bracket on admissions to casinos, race clubs, any place having casinos or race clubs, or sporting events like the cricket tournament Indian Premier League. These will now attract a 40% tax instead of the previous 28%.

According to the travel industry, the reduction in GST on hotel rates and the continued 5% levy on economy class tickets will allow affordability for mass Indian travelers.