India is emerging as Asia’s most travel-optimistic market, signalling a decisive shift in how and why the region plans to travel in 2026. According to the Agoda 2026 Travel Outlook Report, easing visa barriers could unlock even stronger outbound intent, while domestically, spirituality-led travel is reshaping demand patterns — underscored by a 233 per cent surge in searches for Allahabad ahead of the Mahakumbh in 2025.
By Janice Alyosius
Asia’s travel landscape is entering a defining phase. The Agoda report indicates that 91 per cent of Indian travellers are willing to explore more destinations if visa processes become simpler, placing India at the top of Asia’s travel-readiness index. At the same time, the resurgence of large-scale spiritual events and culturally rooted travel is redefining domestic tourism flows, influencing airline capacity planning, hotel inventory and destination marketing strategies across the region.
Domestic travel gains momentum across Asia
Domestic travel is set to play a far more prominent role in 2026. Across Asia, 35 per cent of travellers plan to take more domestic trips, compared to 15 per cent last year. India leads the region in overall travel intent, while Japan and Thailand show strong domestic-first sentiment, with 67 per cent and 66 per cent respectively prioritising travel closer to home.
In India, this trend is closely linked to the rise of tier II and III destinations, supported by improved highways and regional air connectivity under the UDAN scheme. Smaller cities are increasingly benefiting from better access and stronger digital visibility, making them viable alternatives to traditional tourism hubs.
Spiritual and wellness travel reshape demand
Wellness and spirituality are no longer niche segments — they are central to travel decision-making across Asia. In India, spiritual tourism has become one of the strongest drivers of domestic travel demand.
Agoda data shows a 25 per cent year-on-year increase in domestic accommodation searches during Holi 2025. Allahabad recorded a dramatic 233 per cent surge in searches in early 2025, coinciding with the return of the Mahakumbh Mela after 12 years. Ayurveda retreats, yoga travel, temple circuits and festival-led journeys are influencing booking intent across age groups.
This shift is already shaping airline route strategies, hotel capacity planning and state tourism priorities as destinations prepare for sustained, high-volume spiritual travel in 2026.
Secondary destinations scale faster than primary hubs
The report highlights a structural change in how travellers choose destinations. Between 2023 and 2025, secondary destinations across Asia recorded 15 per cent faster growth in accommodation searches than primary hubs and now account for 34 per cent of all accommodation searches on Agoda in the APAC region.
Key drivers include lower costs, distinctive cultural experiences, nature-led activities and targeted promotions. Markets such as Japan and Indonesia have seen strong growth in smaller cities, while in India, improved regional connectivity and the rise of homestays are accelerating similar patterns.
For Indian hoteliers and state tourism boards, this shift presents an opportunity to position secondary cities through value-led campaigns, digital partnerships and experiential storytelling.
Experiential travel moves into the mainstream
Experiences are becoming a core travel motivator across Asia. Culinary travel, in particular, has jumped from sixth place to the top three motivators for Asian travellers. Taiwan, Vietnam and South Korea are leading food-driven travel demand, while searches for food and drink experiences now rank among the top five activity categories on Agoda.
In India, experiential demand is already influencing segments such as MICE, destination weddings, concerts and cultural festivals, as travellers increasingly seek meaningful, immersive experiences rather than standard itineraries.
Value consciousness dominates travel choices
Price sensitivity is at an all-time high across Asia. The report notes that 73 per cent of travellers prefer accommodation priced under US$100 per night, while 39 per cent rank pricing as the single most important factor when choosing where to stay.
Indian travellers are even more value-driven, reinforcing the need for sharper pricing strategies, bundled offerings and targeted promotions from hotels and online travel platforms.
AI emerges as a key travel planning tool
Technology is playing a growing role in shaping travel behaviour. According to the report, 63 per cent of Asian travellers are likely to use AI tools for their next trip, with interest centred on local attraction recommendations, translation support and personalised itineraries.
For Indian OTAs, destination management companies and hotels, this presents an opportunity to invest in AI-led personalisation that enhances planning, discovery and on-ground experiences.
What the data signals for India’s travel industry
The Agoda 2026 Travel Outlook points to a convergence of spirituality, value, technology and secondary destinations as the defining forces shaping India’s travel trajectory. The sharp rise in spirituality-driven searches highlights the power of cultural heritage in driving domestic tourism, while India’s strong visa sensitivity underscores its importance as a key outbound source market.
As experiential travel gains ground and secondary destinations scale up, India’s travel industry is positioned to benefit — provided stakeholders align infrastructure, pricing, digital strategy and destination storytelling with evolving traveller expectations.
