ITC Hotels, Radisson and Other Luxury Chains See Significant Increase in Domestic Travel Demand This Summer

Domestic Leisure Travel Sees Robust Demand as Affluent Indians Opt for Closer-to-Home Destinations

Leading luxury hospitality players, including ITC Hotels and Radisson Hotel Group, are reporting strong demand for domestic leisure travel this summer as affluent Indians increasingly choose destinations closer to home amid geopolitical tensions in West Asia.

While outbound travel continues to be an important aspiration for wealthy Indian travelers, factors such as convenience, predictability, and the expanding range of premium domestic experiences are encouraging more travelers to spend their summer holidays within India. Top hospitality executives have observed this trend, citing near-term geopolitical uncertainty, airline disruptions, and elevated travel costs as contributing factors.

At ITC Hotels, booking trends are running ahead of last year in several leisure markets. Anil Chadha, Managing Director, ITC Hotels, noted that the summer travel season is progressing well, with booking trends across the company's leisure portfolio remaining encouraging and demand tracking ahead of the same period last year in several destinations.

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Radisson Hotel Group is also witnessing a strong summer travel season across its India portfolio, with overall occupancy levels up 5 per cent compared to the same period last year. Leisure destinations, in particular, have emerged as key growth drivers, with average occupancies currently trending close to 75 per cent, and weekends witnessing even stronger demand. The company's Managing Director & COO, South Asia, Nikhil Sharma, attributes this growth to a shift in traveler preferences towards meaningful, high-quality experiences closer to home.

The strongest growth for Radisson is coming from Indian destinations that offer either climatic relief or deeper cultural and spiritual experiences. Destinations such as Jammu & Kashmir, Manali, Mussoorie, Udaipur, and Ayodhya have emerged as standout performers within Radisson's network, while beach destinations including Goa and coastal resorts in South India continue to attract strong demand.

Luxury hotel chains are also reporting a deeper shift toward experience-led tourism, where travelers are choosing destinations based on wellness, culture, food, and local immersion rather than traditional sightseeing. According to ITC Hotels MD Chadha, travelers are increasingly seeking "heritage-inspired stays, wellness retreats, forest and nature-led experiences" while also showing a growing appetite for "immersive experiences that combine wellness, gastronomy, and destination storytelling".

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The Leela is observing a similar trend, with demand this summer being highly diversified, although experiential luxury resorts, heritage destinations, wellness retreats, and nature-led escapes are seeing particularly strong traction. ITC Hotels reports growing demand in Tier-2 and Tier-3 locations, driven by travelers seeking less crowded and more authentic experiences. Destinations such as Prayagraj, Katra, Amritsar, and Bhubaneswar are benefiting from increased interest in spiritual tourism and cultural exploration.

Executives at standalone luxury resorts and hotels are also witnessing the shift towards travel to domestic destinations this summer season. Aahana Resort & Spa's CMO, Avni Tripathi, noted that the company is seeing a clear uptick in domestic summer travel this year, but the sharper shift is in the destinations travelers are choosing. Demand is moving towards wildlife, wellness, spiritual circuits, and experiential luxury, where the stay offers more depth than a conventional holiday.

Jaypee Palace Hotel & Convention Centre, Agra's General Manager, Hari Sukumar, observed that the summer season has been significantly stronger compared to last year, with occupancy levels across the company's portfolio witnessing a growth of approximately 8 per cent year-on-year. There is a much deeper appreciation today for the richness and diversity of Indian travel experiences, with affluent travelers increasingly viewing India as a luxury destination in its own right.