China and India Lead in Plans to Spend on Travel
Skift Take
Key Points
- Asia is expected to have more millionaires than North America by the mid-2030s, boosting travel spending.
- India and China lead in anticipated travel activity and spending, with high percentages of their populations planning to travel.
- India's young population and economic growth drive its outbound travel market, with significant spending expected by 2040.
Summary
Asia is on the verge of surpassing North America in the number of millionaires by the mid-2030s, which is driving significant travel spending. According to Skift Research’s 2025 Travel Outlook Survey, China and India are at the forefront, with a large percentage of their populations planning to travel. India, in particular, is expected to lead in travel spending, driven by its young population, rising incomes, and favorable visa policies from countries like Malaysia and Thailand. This surge in luxury and outbound travel is supported by the growing number of affluent individuals and a demand for family-friendly and authentic experiences.
Asia is set to surpass North America in its population of millionaires by the mid-2030s, and that’s fueling a lot of travel spending. According to Skift Research’s 2025 Travel Outlook Survey, travelers from India and China are most likely to say they'll be on the move this year.
We asked, "Will you be traveling in 2025?" and 88% of respondents from China said "Yes, definitely." For India, it was 82%.
And India has a significant lead over other destinations in terms of anticipated travel spending in 2025.
The Surging Indian Market
India's affluent population is driving a surge in luxury and outbound travel, supported by rapid economic growth and an expanding number of ultra-high-net-worth individuals. Malaysia, Sri Lanka, and Thailand have waived visa requirements for Indian travelers, offering more destination options for high-spending tourists.
India's young population, with a median age of 28, and rising incomes are key drivers of outbound tourism growth. By 2040, Indian travelers could make 80–90 million trips annually. The Indian outbound market, valued at $15.2 billion in 2023, is projected to grow at an 11.4% CAGR through 2032.
Supplying the Demand
Asian travelers favor larger well-known brands but also increasingly demand family-friendly, and authentic experiences, alongside innovations in food, beverage, and hospitality. While high-end brands remain relevant, a growing contingent of travelers want immersive experiences they can share with their families.
This is partly due to the trend towards smaller families among more affluent populations which creates a greater willingness to spend money on family experiences. From the destination side, fostering convenience and lower friction visa processes can help to capture a larger share of these outbound markets.
Photo Credit: An Indian family at the Monkeyland Primate Sanctuary in South Africa. South Africa Tourism
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