Indian travellers are significantly altering their year-end and New Year holiday plans, moving away from traditional favourites Thailand and Cambodia in favour of newer destinations. This shift follows recent border clashes between the two Southeast Asian nations, which have impacted the perception of safety among Indian tourists.
Impact on Traditional Favourites: Thailand and Cambodia
According to travel industry executives, the prolonged border violence, which saw a ceasefire生效 from a recent Saturday after nearly three weeks of clashes and over 100 reported fatalities, has directly influenced travel demand. Ravi Gosain, President of the Indian Association of Tour Operators, provided specific figures: enquiries for Thailand have softened by 10-20%, with fresh bookings down 8–15%. Outright cancellations for Thailand trips, however, have been limited to 3–8%, as many travellers chose to reroute their itineraries within the country instead.
The reaction has been more pronounced for Cambodia. Gosain noted that enquiries for the destination are down 20–35% compared to last year, with cancellations ranging between 8% and 18%. He highlighted that Indian tourists began revising their plans within 48–72 hours of the clashes breaking out, with further adjustments made closer to departure dates.
New Destinations Gain Traction
This recalibration has opened opportunities for other destinations. Vietnam, Indonesia, Sri Lanka, Japan, and parts of West Asia are now seeing increased interest from Indian travellers. Rajiv Mehra, General Secretary of the Federation of Associations in Indian Tourism and Hospitality, confirmed that Thailand has lost some momentum, with demand about 5-10% lower than the aggressive levels seen earlier. He also noted that Vietnam, Sri Lanka, and Malaysia are attracting interest with competitive pricing.
Booking data from EaseMyTrip underscores this trend. A company spokesperson revealed that Vietnam is estimated to see a 125% rise in Indian traveller traffic in 2025. Meanwhile, travel to Sri Lanka has increased at least fivefold compared to last winter.
Changing Traveler Behaviour and Preferences
Different segments of travellers are responding uniquely to the situation. Gosain observed that families, first-time international travellers, and high-spending leisure customers are exercising more caution. In contrast, younger group travellers and honeymooners have shown greater flexibility in altering their plans.
Jatinder Paul Singh, CEO and Co-founder of Viacation, said the situation reflects caution rather than withdrawal. "Enquiries have remained largely steady, with some travellers taking extra time to decide," he stated, adding that most customers prefer changing dates or destinations over outright cancellations.
Rising airfares due to capacity constraints are another key factor shaping decisions. Hari Ganapathy, Co-founder of Pickyourtrail, pointed out that this has led travellers to focus on affordability, boosting demand for short-haul destinations offering visa-on-arrival and shorter travel times, like Malaysia, Singapore, and Sri Lanka.
Ganapathy also highlighted a long-term evolution in Indian travel habits. Paid activities per itinerary have risen by nearly 30% over two years, with a further 13% increase this year. Around 65–70% of itineraries now include at least one customised experience, signalling a move away from nightlife-centric holidays towards more personalised, experience-driven travel.
To cater to this, companies are curating end-to-end experiences, bundling stays with activities like culinary workshops, local village dinners, heritage walks, and personalised wellness programmes. The EaseMyTrip spokesperson said the focus has shifted from promoting large-scale New Year parties to curating restorative travel options.
Despite the demand shift, spending levels for Thailand during the year-end period remain robust. Mid-market travellers typically spend Rs 1.1–1.8 lakh per person, while premium travellers spend between Rs 2.5 lakh and Rs 4 lakh.
For those opting to stay closer to home, domestic destinations like Goa, Kerala, and the Andaman Islands continue to draw strong festive-season demand, serving as reliable alternatives amid changing international travel plans.
