Human desires take over once your basic needs are met. If you discuss managing your money with someone elderly or well-read, they will emphasize the importance of understanding the difference between your wants and needs. As you make a financial plan for the year ahead, travel expenses dominate your budget. No matter your life stage, travel plays a significant role in your pursuit of happiness.
Amanpreet Singh Bajaj, country manager for India and Southeast Asia at Airbnb, posted an interesting LinkedIn post. He put out some data to conclude that culture is now the trip. According to Airbnb’s travel insights, 62% of Gen Z in India (ages 13-29) plan to travel to concerts and music festivals in 2026. About 40% are willing to travel internationally to watch their favorite artists perform. There is a lot of intent in the approach to travel.
A comprehensive survey on travel, published by Google, a global tech giant, and Kantar, a market research firm, on India, reveals that Indian travellers increasingly view exploration as a necessity rather than a luxury; their spending habits are shifting in ways with significant implications for personal finance and budgeting. In the years after the pandemic, people began to embrace the maxim ‘life is short’ and to explore the purpose of travel. That actually meant you started spending more for experience than price. Not just that, travellers in India are spending more on comfort too. The Google-Kantar survey finds that 33% of travelers prefer business class over economy and 45% prioritize luxury accommodations. That is also reflected in the share price of Indian Hotels, the Tata Group company that owns and manages luxury hotels. Over the past five years, the share price has jumped 4.5 times. That shows investors' confidence in the prospects for luxury hotel spending.
The change in attitude is also influencing travel budgets. Many of those in the 13-29 category are influencing even family travel decisions. They rely on online research and align their travel with key events. These could be sports, music, or adventure events. That means travel budgets are witnessing a significant surge, too.
The survey findings can also be compared to the rise in personal loans. The Reserve Bank of India publishes the data every week. There has been a sharp surge in credit card and personal loans over the past five years. There was a time when the RBI intervened to slow down the rise in unsecured personal loans. Since then, the momentum has slowed, but Indian banks never had such a good run with borrowers. The salaried are happy to swipe their credit cards and borrow to spend on travel. Prospects are better ahead if you believe the Google-Kantar survey findings.
You need to plan for your dream travel. There are various tools that you could use to save and invest money regularly to achieve your objectives of a ‘momentication’. There is no need to suppress your desires or your pursuit of happiness. With proper management of your personal finances, you can ensure you have money available when you need it. In the year ahead, you may want to engage a professional financial advisor. You can allocate funds to a mix of asset classes, such as fixed-income mutual funds or fixed deposits, for your holiday. The idea is to keep borrowing at a minimum. You do not have to plan a vacation by running to a bank for a loan. Similarly, use your credit cards wisely to earn crucial points or miles for use during your travel. Most credit cards also provide travel insurance with your annual fees and other concierge facilities. When it comes to travel, thoughtful financial planning can go a long way in making your holiday memorable.