Tokyo and Osaka have emerged as the world’s top travel destinations this summer. But their popularity isn’t just about culture and cuisine. A weak Japanese yen made Japan significantly more affordable in 2024—encouraging cost-conscious travellers from across Asia, including India, to head there in record numbers.
The report shows a clear trend: Indians are closely watching the rupee’s strength before booking international trips. A favorable exchange rate stretches their travel budget—whether that means extra meals, shopping, or a hotel upgrade.
Mastercard found that even a 1% drop in the US dollar leads to a 0.6–0.8% rise in Indian travellers heading to the US.
Japan offers a case in point. As the yen weakened last year, Singaporeans flocked to Japan in record numbers. Indian tourists, too, are choosing destinations where their money goes further—like Vietnam’s Nha Trang, which made its debut on the top 15 trending destinations list.
Shift toward experience-driven spending
Indian consumers are also redefining what value means when they travel. Instead of spending on multiple tourist spots, they’re putting money into experiences—wellness retreats, food trails, and nature escapes.
Bali’s Gianyar region, known for its local cuisine, and Thailand’s eco-stays are seeing a rise in demand.
This aligns with broader financial behavior trends. Consumers are moving away from transactional spending and toward purchases that offer emotional or wellness returns.
More time, fewer trips
Corporate travel is also changing. Indians making international business trips are staying longer per trip, likely to maximise the value of airfare and accommodations.
Mastercard found that US-based business travellers now average 10.2 days per Asia-Pacific trip, up from 8.8 days—a shift toward cost-efficiency and better ROI on work travel.
Avoiding the travel money pitfalls
The report also warns travellers about the financial risks of peak-season travel. Mastercard’s data shows that fraud in popular tourist spots can rise by up to 28% during holidays.
Common scams include overpriced taxis, fake tour operators, and bogus rental listings.
To stay protected, experts advise using secure payment tools like digital wallets and AI-based fraud detection systems.
Spending with purpose
“Even amid economic uncertainty, travel remains a bright spot because people are making smarter, more intentional financial decisions,” said David Mann, Chief Economist, Asia Pacific, Mastercard. “Travellers are weighing exchange rates, accessibility, and long-term satisfaction before they spend.”
ALSO READ | Key Highlights from the MMT Foundation and WTTCII India Travel and Tourism Sustainability Conclave 2025
