Prime Minister Narendra Modi recently appealed to citizens to limit foreign travel and embrace domestic destinations. Speaking at a public event in Hyderabad on May 10, the Prime Minister urged Indians to revive work-from-home practices, reduce gold consumption, and avoid or postpone international trips to help the country navigate a global energy crisis triggered by the ongoing conflict in the Middle East. Also read | PM Modi speaks against foreign destination weddings, jokes about not getting invitations
Market reactions: hesitation and redirection
The travel industry is already feeling the weight of this appeal. In an interview with HT Lifestyle about the shifting landscape, premium travel agency JoyNCrew noted that the Prime Minister’s words have introduced immediate friction into international booking cycles.
“PM Modi carries a strong emotional pull for a large section of Indian travellers, so his appeal will shape behaviour quickly,” JoyNCrew observed, adding, “We already see hesitation in the market. Many travellers now pause before confirming outbound trips, especially when they can hold cash for a domestic holiday instead.”
According to the agency, this trend is particularly visible among families who are choosing to ‘redirect the same budget toward India-based plans, where they face fewer complications and lower spending’.
The rise of domestic demand
As international airfares climb due to fuel surcharges and rerouted flight paths, domestic packages are seeing a significant uptick in interest. JoyNCrew reported that Indian families and young professionals are becoming increasingly cautious about discretionary overseas spending.
“Indian families and young professionals now weigh foreign travel more carefully,” the agency stated, adding, “When a leader like PM Modi speaks so directly to national sentiment, people notice. That creates hesitation, especially for discretionary trips that do not carry a fixed purpose.”
To adapt, travel providers are moving away from traditional seasonal models to promote year-round domestic exploration. JoyNCrew highlighted several emerging niches:
⦿ Astro-tourism and rural stays: High demand for stargazing and agrotourism.
⦿ Cultural heritage: Renewed interest in temple circuits in the south and heritage trails.
⦿ Nature and adventure: Glamping in Rajasthan and nature trails in the Northeast.
“We see a clear opportunity to position ‘Travel within India’ as the natural next step after the successful ‘Make in India’ mindset. JoyNCrew is focusing on destinations and experiences that offer depth without waste: spiritual tours in Uttar Pradesh, adventure in Uttarakhand, glamping in Rajasthan, beach travel in the Andaman and Lakshadweep Islands, temple circuits in the South, and nature trails in the Northeast. These trips provide travellers with real value and lower friction,” JoyNCrew shared.
Short-haul vs long-haul
For those still choosing to travel abroad, the preference has shifted dramatically toward ‘short-haul’ destinations like Southeast Asia, which offer better value and shorter transit times. “The logic looks simple. Shorter flights cut travel fatigue, reduce hotel nights, and help travellers protect their budget when airfares climb. They do not want to lose two full days in transit for a one-week holiday. That preference gives nearby markets like Southeast Asia an edge,” JoyNCrew explained.
As the Middle East crisis continues to disrupt global supply chains, the travel industry’s focus for 2026 appears firmly set on domestic resilience. JoyNCrew concluded: “Consumer sentiment now points strongly toward discovering India first… People want trips that feel meaningful, practical, and rooted in culture.”
