In the next five years, Tier-2 and Tier-3 cities will outpace metros in producing first-time international travellers, says Cox and Kings
India’s travel boom is no longer a metro story. Smaller cities are leading the charge, with rising incomes, better connectivity, and a younger population eager to see the world. From Jaipur to Indore, families are planning their first international holidays, fuelled by social media FOMO and easy financing options like BNPL.
Spotting this shift, Cox & Kings, is making Tier-2 and Tier-3 its growth engine, scripting a powerful comeback with a sharp focus on India’s underrated markets.
With five new franchise outlets launched in Faridabad, Gurgaon, Dharamshala, Agra, and Ahmedabad, and a plan to scale up to 200 outlets in the next few years, the company is betting big on the aspirations of “Bharat.”
The timing is crucial with the festive and holiday season around the corner, demand from Tier-2 and Tier-3 cities is expected to hit a new high. Families are increasingly choosing international vacations over traditional domestic trips, with global destinations becoming aspirational yet accessible.
“Tier-2 and Tier-3 India is no longer a silent segment; it is the growth engine of tomorrow’s travel market. At Cox & Kings, we are combining our 265-year legacy with modern travel expectations to serve these new-age customers. Our franchise-first approach allows us to bring curated experiences closer to their doorstep, while ensuring the reliability and trust the brand is known for,” said Karan Agarwal, Director, Cox & Kings.
Why Tier-2 is driving India’s next travel wave
Tier-2 India is fast emerging as the heartbeat of the country’s travel industry. According to Industry Data, approximately 8.7% of the Indian population holds a valid passport. In July 2025 alone, over 1.24 million passports were issued, and by the end of 2025, India is on a track to issue over 14.5 million passports. International visa requests from first-time applicants jumped 32% over the past year. Of this, 56% came from Tier 2 and Tier 3 cities, making India’s smaller cities emerging as the fastest-growing segment for the travel industry. Recent trends driving these changes are:
● Rising aspirations & disposable income: Tier-2 households are seeing stronger income growth and are prioritising experiences like travel over materialistic things.● Improved connectivity: New airports, better road networks, and airlines opening direct international routes from cities like Jaipur, Lucknow, Chandigarh, and Kochi are making global travel more accessible.
● Digital influence & social media FOMO:Instagram reels, YouTube travel vlogs, and influencer content are inspiring a younger generation of travellers to look beyond their hometowns.
● First-time international travellers:Passport issuances are surging from Tier-2 cities, with Dubai, Thailand, and Singapore topping the list for first-time outbound trips because of the easy visa options.
● Celebratory & experiential travel: From destination weddings to family anniversaries, Tier-2 consumers are fuelling a new category of “celebration-led” group travel.
