Southeast Asia tops wish list as Indians spend more on overseas travel

MUMBAI: Passport stamps may be multiplying, but so are the calculations. For Indian travellers, the journey now begins long before take-off often with a currency converter open in another tab. Indian travellers are increasingly looking beyond domestic borders, with Southeast Asia emerging as the most popular overseas destination, according to Wise’s latest Passport & Paisa: India Travel Money Report 2026.

The study, which surveyed more than 1,050 international travellers across India, found that 34 per cent of respondents selected Southeast Asia as their preferred international destination. Europe followed at 15 per cent, while the Middle East accounted for 14 per cent, highlighting a growing preference for destinations that balance accessibility with affordability.

The findings suggest that while global travel ambitions are rising, budgets remain firmly in the spotlight. Nearly half of respondents said they spend less than ₹1 lakh per person on an international trip, making cost management one of the most important aspects of travel planning.

Yet flights and hotels are no longer the only numbers travellers are scrutinising.

The report found that travel budget management ranked as the biggest source of anxiety for overseas travellers, ahead of concerns such as visa procedures, flight disruptions, language barriers and mobile connectivity. A key reason is foreign exchange costs, which many travellers continue to underestimate.

Hidden exchange-rate mark-ups and non-transparent pricing emerged as the leading frustrations among respondents, followed by difficulties comparing forex rates across providers. While travellers often spend hours hunting for cheaper airfares and accommodation deals, many pay less attention to the charges attached to spending money abroad.

Despite India’s rapid adoption of digital payments, old habits still travel well. Around 38 per cent of respondents said they exchange cash before departure, making it the most commonly used method for overseas spending. Debit and credit cards followed, while only 9 per cent reported using digital multi-currency accounts.

The survey also revealed notable generational differences. Gen Z travellers were the most reliant on cash, while Gen X emerged as the only group where card usage exceeded cash transactions. Millennials, meanwhile, were the most likely to combine multiple payment methods during their trips.

There is also evidence that policy changes are influencing travel behaviour. Following the reduction of Tax Collected at Source (TCS) on overseas travel to 2 per cent, 78 per cent of respondents said they plan to increase their international travel spending.

When choosing travel cards, practicality trumped perks. Global acceptance was cited as the most important factor, outweighing rewards programmes, airport lounge access, eSIM benefits, lower ATM charges and digital wallet integrations.

The findings reflect a changing Indian traveller, one who is increasingly confident about exploring the world but remains highly conscious of value. As overseas holidays become more mainstream, the focus is shifting from simply getting abroad to ensuring every rupee travels as efficiently as possible.

After all, for many travellers, the real adventure may not be finding the perfect destination, it is making the travel budget go the distance.