India’s Tourism Becomes More Affordable Despite Global Inflation

Why India is Becoming a Budget-Friendly Destination

While many countries are facing rising travel costs due to global inflation, India is making tourism more affordable for domestic and international travellers. Thanks to the Government of India’s recent GST reforms for hotels and transport, the overall cost of tour packages is set to decline. Starting 22nd September 2025, these changes will make India one of the most cost-effective yet luxurious destinations to explore.

For customised itineraries, you can explore exclusive packages at Kerala Tour Packages.

New GST Rates for Hotels in India (Effective September 2025)

Hotels Under ₹7,500 Now at Just 5% GST

Hotels with tariffs below ₹7,500 per night will now be charged only 5% GST, reduced from the earlier 12%. This translates to a 7% reduction in hotel prices, directly benefiting travellers.

Hotels Above ₹7,500 Attract 18% GST – Price Competition Benefits Travelers

Hotels charging above ₹7,500 per night will fall under the 18% GST slab. As a result, many premium hotels previously priced above ₹8,000 are now reducing their rates to ₹7,500 to remain competitive. This ensures tourists can enjoy better quality stays at more affordable prices.

More 3-Star, 4-Star, and Some 5-Star Hotels Now Affordable

With the GST revision, travellers choosing hotels under ₹7,500—which include a wide range of 3-star, 4-star, and even select 5-star hotels—can experience comfort and luxury without stretching their budgets. Check out handpicked stays and curated trips at Kerala Tour Packages .

Reduction in GST for Passenger Cars – Lower Transport Costs

Small Cars GST Cut from 28% to 18%

Another positive change is the reduction of GST on small passenger cars from 28% to 18%.

How This Impacts Tour Packages and Transfers

Since transport costs form a major part of tour packages, this GST cut will lower rates for medium cars used in tourism, making airport transfers, sightseeing, and road trips across India more affordable.

Plan your road trip experiences with Kerala Tour Packages  for the best transport-inclusive tours.

Why This is the Best Time to Visit India (October 2025 – March 2026)

Affordable Winter Tourist Season

The GST reductions take effect just before India’s peak winter tourist season (October to March). This is the most popular time to visit India, thanks to its pleasant weather, vibrant festivals, and high demand for cultural and nature tours. With lower hotel and transport costs, this season will be more budget-friendly than ever.

Domestic & International Travellers Benefit Alike

Indian travellers will find better value for money on family holidays, while international tourists will see India as a highly affordable destination compared to many other countries. This makes it the best time to visit India and book India tour packages through trusted providers like Kerala Tour Packages.

How These GST Changes Boost Indian Tourism

Competitive Pricing Among Hotels

By encouraging hotels to keep tariffs under ₹7,500, travellers get more options for affordable stays.

Affordable Luxury for Travellers

High-quality 3-star, 4-star, and select 5-star properties are now available at reduced rates.

Increased International Tourist Arrivals

Lower overall travel costs will make India more appealing to international travellers, boosting tourism and supporting the economy.

Plan Your India Tour Now

In a world where inflation is making travel more expensive, India is setting itself apart as an affordable, high-value destination. With reduced GST on hotels and passenger cars, the winter season of October 2025 to March 2026 is the best time to plan a trip.

Whether it’s a houseboat stay in Kerala, a royal palace tour in Rajasthan, a beach holiday in Goa, or an adventure in the Himalayas, India now offers more value for every traveller’s budget.

So, don’t wait – book your India tour packages  today and take advantage of this new era of affordable travel.