Travel is emerging as the biggest beneficiary of rising affluence in India, with spending on experiences accelerating as consumers move up the wealth ladder. As affluence rises, travel’s share of spending increases significantly. Data from a white paper by Visa Consulting & Analytics (VCA) shows that while travel accounts for about 28 per cent of spending among emerging affluent consumers, it rises to nearly 58 per cent among the ultra-elite. In contrast, retail’s share declines from 49 per cent to 28 per cent across the same segments.
VCA defines affluence based on the share of discretionary spending on credit cards — non-essential, lifestyle-driven expenditure across categories such as travel, dining, luxury, entertainment and gifting.
This discretionary share rises steadily as consumers move up the affluence ladder, from around 35 per cent among non-affluent individuals to above 35 per cent for the emerging affluent, about 40 per cent for established consumers, crossing 40 per cent for the elite, and approaching 45 per cent for the ultra-elite. The framework also classifies consumers into four behavioural tiers based on monthly discretionary spending: emerging affluent with spends of Rs 30,000 and above, established at Rs 70,000 and above, elite at Rs 150,000 and above, and ultra-elite at Rs 600,000 and above.
The emerging affluent, with spends of Rs 30,000 and above, are gradually upgrading their lifestyles through better holidays and more frequent dining, though their consumption remains largely centred on branded retail, with luxury still aspirational. The established affluent, spending Rs 70,000 and above, expand their expenditure to include household priorities such as home improvement and private schooling, while domestic travel, selective international trips, and premium retail and dining become more routine.
Among the elite, with monthly discretionary spends of Rs 150,000 and above, travel emerges as a key spending driver, including long-haul leisure and business travel, alongside a sharp increase in luxury fashion, premium health and beauty, and digital goods. At the top end, the ultra-elite, spending Rs 600,000 and above, are characterised by high-frequency, near-daily digital transactions and a global-first outlook, with around 63 per cent cross-border spending, along with significant expenditure on memberships, jewellery, and high-value indulgences such as art.
According to Sushmit Nath, head of Visa Consulting & Analytics, India & South Asia, monthly transactions per active card rise sharply as consumers move up the affluence ladder, jumping from low single digits to near-daily usage — roughly four to 10 times the non-affluent baseline.
The report also highlights a significant increase in high-income households in India. Individuals reporting annual income above Rs 10 lakh have risen from 6.9 million to 13 million between FY20 and FY24, indicating a broader base capable of discretionary spending. As this segment expands, consumer behaviour is shifting from essential upgrades to lifestyle-driven purchases. At the same time, affluence is becoming more decentralised, with wealth spreading from metros such as Mumbai, Delhi and Bengaluru to emerging centres including Ahmedabad, Surat, Jaipur and Lucknow.
The report notes that for affluent consumers, experiences are taking centre stage, with travel emerging as the main engine of premium spending. Dining is also evolving, becoming more deliberate and skewed towards exclusivity, while retail is shifting towards selectivity and significance. “Affluent consumers are choosing to purchase fewer items, focusing instead on high-value goods that hold emotional or symbolic importance, such as fine jewellery, watches, art, antiques, and custom-made clothing,” the report said.
“In the data, you literally see the wallet tilt. Retail gives way to travel — from 28 per cent to 58 per cent of spend at the very top — which tells you India’s new rich are buying fewer things and more experiences,” Nath said.
As consumers move from emerging affluent to ultra-elite segments, transaction frequency rises sharply across discretionary categories, with higher-income consumers not only spending more but also transacting more often, digitally and globally. Travel becomes a core lifestyle pillar, with airline transactions surging up to 12 times. Dining frequency doubles, with a shift towards fine dining and premium experiences. In luxury retail, spending on apparel and high-value aesthetics grows twofold, reflecting a move from occasional to recurring consumption. Spending on digital goods — including immersive entertainment, subscriptions and digital services — also doubles in frequency.
“If you only look at income, you’ll miss the real story. The opportunity now is to underwrite, price and design around behaviour — who is spending 45 per cent of their wallet on discretionary categories, travelling to 10 countries, or doing Rs 50,000 dinners every month,” Nath said.
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