Leisure travel leads India’s forex demand with 57%: India Forex Report

According to the report, leisure travel is followed by corporate travel at 27% and overseas education at 16%, highlighting the increasingly diversified nature of India’s forex requirements.

Thomas Cook (India) Limited has launched its India Forex Report 2026, offering insights into how Indian consumers purchase, carry, and spend foreign exchange across leisure travel, overseas education, and corporate travel. According to the report, leisure travel remains the largest driver of forex demand, accounting for 57%.

Based on Thomas Cook India’s forex transaction data for April 2025 to March 2026, the report captures emerging shifts across consumer demographics, travel corridors, purchase journeys, payment preferences and overseas spending. India’s Forex demand is becoming more diversified. Leisure travel is followed by corporate travel at 27% and overseas education at 16%, highlighting the increasingly diversified nature of India’s forex requirements.

The geographic base of forex demand is also expanding. Tier 1 cities, including metros, account for 47% of demand, while Tier 2 cities contribute 41% and Tier 3 cities contribute 12%. With Tier 2 and Tier 3 cities together contributing 53%, emerging India is driving the next phase of forex growth, reflecting rising outbound travel aspirations, overseas education and global mobility beyond traditional metropolitan centres.

Millennials and Gen X dominate forex demand, while younger consumers lead digital adoption. Consumers aged 25–40 years (37%) and 41–60 years (36%) together account for nearly three-fourths of Thomas Cook India's forex usage, underscoring their continued importance to the outbound travel market. At the same time, younger travellers aged 18–24 years (6%) are emerging as the fastest adopters of digital-first forex channels across the Thomas Cook India app, website, WhatsApp and quick commerce platforms. Senior travellers (21%) also continue to remain a significant contributor to outbound forex demand.

While the US Dollar continues to dominate forex demand with a 49% share, Indian travellers are increasingly purchasing destination-specific currencies, with Europe-linked currencies accounting for 23% of demand, followed by Asia at 11%, the Middle East at 9%, Australia & New Zealand at 5% and Canada at 3%. Increasing demand for currencies such as the Thai Baht, UAE Dirham, Singapore Dollar, Malaysian Ringgit and Vietnamese Dong points to a gradual shift beyond traditional dependence on the US Dollar. Southeast Asian currencies are also gaining traction as short-haul leisure travel to the region grows.

While cash remains an important part of the overseas payment journey, travellers are increasingly using forex cards for planned spending. Among holiday travellers, cash accounts for 75% of transactions, while cards account for 25%. However, when measured by load value, the share of cards rises to 39%, compared with 61% for cash. 

The point-of-use experience is also becoming increasingly digital. Contactless card (Tap & Pay) and online transactions account for 57% of forex card usage, while merchant and retail POS transactions contribute 42%. ATM withdrawals account for 26% of overseas spending, followed by shopping and retail at 20%. Across overseas spending, ATM withdrawals account for 26%, followed by shopping and retail at 20%, hotels and accommodation at 15%, dining at 11%, grocery and supermarkets at 6% and transportation at 5%. 

Indian students are increasingly exploring a wider range of international education destinations, with Europe accounting for 38% of study abroad demand, followed by the United States (34%), Australia (10%), Canada (3%), UAE (3%) and other destinations (12%). The trend reflects students' growing preference for markets offering affordability, visa stability and stronger post-study opportunities.

The source markets for overseas education are also widening. Mumbai contributes 12%, followed by Delhi-NCR at 11%, Chennai at 10%, Hyderabad and Bengaluru at 7% each. Demand is also emerging from cities including Pune, Surat and Lucknow, highlighting the growing overseas education aspirations beyond traditional metropolitan markets. University fees remain the dominant education-linked forex outflow, accounting for 81%, while living expenses contribute 19%.

Corporate travel reflects India’s growing global business mobility. Corporate forex demand is led by globally mobile sectors, with IT/ITeS accounting for 45% of forex consumption, followed by Auto/Auto-Ancillary at 14%, Consulting at 9% and Engineering, Procurement & Construction at 7%.

Europe remains the leading corporate travel destination at 45%, followed by North America (US, Canada and Mexico) at 23% and Asia at 19%. Together, these three regions account for 87% of corporate international travel, with Asia continuing to strengthen as a key regional business corridor. Business travellers show a strong preference for card-based forex solutions. Forex cards account for 84% of corporate forex usage, compared with 16% for cash. Within card usage, multi-currency cards account for 76%, compared with 24% for single-currency cards, reflecting the growing need for flexible payment solutions across multiple destinations and currencies.

Corporate spending extends beyond business essentials. ATM cash withdrawals account for 31% of spending, followed by hotels and accommodation at 23%, shopping and retail at 15%, dining at 9%, grocery and supermarkets at 6% and transportation at 5%.

Deepesh Varma, Chief Business Officer – Foreign Exchange, Thomas Cook (India) Limited, said, “At Thomas Cook India, our sustained focus on innovation, omnichannel access and customer convenience has enabled us to stay ahead of these changing market dynamics. We are also seeing strong momentum across App-led transactions, WhatsApp journeys and quick-commerce-enabled forex fulfilment, particularly among younger travellers, alongside continued overseas education demand and growing reliance on card-based and multi-currency solutions among corporate travellers.”

Sridhar Keppurengan, Head of Cross-Border Payments, India and South Asia, Visa, said, “At Visa, we are seeing similar shifts in how Indian consumers plan and pay for international travel, with growing preference for secure, cash-light solutions, wider acceptance, local-currency convenience and greater control over spending. This behaviour is being shaped by rising travel aspirations from emerging cities, shorter planning cycles, stronger comfort with app-led and self-serve journeys, and the need for seamless payments across hotels, dining, shopping, education and everyday overseas experiences.”

Amarjit Walia, Senior Vice President, Account Management, South Asia at Mastercard, said, “Whether travelling for leisure, business, education, or unique experiences, Indians today expect payment experiences that are quick, seamless, rewarding, and, most importantly, reassuring. The growing adoption of digital forex and card-based solutions clearly reflects a broader preference for greater control, convenience, and confidence in managing international spending.”