Affordable luxury tourism is gaining attention in Kerala, but budget tourism is the real winner after the pandemic. In 2021, Kerala launched two tourism schemes: caravan tourism for luxury seekers and budget tourism for all. Four years later, the results differ greatly. Budget tourism, run by KSRTC, earned ₹106 crore by January 2026, making up to ₹42 crore in 2025 alone and a ₹17 crore profit. Pilgrim tours like the Sabarimala pilgrimage and Kumbha mela package were big hits, bringing millions to KSRTC. On the other hand, caravan tourism struggles. Only 13 caravans operate despite government subsidies of up to 15% or ₹7.5 lakh. Only two caravan parks are running, while two more are still under construction. KSRTC’s COO, R. Udayakumar, told The Hindu, “The most significant aspect of the popularity of budget tourism is its economic and competitive budgets for trips, which no one can offer. Further, the trips specially curated by the KSRTC staff are safe, engaging and informative. Travellers ranging from solo to groups can take part without any effort, and travellers would be – be it senior citizens or women or children – handheld during the entire trip by our staff.” Caravan tourism offers a unique camping experience but lacks investor and traveler enthusiasm. The luxury segment grows, but caravan tourism can’t match budget tourism’s success so far.