IndiGo fallout: Year-end plans in limbo as travellers opt for staycations

Holiday plans shift as cancellations spur 20-40% rise in queries for road-accessible destinations; Goa, Kerala bookings see dip

IndiGo cancelling hundreds of flights over the past four days has had ripple effects on hospitality companies, especially in year-end tourist-favourite destinations like Goa, Pondicherry, and Kerala, as travellers are increasingly veering towards staycations, observed industry insiders. 

“Due to current flight cancellations, there has been uncertainty in the minds of travellers regarding their future travel. For Christmas and New Year, we have seen a 20 per cent increase in queries and bookings for locations within driveable distances, and we expect this to continue rising if flight uncertainty sustains,” Amit Damani, cofounder of luxury villa rental firm StayVista, told Business Standard. 

Staycations and drive-to villas have emerged as a strong fallback and, in some cases, the primary choice, he said. With the uncertainty around flights and the hassle of last-minute rerouting, “many travellers seem to prefer the convenience, safety, and flexibility of a villa or resort that’s reachable by road”.

 

“The entire travel ecosystem is reeling with the domino impact of flight cancellations. Not just immediate plans, but people are also now revising their year-end holiday plans to avoid any last-minute hiccups,” said a senior industry executive.

 

While destinations like Goa, Pondicherry, and Kerala have been tourist favourites to ring in the New Year, many are now actively reconsidering these plans, choosing instead to drive down to nearby destinations.

 

“There is definitely a problem as there are hotel booking cancellations, and people will be cautious about taking trips right now due to increased airfares or doubts about flight delays," said Chander K Baljee, managing director, Royal Orchid Hotels.

 

At SaffronStays, which has around 450 luxury homes around the country, executives are witnessing a 40 per cent increase in enquiries for destinations like Alibaug and Dehradun, which are a short drive away from major cities. “A lot of travellers are currently in a wait-and-watch mode, and we have witnessed a 20–25 per cent drop in daily sales run rates for destinations that are dependent on flight routes,” said Devendra Parulekar, founder of the luxury villa private network.

 

Damani added that demand patterns were shifting even though there was no substantial decline in demand for popular destinations. “But conversions are taking time as plans remain in limbo. I think it will take a week before people start to put things into action. The flight delays and cancellations are also impacting budgets, which might eventually add up when holiday plans are finalised,” he added.

 

Meanwhile, for Araiya Hotels, founded by Leela Hotels scion Amruda Nair, demand has not been particularly impacted as the primary catchment for its resorts has always been guests who drive. Other hotel chains are assisting customers with refunds.

 

Oyo Hotels parent Prism on Monday announced that it will fully refund travellers who are unable to use their hotel bookings from December 5–15 due to the flight disruptions, adding that over 1,400 flights were cancelled over the weekend, disrupting travellers’ plans.

 

With inputs from Roshni Shekhar

 

Roads over runways: Year-end travel rerouted

 

·         IndiGo cancels hundreds of flights; festival plans shaken

 

·         Alibaug, Dehradun enquiries surge 40%

 

·         Goa, Pondicherry, Kerala bookings slow

 

·         Air-dependent properties see 20–25% drop in daily sales

 

·         Hotels offer refunds; Oyo covers December 5–15 bookings