Diwali travel demand sets the tone for year-end holiday rush, high fares

Domestic and overseas travel surge 20-30% as Indians book flights and hotels early, with Goa, Varanasi, and Thailand topping demand charts

As India gets ready for fireworks and crackers this Diwali, vacationers are making the best of the extended weekend and more, at a price. In the age of dynamic airfares, when prices can zoom within seconds, one-way domestic trips have turned doubly expensive and beyond for several destinations  during the week starting October 20. With hotel bookings and tariffs reflecting a similar bullish sentiment, Diwali has set the tone for the holiday season stretching to Christmas and New Year’s. 

Flights from Hyderabad to Nagpur and Kolkata, which usually cost between ₹4,500 and ₹ 6,500 for the economy class, are now priced between ₹11,500 and ₹16,500, according to EaseMyTrip, an online travel platform. Similarly, airfares from Hyderabad to Delhi have increased from ₹5,500-₹8,500 to ₹8,500-₹18,500. This is even for those who chose to book flight tickets well in advance. 

Some deal hunters turned lucky, though. For instance, spot fares for travel just before Diwali have dipped by nearly 25 per cent on some routes, making this an ideal time for travellers planning last minute trips, said Aloke Bajpai, Group CEO, ixigo. 

But, on the whole, whether it’s just before or after Diwali, fares have gone through the roof. A Delhi-Mumbai budget airline ticket on October 26 or 27, for example, has risen to as much as ₹20,000-25,000 one way, according to data on travel sites.  

It’s all about demand. According to Bajpai, this Diwali, flight bookings have risen by 20 to 25 per cent, driven by both festive leisure and faith-based travel. Spiritual hubs such as Tirupati and Varanasi have seen over a 50 per cent jump in bookings for the Diwali period. 

On the international front, short-haul beach destinations are witnessing strong demand with Thailand and Vietnam recording over 25 per cent year-on-year (YoY) growth, and Sri Lanka topping the charts for the first time with a 36 per cent year-on-year increase in flight bookings, Bajpai said. 

Hotel occupancy is showing a likely uptick of 20 to 25 per cent. Hospitality chains are expecting the good times to continue at least till the end of the year. 

While hotel properties across India have observed strong booking trends, mid-scale hotels are especially seeing high demand. Based on current booking trends, Royal Orchid Hotels anticipates the momentum to continue into Christmas and New Year’s Eve, with occupancies expected to touch 90 to 95 per cent in key leisure destinations, Arjun Baljee, founder, ICONIQA and president, Royal Orchid Hotels, noted. He added that the early travel sentiment is very positive, and the hotel expects one of its strongest holiday seasons in recent years. 

“On our platform, we are anticipating a 20 to 25 per cent year-on-year (Y-o-Y) rise in occupancy, underscoring a strong revival and continued momentum in hospitality,” said Rikant Pittie, chief executive officer (CEO) and co-founder, EaseMyTrip. Airfares too have seen a significant rise this Diwali compared to the non-festive period, he pointed out. 

Destinations within India, like Jaipur, Udaipur, and Jaisalmer, remain top choices among travellers, followed by Varanasi, Goa, Kerala, and Hill circuits in Himachal and Uttarakhand, industry data shows. 

Rajeev Kale, president and country head, holidays, MICE, visa, Thomas Cook India, said in a statement that top international favourites include Switzerland, France, Italy, Austria, Spain and Portugal. He added that Australia and New Zealand remain popular for their outdoor experiences and wildlife encounters, while Japan and South Korea appeal to younger travellers with their blend of tradition and pop culture. 

“The Diwali period this year is shaping up to be exceptionally strong for Radisson Hotel Group in India, with occupancy levels trending significantly higher than the same time last year,” said Nikhil Sharma, managing director and chief operating officer (COO), South Asia, Radisson Hotel Group, adding that its average room rates have risen by nearly 30 per cent compared to regular periods. 

“We are witnessing robust demand across leisure destinations such as Pondicherry, Mahabalipuram, Udaipur, Jaipur, and Uttarakhand, with Goa emerging as the clear highlight where several of our hotels are expected to be sold out over the long weekend,’’ said Sharma. 

S D Nandakumar, president and country head, holidays and corporate tours, SOTC Travel, highlighted that a growing trend among young migrant professionals is extending their weekend, travelling back home to spend quality time with family and celebrate the festive season together for a five to six-day break. Cruises are also gaining popularity, he said. 

The demand is already pacing ahead of last year for Christmas and New Year’s Eve, according to Sandeep Maitraya, founder and director of Crimson Hotels. “This Diwali season, we’ve seen a strong surge in travel sentiment, with occupancy across Crimson Hotels rising by nearly 18 to 20 per cent compared to last year,” he said, adding that he expects about a 20 per cent increase in both occupancy and room rates during the year-end celebrations.