Hotels see jolly December as festival travel lifts business by 30%

Festive travel demand peaks as hotel bookings jump nearly 30% in December, pushing room rates and airfares higher across popular leisure destinations in India

As the year comes to a close, festive travel in India is witnessing a spike, with hotel business surging by almost 30 per cent in December as compared to the last month, while registering a year-on-year increase of 10-15 per cent.

 

“We have observed significant growth in demand for hotel bookings leading into the upcoming New Year and Christmas long weekend. Specifically, hotel business has surged by approximately 30 per cent compared to last month, reflecting strong traveller interest in holiday getaways,” said Bharat Malik, senior vice-president– air and hotel business at travel platform Yatra Online.

 

Hotel bookings are seeing a steady growth across locations. Led by Goa, demand for tourist destinations like Ooty, Wayanad, Jodhpur, Jaisalmer, Manipal, Srinagar, Shimla, McLeodganj, Dehradun, Shillong, and Pelling remains robust.

 

“These spots are drawing crowds for their mix of beaches, hills, deserts, and cultural appeal,” Malik said, adding that hotel room rates have “already risen by about 11 per cent this month”, fuelled by the heightened demand.

 

At Sarovar Hotels, room rates are trending approximately 10 per cent higher than last year, said Chief Executive Officer (CEO) Jatin Khanna.

 

While there is a clear surge in festive travel across the country, with the holidays falling mid-week, “the increase has been more moderate rather than sharply spiked, resulting in steady bookings and disciplined pricing across key markets,” he added.

 

For the group, demand remains strongest in core festive leisure destinations, with Goa reaffirming its position as a preferred festive hotspot.

 

“Other destinations such as Jim Corbett, Puducherry, Agra, and Jaipur are also seeing strong bookings, driven by families, couples, and short-break travellers looking to combine celebrations with experiences,” Khanna said.

 

At ITC Hotels, the traditional favourites of ITC Mughal, Agra and ITC Rajputana, Jaipur are evincing strong interest, said Anil Chadha, managing director at the group.

 

“A major trend is the rise of motorable destinations in North India, as travellers from urban hubs opt for the flexibility and convenience of road trips to nearby retreats in Himachal Pradesh and Uttarakhand,” he said, underlining that Goa continues to see robust bookings.

 

According to Thomas Cook, short-haul destinations like Malaysia, Indonesia, Thailand, Singapore, and Vietnam remain high on the consideration list, despite an increase in airfares by 10-15 per cent.

 

“Fares for Uzbekistan, Kazakhstan, and Georgia are witnessing a minor increase of 5-6 per cent, while for long-haul international travel, popular destinations such as Switzerland, France, Germany, and Norway–Finland have seen airfares increase by 15–20 per cent,” said Indiver Rastogi, president and group head, global business travel at Thomas Cook (India) and SOTC Travel.

 

On the domestic front, Rastogi said airfares have increased in line with heightened demand for favourites destinations like Rajasthan, Uttarakhand, Himachal Pradesh by 10-12 per cent, Kerala by 15 per cent, and Kashmir by 8-10 per cent. 

Festival cheer

• Yatra sees hotel business surge by 30% compared to November
• Room rates at Sarovar Hotels trending 10% higher than last year
• Goa remains favourite, with robust bookings and high room rates
• SE Asian nations trending on top internationally