Holidays Demand Spike: Flight Tickets and Hotel Prices Soar

With the end of the year approaching, Indians are making preparations for their festival breaks. But they may have to dig deeper into their pockets this time around as airfares and hotel prices have reached dizzying heights, making it an expensive proposition for people wanting to celebrate the holiday season.

According to data from online travel agents, airfares on the tier-II routes in the domestic markets have risen by as much as 12-15% compared with last year. The surge is much sharper on popular routes and could be as high as 30-35%. To illustrate, the one-way average fare on New Delhi-Srinagar has gone up by 18% at Rs 7,782.

The trend isn't limited to domestic travel. International airfares, too, have gone up - especially to popular destinations in South East Asia and Europe. The fare on the Mumbai-Bali route has risen by 47%, for instance, at Rs 27,697.

Hotel prices have also skyrocketed, with the luxury and premium segment seeing a 20-25% increase in prices. Room rates in popular holiday destinations like Udaipur and Goa have gone up three times, with some hotels charging three times more for festive dates.

Despite the exorbitant prices, travellers seem not fazed. Properties are filling up fast, and most hotels are expecting a house full. According to Udit Kumar, the founder of Brij Luxury Hotels, his properties have reached 80% occupancy with an expectation to fill them to 95-100% as festive dates get closer.

The trend is not surprising, given the pent-up demand for travel after the pandemic. Indians are willing to splurge on their holidays, and the travel industry is cashing in on this demand.

However, high prices may deter some travellers, especially budget-conscious ones. According to Arun Bagaria, co-founder and chief executive of TravClan, airlines operating on monopoly routes are looking to book profits, given the heightened competition and price sensitivity on popular routes.

As the festive season approaches, travellers would do well to book their tickets and accommodations in advance to avoid the last-minute rush and high prices.

Also read: December 31 - January 14: Winter holidays in Haryana for schools