It’s a familiar story for India's festive season: airfares are skyrocketing. Yet, in a powerful display of resilience, passenger demand is not just holding steady but surging, with travelers seemingly undeterred by the significant price hikes.
The Soaring Cost of a Festive Trip
As Diwali
approaches, the cost of flying home or taking a holiday has climbed dramatically. On major routes connecting metropolitan hubs to hometowns, fares have in some cases more than doubled. A flight from Mumbai to Kolkata that might typically cost around ₹7,000 has been seen nearing ₹15,000, while Bengaluru to Patna fares have reportedly crossed the ₹26,000 mark for travel just before Diwali. According to one survey, over half of air travelers are paying at least 50% more for their festive journeys this year compared to 2025. This isn't just a case of last-minute booking panic; the trend was visible weeks in advance, signaling a broader market reality of high demand meeting constrained supply.
Why Are Prices So High This Year?
Several factors are converging to create this perfect storm of high prices. A primary driver is the steep increase in Aviation Turbine Fuel (ATF) costs, which can account for up to 50-55% of an airline's operating expenses in volatile times. ATF prices saw a significant hike of around ₹16 per litre on October 1, forcing airlines like IndiGo and Air India to revise their fuel surcharges. Compounding this are capacity constraints, with some airlines facing reduced fleet availability and fewer scheduled domestic flights compared to last year. While airlines are using larger aircraft to maintain overall seat numbers, the reduced frequency of flights on certain routes limits options and allows dynamic pricing algorithms to push fares higher as seats fill up.
Demand That Defies Financial Gravity
Despite the financial sting, booking platforms are reporting a massive uptick in festive travel. Travel fintech platform Scapia has seen bookings grow three to four times year-on-year for the October to December period. Domestic air passenger traffic historically jumps by 18-25% during the Diwali travel window. This year appears to be no different. The data suggests a fundamental shift in consumer mindset. For a growing number of Indians, festive travel is no longer a discretionary luxury but an essential, non-negotiable expense. This willingness to absorb higher costs reflects a prioritization of experiences and family connections, possibly a lingering effect of pent-up demand from the pandemic years.
New Trends in Festive Travel
The travel boom isn't just about going home. There's a growing trend of using the festive period for holidays, with many Indians opting for multiple short getaways. Accommodation searches on platforms like Airbnb and Agoda have surged, with interest growing not just for traditional hotspots like Goa but also for spiritual centers like Varanasi, and quieter hill stations and beach towns like Puri and Ooty. This diversification of destinations shows a broadening travel appetite. International travel is also seeing a significant rebound, with bookings for year-end holidays showing more than five-fold growth compared to last year. This indicates that for those who can afford it, the desire to travel is a powerful economic force.
The Bigger Economic Picture
The resilience of the Indian traveler is a strong indicator of the health of a specific segment of the domestic economy. While not everyone can afford a ₹20,000 flight, the consistent demand points to a robust upper-middle and affluent class with disposable income and a strong desire to spend it on experiences. In fact, travel and hospitality have emerged as one of the top three festive spending categories, accounting for 24% of planned expenditure. This domestic spending is becoming increasingly crucial for the country's tourism sector, which has seen domestic visitor spending grow nearly 37% since 2019, while international visitor spending has remained comparatively flat. The willingness of Indians to travel within their own country is, therefore, a key engine of economic activity.
