Why Everything Feels So Expensive
A combination of factors is making travel more expensive in 2026. Airlines are grappling with high aviation turbine fuel (ATF) prices, which make up a huge portion of their operating costs. In India, these costs are often higher due to state-level taxes.
Following years of restricted travel, demand remains very strong, especially during festive seasons like Diwali and the year-end holidays. On some popular domestic routes, fares have jumped by as much as 68% compared to the previous year. This is often because while the number of flights has been reduced on certain routes, demand has not slowed down, creating a classic supply-and-demand issue that pushes prices up for consumers. For international travel, a weaker rupee against the dollar also makes trips abroad more expensive.
Navigating the Flight Booking Maze
Airfare is often the biggest holiday expense, and it's also the most volatile. Airlines use dynamic pricing, which means prices change constantly based on demand. The upcoming festive season is already seeing sharp fare increases. To get the best deal, planning ahead is critical. Booking domestic flights one to three months in advance and international trips two to six months prior is generally recommended. Travelling during the 'shoulder season'—the period just before or after the peak season, like September-November or March-April—can also lead to significant savings of 30-50%. If your dates are flexible, use flight comparison tools to check prices for different days of the week; flying midweek (Tuesday or Wednesday) is often cheaper than on weekends.
Finding Value in Accommodation
Hotel prices have also seen a steady increase, adding another layer of expense to holiday budgets. While five-star hotels in prime locations come with premium price tags, there are many alternative options that offer both comfort and value. Consider exploring homestays, guesthouses, or boutique properties, which often provide a more authentic local experience at a lower cost. For family or group travel, service apartments or vacation rentals can be more economical than booking multiple hotel rooms. Another smart strategy is to look for bundled deals. Travel companies often have access to bulk rates and can offer packages that include flights and hotels for a lower total price than booking them separately.
Smart Strategies for the Savvy Traveller
In an era of high costs, being a savvy traveller is about more than just finding a cheap flight. It's about a holistic approach to planning. Start by setting a clear budget for different categories: transport, accommodation, food, and activities. Always set aside a small emergency buffer of 10-15%. When travelling, embrace local culture to save money. Eating at local eateries instead of tourist-focused restaurants can be a fraction of the cost and far more delicious. Using public transport like trains or local buses, where available, is another excellent way to reduce expenses and experience a destination like a local. For international trips, destinations in Southeast Asia like Thailand, Vietnam, or Sri Lanka often offer better value for Indian travellers due to favourable exchange rates and lower on-ground costs.
Rethinking the Getaway
If a long-haul international trip seems out of reach, it might be the perfect opportunity to rediscover the incredible diversity within India. High airfares are prompting many travellers to opt for road trips or train journeys to destinations closer to home. Exploring lesser-known domestic destinations can be a rewarding experience, free from the crowds and inflated prices of popular tourist circuits. Consider a quiet Diwali in the hills of Himachal Pradesh or exploring the cultural heritage of Tamil Nadu. Even a 'staycation' in your own city, where you check into a hotel and explore local attractions like a tourist, can be a refreshing and budget-friendly break from routine.
