The Indian travel industry anticipates a bustling summer season, fuelled by a surge in demand, shorter booking windows, and the possibility of rising airfares. Travel companies are witnessing significant growth compared to last year, with SOTC Travel witnessing a 25 per cent year-on-year increase in bookings and EaseMyTrip experiencing a staggering 150 per cent rise in travel searches. This pent-up demand, however, could lead to higher airfares, with some experts predicting a 7-10 per cent increase for domestic travel during the peak season (April-June).

Summer holidays (April-June) are usually is a peak season for travellers. Searches already seem to be skyrocketing. For example, EaseMyTrip has observed a remarkable 150 per cent increase in searches compared to last year, indicating a significant uptick in interest, whereas SOTC has witnessed uptick in demand of 25 per cent y-o-y.

While the outlook is positive, experts warn of potential challenges. “Historically, there’s been a supply crunch leading to increased rates,” said Rajesh Magow, Co-founder and Group CEO, MakeMyTrip, adding that “This summer, there could be a demand-supply imbalance, potentially causing rates to rise.”

This surge in demand, coupled with potential supply constraints, could lead to rising prices, cautioned Magow. Cleartrip’s Chief Business Officer, Prahlad Krishnamurthi, echoed this sentiment, predicting a 7-10 per cent increase in domestic fares for the April-June period compared to last year, while Easemytrip is witnessing a 60-70 per cent hike in airfares.

However, international fares remain moderate, according to Aloke Bajpai, Group CEO & Co-founder, ixigo. He said, “This year, advanced fares for international destinations have shown a decreasing trend compared to last year, becoming a favoured choice for Indian travellers during the summer season.”

Ixigo observed a remarkable 150 per cent y-o-y surge in international travel searches during April and May, particularly favouring visa-free destinations like Iran, Malaysia, Kenya, and Thailand. This trend signals a strong inclination among Indian travellers for hassle-free experiences, with these countries witnessing an 80-100 per cent spike in travel searches.

Interestingly, Indians continue to make last-minute decisions, with booking windows shrinking to 20-30 days for domestic travel and 30-35 days for short-haul international trips, SOTC’s data showed. To cater to the anticipated demand, airlines like IndiGo are adding new domestic routes, while Akasa Air is offering discounts on fares. Booking platforms like Cleartrip are also partnering with travel companies to provide discounted package, and players are asking customers to book in advance in order to avoid surge charges.

Despite the possibility of higher prices, travellers seem undeterred. “Despite airfares soaring, travellers are displaying a keen willingness to invest in both flights and accommodations this year,” remarked Nishant Pitti, CEO and Co-founder, EaseMyTrip.

Meanwhile, hotels are also anticipating a rise in occupancy rates during the summer season. SOTC Travel reports minimal increases for long-haul destinations compared to 2023, while short-haul destinations might see a 10-20 per cent rise. However, flat rates for summer destinations domestically are expected, while city hotel prices could rise by 25-30 per cent.

Popular hill stations like Shimla and Manali remain in demand, but travel4lers are also exploring newer options in Himachal Pradesh and Uttarakhand. Internationally, short-haul destinations like Vietnam and long-haul destinations like Europe are seeing increased interest.

Anticipating a dynamic Indian summer travel season, Rajeev Kale from Thomas Cook notes robust demand fuelled by the YOLO mindset. Travel preferences are evolving, with a surge in interest for distinctive experiences like boat rides, ski plane tours, glamping, and biking. Drivecations to nearby destinations, especially for weekend escapes, are also gaining traction.

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