How Diwali weekend is driving high travel bookings across India
What's the story
The hospitality and travel sectors are witnessing a significant surge in demand this festive season, especially ahead of the long Diwali weekend. Bookings across urban and leisure destinations have been robust, with intercity bus services even reporting occupancy levels as high as 95-100%. The trend highlights a growing interest among travelers to celebrate festivals with family and friends or go on leisure getaways.
Market impact
GST reform benefits mid-scale hotels, domestic customers
The recent GST reform has largely benefited mid-scale hotels and mid-market domestic customers. It has made it easier for travelers to explore lesser-known destinations. Hotel Association of India (HAI) President K B Kachru noted that early trends indicate higher hotel occupancy rates this season. He said, "Booking patterns this season highlight travelers' preference for convenience, flexibility, and curated experiences."
Emerging trends
Tier-II destinations in demand
Kachru also observed a major increase in demand for tier-II and emerging destinations. This is because travelers are looking for heritage sites, local culture, and offbeat experiences. He said, "This demonstrates a broader diversification of travel choices, with domestic tourists moving beyond traditional metro cities toward more meaningful and memorable journeys."
Travel patterns
Travelers planning journeys well in advance
Ebix Travels Chief Strategy Officer Vikram Dhawan said, "With Diwali aligning with a long weekend this year, we're seeing travelers plan their journeys well in advance to maximize the holiday experience." Intercity bus routes are operating at near-full capacity with fares rising by 1.5 to three times above normal. This indicates strong and predictable demand elasticity during this festive period.
Aviation trends
Family, leisure trips dominate aviation sector
Dhawan also noted a shift in travel patterns in the aviation sector, with family and leisure trips accounting for nearly 65-70% of all bookings. This is a major change from regular periods. He said, "This surge is mirrored in accommodation, where we project a 15-20% year-over-year increase in bookings." Homestays and villas are becoming more popular among large family groups during this festive season.
Travel preferences
Pilgrimage tourism gaining momentum during festive season
MakeMyTrip Co-founder & Group CEO Rajesh Magow said visiting friends and relatives (VFR) is the biggest driver of festive season travel. He also noted a growing demand for pilgrimage destinations, showing how families are combining festive reunions with spiritual journeys. Out of the top 10 high-growth cities, five are religious hubs: Puri, Haridwar, Ayodhya, Rishikesh, and Varanasi.