Airfares Surge by Up to 35%, Hotel Rates Triple for Christmas and New Year Holidays

Travelers face soaring costs, but discounts on certain routes offer some relief.

As the festive season approaches, airfares and hotel rates are seeing dramatic hikes, making this year’s winter holidays more expensive for travelers. Domestic airfares have surged up to 35% on popular leisure routes, while hotel room rates in festive destinations have risen as much as three times, according to industry data.

Rising Airfares:

Airfares on Tier-II domestic routes have increased by 12-15% compared to last year, with some leisure destinations experiencing hikes of up to 30-35%. For instance, the average one-way fare on the New Delhi-Srinagar route has risen 18%, while fares on the New Delhi-Hyderabad route have also increased significantly. However, prices between Tier-I cities have seen a 15% drop this December compared to last year, offering some respite to metro travelers.

To boost ticket sales, airlines like Air India, IndiGo, Air India Express, and Akasa Air launched discounts in November. Air India offered up to 20% off on domestic flights and 12% on international routes, while IndiGo’s Black Friday sale provided domestic one-way fares starting at ₹1,199. Despite these offers, last-minute travelers may still face steep costs.

International Trends:

International routes are also seeing price hikes. For example, fares on the Mumbai-Bali route have jumped from ₹18,748 last year to ₹37,697 this year. Overall, international travel demand has grown, with the number of passengers traveling to and from India increasing from 3.14 crore in 2023 to 3.5 crore in 2024 (April-September period). Business class bookings on both domestic and international routes have surged by 50% year-on-year, reflecting the demand for premium travel options.

Hotel Rates Triple:

Hotels in key tourist destinations are witnessing an unprecedented rise in room rates. Luxury properties in Udaipur, Goa, and other hotspots are charging up to three times their regular rates for Christmas and New Year. For instance, the price of a room at Aurika Luxury by Lemon Tree in Udaipur has skyrocketed from ₹10,660 for a mid-December stay to ₹51,116 for New Year’s Eve. Similarly, a room at Hyatt Place Goa costs ₹16,400 for a December 25 check-in, nearly double its mid-month rate.

Domestic destinations like Manali, Amritsar, and Mussoorie have also seen price hikes of 2-3 times compared to last year. Despite the soaring costs, most properties are nearing full occupancy, driven by increased demand for holiday travel packages.

High Demand Amidst Rising Costs:

Despite the surge in travel expenses, the industry is witnessing strong demand. Data from MakeMyTrip and Cleartrip shows that festive packages and premium accommodations are filling up quickly, with many travelers willing to pay a premium for memorable holiday experiences.