Travel and hospitality firms, however, said demand for overseas holidays such as European summer breaks has softened amid soaring fares. Prime Minister Narendra Modi had also made a call to avoid non-essential overseas travel. The picture is encouraging on the domestic front, they said.
Read more: Cabinet approves Rs 10,000 crore fund to cap jet fuel prices
“Travellers are driving down to nearby destinations, a pattern we are seeing consistently across all major cities,” MakeMyTrip CEO Rajesh Magow said. “Group travel is up, whether families or friends travelling together, and that is reflected in a clear uptick in intercity cab and bus bookings on our platform.”
He said the demand picked up almost immediately as schools closed for summer vacations, which is consistent with the seasonal pattern.
Social media posts attest to the trend, with travellers referring to traffic jams stretching for hours around destinations such as Dehradun and Sikkim. Airfares have risen by as much as 30-40% year-on-year this summer due to elevated aviation turbine fuel costs amid the West Asia war. Many international routes are impacted by airspace closures and longer flight paths as well.
Read more: Govt plans WhatsApp bot for PM Surya Ghar scheme
As a result, most international travellers are opting for ‘value-driven’ short-haul destinations, said Aloke Bajpai, group CEO of ixigo.
Vietnam has emerged as the fastest-growing destination with a 130% growth over last year, followed by Sri Lanka (68%), Singapore (32%) and Thailand (22%), replacing earlier favourites such as Indonesia and Japan, he said.
While domestic travel demand remains “strong,” higher airfares are encouraging some to consider trains and buses instead, Bajpai said. Many travellers who were planning international vacations are now opting for domestic getaways, he added.
For the May-June travel period, bus bookings to hill stations and cooler destinations on ixigo have grown by 38% year-on-year, with destinations such as Coorg, Kodaikanal, Nainital, Shimla, Ooty and Munnar witnessing significant traction.