Festive Travel Boom: Diwali holiday drives record demand across India’s hospitality and transport sectors
India’s travel and hospitality sectors are witnessing record Diwali demand, with hotels, flights, and intercity buses operating near full capacity. Tier-II travel, experiential stays, and family trips are driving growth, while religious and short-haul international destinations see strong festive traction.
ADVERTISEMENT
India’s hospitality and travel sector is witnessing a record surge ahead of the Diwali weekend, as travellers flock to both metros and leisure destinations, signalling a robust rebound in domestic tourism. From hotels and homestays to intercity buses and flights, service providers are operating near full capacity, marking one of the strongest festive seasons in recent years.
According to industry estimates, intercity bus routes are running at 95–100% occupancy, with fares spiking by 1.5 to 3 times the usual rates due to intense demand, PTI reported. This sharp uptick underscores how India’s post-pandemic travel market has stabilised, with predictable festive season elasticity returning across modes of transport.
Mid-Scale and Experiential Travel on the Rise
Hotels, particularly in the mid-scale and premium categories, are reporting high occupancy levels as travellers prioritise convenience and curated experiences. KB Kachru, President of the Hotel Association of India (HAI) and Chairman – South Asia, Radisson Hotel Group, said the sector’s recovery has been boosted by GST reforms and the evolving preferences of Indian tourists.
“Many hotels are seeing growing interest in premium and experiential stays, as travellers increasingly seek leisure blended with culture and wellness,” Kachru noted. He added that tier-II and heritage-rich destinations are drawing strong interest this season, reflecting a diversification of travel preferences beyond traditional metros.
Tier-II and Family Travel Fuel the Upswing
Echoing these trends, Vikram Dhawan, Chief Strategy Officer at Ebix Travels, said Tier II and III towns now account for 62% of bookings, driven by travellers returning home or planning regional getaways. With Diwali coinciding with a long weekend, early planning and extended holidays have become the norm.
“In aviation, leisure and family travel now make up nearly 70% of bookings, compared to regular periods,” Dhawan said, adding that accommodation bookings are up 15–20% year-on-year, with homestays and villas particularly popular among large family groups.
MakeMyTrip Sees Blend of Festive, Religious, and Short-Haul Travel According to Rajesh Magow, Co-founder and Group CEO of MakeMyTrip, visiting friends and relatives (VFR) remains the biggest driver of travel demand during the festival. “Five of the top 10 most booked destinations this Diwali are metros — Delhi, Mumbai, Bengaluru, Hyderabad, and Chennai,” Magow said.
He highlighted that travellers are combining festivities with spiritual and leisure pursuits. “Religious tourism is on the rise, with cities such as Ayodhya, Puri, Haridwar, Rishikesh, and Varanasi witnessing significant booking growth,” he noted.
For leisure travel, Goa, Jaipur, and Udaipur remain top choices for quick getaways, while short-haul international destinations like the UAE, Singapore, Thailand, and Vietnam continue to attract Indian tourists seeking a festive escape abroad.
Industry experts say this surge reflects more than just festive exuberance — it’s part of a deeper behavioural shift among Indian travellers, marked by a desire for meaningful, family-oriented, and culturally rooted experiences.
