Festive travel grows as post-Diwali hotel rates face 27% rise

India’s festive travel market is recording stronger bookings despite higher airfares, with hotel pricing expected to come under its greatest pressure after Diwali. The Economic Times reported on October 20 that an analysis by pricing and revenue-management firm Sciative Solutions projects average mid-scale room rates for November 11–15 at 26.94% above the pre-Diwali period.

The analysis covers 3,114 properties across 13 Indian destinations. It forecasts average premium hotel rates rising from ₹25,917 before the festive period to ₹31,163 during the post-Diwali weekend. These are projected room rates, not realised prices or a measure of growth across the entire hotel industry.

Hotel price pressure may extend through November

Sciative expects accommodation prices to remain elevated in the second half of November, with mid-scale properties averaging ₹11,670 and premium properties approximately ₹32,126.

Vijeta Soni, Sciative Solutions’ co-founder and chief executive, linked the outlook to demand for festive breaks in destinations including Goa, Ooty and Mahabaleshwar. She said the strongest pressure on room rates was likely to follow Diwali.

Goa is forecast to show the steepest upward pricing trajectory. Premium rates there could climb nearly 42%, from ₹24,218 during October 25–31 to ₹34,355 during November 16–30. The forecast therefore points to potentially expensive stays well beyond the immediate festival holiday.

Road holidays and overseas trips gain ground

Sterling Holiday Resorts reported a 24% year-on-year increase in festive-season demand. Its chief marketing officer, Anupam Dutta, said drive-to holidays were becoming more popular as improved highway connectivity changed how travellers planned leisure breaks.

Dutta identified opportunities in regional circuits such as Ooty–Wayanad, Coorg–Sakleshpur and Kasauli–Chail–Kufri, alongside wildlife destinations including Pench, Tadoba, Jawai and Gir.

International holiday demand is also expanding at some operators. Pickyourtrail reported an 80–90% year-on-year rise in international bookings and a 30–32% increase in bookings for the Dussehra long weekend. The Maldives, Thailand, Vietnam, Singapore and Sri Lanka remain popular festive choices among its customers.

Travel fintech platform Scapia reported bookings across travel categories growing three to four times during October–December, although the comparison period for that overall figure was not specified. Its head of travel, Rathinamurthy R, said smaller beach towns and wildlife destinations were gaining demand. The platform’s beach and hill-station bookings for Dussehra week were 3.5 times their year-earlier level.

Ixigo sees stronger near-term prospects for buses and hotels

Ixigo group chief executive Aloke Bajpai said the company’s train business had begun picking up in the second quarter, reflecting bookings made two months ahead of Dussehra and Diwali travel.

Bajpai remained cautious about flights, saying supply in West Asia had not returned to pre-conflict levels. He was more optimistic about hotels, citing stronger long-weekend demand and expectations of continued activity through Diwali, Christmas and the New Year winter holiday period. Buses and hotels, he said, had the strongest near-term momentum.

The company figures describe demand on individual platforms and at particular operators; they are not a consolidated measure of Indian tourism growth. They nevertheless show several businesses reporting stronger festive demand even as flight costs rise and hotel forecasts point to higher accommodation bills.