Strong demand in Hospitality, Travel ahead of Diwali weekend

Hospitality and travel services providers in India are witnessing robust demand this festive season ahead of the long Diwali weekend, with bookings surging across urban, leisure, and emerging destinations. Intercity bus services are operating at near full capacity, with occupancy levels reaching 95 to 100 per cent.

Hotel Association of India (HAI) President K B Kachru, who is also Chairman-South Asia of Radisson Hotel Group, said that early trends indicate higher hotel occupancy this season, reflecting the preference of travellers for family, friends, and leisure getaways. He noted that GST reforms have facilitated mid-scale hotels and mid-market domestic travel, allowing tourists to explore lesser-known destinations more conveniently.

“Booking patterns this season highlight travellers’ preference for convenience, flexibility, and curated experiences. There is growing interest in premium and experiential stays, signalling a shift toward immersive travel that blends leisure, culture, and wellness,” Kachru said. He added that tier-II and emerging destinations are seeing a notable surge in demand as travellers seek heritage sites, local culture, and offbeat experiences.

Vikram Dhawan, Chief Strategy Officer at Ebix Travels, Delphi World Money Ltd, said the alignment of Diwali with a long weekend this year has led to early planning among travellers to maximise the holiday experience. Intercity bus fares have increased by 1.5 to 3 times above normal rates due to strong demand elasticity, he added. Dhawan noted that Tier-II and Tier-III corridors now account for nearly 62 per cent of total bookings, reflecting a trend of travellers returning to their hometowns for the celebrations.

In aviation, family and leisure trips account for 65 to 70 per cent of bookings, compared to regular periods. Accommodation bookings are projected to rise 15 to 20 per cent year-over-year, with homestays and villas gaining preference among large family groups, indicating a broader rebound in the festive travel season.

MakeMyTrip Co-founder and Group CEO Rajesh Magow said that visiting friends and relatives (VFR) remains the biggest driver of travel during the festival. Among the top 10 most booked domestic destinations, five are metros: Delhi, Mumbai, Bengaluru, Hyderabad, and Chennai. He highlighted that early booking has increased this year, as the festival falls early in the week, allowing travellers to extend their celebrations.

Magow also reported rising demand for pilgrimage destinations, with five of the top 10 high-growth cities being religious hubs: Puri, Haridwar, Ayodhya, Rishikesh, and Varanasi. On the leisure front, Goa continues to lead in popularity, followed by Jaipur and Udaipur. For international travel, Indians are favouring short-haul destinations such as the UAE, Singapore, Thailand, and the emerging destination of Vietnam.

The combination of family reunions, leisure travel, and pilgrimage trips is driving robust demand across transport and accommodation sectors this festive season, reflecting diversified travel patterns beyond traditional metro cities.