Diwali travel demand surges

The GST reforms are acting as a key driver for mid-scale hotels and mid-market domestic customers, making it easier for travelers to explore lesser-known destinations

New Delhi: Hospitality and travel services providers are witnessing robust demand this festive season in the run-up to the long Diwali weekend, registering strong bookings across urban and leisure destinations, with intercity bus services occupancy levels even touching 95-100 per cent.

With the GST reform acting as a key driver for mid-scale hotels and mid-market domestic customers, making it easier for travellers to explore lesser-known destinations. Hotel Association of India (HAI) President K B Kachru said early trends show higher hotel occupancy, reflecting the excitement of travellers celebrating festivals with family, friends, and leisure getaways.

"Booking patterns this season highlight travelers' preference for convenience, flexibility, and curated experiences. Many hotels are reporting growing interest in premium and experiential stays, signalling a shift toward immersive travel that blends leisure, culture, and wellness," he was quoted as saying in reports.

Kachru further said tier 2 and emerging destinations are seeing a notable surge in demand, as travellers seek heritage sites, local culture, and offbeat experiences. "This demonstrates a broader diversification of travel choices, with domestic tourists moving beyond traditional metro cities toward more meaningful and memorable journeys," he noted.

Intercity bus routes are operating near full capacity, with occupancy levels touching 95-?100 per cent and fares increasing by 1.5 to 3 times above the norm, indicating strong and predictable demand elasticity during this period, he added.

In aviation too, the shift in travel patterns is evident, with family and leisure trips making up almost 65-70 per cent of all bookings compared to regular periods. This surge is mirrored in accommodation, where we project a 15-20 per cent year-over-year increase in bookings, with homestays and villas seeing increased preference from large family groups.

This signals a broader and robust rebound in the festive travel season. Of the top 10 most booked destinations, five are metros -- Delhi, Mumbai, Bengaluru, Hyderabad and Chennai. This year, with the festival falling early in the week, many travelers are booking their trips as early as the preceding Friday to enjoy extended festivities.

Goa leads the pack, with destinations such as Jaipur and Udaipur also gaining traction. In terms of international travel, short haul destinations such as UAE, Singapore, Thailand and an emerging favourite, Vietnam, have become the go-to choices this festive season for Indians.