Iran Tensions Fuel Airfare Surge, Altering Summer Travel Plans for Indian Passengers

Summer Travel Season Disrupted by Soaring Airfares and Fuel Uncertainties

Key Findings:

• Airfares on non-stop routes from India to key European destinations have surged by at least 50%.
• Non-stop flights operated by British Airways, Virgin Atlantic, and Air India are priced between Rs 1.23 lakh and Rs 1.6 lakh, up to 100% higher than usual.
• Direct flights from IndiGo are priced at around Rs 81,000, a relatively lower option.

Impact on Travel Plans:

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

• The ongoing Iran war has had a profound impact on international holiday plans of Indian travellers.
• Decision-making among travellers has slowed, with 25-35% of customers who typically book by now having not done so yet.
• European destinations have seen a decline in bookings due to longer journeys and high airfares.

Shift to Short-Haul Destinations:

• Indian tourists are increasingly shifting to short-haul destinations across Asia that offer easier access and relaxed visa norms.
• Countries such as Thailand, Malaysia, Kazakhstan, Sri Lanka, Indonesia, Maldives, Mauritius, and Seychelles are emerging as preferred choices this season.
• Destinations like Bangkok, Almaty, Bali, Colombo, and Singapore are also witnessing strong demand.

Boost in Domestic Tourism:

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

• Traditional hotspots such as Kerala, Rajasthan, and Goa continue to attract travellers.
• Lesser-explored destinations in the Northeast, including Shillong, Itanagar, Jorhat, Dimapur, Imphal, and Guwahati, are recording double-digit growth.
• Bookings for Jaisalmer have seen a 300% surge, with strong interest in emerging destinations like Jalgaon.

Concerns in Domestic Travel:

• Despite government assurances on fuel availability, sporadic disruptions, particularly shortages of cooking gas affecting restaurants, are making travellers wary.
• People are hesitant to confirm bookings due to concerns about transport issues and restaurant closures.