Rising domestic airfares could disrupt your festive travel plans
What's the story
The upcoming festive season of Dussehra and Diwali could be less joyous for Indian travelers due to a significant rise in airfares.
Despite airlines like Vistara and Air India Express launching discounted deals, the overall cost of air travel remains high.
The airfare hike is particularly noticeable on popular domestic routes. For instance, one-way tickets from Mumbai to Patna now cost over ₹20,000, while those from Bengaluru to Varanasi are nearing ₹24,000.
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Price surge for other popular routes
Other key routes such as Mumbai to Lucknow and Delhi to Guwahati have also seen a significant price increase with fares ranging between ₹14,000 and ₹18,000. This year, Dussehra is on October 12, and Diwali takes place on October 31.
Scenario
Ixigo reports over 30% YoY increase in airfares
Travel platforms have observed a notable increase in airfare prices as the festive season nears.
Ixigo reported a 30-35% year-on-year (YoY) rise in advance flight bookings for October and November.
Per Rajnish Kumar, group co-CEO of Ixigo, airfare to popular leisure destinations like Goa and Jaipur has risen by 15-20% during the festive season.
The flight costs for Diwali week in 2024 has surged compared to last year, even for bookings made three months in advance.
Official response
Government urges airlines to address fare hike
In response to the rising airfares, the government has urged airlines to add more flights on domestic routes where prices have surged by over 20% compared to last year, according to Moneycontrol.
Citing a government official, the report highlighted a similar situation in Leh in July, which was addressed by airlines as weather conditions got better.
The official emphasized that there shouldn't be a significant disparity between lower and upper fare categories offered by airlines.
Fleet expansion
Airlines plan fleet expansion to ease capacity constraints
To address the issue of high airfares, airlines are planning to expand their fleets.
As per a ministry official, airlines like IndiGo, Air India, and Air India Express are set to receive 10 additional planes before November.
This increase in fleet size may lead to more flights on domestic routes and help alleviate capacity constraints.
In February, a Parliamentary panel recommended implementing route-specific fare caps and making a separate regulatory body for airfares.
Travel trends
International trips may be more affordable this festive season
Despite the rise in domestic airfares, international trips may be more affordable this festive season. Some domestic routes have also seen a price drop.
The primary drivers for travel demand during the festive season include multi-generational families taking advantage of school holidays, couples, millennials (born between 1981 and 1996), and Gen Z (born between 1997 and 2012).