Soaring fares fail to ground year-end international travel plans

New Delhi: A 25% jump in international airfares this year has done little to dampen Indians' appetite for overseas holidays, with bookings for the year-end season up by about one-third from last year, travel companies, tour operators and industry bodies told ET.

While rising ticket rates and travel expenses are making some travellers plan more cautiously and switch to more affordable destinations, "but those have not stopped them from travelling abroad," said Ravi Gosain, president of Indian Association of Tour Operators.

For instance, the number of flights booked to Hanoi more than doubled year-on-year, he said. "Travellers are considering more affordable alternatives instead of long-distance trips."


International flight reservations have increased by about 33% year-on-year even though airfares have surged by about 25%, Gosain said.

Abraham Alapatt, president and group head, marketing, service quality, value-added services and innovation, at Thomas Cook (India) and SOTC Travel, said Southeast Asia is gaining more attention with destinations such as Cambodia, Laos and Vietnam in demand. Indian travellers are also showing an increasing interest in Japan, he said.

Shikhar Aggarwal, joint managing director of visa outsourcing company BLS International, and Rajiv Mehra, general secretary at Federation of Associations in Indian Tourism and Hospitality (FAITH), also confirmed steady demand for international visas and outbound tourism among Indians.

Airlines are running full on some routes despite a considerable rise in ticket prices, industry executives said.

"The travel demand appears to be much more than the supply," said Sunil Kumar, president at Travel Agents Association of India. "The number of passengers have multiplied in India over the past few years but the capacity has not kept pace. Airlines are running full, which means travellers are willing to cough up these fares," he said.

"Airfares for Nepal are the same as Hong Kong for some routes," Kumar added.

The increase in demand is likely to be met by international airlines, which are increasing capacity even as Indian carriers IndiGo and Air India have cut their international exposure.

Besides a steep hike in the price of jet fuel, the Indian carriers are also hamstrung by the closure of Pakistani airspace to Indian aircraft, which has increased their flying time to most destinations in West Asia, Europe, the UK and North America, worsening the cost pressure.

European airlines are seeking to increase the number of flights to Delhi, India's largest airport in terms of footfall. Lufthansa Group, for instance, is looking to operate 383 flights by the middle of next year, up from the current 344. The group's carriers include Lufthansa, Swiss and ITA Airways.

Stefan Gumuseli, Air France-KLM general manager for India & Middle East, also said the weekly frequencies of the two airlines has increased from 42 to 54 in the upcoming winter schedule due to increasing demand from India.

"Besides the festive season, there's a lot of international traffic comprising of the friends and family segment that flows in the months of December and January," said Saurabh Chawla, executive director, finance and strategy, at GMR Airports, which operates the Delhi international airport. "People who have to come back to India to meet friends and family will not just postpone merely because of ticket prices going up," he added.

Kenya is among countries expecting more tourists from India.

"While rising airfares may influence travel decisions, we believe the growing preference among Indian travellers for unique holidays continues to work in Kenya's favour," said June Chepkemei, chief executive of Kenya Tourism Board.

Between October and December 2025, Kenya welcomed 25,390 visitors from India, and the country is targeting an 8% increase during the same period this year, according to Chepkemei.