Simplest hack for a cheap New Year's trip-go abroad

Indian travelers are opting for int'l destinations this holiday season due to soaring domestic hotel prices. Destinations like Baku, Vietnam, and Dubai offer cheaper options compared to popular Indian tourist spots. This shift is fueled by compet...

By Arindam Majumder & Anumeha Chaturvedi, ET Bureau | Updated: Nov 16, 2024, 10.50 AM IST

New Delhi: A marketing professional in her 30s has zeroed in on Baku for her year-end holiday as hotel rates at popular domestic destinations are "going through the roof". If the place name sounds familiar, it's probably because the Azerbaijan capital has just been hosting the COP29 climate summit.

"I decided on Baku because I am getting a Baku Marriott Hotel Boulevard at ₹58,000 for four nights for two adults and a child," she said. "In contrast, rates for some properties in Kovalam, Udaipur and Rishikesh are steeper than this for a night."

She's not alone. Rates for the Christmas-New Year period at many popular leisure destinations such as Varanasi are turning out to be much higher than international locations such as Danang in Vietnam, persuading many to look overseas.

A suite villa at the Ramada Udaipur Resort & Spa is available for ₹5.24 lakh plus ₹94, 320 in taxes for two adults for November 15-17, according to Booking.com. The Taj Fort Aguada Resort & Spa in Goa is available for ₹95,550 plus ₹17,199 in taxes for December 24-26 for two adults.

"This festive season witnessed a surge in international travel, with flight bookings up by 70-80%, particularly for destinations like Thailand, Georgia, Bali, Vietnam and Singapore," said Ixigo group CEO Aloke Bajpai. "Thanks to affordable fares and budget-friendly stays, Indian travellers can now enjoy international destinations like Vietnam and Dubai at prices similar to or even less than domestic leisure trips. Domestic destinations are now competing not just locally but with top spots across Southeast Asia, the Middle East and Central Asia."

Average one-way fares for this month are cheaper for Kolkata-Bangkok than Kolkata-Srinagar, and almost on a par for Delhi-Ho Chi Minh and Delhi-Goa, according to Ixigo data.

For the Christmas and New Year season, fares for select popular international destinations are lower than domestic ones, said a Thomas Cook (India) and SOTC Travel executive.

More flight routes
Flights from Mumbai to Dubai and Abu Dhabi are approximately 8% lower than those to Munnar (Cochin airport), said Indiver Rastogi, president and group head for global business travel at Thomas Cook (India) and SOTC Travel. Similarly, flights to Dubai and Abu Dhabi from Bengaluru are 12% lower than to Jaisalmer.

Over the year-end period, super-peak, four-night, land-only package rates are at ₹57,604 for the Andamans versus ₹28,308 for Vietnam, according to Thomas Cook India a and SOTC Travel data. This covers hotels, sightseeing and breakfast.

Traffic to Southeast Asian countries such as Thailand and Vietnam has surged after they eased visa rules for Indians. Local airline executives said fares to these regions will drop further as these countries are liberalising air service agreements with India.

Earlier this month, India and Vietnam signed a revised air treaty that will allow carriers of both to increase flights to 42 per week from 28, said people aware of the development.

In March, India and Thailand agreed to a similar revision, allowing airlines to increase capacity by 14,000 seats per week and connect to new destinations. Thailand has agreed to open four new points of call for Indian carriers--Chiang Rai, Hat Yai, Surat Thani and Udon Thani.

"Vietnamese carriers were unable to launch more flights to Indian cities-Delhi, Mumbai, Hyderabad, Chennai and Kolkata-because the rights were exhausted with Vietnam Airlines and VietJet operating 14 flights each a week. With the new agreement, soon there will be flights from Hyderabad, Bengaluru and Kolkata to Ho Chi Minh and Hanoi," said an airport executive.

Indian carriers are also starting flights to new destinations. IndiGo recently began flying to Langkawi in Malaysia. It will soon start flights to Penang while Air India is likely to launch flights to Jakarta in Indonesia.

10 Southeast Asian travel itineraries under ₹1 lakh for a week

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