Indian outbound travel surges despite rising airfares
International flight bookings from India have risen by approximately 33 percent year-on-year, defying a 25 percent increase in airfare costs. Industry leaders confirm that travelers are continuing to book trips abroad, often opting for closer or more affordable destinations rather than abandoning international travel entirely.
What happened
Ravi Gosain, president of the Indian Association of Tour Operators, noted that while rising expenses are causing some travelers to plan more cautiously, they have not stopped them from traveling. For example, flight reservations to Hanoi more than doubled compared to the previous year. Travelers are increasingly choosing affordable alternatives over long-distance trips, with Southeast Asian countries like Cambodia, Laos, and Vietnam gaining significant attention. Abraham Alapatt of Thomas Cook and SOTC Travel observed that Indian travelers are also showing growing interest in Japan.
Demand for international visas and outbound tourism remains steady, according to Shikhar Aggarwal of BLS International and Rajiv Mehra of FAITH. Airlines are operating at full capacity on many routes despite considerable price hikes. Sunil Kumar, president of the Travel Agents Association of India, stated that travel demand exceeds supply. He explained that while passenger numbers have multiplied in India over recent years, airline capacity has not kept pace. Consequently, travelers are willing to pay higher fares, with some routes to Nepal costing as much as flights to Hong Kong.
To meet this demand, international carriers are increasing capacity, even as Indian airlines IndiGo and Air India have reduced their international exposure. Indian carriers face additional cost pressures due to a steep rise in jet fuel prices and the closure of Pakistani airspace. This closure forces flights to West Asia, Europe, the UK, and North America to take longer routes, worsening cost pressures. In response to high footfall, European airlines are expanding their presence at Delhi airport. Lufthansa Group plans to increase its flights to 383 by mid-next year, up from 344 currently. Air France-KLM has also raised its weekly frequencies from 42 to 54 for the upcoming winter schedule.
What it means for travelers
Saurabh Chawla of GMR Airports, which operates Delhi’s international terminal, highlighted that traffic includes a significant segment of friends and family visits during December and January. He noted that people needing to return to India for these visits are unlikely to postpone their trips simply because ticket prices have increased. This suggests that price sensitivity may be lower for specific travel purposes, allowing airlines to maintain higher loads.
Key details
- International flight reservations from India increased by 33% year-on-year despite a 25% surge in airfares.
- Flight bookings to Hanoi more than doubled compared to the previous year.
- Indian carriers face higher costs due to jet fuel prices and the closure of Pakistani airspace.
- Lufthansa Group is increasing flights to Delhi from 344 to 383 by mid-next year.
- Air France-KLM increased weekly frequencies to India from 42 to 54 for the winter schedule.
- Kenya expects an 8% increase in Indian tourists for the October to December period.
