Hospitality, travel services providers see strong demand in run-up to long Diwali weekend

New Delhi, Oct 12 (PTI) Hospitality and travel services providers are witnessing robust demand this festive season in the run-up to the long Diwali weekend, registering strong bookings across urban and leisure destinations, with intercity bus services occupancy levels even touching 95-100 per cent.

With the GST reform acting as a key driver for mid-scale hotels and mid-market domestic customers, making it easier for travellers to explore lesser-known destinations, Hotel Association of India (HAI) President K B Kachru said early trends show higher hotel occupancy, reflecting the excitement of travellers celebrating festivals with family, friends, and leisure getaways.

"Booking patterns this season highlight travellers' preference for convenience, flexibility, and curated experiences. Many hotels are reporting growing interest in premium and experiential stays, signalling a shift toward immersive travel that blends leisure, culture, and wellness," he said.

Kachru, who is also Chairman- South Asia, Radisson Hotel Group, further said tier-II and emerging destinations are seeing a notable surge in demand, as travellers seek heritage sites, local culture, and offbeat experiences.

"This demonstrates a broader diversification of travel choices, with domestic tourists moving beyond traditional metro cities toward more meaningful and memorable journeys," he noted.

Vikram Dhawan, Chief Strategy Officer, Ebix Travels, Delphi World Money Ltd, said, "With Diwali aligning with a long weekend this year, we're seeing travellers plan their journeys well in advance to maximise the holiday experience." Intercity bus routes are operating near full capacity, with occupancy levels touching 95-“100 per cent and fares increasing by 1.5 to 3 times above the norm, indicating strong and predictable demand elasticity during this period, he added.

Interestingly, Dhawan said the growth momentum is being driven by Tier II and Tier III corridors, which now account for nearly 62 per cent of total bookings as people return to their home towns for the celebrations.

"In aviation too, the shift in travel patterns is evident, with family and leisure trips making up almost 65-“70 per cent of all bookings compared to regular periods. This surge is mirrored in accommodation, where we project a 15-20 per cent year-over-year increase in bookings, with homestays and villas seeing increased preference from large family groups," he added.

This signals a broader and robust rebound in the festive travel season, Dhawan said.

Similarly, MakeMyTrip Co-founder & Group CEO Rajesh Magow said visiting friends and relatives (VFR) remains the biggest driver of festive season travel, as many Indians head back to their home towns to celebrate Diwali.

Of the top 10 most booked destinations, five are metros -- Delhi, Mumbai, Bengaluru, Hyderabad and Chennai, he added.

"This year, with the festival falling early in the week, many travellers are booking their trips as early as the preceding Friday to enjoy extended festivities," Magow said.

He further said there is also a trend of rising demand for pilgrimage destinations, reflecting how families are combining festive reunions with spiritual journeys and out of the top 10 high growth cities, five -- Puri, Haridwar, Ayodhya, Rishikesh and Varanasi -- are religious hubs.

On the leisure front, Magow said Goa leads the pack, with destinations such as Jaipur and Udaipur also gaining traction.

"In terms of international travel, short haul destinations such as UAE, Singapore, Thailand and an emerging favourite, Vietnam, have become the go-to choices this festive season for Indians," he added. PTI RKL HVA