Free visas no motivation as higher airfares suck the joy out of international trips

As the holiday season approaches, favorable changes in visa policies for nearby international destinations have fueled a surge in airfares, impacting travel choices.

Popular and easily accessible destinations like Thailand, Sri Lanka, and Malaysia have become visa-free for Indian travellers, leading to a spike in demand and subsequently driving airfares to new highs. Almost all international airlines, with the exception of the United States, have fully resumed connections to India. Indian carriers have also increased flights abroad for the winter season, resulting in more competitive airfares to distant European and North American destinations

According to a TOI report, the Delhi-Phuket economy return this Christmas starts at Rs 50,000, significantly higher than the average of Rs 30,000 a few months ago. In contrast, Delhi-London flights begin at Rs 70,000, a notable reduction from the Rs 90-95,000 range seen during the summer.

“In comparison to last year, all international airlines are now operational for routes like Delhi-Dubai, or Saudi and to London, hence airfares for these sectors are down by about 20-25%. On the other hand, airfares for popular Southeast Asian destinations like Vietnam, Thailand and Malaysia have more than doubled in comparison to last year for this period,” a spokesperson for travel portal Yatra told TOI.

Anil Kalsi, Vice President of the Travel Agents Federation of India, told TOI that there is a "serious" demand for both domestic and international destinations this winter, with Southeast Asia being particularly popular. The visa-free status has made a significant impact, with destinations like Thailand witnessing a doubling of Indian tourist arrivals after granting visa exemption from November 10, 2023.

According to Daniel D’Souza, SOTC Travel’s President & Country Head (Holidays), visa on arrival and easy visa destinations, including Thailand, Indonesia, Vietnam, Malaysia, Dubai, and Abu Dhabi, are experiencing a 30-40% increase in demand.

The ongoing wedding season, coupled with the holiday travel rush, has led to increased hotel charges and airfares. Hotels in India report strong bookings from mid-December for about a month, with room tariffs up by 20-25%. Yatra Online's Bharatt Malik mentions a surge in airfares by 40-50% closer to travel dates.

MakeMyTrip co-founder & group CEO Rajesh Magow notes a promising trend, with travellers opting for an average of 6-day vacations. Both domestic and international travel destinations are gaining traction, with a focus on leisure destinations in India and popular international spots like Thailand, Dubai, Singapore, and Bali.

On the domestic front, travel started picking up after Diwali this year, with daily air travellers now in the range of 4.5 lakh, a notable increase from the previous figures falling below 4 lakh.