Bengaluru: The travel plans of many Bengalureans have encountered turbulence as airfares have skyrocketed by up to 30%, compelling numerous individuals to reconsider their holiday plans or opt for more affordable, closer destinations. On April 1, the Central government increased the aviation turbine fuel (ATF) prices for domestic airlines by 25%, setting it at Rs 1,04,927 per kilolitre.
Domestic Travel Demand Affected
According to travel operators, interest in domestic travel remains robust, but higher airfares are influencing demand. Destinations such as Leh, Srinagar, Shimla, Chandigarh, Assam, Gangtok, Andaman, and Lakshadweep are witnessing the highest inquiries, particularly due to favorable weather conditions.
“Even domestic airfares to places in Rajasthan, Gujarat, Kashmir, and Ladakh have increased by Rs 6,000-7,000 per ticket. Our assessment indicates that travel interest has dropped by at least 30%,” said Vignesh Kamath, founder and managing director of Travel Bird Vacations, Banashankari.
Many travelers are now opting for nearby destinations such as Gokarna and Ooty for their holidays. Rajesh Jain from ABF Travel Solutions, Basaveshwaranagar, commented: “Compared to last year, holiday bookings have declined drastically. Earlier, we used to handle over 100 bookings during May and June, but now it has reduced to barely 10-15 bookings. Most people now prefer nearby destinations such as Goa, Karnataka, Andhra Pradesh, and Ooty, and are largely traveling by car or bus to save costs.”
Similarly, Sudheer Pokarna, founder of Pragathi Travels, who has been in the business for the past 12 years, stated: “Airfares have increased by more than 30% after the fuel price surge. Earlier, Bengaluru-Mumbai tickets used to cost Rs 3,200-3,300 on average, but now fares are between Rs 4,500 and Rs 6,000. Bengaluru-Delhi fares, which were around Rs 6,500 earlier, have gone up to Rs 8,000-8,400.”
Expensive Foreign Trips
Travel agencies also reported that international fares have increased, and airfares to popular destinations such as Thailand, Singapore, and Sri Lanka have nearly doubled in some cases, leading to a drop in bookings during the peak vacation season. For example, before the Iran-US tensions escalated, Bangkok tickets cost around Rs 30,000; airfares have now nearly doubled to Rs 56,000.
Pokarna added: “Tickets to destinations such as Singapore have gone up by Rs 15,000-20,000, while Sri Lanka round-trip fares, which earlier averaged Rs 20,000-22,000, have now touched Rs 34,000. Because of this, many families are reconsidering their travel plans, as package costs that earlier came to around Rs 3 lakh are now nearing Rs 4 lakh.”
Despite these challenges, demand for short-haul foreign destinations remains resilient. “This summer, travelers aren’t cutting back on trips — they’re traveling smarter. Despite airfare hikes driven by fuel costs, a weaker rupee, and limited international capacity, demand remains strong. We’re seeing a sharp shift toward high-value short-haul destinations, with bookings to the Philippines tripling and strong growth seen across Thailand, Malaysia, Bali, Vietnam, Colombo, Singapore, and Almaty. Travelers are also opting for more flexible booking options, showing that while they are cautious, the appetite for travel remains robust,” a Cleartrip spokesperson said.
Operators Worried
Meanwhile, travel operators appear to be concerned. Niranjan S Bhargava, president of the Travel Agents’ Association of India (TAAI), Karnataka chapter, said: “Essential and business travel will continue, but discretionary corporate and leisure travel has been hit as people recalibrate budgets. While travelers who booked holidays months in advance were unaffected initially, many are now reconsidering plans, with families opting for closer and cheaper destinations like Kodaikanal instead of expensive long-distance or international trips.”
He added: “The biggest concern for travel agents is not profits but the decline in overall business sentiment, especially in the corporate segment. We are already in dialogue with the Directorate General of Civil Aviation (DGCA) and authorities regarding the challenges being faced by the travel agency community and the industry.”
