Unlike past peak festive seasons when airfares go through the roof, so far this year it is on the lower side as rapid capacity expansion by airlines and lower jet fuel prices appear to be keeping the mismatch in demand and supply in check. As per data shared by travel portal ixigo, one-way average fare in the upcoming Diwali-led festive week (October 28-November 3) across major routes has seen a correction of up to 38% when compared to the corresponding period last year (November 10 and November 16, 2023).
The one-way average fare from Mumbai to Delhi this festive heavy season (October 28-November 3, 2024) has come down to Rs 5,762 from Rs 8,788 last festive season (November 10-November 16, 2023), down 34%. Airfare from New Delhi to Bengaluru has seen a correction of 12%, from Chennai to Kolkata it is down by 36% and from Bengaluru to Kolkata it is down by the highest at 38%. ixigo said that the prices are for one-way average fare on a 30-day APD (advanced purchase date) basis.
“Last year, airfares around Diwali had surged due to limited capacity, primarily driven by the suspension of Go First airlines. However, this year we’ve seen some relief as additional capacity has been added since then, leading to a 20-25% YoY dip in average airfares across key routes for the last week of October,” said Aloke Bajpai, Group CEO, ixigo. He added that a decline in oil prices, down by 15% this year, may have also contributed to this downward trend.
Rajesh Magow, Co-founder and Group CEO of MakeMyTrip, said that they are seeing strong travel demand for the festive period, not only to metro cities like Delhi, Bangalore, Kolkata and Mumbai, but also to tier-2 and tier-3 cities such as Lucknow, Jaipur, Ahmedabad, Patna, Guwahati, Varanasi, Bhubaneshwar and more.
“Visiting friends and relatives (VFR) remains a major driver of this trend, though leisure travel is also on the rise, with Goa continuing to be the top destination. On the international front, short-haul favorites like Thailand, the UAE, Singapore, and Malaysia are leading the way,” added Magow.
A spot check by TNIE shows that across major routes, one-way airfares are at their highest level either on October 26 or November 3, up by anywhere between 50% and 100% when compared to average fare. Airfares are expected to go up from the current level as Diwali approaches.
Data shared by Cleartrip on Friday showed that airfares for Diwali bookings from Mumbai have seen a 0.7% decrease this Diwali season. For Diwali travel (26 Oct - 4 Nov), Cleartrip so far this month has received 39% of total Diwali bookings.