Indian travellers are increasingly turning to Eastern destinations as airspace closures, soaring airfares and currency depreciation continue to weigh on travel demand to popular Western destinations, six months into the West Asia conflict. According to industry executives and experts, airfares shot up by double digits during the summer season and are expected to remain elevated amid ongoing geopolitical tensions and higher jet fuel prices.
“With international airfares rising 40% year-on-year during the summer, ixigo recorded 100% growth in bookings to Vietnam, 70% to Sri Lanka, 30% to Singapore and 20% to Thailand, while bookings to Japan more than doubled during April–June,” said Aloke Bajpai, Group CEO, ixigo.
Bajpai added that early festive demand is also encouraging, with travellers showing a clear preference for short-haul destinations: Hanoi bookings have more than doubled, while Bali, Colombo and Bangkok have each recorded over 70% year-on-year growth. “This resilience gives us a positive outlook for the next three months, even as affordability and reliable connectivity remain key to sustaining international travel demand,” stated Bajpai.
Abbas Moiz, Board Member, Federation of Associations in Indian Tourism and Hospitality (FAITH), said travel to West Asia, which initially fell after the conflict began, has since recovered month-on-month with regional incentives, while outbound travellers have shifted towards destinations less affected by the conflict.
He added that westbound travel has declined, mainly because of limited airline seat capacity. Indian airlines actively reduced international capacity. Air India group slashed international network capacity by 27% (145 weekly flights) over the summer months. As per reports, North American routes declined 39% and European/Asian routes fell up to 57%. The country’s largest carrier IndiGo also reduced its international operations in the summer months.
“In contrast, eastbound travel is booming, with destinations such as Vietnam, Japan, the Philippines, Australia, New Zealand and Hong Kong performing strongly. Short-haul destinations, including Sri Lanka, Nepal and Bhutan, are also doing extremely well,” said Moiz. He explained that travel to Dubai, one of the most visited outbound destinations, fell by more than 50% in the conflict’s early months, but as conditions stabilised, incentives from the region supported steady month-on-month growth.
Moiz added that westbound travel may recover more slowly, while eastbound demand remains strong.