Indian travellers are increasingly turning to Eastern destinations as airspace closures, soaring airfares and rupee depreciation make trips to popular Western destinations more expensive. Six months into the West Asia conflict, travel industry executives and experts said international airfares rose sharply during the summer, prompting travellers to look for destinations that offer better value and more reliable connectivity.
For travellers, the shift is increasingly becoming a money-saving hack -- shorter flights mean lower airfares, while destinations such as Vietnam, Sri Lanka and Thailand can also offer relatively affordable accommodation and food.
“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 said early festive demand is also showing a 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,” he said.
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. However, outbound travellers have increasingly shifted towards destinations less affected by the conflict.
He said westbound travel has declined mainly because of limited airline seat capacity. Indian airlines reduced international capacity significantly during the summer. Air India group slashed international network capacity by 27%, or 145 weekly flights. As per reports, North American routes declined 39%, while European and Asian routes fell by up to 57%. IndiGo also reduced its international operations during 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 said the shift is particularly relevant for budget-conscious travellers, as expensive air tickets can substantially increase the overall cost of an overseas holiday. A weaker rupee also adds to the cost of hotels, dining and local spending when travelling abroad, making the choice of destination increasingly important for Indian households.
Travel to Dubai, one of the most visited outbound destinations, fell by more than 50% in the early months of the conflict. But as conditions stabilised, regional incentives helped support steady month-on-month growth.
Moiz expects westbound travel to recover more slowly, while eastbound demand remains strong as travellers continue to weigh airfare, currency costs and connectivity while planning their overseas holidays.