Indian summer travel defies 30-40% airfare hike as drivecations and short-haul outbound surge

Despite airfares up 30-40% YoY, domestic leisure demand holds firm. Bus bookings jumped 38%, Radisson occupancy rose 5%, and Leisure Hotels saw bookings climb 25%. Travelers pivot to drivecations and short-haul Asia—Vietnam +130%, Sri Lanka +68%—while long-haul to US, Europe and Gulf softens.

— Filed Fri, 5 Jun, 2026, 06:28 IST · Source ET Small Business · Updated

Indian summer travel demand stays strong domestically despite 30-40% airfare hikes; travelers shift to drivecations, buses, and short-haul destinations like Vietnam (+130%). Hotel chains Radisson and ITC report higher occupancy; long-haul outbound to US, Europe, Gulf weakens.