As India celebrates its 78th Independence Day today, Indian travellers are also celebrating the I-Day and Raksha Bandhan long weekend and the hospitality and travel industry is rejoicing on the surge in demand. The travel and hospitality service providers are witnessing a rise in travel to domestic as well as international destinations. Top domestic destinations, per them, are Goa, Udaipur, Jaipur, Puri, Munnar, Coorg, Bengaluru, Mumbai, Lonavala, Ooty and most sought after international destinations are Bangkok, Singapore, Phuket, Dubai, Bali, Kuala Lumpur, Pattaya, London, New York, Colombo, for the ongoing long weekend.
Santosh Kumar, Country Manager for India, Sri Lanka, Maldives and Indonesia, Booking.com, said that there is a growing appetite for short breaks with 65 per cent of Indian travellers seeking a short domestic trip and nearly half (44 per cent) interested in a short international escapes, both within a 4-night framework. “The surge in searches for both domestic and short-haul destinations during August’s long weekends reflects this trend. While popular tourist hotspots remain attractive, we are also seeing rising interest for other drivable distance destinations such as Jaipur, Lonavala, Ooty, Goa and Mahabaleshwar. With visa-friendly policies and increased flight connectivity, Indian travellers are also keen on exploring international destinations such as Dubai, Singapore, Bangkok, Kuala Lumpur, Bali and Phuket,” he said.
According to MakeMyTrip, there has been significant growth in interest in the southern cities in comparison to hill stations in the north due to the weather conditions. Rajesh Magow, Co-founder and Group CEO, MekMyTrip, also added, “A comparison of Independence Day weekend travel trends reveals a notable shift from last year. In 2023, travel peaked on Saturday, August 12. This year, with travelers potentially extending their weekend by taking Friday, August 16 off, the peak is anticipated on Thursday, August 15. We are observing a significant increase in bookings across all sectors, from domestic flights and hotels to international travel. The five-day holiday bonanza, enhanced by the festival of Rakhi falling closer to Independence Day weekend compared to last year, has contributed significantly.”
Undeterred by high tariff
While the travellers are making the most of the extended break, they are not being deterred by higher average airfares. “Popular domestic destinations like Goa, Udaipur, Pondicherry, and Munnar top the list based on hotel reservations, with Goa, Ladakh, and Kashmir being the favourite picks for air travel. Notably, international getaways are also in high demand, with Malaysia, Singapore, Bali, and Thailand attracting significant interest despite the higher average airfares, such as Rs 18,500 for Bali and Rs 9,200 for Singapore,” said a spokesperson from Cleartrip (an online travel agency). So far, Cleartrip has recorded over 15,000 air bookings for the long weekend, marking a 37 per cent increase compared to a typical weekend.
Meanwhile, the demand surge has also led to a rise in average room rates (ARRs) which saw an uptick ranging from 15-20 per cent higher than usual and as the hospitality industry stated, guests are willing to spend more for exceptional experiences and good value. Nikhil Sharma, Managing Director and Area Senior Vice President- South Asia, Radisson Hotel Group, said, “With the monsoon season enhancing the charm of travel, long weekends are proving to be the perfect opportunity for travelers to seek quick getaways and for the industry to capitalise on the heightened demand. At Radisson Hotel Group, we are witnessing nearly a 20 per cent surge in demand for resorts and hotels compared to last year, and we anticipate this trend to accelerate further. Guests are favoring a blend of luxury and mid-segment accommodations for their 3-5 day stays, enjoying both hotel activities and local attractions. Additionally, our guests are willing to spend 20 per cent more than in previous years on hotels that provide exceptional experiences and good value.”
The rise in ARRs is further helping the hotel owners churning better revenue during the month. Jagmohan Singh, Founder, Riohills Hospitality, said, “We are seeing a remarkable 220 per cent increase in bookings compared to typical off-season months, with over 90 per cent occupancy anticipated for the extended weekend. This surge is expected to boost our monthly business by 300 per cent, contributing to a 40 per cent increase in overall revenue for August.” Riohills Hospitality is looking at an increase of around 15-20 per cent in ARRs as compared to the previous month.
Saurabh Gahoi, Senior Vice President, Ramee Group of Hotels, is expecting a double-digit demand increase. “This forecast reflects strong market trends and increased consumer interest, which will drive substantial growth in our business activities. As more guests book our facilities, there will be a broader impact across all hotel services, including accommodations, dining, and additional amenities. This overall uptick in guest activity and spending will contribute to a considerable boost in our revenue.” The company is projecting an increase of approximately 16 per cent in ARR and an occupancy rate of over 90 per cent