A conflict unfolding thousands of kilometres away is quietly emptying some of India’s most opulent travel experiences and the iconic Palace on Wheels has emerged as one of the early casualties.
The luxury train has reported a disappointing season marked by low occupancy and repeated cancellations. On its final run to Jaisalmer last week, only 30 passengers were on board, a stark contrast to the exclusivity and high demand the service typically commands. Two additional scheduled departures were reportedly scrapped due to insufficient bookings.
Industry insiders attributed this slump not to waning interest in luxury rail travel, but to a chain reaction triggered by geopolitical instability. Santosh Gupta, Director of Travelogy India Pvt Ltd, an authorised booking agent for the train, pointed to the timing. “The war began on February 28 and airfares surged soon after. That impacted the plans of a lot of tourists coming from abroad,” he told Financialexpress.com in an exclusive conversation.
The numbers tell a broader story of contraction. Of the 32 trips scheduled between September and April, 10 were cancelled outright, Gupta confirmed. Even operational thresholds proved difficult to meet, as several journeys reportedly failed to secure the minimum 14 cabin bookings required to run.
Effects of West Asia war on tourism in India
A recent report by the PHD Chamber of Commerce and Industry estimated that the ongoing West Asia conflict and rising airfares caused a 15-20% drop in inbound tourist traffic to India. The aviation sector alone is projected to face losses of up to ₹18,000 crore, with cascading effects across hospitality and travel services.
Bookings for Palace on Wheels take major hit
The contrast with last year is telling. During the 2025 season, the train hosted around 1,200 passengers, filling roughly 600 cabins. “The train’s final journey of the season to Jaisalmer, completed on Sunday, carried 30 passengers,” Gupta said. This year’s sharp drop in occupancy also showed a sensitivity to global shocks that luxury tourism cannot easily buffer.
How much does a Palace on Wheels ticket cost?
The Palace on Wheels offers a 7-night, 8-day journey through Rajasthan. The fares of the service vary by cabin category, occupancy, and season (peak and lean). For the full itinerary, the most affordable option during peak season costs around ₹5.6 lakh per person on a double-occupancy basis.
International travellers are charged in US dollars, with entry-level fares starting at USD 6,832 for the complete journey. Prices are calculated per person per night and typically include meals, guided excursions and hotel stays at select destinations.
Gupta remained optimistic about the recovery in the bookings for the luxury train service. “In my estimate and judging from the way we hosted our guests in the last season, we are expecting to book around 1,500 people, 750 cabins in the coming season,” he said. “If all remains well and the war ends,” Gupta added.
Domestic tourism offers some respite
Domestic tourism continues to provide a stabilising undercurrent. India’s tourism and hospitality sector, which contributes nearly 8% to GDP and supports over 40 million jobs, had staged a robust recovery through 2025, the PHDCCI report stated. That resilience is still visible, particularly in short-haul and domestic travel segments.
However, travel patterns are shifting. According to the report, Indian outbound travellers are increasingly favouring closer destinations such as Thailand, Singapore and Vietnam, where shorter routes mean lower costs and fewer uncertainties. Long-haul travel is showing signs of hesitation.