By Keith Menon
In recent years, the cost of domestic air travel in India has skyrocketed, making it increasingly difficult for many Indians to travel within the country. This steep spike in airplane ticket prices is not only impacting the common traveler, but it is also having a significant negative influence on India’s tourism and hospitality industry, which has long been a pillar of the country’s economy.
The Cost Conundrum: Flying Abroad vs. Flying Within India
Traditionally, domestic flights in India were considered a relatively affordable and convenient mode of transportation. However, this trend has reversed, with many travelers now finding that it is cheaper to fly to international destinations than to some parts of India. For instance, a round-trip flight from Delhi to Kochi or Guwahati can sometimes cost as much, if not more, than a trip to Bangkok, Dubai, or even Europe during certain seasons.
Several factors contribute to the rising cost of domestic air travel:
- Fuel Prices: Jet fuel costs have surged globally, and India’s high taxation on aviation fuel has exacerbated the situation, leading to higher operating costs for airlines, which are then passed on to consumers.
- Operational Costs: The cost of airport services, maintenance, and other operational expenses in India have been on the rise. Additionally, the depreciating rupee against the dollar has further strained airline finances, leading to fare hikes.
- Limited Competition: The consolidation of airlines and the exit of some low-cost carriers have reduced competition, allowing the remaining airlines to increase prices without fear of losing too much market share.
Impact on Domestic Tourism
India is a country rich in cultural diversity, natural beauty, and historical significance, attracting millions of domestic tourists each year. However, the surge in flight prices has led to a decline in domestic travel, as many Indians are now opting for international destinations where flight costs are more competitive. This shift has several negative implications for India’s tourism and hospitality sectors.
- Reduced Tourist Footfall: Popular tourist destinations like Kerala, Rajasthan, and the North-East have reported a decline in tourist numbers. This is particularly concerning for regions that rely heavily on tourism for economic sustenance. Fewer tourists mean reduced income for hotels, resorts, restaurants, and local businesses.
- Economic Impact on Local Communities: Many small businesses and artisans depend on tourism for their livelihood. The decline in domestic tourism directly impacts these communities, leading to job losses and reduced income. In regions where tourism is a primary source of employment, this can have devastating effects on the local economy.
- Seasonal Tourism Disruption: Certain regions in India thrive on seasonal tourism, such as the hill stations during the summer or coastal areas during the winter. The high cost of air travel during peak seasons discourages potential travelers, leading to an uneven distribution of tourist traffic and revenue.
- Strain on the Hospitality Industry: Hotels and resorts across India are struggling with lower occupancy rates, forcing them to either reduce prices or offer heavy discounts to attract customers. This impacts their profitability and ability to reinvest in quality improvements, which could further deter future tourists.
The Global Context: Why Flying Abroad Seems Cheaper
It might seem counterintuitive that flying abroad could be cheaper than traveling domestically, but this is becoming a reality for many Indians. Several factors contribute to this phenomenon:
- Lower International Taxes and Fees: Many international routes benefit from lower airport fees and taxes, especially in regions like Southeast Asia, which aggressively promote tourism.
- Better Connectivity and Competition: International routes often have better connectivity and more competition, which helps keep prices down. Budget airlines operating in international sectors offer competitive rates, making foreign travel more appealing.
- Promotional Offers and Packages: International destinations frequently offer attractive travel packages, including airfare, accommodation, and sightseeing, which can be more economical than domestic travel options.
The Road Ahead: Solutions to Revitalize Domestic Tourism
To counter the negative impact of high domestic airfares, several measures could be considered by policymakers and industry stakeholders:
- Tax Reforms: Reducing taxes on aviation fuel and offering subsidies for domestic flights could help bring down costs, making air travel within India more affordable.
- Infrastructure Development: Improving regional connectivity and developing smaller airports could reduce the operational costs for airlines, leading to lower fares.
- Promoting Domestic Tourism: The government and tourism boards should work together to promote lesser-known destinations within India, offering incentives and discounts for domestic travelers.
- Support for the Hospitality Sector: Providing financial support to the hospitality sector, especially in tourist-dependent regions, could help cushion the economic impact and ensure that these businesses remain viable.
Final Thoughts
The rising cost of domestic air travel in India is a growing concern that threatens the country’s tourism and hospitality industry. As more Indians opt for international travel due to cheaper airfares, the domestic tourism sector faces declining revenues and reduced visitor numbers. This situation calls for urgent intervention to ensure that the rich cultural and natural heritage of India continues to be accessible and that the livelihoods of those dependent on tourism are safeguarded. By addressing the underlying causes of high domestic airfares and promoting domestic tourism, India can revitalize its tourism industry and ensure sustainable growth for the future.
(The author is a hotelier and renowned sustainable architect. Views expressed are personal)
