The travel and tourism sector has its hands full this festive season with high demand. And, with Diwali being a long weekend, the sector is poised for multi-day, multi-generational getaways. Moreover, with travel set to become cheaper with the new GST regime coinciding with the festive season, the sector has even more reason to cheer.
“The notion that festivals must be celebrated at home is changing,” said Rajeev Kale, president & country head, holidays, MICE, visa, Thomas Cook (India), adding, “Diwali is now a time to explore new destinations, cultures, and experiences together.”
As per the India Holiday Report 2025 by Thomas Cook India and SOTC Travel, 85% of Indian travellers are increasing both the frequency of their trips and the size of their travel budgets this year.
The report highlights that from the traditional three days Indians are now extending their vacations to six-12 days as families combine school vacations like Dussehra, Durga Puja and Diwali. Festive holidays are becoming the norm, with professionals, millennials, Gen Z, and families aligning personal leaves with public holidays.
Rise of Regional and Spiritual Travel
To tap into this demand, both Thomas Cook and SOTC have launched specially curated regional group tours across key markets like West Bengal (for Durga Puja), Karnataka (for Dussehra), Maharashtra, and Gujarat. The tours, with culturally themed itineraries like Adbhut Asia, Alokik Asia, and Ashadharon Vietnam, are tailored to provide local immersive experiences with a festive flair.
“There’s a nationwide appetite for travel that’s no longer confined to metros. Tier 2 and 3 cities are driving a large part of the growth,” explained SD Nandakumar, president & country head, holidays and corporate tours, SOTC Travel. He added, “Families are opting for multiple shorter, culturally relevant trips throughout the year.”
Spiritual journeys are also gaining traction, with destinations like Char Dham, Ayodhya, Rameswaram, Tirupati, and Sri Lanka (under the Ramayana Trails theme) trending among older and younger travellers alike.
Meanwhile, India’s spiritual tourism segment is witnessing unprecedented growth, according to MakeMyTrip’s Pilgrimage Travel Trends 2024-25. The travel platform recorded a substantial 19% rise in hotel reservations across 56 religious destinations during FY 24-25, signalling robust expansion in this category.
Luxury, Digital Trends, and Festive Experiences
Rikant Pittie, CEO & co-founder of EaseMyTrip, also reported a surge in advance bookings and a growing inclination towards luxury stays, heritage properties and cruise holidays. “It’s not just about travel anymore—it’s about storytelling. More families are planning cultural trips around festivals such as Durga Puja and the Pushkar Camel Fair, while young travellers are choosing immersive, and experiential holidays. There is a rise in luxury stays, heritage experiences, and cruise holidays. This demand is coming not just from metros, but also from tier-2 and tier-3 cities,” added Pittie.
Santosh Kumar, regional manager, South Asia, Booking.com, said, “The traditional return to hometown trip is now being balanced by a desire for celebratory getaways. A holiday is no longer a break from celebrations, but an integral part of them. This year, based on our data, over one-third of Indian travellers are planning trips around specific events, with 71% prioritising cultural experiences unique to a region or community. Furthermore, 59% are looking to travel to experience a different culture, while 56% are keen to explore local festivals.”
As per Booking.com, top domestic picks are Udaipur with searches up 110% YoY and Jaipur in top 5, while Kashmir, Kerala, Goa, Karnataka, Varanasi, and Rishikesh remain evergreen. Vrindavan is a surprise winner with a 150% surge in bookings. International favourites include Singapore, Thailand, Malaysia, Dubai, and Vietnam (Phu Quoc up 3x) are seeing strong demand, while APAC cities like Tokyo, Osaka, and Phuket are gaining favour, especially among young professionals.
There is a sharp upswing ahead of Durga Puja and Diwali, driven by early booking trends. As per Ankur Sharma, chief business officer, Via.com (Ebix Travel), booking lead times have increased to seven-15 days, with UPI emerging as the fastest-growing payment method, highlighting the shift toward digital-first, convenience-led planning.
“Premium intercity bus routes are nearing full capacity with fares surging up to 3X, particularly on metro-to-hometown corridors like Bengaluru to Andhra Pradesh and Delhi to Bihar. Tier 2 and Tier 3 cities now account for over 60% of bookings, underlining their role in festive mobility. In aviation, family and leisure travel is dominating, making up nearly 70% of bookings during the festive days, while corporate travel sees a dip,” said Sharma.
Trends also indicate a rise in occupancy at hospitality brands with festive menus and community events like Lakshmi Puja and diya lighting, to family-oriented recreation and kids’ activities. Hilton hotels in Goa have seen a significant surge in bookings, while boutique properties like Araiya are seeing strong traction at destinations like Palampur (Himachal) and Gir (Gujarat). Aalia Jungle (Uttarakhand) is nearly sold out during Dussehra.
“Over the past 18 months, we’ve seen a clear shift in how Indians plan their holidays. Where festive breaks were once last-minute decisions, guests are booking much earlier. We are seeing heightened interest in spiritual and cultural hubs such as Ayodhya and Varanasi, where our DoubleTree by Hilton Varanasi hotel is located,” said Manish Tolani, VP & commercial director, South Asia, Hilton.
Nikhil Sharma, managing director and COO, South Asia, Radisson Hotel Group, told FE: “The festive season marks one of the most exciting periods for travel in India, and 2025 is no exception. We are seeing strong advance bookings across our leisure and city hotels, with healthy occupancy at popular destinations. Travellers are opting for premium stays that combine comfort, local culture, and curated dining, and places like Saputara, Karjat, Nashik, Mahabaleshwar, and Kumbhalgarh are gaining traction. With demand rising sharply from both metros and tier-2 cities, we expect last-minute bookings to push occupancies even higher.”
With hotel tariffs up to Rs 7,500 per day down to 5% from 12%, and retaining economy airfares at the lower 5% slab under the new GST regime, the sector is upbeat about the festive season.
Mahesh Iyer, MD & CEO, Thomas Cook (India), said, “For the travel and tourism industry, this is a very positive development. The reform delivers a two-pronged impact: directly, through lower GST rates on travel-related services, and indirectly, by enhancing consumer purchasing power via reduced rates across several consumption sectors—at a strategically opportune time just ahead of the festive season.”
Rikant Pittie of EaseMyTrip said: “The simplified tax regime come at a perfect time ahead of the festive season and will significantly stimulate domestic tourism while bringing much-needed operational clarity to the industry.”
“Although we opened only six months ago, the response has been extremely encouraging. The new GST rules have no impact on our pricing, as we are already operating at the 18% GST slab. However, we are seeing increased guest queries around festive bookings,” said Pawan Chahar, general manager, Jim Corbett Marriott Resort & Spa.
Sudeep Jain, managing director, South West Asia, IHG Hotels & Resorts, said: “The GST rationalisation will make quality hospitality more accessible to domestic travellers, further boost tourism demand, and reinforce India’s position as one of the world’s most dynamic hospitality markets.”
Resorts are curating festive experiences like diya-lighting ceremonies, family feasts, and cultural performances to cater to surging demand. “Festive weekends are now high-demand periods, and the expectations have shifted from basic hospitality to curated, emotionally engaging experiences,” said Kumar Manish, VP operations, Araiya Hotels & Resorts.
Wildlife resort Jungle Camps India is reporting 80% occupancy across its Pench, Kanha, Tadoba and Rukhad resorts during the festive season. Gajendra Singh Rathore, MD, Jungle Camps, said, “Eco-sensitive travel with local food, community-driven activities, and sustainable stays is becoming the new norm. Pench and Kanha during Diwali week are nearly sold out, with larger cottages and family units completely full.”