Bengaluru luxury cab demand collapses amid Gulf flight disruptions

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• Middle East crisis causes drop in luxury taxi and hotel bookings
• Flight cancellations to Gulf hubs affect Bengaluru's travel industry
• Airport footfall steady despite less international travel

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The ongoing crisis in the Middle East following military strikes involving the United States, Israel, and Iran has begun to affect businesses in Bengaluru, including the transport and hospitality sectors.

Flight disruptions and airspace closures across the region have reduced international travel, leading to a sudden collapse in demand for luxury taxi services and hotel bookings linked to Kempegowda International Airport (KIA).

Industry representatives say that executives and business travellers from major Gulf hubs such as Doha, Abu Dhabi, and Dubai usually make up a significant share of premium travel services in the city, according to The Hindu.

However, with many flights cancelled and international trips postponed due to security concerns, the luxury travel segment has nearly come to a standstill.

Luxury taxi demand drops sharply

According to Radhakrishna Holla, president of the Karnataka State Travel Operators’ Association, the biggest impact has been on luxury taxis that serve corporate travellers and high-end visitors arriving at KIA.

“There are about 3 lakh economy taxis in Bengaluru and 5,000 in the luxury segment. There has been a slight decline in economy taxi demand, but the luxury segment has been hit in a big way,” he was quoted by The Indian Express as saying.

Many of these luxury vehicles are attached to major hotels, travel agencies, or dedicated corporate transport services. Holla said that earlier, a large number of executives and business travellers frequently travelled to and from Bengaluru, and luxury taxi services mainly catered to them. But with international flights disrupted and several trips cancelled, bookings have almost stopped.

The decline in business travellers has also affected hotels that usually host corporate guests and international visitors. As a result, many high-end hotels have reported a sharp drop in reservations in recent days.

Tourism-related vehicles have also remained idle for nearly ten days because travel activity has slowed significantly. According to industry representatives, the fall in the number of business-class travellers, including investors and delegates attending meetings and conferences, has further reduced demand for tourist transport services, The Indian Express report said.

Flight cancellations add to the impact

Flight cancellations due to airspace restrictions have added to the disruption. On Tuesday alone, 19 flights at KIA were cancelled, including nine arrivals and ten departures. Most of these flights were scheduled to operate to Gulf destinations such as Doha, Abu Dhabi, and Dubai.

Airport data indicates that about 300 flights have been cancelled since March 3. However, the actual number may be higher because many connecting flights from Western countries that normally use Gulf hubs for layovers have also stopped operating, the report added.

Travel operators warn that if the situation continues for a longer period, it could create serious economic difficulties for tourist vehicle owners, drivers, hotels, and other businesses connected to the tourism and travel industry.

Historically, tourism and hospitality are among the first sectors to feel the impact of international conflicts and geopolitical tensions.

Airport footfall remains stable

Despite the flight disruptions, airport authorities say overall passenger footfall at KIA has not fallen significantly. A spokesperson for Bangalore International Airport Limited (BIAL) said the average daily footfall remains around 1.2 lakh passengers, similar to the numbers recorded in 2025.

Last year, the airport handled a total passenger traffic of 43.82 million, with strong growth in international travel. International passenger numbers grew by 28.7 per cent compared to the previous year. However, officials believe that the current conflict in West Asia could slow that growth in 2026 if disruptions continue.