Diwali bookings: Hotels run out of rooms as travellers hit the road 

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26 Aug, 2025 12:21

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Hotels in short haul destinations from metros as well as premier resort locations are fully booked for the upcoming Diwali weekend with occupancies hitting 100 percent across the most popular properties.

Large chains of branded properties, small, stand-alone unbranded hotels and resorts, homestays and timeshare properties have used the surge in demand to revise up prices that have been subdued since the start of the COVID-19 pandemic in March 2020.

As per initial estimates provided by hoteliers and tour operators, there has been an increase of 10-15 percent in room rates for the Diwali period which is extending beyond the actual holidays and into the following week as well. To be sure, the increase in rates depends on the property and brand.    

Booking trends tracked by tour operators for the period between November 4 and November 7 point to a shift in travel preference for the Diwali week. Traditionally, the holiday booking pace marked a fall during the actual Diwali days as Indians preferred to celebrate the festival with family and friends. This year, however, people are keen to take advantage of the long break.

One key differentiator between Diwali of 2021 and Diwali of 2020 is the number of people who are vaccinated. At 336.6 million, more than 45 percent of India’s population is now fully vaccinated.   

Noshir A Marfatia, senior vice president - sales & marketing, The Fern Hotels & Resorts, said: “This year the trends are very different. After so many months of lockdown, more Indians are taking short weekend breaks even over the Diwali weekend.”

“Some of our resorts like those in Daman, Sasan Gir, Polo Forest, Ranthambore, Mussoorie, Lonavala, etc are already 100 percent full and sold out for many days from the Diwali weekend and into the Diwali week,” Marfatia added.

Vikramjit Singh, President, Lemon Tree Hotels said, "We have witnessed a decline in the transient demand from 28th Oct for Diwali week for business cities. With respect to leisure destinations, the weekend after 4th Nov will see a higher occupancy."

Airline bookings surge 

Tour operators, who went out of business for most part of last year, are cashing in on the consumer surge. Operators say that destinations that are near metros and can be reached within half a day drive are seeing maximum traction.  

Ravi Gosain, vice president, Indian Association of Tour Operators, said: “Demand has increased tremendously. The short haul destinations of major metros are running full. There has been a surge in airline bookings as well. Prices are fairly higher because of robust demand. There is a surge of 70-80 percent in Diwali bookings versus the same period last year.”

But city hotels, which depend on corporate travel and income from MICE (Meeting, Incentive, Conference and Exhibition) are still subdued. In the segment, hoteliers are forced to give offers to entice guests.

ITC Hotels, for instance, is offering breakfast, lunch and dinner, 5 percent discount on food and beverage, discounted WiFi prices in its all-inclusive offer for Hyderabad, Delhi, Mumbai, Kolkata, Chennai and Bengaluru properties.  

Anil Madhok, managing director, Sarovar Hotels, said: “Business hotels are very slow but resorts are doing very well.”