Gen Z is taking the driver’s seat this festive season, accounting for nearly a third of holiday travel demand.
Where is Gen Z headed for the festive holiday?
Many are choosing classic destinations like Mysore for Dussehra and Kolkata for Durga Puja, while others are even heading to Varanasi, Rajasthan, Gujarat, and Hampi to soak in local culture and heritage, Rikant Pittie, Co-Founder and CEO of EaseMyTrip told Moneycontrol.
Hill stations such as Darjeeling and Munnar are also in demand for a festive yet relaxed escape, he added.
According to Karan Agarwal, Director, Cox & Kings, Gen Z is branching out into Tier II and Tier III towns for authentic experience in smaller festival circuits and pilgrimage towns as the travel map is widening.
Kolkata is already seeing record Pujo bookings and northern cultural hubs like Varanasi and Ayodhya are commanding high advance occupancy, he added. "Kerala’s Onam celebrations too saw hotels touch 80 percent occupancy this year. What stands out this year is that travellers are locking in stays earlier than before, showing that festivals are no longer impulsive travel occasions; they are planned journeys."
Pandals in Kolkata have been witnessing increased demand from young travellers, where they want to experience the beauty of Durga puja along with the four days of food and festivity, said Govind Gaur, Founder and CEO, WanderOn.
"Travel booking for Kolkata during Durga Puja has been increasing by 25-30 percent year-on-year. It is not just a festival, but one of the biggest cultural events that the country can witness," he said.
Overall, searches for culture-centric destinations have risen by nearly 30 percent year-on-year, pointed out Bharatt Malik, Senior VP – Air and Hotel Business, Yatra Online.
He added that this year’s festive calendar is particularly favourable, with Dussehra on October 2 and Diwali on October 20, falling in the same month. "Travel demand around these two festivals is the strongest, with advance bookings trending higher compared to last year."
Festivals have become a powerful travel driver for India’s Gen Z and millennial travellers, who are using these breaks to craft multiple holidays across the year rather than one long annual trip, said S.D. Nandakumar, President & Country Head - Holidays and Corporate Tours, SOTC Travel Limited.
To meet such demands, we are offering ‘Pilgrimage Plus’ portfolio for journeys combining darshans at Ayodhya or Varanasi with rafting in Rishikesh, ziplining across the Ganges or Himalayan treks, said Rajeev Kale, President & Country Head, Holidays, MICE, Visa – Thomas Cook (India) Limited.
Is Gen Z fuelling the festive travel rush?
Gen Z is quickly becoming a powerful travel segment and this year, they account for around 30-35 percent of our festive demand across flights, buses, and hotels, Pittie noted.
Gaur has seen a 22 percent jump from last year in Gen Z's contribution to festive travel demand.
Their booking windows are shorter, typically within 7-15 days, but their travel intent is decisive, Agarwal said. India’s festive travel market is no longer being driven only by families; it is being reshaped by a younger generation.
Gen Zs are also driving bus travel with Gaur seeing close to 76 percent year-on-year surge in bus bookings. "Their preference for solo trips, flexible plans, and value-driven experiences is reshaping festive travel patterns across India," he said.
An Ebix Travels spokesperson said that while millennials (ages 26-40) are their largest segment at 40 percent, Gen Z (ages 18-25) is a powerful and growing force, accounting for 28 percent of their total traveler base.
"We have seen a significant 25 percent year-over-year rise in bus bookings during the festive period, and a substantial portion of this growth is fueled by younger travelers."
The Maha Kumbh effect
The Maha Kumbh trend is clearly shaping festive travel this year, Pittie said. The religious event drew more than 250 million visitors, with a visible rise in younger participants and that momentum is flowing into the festive calendar, Agarwal noted.
The EaseMyTrip CEO noted that after Maha Kumbh they are seeing strong demand from Gen Z for spiritual and culturally rich destinations such as Varanasi and Pushkar, among others.
Is India traveling more this festive season?
Ebix is seeing a 30 percent increase in flight bookings and a 20-25 percent year-on-year (YoY) rise in bus bookings for Diwali and Dussehra.
Advance flight bookings for the festive season in October have already surpassed last year’s trends, with bookings to major metros recording over 100 percent YoY growth, said Aloke Bajpai, Group CEO, ixigo.
Advance train bookings for popular routes have surged by 18-25 percent this year for Diwali dates in October, pointed out Dinesh Kumar Kotha, CEO, ixigo Trains & ConfirmTkt.
Delhi led the surge with a 47 percent YoY rise in train bookings, followed by Mumbai at 28 percent. Leisure and spiritual destinations like Jaipur (24%) and Tirupati (22%) are also experiencing a significant increase in booking at 24 percent and 22 percent respectively for the upcoming festive season.
Group bookings have also seen a 26 percent YoY increase, highlighting a growing trend of families and friends travelling together during the festive period, he said.
When it comes to buses, Rohit Sharma, COO (Chief Operating Officer), AbhiBus is seeing a sharp surge in advance bus bookings for the festive season this year, with nearly 3 times YoY growth for the October 2–12 travel window for Dussehra getaways.
Key bus routes such as Delhi to Patna and Kolkata to Siliguri are at occupancy above 95 percent, with fares increasing by 2 to 3 times, Pittie noted.
Air travel to Kolkata, during Durga Puja has increased by around 50 percent, which is one of the highest festive surges in the country, Gaur said.
Are airfares expensive for festive holidays?
Given the strong demand, advance airfares to major metros have also increased 20-25 percent compared to last year, Bajpai said.
For Mumbai-Patna route, average one way fare for travel between October 19 to 25 at Rs 14,540 is 52 percent higher than last year while rates are 47 percent higher for Bengaluru-Lucknow with fares this year at Rs 9,899, up from Rs 6,720.
Air fares for routes including Mumbai-Lucknow, Delhi-Kolkata, Delhi-Pune, Mumbai-Hyderabad are higher by 37 percent, 31 percent, 21 percent, 15 percent respectively.
Homestays versus hotels-- what are Indians preferring?
Travel platforms are seeing 15-25 percent increase in accommodation bookings with hotels contributing the most, while homestays are also seeing stronger traction.
Homestays and villas are becoming the fastest-growing categories, noted Agarwal, adding that such stays give them a sense of community.
Homestays have witnessed a demand growth of around 35 percent while villas are also favoured for group travel on long weekends with an estimated 105 percent growth YoY, Gaur said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!