Check-in conundrum: IndiGo crisis fuels mass hotel cancellations, last minute room shuffles

Cancelled bookigs or late check-ins, IndiGo crisis spells trouble for hotels.

The IndiGo crisis has sparked last-minute hotel room cancellations and frantic itinerary changes.

The large-scale flight disruptions impacting over 5.5 lakh passengers in the first week of December have directly disturbed guest movement during one of the busiest travel periods of the year, Surendra Kumar Jaiswal, President, The Federation of Hotel & Restaurant Associations of India, (FHRAI), told Moneycontrol.

OPO hotel and resorts, on average, saw 8–12 percent of their daily bookings over the past week being impacted directly due to guests missing flights or being re-accommodated by airlines.

Its Chief Executive Officer (CEO), Sandeep Basu said that they are witnessing a noticeable pattern of last-minute cancellations and rescheduled check-ins across our airport-proximate hotels, especially in Delhi and Kolkata.

At The Clarks Hotel & Resorts there is a rise in cancellations, especially in Tier I cities.

"Normally, cancellations in these markets stay around 2 percent, but due to the IndiGo crisis this has gone up to nearly 10–15 percent," said its Chief Operating Officer (COO), Rahul Deb Banerjee.

Tejas Chavan, Director- Grape County Eco Resort & Spa, Nashik shared how things have been challenging due to the IndiGo crisis.

"We had a big event called Anjaneri Ultra Trail Run scheduled on December 7, where we had chief guests and runners coming from all over the country. We had to work round the clock suggesting alternate travel itinerary and ensure everyone reaches on time. Our travel desk had to work extensively with the travel agents and travel apps to suggest alternate travel modes."

He added that they also have a lot of weddings scheduled in December, which will be affected by the ongoing crisis. "We foresee a few cancellations and rescheduling in the next few days."

Jatin Khanna, CEO, Sarovar Hotels has also seen cancellations in the first week of December to the tune of 1,600 room nights.

Rubystone Hospitality also recorded around 12 percent rise in abrupt cancellations and last-minute reshuffles. "Aviation turbulence always sends ripples through hospitality," said Sandeep Singh, Founder, Rubystone Hospitality.

FHRAI's Jaiswal said the bigger disruption is due to delayed arrivals, which have risen by 15–20 percent, especially for travellers arriving from Delhi, Bengaluru, Mumbai, Chennai, and Hyderabad—cities that saw the highest flight chaos.

"This has significantly altered length-of-stay patterns, with many guests checking in late and checking out on the original date. Airport hotels have witnessed the sharpest impact, with up to 18 percent drop in on-time arrivals, while wedding and Meetings, Incentives, Conferences, and Exhibitions (MICE) hotels are facing erratic group movement, staggered check-ins, and last-minute room reshuffling."

He added that the cascading operational impact includes disturbed housekeeping schedules, modified meal plans, and challenges in managing meeting room timelines. "The unpredictability created by the airline disruption is now influencing hotel revenue forecasts for the festive month."

For Chavan, the crisis has come at the worst time possible. "December is a very busy time at the resort. We have a lot of festive travellers for Christmas and New Year break, along with weddings and corporate offsite stays. This is also the time where hotels charge a premium for the facilities."

Banerjee said that the surge in cancellations has affected revenues, mostly because it is the peak holiday period when people travel for longer vacations or to visit family. "This period is also the biggest revenue generator for Meetings, Incentives, Conferences, Exhibitions (MICE) business as well."

• Hotels in Delhi NCR, Bengaluru, Mumbai, Hyderabad, and Chennai are witnessing the highest cancellations and delays mirroring the cities where IndiGo’s operations were most disrupted, Jaiswal noted.
• He said that in Delhi NCR alone, hotels have reported a 12–15 percent rise in same-day cancellations, primarily from corporate and transit travellers.
• Bengaluru and Mumbai have seen a steep increase in late-night arrivals, with guests checking in 4–6 hours later than their original schedule.
• Hyderabad and Chennai hotels, especially those near airports and IT corridors, are recording fragmented group arrivals and reassignments due to missed connections.

"The impact has also spilled into destination markets like Goa, Jaipur, Udaipur, and Kochi, where travellers arriving via metros were unable to complete their connecting journeys. These cities are now facing unpredictable booking curves during the festive season," Jaiswal added.

Hoteliers like Basu anticipate volatility in booking patterns—both cancellations and sudden, urgent bookings until flight schedules normalize and backlog clearances stabilize.

"The aviation sector is experiencing what we call a 'domino delay'—one disruption triggering another. Until that chain settles, the hospitality industry will witness a few days of unpredictable check-ins and extended stays," Singh said.

The last minute hotel room demand is offsetting the impact of cancelled bookings.

Basu said the flight cancellations delays have also led to an uptick in walk-ins and same-day bookings from stranded passengers seeking urgent stays.

"Overall revenue impact is expected to be minimal. While confirmed cancellations will create short-term dips, the spike in last-minute bookings—often at dynamic pricing— will help offset the loss," he added.

Singh said that the unusual pattern he is seeing is that guests aren’t cancelling entire trips but they are simply being forced to hit the pause button because their flights didn’t take off.

While cancellations are still trickling in at Sarovar hotels, Khanna noted that out of the 1,600 room night cancellations, they have recovered 30 percent as guests who reached the hotel extended their stay.

Radisson Blu Pune Hinjawadi is also seeing a rise in last-minute hotel reservations. Its General Manager is seeing a 25–30 percent increase in same-day and next-day bookings, which has pushed up occupancy by roughly 10–12 percentage points. "Average Daily Rate (ADR) has also moved up moderately because of the sudden demand."