Goa @ Rs 1.1 lakh vs Bali @ Rs 1.2 lakh: Indians rush to spend year-end holidays abroad

It's international versus domestic destination for this year's Christmas and New Year holiday travel plan.

If a trip to Sri Lanka or Bali costs the same as Goa or Coorg, then why not travel abroad for the year-end holidays?

Thanks to affordable travel and visa-free regime, booking for international trips outnumbered domestic bookings during the holidays this year.  This is the second successive year for the Indian traveller to make the most of free visas and travel discounts dished out by a host of countries to boost tourism.

Search for overseas accommodation has spiralled 53 percent for the holiday season this year, according to travel platform Agoda. Popular international destinations like Phuket, Dubai, Bangkok, Pattaya, and Bali are topping Agoda's list of favourite getaways for Indian travellers aiming at New Year Eve celebrations.

"Compared to last year, we have observed a significant 7-10 percent increase in enquiries for international destinations throughout the year. This growth is driven by several factors, including the reopening of borders and an increasing number of destinations offering free-visa policies to Indian travellers, making international travel more accessible," said Hari Ganapathy, co-founder of Pickyourtrail.

"During holiday seasons, there has been a noticeable uptick in bookings for international trips, surpassing the demand for domestic travel," he said.

Goa versus Bali

Chhavi Chadha, founder of Bespoke Tailormade Experiences, compared prices of popular domestic and international destinations for a week-long year-end holiday in 2024.

For Goa, a round-trip flight from Delhi can cost between Rs 6,000 and Rs 10,000. Accommodation in a 3-star hotel typically ranges from Rs 8,000 to Rs 12,000 per night, totalling Rs 48,000 to Rs 72,000 for six nights. Daily food expenses can range from Rs 2,000 to Rs 3,000, amounting to Rs 14,000 to Rs 21,000 for a week. Adding local transportation, activities, and miscellaneous expenses, the total cost of a Goa trip can range from Rs 77,000 to Rs 1,10,000, she said.

On the other hand, a flight from Bengaluru to Bali costs between Rs 35,000 and Rs 50,000. Accommodation in a 3-star hotel in Bali ranges from $100 per night, translating to around Rs 6,000 to Rs 7,000. Daily food expenses in Bali can be estimated at $80, amounting to Rs 5,600 to Rs 6,400 for a week. Including local transportation, activities, and miscellaneous expenses, the total cost of a Bali trip can range from Rs 1,05,250 to Rs 1,25,750.

"Bali might appear more expensive, the overall cost difference compared to Goa is not significantly drastic," Chadha said.

Pragya Adiraj, founder and chief executive of Joy N Crew, a holiday travel company, gave a few more examples.

The average rate per room per night for two guests in Thailand will cost around Rs 7,000-9,000 as against around Rs 15,000-17,000 in Coorg.

A visit to one of the holiday hotspots in Rajasthan like Jaipur, Jodhpur and Udaipur will cost an Indian traveller Rs 76,000 for five nights and six days, including flight cost of around Rs 16,000 and accommodation cost of around Rs 60,000.

Compare this with Thailand. For a single traveller, the flight cost will be Rs 21,000 and stay will cost Rs 32,000 bringing the total to Rs 53,000 per person for three nights and four days.

No visa hassle

The visa-free or visa-on-arrival option has made it easier for Indians to travel abroad. Countries to which Indians have visa-on-arrival access include Thailand, Indonesia, Maldives, and Sri Lanka. Those with an Indian passport can travel to around 62 countries without a visa.

The tourism boards of many countries, including Malaysia, are also offering lucrative packages to Indian travellers.

India has emerged as the eighth largest international tourism market for Western Australia, and Tourism Western Australia is eagerly working in India to activate its ‘Walking on a Dream’ global brand across India to build awareness of Western Australia as a desirable destination and drive visitor demand, Anneke Brown, managing director of Tourism Western Australia, had shared last month.

Visit California, HK Tourism Board, Tourism Malaysia, Vietnam National Authority of Tourism, and Tourism Authority of Thailand - all have started collaborating with tour operators and online travel agencies (OTAs) for promotion.

Large-scale marketing campaigns and extensive digital advertising too have helped enthuse the Indian traveller. “Foreign tourism groups have invested close to Rs 200 crore since the pandemic in advertising campaigns across India to attract Indian travellers,” a senior official from VFS Global told Moneycontrol.

He added that visa approval time for Indians have also shortened significantly since the last two years compared to the pre-pandemic levels and helped boost the consumer sentiment and ease of travel to foreign countries.

Outbound travel

This year, the total number of international flyers travelling from and to India rose to 3.5 crore in April-September, much higher than 3.14 crore passengers in the corresponding six months of 2023, according to Directorate General of Civil Aviation (DGCA) data.

Young adults between 25–40 years dominate the landscape with short-haul trips to vibrant destinations. The 50+ age group seeks serene and relaxing escapes to Sri Lanka, Dubai, and Bali. Couples continue to be a significant segment, making up over 60 percent of international travel bookings, said Manoj Dharmani, CEO, DUDigital global.

While international air traffic in 2023 still lagged behind the highs of 2018 and 2019, most industry participants expect the country to report historically high figures by the end of 2024.

Air India recorded an 11 percent increase in outbound travel demand in 2024 as compared to 2023 for passengers looking to travel to the US, Canada, Europe and Australia.

Busy season

Adiraj pointed out that due to the wedding season in India that coincides with the winter holidays, most of the hotels are occupied, especially destinations like Udaipur, Jaipur and Goa which limits the capacity in hotels.

"The surge in demand for domestic travel during the peak Christmas and New Year holiday season has significantly strained the capacity of popular Indian destinations. This limited availability, coupled with high demand, has led to a dramatic increase in prices for both flights and accommodations. Popular hotels and resorts often operate at full capacity, limiting the availability and forcing tourists to accept higher prices or compromise on their desired travel dates," noted Chadha.

This price escalation has pushed many Indian travellers towards international destinations where availability and pricing remain more competitive.