Turbulent summer hits travel sector: Longer routes, soaring airfares, falling demand

Travel sector saw major disruptions in summer season this year.

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26 Aug, 2025 12:21

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Summer 2025 brought more than just heat — border tensions, closed skies, and premature rains have grounded travel plans, slashing bookings in half in some regions and sending airfares soaring.

While flight bookings declined by as much as 50 percent in some regions, prices on other routes surged by up to 500 percent as a fallout of the India-Pakistan faceoff and the closure of Pakistan’s airspace due to escalating border issues, increasing travel time and fares. Adding to the chaos, early monsoons further impacted travel plans.

Feeling the pinch

Some destinations felt the pinch more than others, said Rikant Pittie, CEO and co-Founder, EaseMyTrip, noting that domestic travel to Himalayan spots like Leh and Manali saw up to a 50 percent decline during the tense period, while outbound bookings to Turkey and Azerbaijan plunged by 60 percent, reflecting Indian travellers’ response to perceived geopolitical alignments.

Traditionally popular corridors to Europe and the Middle East also saw a 15–20 percent dip in bookings, largely due to airlines grappling with rerouted flight paths in the absence of Pakistani airspace access, Pittie pointed out.

"The restricted air corridors pushed up travel time and cost. Flights from Delhi to Dubai now take over 4.5 hours, up from 3.5, while Europe and North America routes are seeing delays of up to 2.5 hours due to detours over the Arabian Sea or Iran. These longer routes have contributed to a noticeable spike in airfares — both domestically and internationally."

According to airfare data, there has been dramatic price increases on key domestic routes compared to last summer, he said. "A Mumbai–Bengaluru ticket, for instance, has soared from Rs 2,900 in 2024 to over Rs 18,000 in 2025 — a 530 percent jump. Similarly, Mumbai–Goa fares rose from Rs 2,700 to nearly Rs 15,600. Other routes like Mumbai–Bhuj and Delhi–Thiruvananthapuram have also recorded price hikes of over 300 percent."

The closure of Pakistani airspace has impacted approximately 800 flights from India weekly, which is leading to longer flight durations and increased operational costs for airlines, noted Govind Gaur, Founder and CEO WanderOn. "Indian flights from North India to West Asia, the Caucasus, Europe, the UK, and North America’s eastern region are now longer by anywhere between 15 minutes to a few hours."

Yatra is seeing airfares for certain routes rising by around 10 percent due to increased fuel consumption owing to the restricted use of Pakistani airspace.

Sabina Chopra, COO & co-Founder, at Yatra Online Ltd said that bookings from travellers in North India for travel within the region have started to recover but there is some hesitation from travellers in the South and West.

Gaur is seeing a dip of around 60 percent in domestic travel. "The Char Dham Yatra experienced a 50 percent cancellation rate in hotel bookings following the tensions."

Rain plays spoilsport

The early onset of monsoon rains has disturbed tourism in several regions, said Gaur. "In Mahabaleshwar, tourism-dependent businesses have reported a 25-30 percent decline in customer traffic and revenue due to continuous rainfall. There is a cancellation of bookings by travellers from Mumbai and Pune among other places."

Pittie is also seeing early monsoons in regions like Kerala and Karnataka adding a layer of complexity. "Destinations such as Munnar have seen a steep drop in footfall—plummeting from 9,000 tourists per day to under 1,000—due to heavy rainfall and weather alerts. Adventure activities have been suspended, and local tourism-dependent businesses are bearing the brunt."

Rising airfares

This year, Cox and Kings on average has seen 15–20 percent higher rates than last year for key international routes. "Domestically too, last-minute fares are on the steeper side. Flights to Leh, Srinagar, and Port Blair have seen higher-than-average spikes particularly during the school vacation window. Internationally, sectors like Delhi-London, Mumbai-Toronto, and Bengaluru-San Francisco are among the costlier ones this summer. Compared to last year, fares on some of these routes have jumped significantly in some cases by 20 percent or more especially due to longer detours around airspace restrictions and strong demand," said the platform's Director, Karan Agarwal.

In India, flights to Bagdogra and Leh are among the most expensive, with airfares up by 10 percent compared to last year while internationally, routes to Boston and Los Angeles have seen an increase of 8.5 percent in fares over last summer, noted Sandeep Arora, Director of Brightsun Travel.

Return to normalcy

Despite the disruptions, the travel industry remains confident about recovery in bookings and demand. Chopra is seeing a return to normalcy in both the domestic and international segments since the de-escalation of border tensions. 'We’ve observed a clear rise in flight bookings this summer compared to the same period last year. This growth reflects a strong rebound in travel demand and increasing consumer confidence."

India’s travel ecosystem is swiftly regaining its rhythm, Pittie said. "The temporary closure of 32 airports under Operation Sindoor—triggered by the four-day conflict along the northern and western borders—led to minor disruption across key sectors. However, with the situation now de-escalated and commercial air services fully resumed in cities like Chandigarh and Amritsar, Indian travellers are once again taking off with confidence."

He noted that flight operations this summer have expanded. "Airlines are operating more than 25,600 weekly departures this season, up 5 percent from 2024’s 25,000 flights. And Indian tourists are travelling just as much if not more than before. The broader picture remains one of resilience."

India's outbound travel market is experiencing significant growth with visa applications increasing by 15–20 percent compared to the previous year, said Gaur. During the time of heightened India-Pakistan tensions, outbound travel dipped by 40 percent from India, he said, adding that now the segment has seen an increase by 25-30 percent.

Arora, based on the booking records on his platform, is seeing an 89 percent increase in outbound travel compared to last year.

New overseas hotspots

Internationally, bookings and searches to Japan, Korea, Spain, Paris, Italy, and Singapore are up 20-25 percent year-on-year, reflecting a growing appetite for global travel, said Aloke Bajpai, Group CEO, ixigo. "Interestingly, Japan and Korea weren’t major blips on the radar last summer, but this year they’ve emerged as trending hotspots."

With many Indians boycotting Turkey and Azerbaijan, Cleartrip is seeing travellers actively pivot to safer alternatives, choosing to reschedule rather than cancel their plans outright. "Southeast Asian and Eastern European countries have emerged as preferred substitutes, with Indonesia and Egypt witnessing a 100 percent surge in bookings, and Greece, UAE, Serbia, Vietnam, Thailand, Georgia, and Cambodia showing a 50 percent rise, said Manjari Singhal, Chief Growth and Business Officer, Cleartrip.

Exploring the unexplored

Within India, people are going to unexplored places like regions in the North-East, Gaur said. "People are also driven towards the South, as there is affordability in the travel packages, competitive pricing and diverse offerings. We are also seeing growing interest from for destinations like Karnataka and Tamil Nadu, which complement Kerala well for the extended itineraries."

For Arora, it is business as usual. "Most tourist destinations in north India are witnessing a cautious return of travellers. Authorities have increased security measures, and infrastructure work is resuming in key areas to restore normal travel operations."

Cleartrip during its NoVac (Nation on Vacation) sale period, saw strong traction among travellers for destinations like Manali, Darjeeling, Lonavala, and Ooty. Religious sites like Varanasi, Haridwar, and Amritsar recorded a 3.7 times spike in bookings, said Singhal.