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Festive travel demand remains robust despite elevated airfares

ICICIdirect Research 21 Oct 2026 DISCLAIMER

News: As per media reports, Festive travel demand remains robust despite elevated airfares, with hotel bookings witnessing a significant uptick across leisure destinations. According to reports, average mid-scale hotel rates across 3,114 properties in 13 Indian destinations are expected to increase by 26.9% post-Diwali to ₹31,163 from the pre-Diwali average of ₹24,218. Premium hotel rates are projected to rise to ₹32,126, with Goa witnessing the steepest increase of nearly 42%. Strong holiday bookings and demand for long-weekend getaways are expected to keep hotel room rates elevated through the second half of November.

View: Q3 is seasonally a strong quarter for hotel companies, driven by the onset of the wedding and holiday seasons. India’s leisure hotel segment continues to witness strong demand, supported by a shift towards domestic travel amid global uncertainties. The leisure segment witnessed healthy growth in Q1FY27, while long weekends during August are expected to support demand in the seasonally weaker Q2FY27. With 3–4 long weekends in Q3FY27, we expect leisure demand to remain strong in the coming months. As per our channel checks, key leisure destinations such as Goa and Udaipur are witnessing a significant surge in average daily rates (ADRs). Higher ADRs coupled with healthy occupancy levels should support strong revenue growth for hotel companies over the coming quarters. Key monitorables include sustained elevated airfares and their potential impact on consumer spending and travel demand.

Impact: Positive

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