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Hospitality and Travel Sectors Witnessing Robust Demand Ahead of Long Diwali Weekend

GST reform and a surge in 'Visiting Friends and Relatives' (VFR) trips; bookings in Tier II and III cities are driving up intercity bus occupancy to near 100%

KH News Desk by KH News Desk
October 13, 2025
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Hospitality and Travel Sectors Witnessing Robust Demand Ahead of Long Diwali Weekend

-KH News Desk (editorial1@imaws.org)

Hospitality and travel services providers in India are currently experiencing robust demand during the festive season, specifically in the run-up to the long Diwali weekend. This surge is translating into strong booking figures across both major urban centers and popular leisure destinations, with intercity bus services even reporting occupancy levels that are touching 95 to 100 per cent.

K B Kachru, President of the Hotel Association of India (HAI) and Chairman – South Asia, Radisson Hotel Group, noted that early booking trends indicate higher hotel occupancy, reflecting the enthusiasm of travellers to celebrate festivals with family, friends, and leisure getaways. He stated that the recent Goods and Services Tax (GST) reform is acting as a key driver, particularly for mid-scale hotels and mid-market domestic customers, making it easier for travellers to explore destinations that were previously lesser-known.

Kachru also observed a significant shift in consumer preference: “Booking patterns this season highlight travellers’ preference for convenience, flexibility, and curated experiences. Many hotels are reporting growing interest in premium and experiential stays, signalling a shift toward immersive travel that blends leisure, culture, and wellness.” Furthermore, Tier-II and emerging destinations are seeing a notable surge in demand as travellers seek out heritage sites, local culture, and offbeat experiences, demonstrating a broader diversification of travel choices beyond traditional metro cities.

Vikram Dhawan, Chief Strategy Officer at Ebix Travels, Delphi World Money Ltd, confirmed the high demand, stating that with Diwali aligning with a long weekend this year, travellers are planning their journeys well in advance. Dhawan reported that the growth momentum is notably driven by Tier II and Tier III corridors, which now account for nearly 62 per cent of total bookings as people travel to their home towns for celebrations. In the aviation sector, family and leisure trips now constitute approximately 65–70 per cent of all bookings, compared to regular periods. This surge is also mirrored in accommodation, where a projected 15–20 per cent year-over-year increase in bookings is expected, with homestays and villas seeing increased preference from large family groups.

Rajesh Magow, Co-founder & Group CEO of MakeMyTrip, reiterated that Visiting Friends and Relatives (VFR) remains the most significant driver of festive season travel. While five of the top 10 most booked destinations are metros—Delhi, Mumbai, Bengaluru, Hyderabad, and Chennai—Magow also pointed to a rising demand for pilgrimage destinations. Five of the top 10 high-growth cities are religious hubs: Puri, Haridwar, Ayodhya, Rishikesh, and Varanasi. On the leisure front, Goa leads the pack, with Jaipur and Udaipur also gaining considerable traction. For international travel, short-haul destinations such as the UAE, Singapore, Thailand, and Vietnam are the preferred choices for Indian travellers this festive season.

Tags: Diwali travelexperiential staysfestive season bookingsGoa travelGST reformhospitality demandintercity buspilgrimage tourismTier II citiesVFR travel
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