Indian summer travel defies 30-40% airfare hike as drivecations and short-haul outbound surge

Despite airfares up 30-40% YoY, domestic leisure demand holds firm. Bus bookings jumped 38%, Radisson occupancy rose 5%, and Leisure Hotels saw bookings climb 25%. Travelers pivot to drivecations and short-haul Asia—Vietnam +130%, Sri Lanka +68%—while long-haul to US, Europe and Gulf softens.

— Source publishedThu, 4 Jun, 2026, 08:16 IST·First seen Thu, 4 Jun, 2026, 11:20 IST·Source ET Small Business

What happened

MakeMyTrip · Indian summer travel demand stays strong domestically despite 30-40% airfare hikes; travelers shift to drivecations, buses, and short-haul

Key facts

  • airfares up 30-40% YoY
  • Vietnam +130%
  • Sri Lanka +68%
  • Singapore +32%
  • Thailand +22%
  • bus bookings +38% YoY
  • Radisson occupancy +5% YoY
  • leisure occupancy ~75%
  • Pickyourtrail enquiries +10-15%
  • Leisure Hotels bookings +25%

Why this matters

Scout bolt-on acquisitions in drive-to leisure resorts, regional bus platforms, and Vietnam/Sri Lanka inbound DMCs to lock in share of the resilient sub-premium travel pivot.