Summer vacation: Domestic tourism sector thrives, demand for hotel soars

Indians are choosing domestic tourist destinations to spend their summer vacation days this year. This is reflected in the soaring demand for hotel rooms across tourist spots in India despite the steep increase in fares.

As per Mint, in the peak season of April to June, the Khyber Himalayan Resort & Spa in Gulmarg, Jammu and Kashmi has recorded an occupancy rate of 91%, with most days sold out. The resort achieved an average daily room rate of ₹40,000 this summer, surpassing previous records. This surge in demand is unlike anything it has seen over the past decade of its opertaion.

Experts believe that the surge in demand is partly fuelled by the preference among Indians for domestic vacation this year. Soaring international airfares and accommodation costs have also pushed Indians to choose domestic places over international ones.

Demand for local travel and South Asian countries also increased after many faced delays in visa approvals for Europe and other Western countries.

As per Mint, other businesses in the Kashmir valley, such as Skyview by Empyrean at Patnitop in Jammu, saw a 29% increase over last season. Both its tourist ropeway lines and its cottage rooms have reported 95% occupancy in the past two months. It is averaging 14,000 travellers a month on its leisure ropeway project located at a two-and-a-half-hour drive from Katra.

“It has been strong from a summer travel perspective, and we advanced the demand with a scheme we ran in March for the season", said Manu Sasidharan the head of hotels and accommodation at Cleartrip to Mint.

The demand for hill stations has seen a 50% to 60% surge in April-June quarter of 2023 compared to the same time period of 2022. This has also resulted in an increase in airfare by 40% to 50% in popular destinations that include Manali, Nainital, Mussoorie, Kashmir, Leh, and Ladakh.