'The entire travel ecosystem is reeling with the domino impact of flight cancellations.'
IndiGo cancelling hundreds of flights earlier this month has had ripple effects on hospitality companies, especially in year-end tourist-favourite destinations like Goa, Pondicherry and Kerala, as travellers are increasingly veering towards staycations, observed industry insiders.
"Due to flight cancellations, there has been uncertainty in the minds of travellers regarding their future travel," Amit Damani, cofounder of luxury villa rental firm StayVista, tells Business Standard.
"For Christmas and New Year, we have seen a 20 per cent increase in queries and bookings for locations within driveable distances, and we expect this to continue rising if flight uncertainty sustains," adds Damani.
Staycations and drive-to villas have emerged as a strong fallback and, in some cases, the primary choice, he said.
With the uncertainty around flights and the hassle of last-minute rerouting, "many travellers seem to prefer the convenience, safety, and flexibility of a villa or resort that's reachable by road".
"The entire travel ecosystem is reeling with the domino impact of flight cancellations.
"Not just immediate plans, but people are also now revising their year-end holiday plans to avoid any last-minute hiccups," said a senior industry executive.
While destinations like Goa, Pondicherry and Kerala have been tourist favourites to ring in the New Year, many are now actively reconsidering these plans, choosing instead to drive down to nearby destinations.
"There is definitely a problem as there are hotel booking cancellations, and people will be cautious about taking trips right now due to increased airfares or doubts about flight delays," says Chander K Baljee, managing director, Royal Orchid Hotels.
At SaffronStays, which has around 450 luxury homes around the country, executives are witnessing a 40 per cent increase in enquiries for destinations like Alibaug and Dehradun, which are a short drive away from major cities.
"A lot of travellers are currently in a wait-and-watch mode, and we have witnessed a 20 to 25 per cent drop in daily sales run rates for destinations that are dependent on flight routes," says Devendra Parulekar, founder of the luxury villa private network.
Damani adds that demand patterns were shifting even though there was no substantial decline in demand for popular destinations.
"But conversions are taking time as plans remain in limbo. I think it will take a week before people start to put things into action," he adds.
"The flight delays and cancellations are also impacting budgets," says Damani, "which might eventually add up when holiday plans are finalised."
With inputs from Roshni Shekhar
Feature Presentation: Ashish Narsale/Rediff
© 2025