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The Growth Of Air Travel In India: Is Consumer Confidence Back? Over 5 lakh domestic passengers took to the skies in a single day, marking a historic figure. Pricing competitiveness, festival season, weddings and an increasing disposable income fuelled the sector's growth

By Shrabona Ghosh

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A couple of days back, India witnessed over 5 lakh domestic passengers taking to the skies in a single day, marking a historic figure. This indicates a significant milestone for Indian aviation, showcasing the nation's growing strength in the global aviation landscape. The spike could be attributed to travellers returning to their workplaces post-Diwali, contributing to the elevated passenger movement. Furthermore, during the festival season airlines launched fare sales that spurred bookings, leading to an uptick in both fares and load factors as demand continued to rise. Wedding season has also emerged as one of the primary drivers behind the spike in bookings.

"The exceptionally strong wedding season, coupled with the availability of lower advance fares for November travel, has driven a significant surge in air passenger demand. Unlike previous years, this year saw no post-Diwali dip in travel, as the wedding season kicked off immediately after the festival. Additionally, the impact of recent capacity expansions is beginning to be felt, further supporting the growth in demand," Aloke Bajpai, Group CEO, Ixigo, a travel aggregator company.

Domestic travel has reached an all-time high, while international travel has seen remarkable growth this year. "Destinations such as Thailand, Georgia, Bali, Vietnam, and Singapore have experienced a 70-80 per cent year-over-year surge in flight bookings for November and December, highlighting a strong rebound in global travel demand. Affordable fares, easy visa schemes and better connectivity is fuelling overseas travel for Indian's and we expect this trend to continue," Bajpai added.

The recovery post-COVID has fueled pent-up demand for travel, both leisure and business trips have begun to pick up pace. Airline competition in pricing has been supplemented by seasonal offers that have significantly reduced the cost of flying, increased customer base, and seen the region connect with successive government UDAN initiatives opening up new routes and markets. "Moreover, the increasing disposable income and wealth ambitions of the middle class have made air travel a strong mode of travel compared to the traditional train mode. Accompanying these factors with further developments in airport infrastructure and developments in technology, will propel the surging growth of domestic air travel," said Shikhar Aggarwal, JMD, BLS International, a visa application company.

Schemes for regional connectivity and infrastructural improvements are expected to increase air travel from Tier II and Tier III cities. Airlines are increasing their fleets as well as frequency on routes with high demand in order to provide non-stop connectivity that can take less time. On the international front, ease of travel restrictions along with increased frequencies and reasonable airfares are promoting outbound tourism. India is the third largest aviation market, with 2,000-plus aircraft on order and 250 airports in making by 2030.

"Countries that are most in favour with Indian tourists remain on the boom roll, whether for leisure, business, or education. Increasing income levels, globalisation, and awareness of destinations worldwide ensure that the sector remains on an upswing. Finally, the adoption of sustainable practices coupled with technological advancements will attract more than just eco-conscious and tech-savvy individuals, which shall define the ultimate direction of long-term growth for the aviation sector. All these therefore point to a brighter future for both global and domestic air travel," Aggarwal explained.

Looking ahead, travel demand will remain strong, as people begin planning for the upcoming Christmas and New Year holidays. "The return of consumer confidence in air travel, enhanced connectivity, and the attractive travel deals we're offering have made this an ideal time to book. We are well-prepared to support this demand by continuing to offer seamless booking experiences and competitive pricing. We're confident this positive momentum will continue through the winter months," said Nishant Pitti, CEO & co-founder, EaseMyTrip.

Commenting on the recent accomplishment of 5 lakh passengers, Civil Aviation Minister Ram Mohan Naidu stated that the record-breaking figures demonstrate how air travel has become more accessible to the masses in India. He said that UDAN has played a pivotal role in connecting remote areas with global destinations, making air travel inclusive and hence bridging the regional gap.
Shrabona Ghosh

Correspondent

A journalist with a cosmopolitan mindset. I lead a project called 'Corporate Innovations' wherein I cover corporates across verticals and try to tell stories on innovations. Apart from this, I write industry pieces on FMCGs, auto, aviation, 5G and defense. 
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