Airfares during this festival season have gone up by 40 per cent, much higher than what the industry had anticipated, according to Online Travel Agencies (OTAs).
Over the past two years, travel has been subdued due to the covid-19 pandemic. This resulted in airfares plummeting. However, this year the demand is back, which has pushed the tariffs up. ATF prices have skyrocketed, adding to the fare hike.
Weeks prior to Diwali, EaseMyTrip had forecasted that the airfares would go up to 20 per cent on key routes. However, the travel portal has recorded an increase of upto 30 per cent in airfares in reality.
Similarly, ixigo had predicted that airfares would increase by 20-30 per cent. According to Aloke Bajpai, co-founder & group CEO, ixigo, “The removal of airfare caps, the surge in demand and geopolitical tensions (Russia-Ukraine war) are factors that have resulted in higher airfares during the festive