This year, airlines are reversing traditional fare patterns, typically marked by lower early booking prices, now charging more for advance purchases and lowering prices as the travel date nears.
Data from travel site Ixigo reveals that the average spot economy fare for the Bengaluru-Pune route has plummeted to ₹2,879 for travel between October 31 and November 3, down from ₹4,232 during last year’s Diwali period of November 10-14.
This represents a significant 32% decrease in spot fares for last-minute bookings.
Ameya Joshi, an aviation researcher and founder of Network Thoughts, highlights the dramatic change in airline pricing strategies.
He notes, “In recent quarters, advance fares have been prohibitive, only to dip closer to departure dates.
This has altered the old adage of ‘book early, book cheap.’ With capacity growing faster than passenger numbers, airlines are forced to offer discounts to fill seats, as empty seats represent their highest cost.”
Additional Ixigo data shows that the average spot economy fare on the Mumbai-Ahmedabad route has also dropped by 20.2%, now at ₹2,462, compared to ₹3,085 during the previous year’s Diwali travel.
IndiGo’s chief financial officer, Gaurav Negi, commented on the anticipated slowdown in demand for the third quarter of 2024-25, attributed to a high base effect from last year’s strong performance.
IndiGo is expecting a single to mid-single digit moderation in passenger unit revenue (PRASK) for Q3, following a period of exceptionally high demand and yields.
After seven consecutive profitable quarters, IndiGo recently reported a net loss of ₹986.7 crore in Q2 of 2024-25, signaling shifts in the market.
The demand for metro routes has cooled compared to last year, which was buoyed by pent-up demand post-pandemic.
Rajiv Mehra, president of the Indian Association of Tour Operators, noted, “Bookings for air tickets have slowed down for Diwali, indicating a return to stability after last year’s surge.”
Experts suggest that this year, travelers may be prioritizing savings over spending.
Ajay Prakash, a board member of the Federation of Associations in Indian Tourism & Hospitality (FAITH), remarked, “Travel to major cities like Mumbai and Delhi hasn’t seen the typical festive spike, and even popular destinations like Udaipur and Kerala are experiencing lower demand.
This shift suggests a focus on budgeting rather than splurging this festive season.”
With these trends, travelers can take advantage of significant airfare reductions, making this Diwali an opportune time to book flights.
Tags: Diwali, flights, Ameya Joshi, Network Thoughts,
IndiGo, Gaurav Negi, Ajay Prakash, FAITH, Rajiv Mehra, Indian Association of Tour Operators, Airlines