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States vie for a bigger share of domestic tourism boom amid festival travel | Economy & Policy News

The push comes as overseas holidays become more expensive amid higher fuel prices and a weak rupee. The Indian currency, which hit almost 97 to the dollar before gaining a bit recently, is down over 7 per cent in one year. International travel costs have reportedly risen by 20-30 per cent amid geopolitical uncertainty, airline route cuts and higher fares linked to the war in West Asia. Disruptions around the Strait of Hormuz have added to fuel-cost pressures, making some domestic destinations more attractive. 

The campaign also aligns with Prime Minister Narendra Modi’s appeal to Indians to holiday at home, including for vacations

So far, demand, however, has not quite matched the earlier industry expectations, partly because of higher airfares; yet domestic travel remains strong. 

Keralam has rolled out special packages and experiences for the festival season, while Uttar Pradesh has launched its “Visit My State” campaign. Rajasthan is promoting adventure tourism, desert safaris and rural experiences, with the Pushkar Fair and Mount Abu Winter Festival, scheduled for November-December, among its key draws. 

The stakes are rising with the scale of domestic travel. India recorded 4.28 billion domestic tourist visits in 2025, nearly double the 2.9 billion in 2024 and well above the 0.67 billion registered in 2021. Between 2011 and 2024, domestic visits grew at a compound annual growth rate of 9.89 per cent. 

Festive travel has also lifted leisure bookings, according to Cleartrip’s travel trend tracker. “Leisure hotel bookings are up 135 per cent for Diwali so far; they were up 66 per cent for Navratri,” said Pallavi Saxena, chief marketing and revenue officer at Cleartrip. “Bus travel is gaining strong momentum, particularly for hometown journeys, with bookings up 80 per cent in Delhi, 76 per cent in Pune, 68 per cent in Nagpur, 63 per cent in Chennai and 57 per cent in Mumbai. Domestic flight bookings to Gaya Ji, Dimapur, Dibrugarh, Gorakhpur, Jabalpur and Imphal have recorded a double-digit growth, while Agatti rose triple-digit.”

The Flipkart-owned travel aggregator also found Udaipur, Bengaluru and Jaipur among the fastest-growing domestic hotel destinations. Budget stays led, with bookings up 201 per cent, followed by luxury properties at 162 per cent, mid-range accom­modation at 148 per cent and premium hotels at 114 per cent. 

“State tourism departments are playing an important role in encouraging domestic travellers to explore destinations beyond the usual hotspots and peak-event periods,” said Neeraj Singh Dev, executive vice president–ecommerce, India and short-haul holidays, at Thomas Cook (India) Limited and SOTC Travel.

 

Rajasthan Tourism has been highlighting Bundi, Kota, Jhalawar, Dungarpur and Banswara for their heritage, architecture, culture and local experiences. Tamil Nadu, too, is showcasing heritage, spiritual, cultural and nature-led attractions beyond its established centres, Dev said.

 

States are also building products and partnerships to widen their appeal. Madhya Pradesh is promoting Gandhisagar Forest Retreat, which combines luxury-tent stays with water sports, jungle safaris and cultural experiences. Tamil Nadu has signed an agreement with Thomas Cook India and SOTC to attract domestic travellers through co-created travel products, online and offline campaigns, targeted promotions and travel-trade training. Odisha is promoting 29 major destinations and water sports across multiple beaches, alongside a ₹1,500 crore plan to develop tourism infrastructure over five years. 

Uttar Pradesh recorded the most domestic tourist visits in 2024, at 646.8 million, followed by Tamil Nadu at 306.8 million, Karnataka at 304.5 million, Andhra Pradesh at 290.2 million and Rajasthan at 230.08 million, according to the India Tourism Data Compendium 2025. “Keralam, Rajasthan, Madhya Pradesh and Gujarat have been among the more active state tourism boards in their efforts to promote their destinations,” Dev said.

 

The festival rush is also a test of whether demand will carry into the winter and year-end holiday season. Travel companies report continued interest in destinations across the country, though higher fares remain a constraint.

 

“Festive demand is a shade lower than what one would have expected this time of the year. While the season always sees some bump up, but one would have seen a higher bump up if the fares were more amenable for the consumer,” said Aloke Bajpai, chairman of travel platform Ixigo, during the October 19 earnings call.

 

Travellers are increasingly taking shorter, more frequent breaks, exploring unfamiliar places and seeking experiences beyond conventional sightseeing. Religious and spiritual journeys, wildlife excursions, adventure holidays, wellness retreats and rural tourism are broadening the domestic travel market.

 

“Religious and spiritual tourism, particularly visits to destinations such as Ayodhya, Varanasi, Kedarnath and Tirupati, has gained considerable momentum. Simultaneously, adventure tourism, wildlife tourism, wellness retreats, rural tourism, and short weekend getaways are attracting travellers of different age groups,” said  Rajiv Mehra, general secretary of the Federation of Associations in India Tourism & Hospitality (FAITH), the umbrella body of travel and hospitality associations in India.

 

Executives point to two forces behind the growth: Changing consumer behaviour and better accessibility. Indians are spending more on travel but favouring shorter, more frequent holidays and immersive experiences. Expanding highways, improved flight connectivity, more flexible mobility options and greater media exposure are also bringing lesser-known destinations within reach. 

State campaigns are being reinforced by central government programmes. Under Swadesh Darshan 2.0, 53 projects worth about ₹2,207 crore have been sanctioned, while the PRASHAD scheme supports infrastructure and visitor amenities at pilgrimage and heritage sites. The government has also outlined Dekho Apna Desh 2.0 to promote lesser-known, tourism-ready destinations and spread visitor traffic beyond established centres. 

“Government initiatives promoting tourism, heritage circuits, pilgrimage destinations, and lesser-known locations have further encouraged people to explore different parts of the country,” Mehra said.

 

The challenge for states is to convert festival curiosity into sustained visitor traffic. Promotion can put unfamiliar destinations on travellers’ radars, but connectivity, accessible attractions and reliable information often determine whether interest translates into visits. Travel partners also need the information and support to package and sell regional experiences. 

Sharing updated destination information, developing well-connected circuits, improving access to local attractions and giving travel partners platforms to showcase regional experiences would help boost the sector further, Dev said. 

Cleartrip’s Saxena added: “The festival travel momentum we’re seeing this season will roll over into the back-to-back winter and year-end travel periods. There is a strong and continued appetite among Indians to travel and take holiday breaks despite peak-season pricing.” 

Keralam: Rolls out special packages and festival-season experiences

Uttar Pradesh: Launches ‘Visit My State’ campaign

Rajasthan: Promotes  adventure, rural tourism, desert safaris 

Madhya Pradesh: Showcases luxury-tent stays, water sports, jungle safaris and cultural experiences

Tamil Nadu: Partners with Thomas Cook and SOTC for curated travel experiences

Odisha: Promotes 29 destinations and plans ₹1,500 crore tourism infrastructure push over five years

 

 

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