Diwali Holiday Travel Sees Sharp Fall: Floods, Strong Dollar and Euro to Blame

Floods, coupled with a strengthening dollar and euro, have led to a sluggish festive season for the hospitality and tourism industry this year.

According to reports, holiday travel during Diwali has witnessed a sharp decline — with international trips dropping by nearly 25% and domestic travel falling by around 40%. The dip in demand comes at a time when tour packages have become significantly more expensive, mainly due to soaring airfares and the strong performance of foreign currencies.

Travel agency representatives noted that bookings for the Diwali vacation remain unusually slow, with currency exchange rates emerging as a major deterrent.

The dollar recently touched ₹88.8, while the euro surged by ₹10 to reach ₹104. As a result, the cost of a Europe tour package has increased by ₹30,000 to ₹40,000 per person. Earlier this year, a Europe trip cost around ₹4.15 lakh, but it has now risen to ₹4.5 lakh due to currency fluctuations.

The impact is not limited to Europe. Travel to other destinations, including Dubai, has also been affected. A Dubai package that previously cost about ₹1 lakh has now risen by ₹5,000–₹6,000 per person, while the Singapore dollar’s surge from ₹64 to ₹69 has made Southeast Asian travel pricier as well.

Domestic travel has also taken a hit, largely because of steep airfares. A one-way ticket from Pune to Cochin, which typically costs ₹6,000–₹7,000, is now priced at ₹14,000–₹15,000. Similarly, between October 18 and 31, fares from Pune to Delhi start at ₹11,000, nearly double the usual ₹5,000–₹6,000 range.

Extreme weather has further dampened travel sentiment. Northern states like Himachal Pradesh and Uttarakhand have been severely affected by rains and floods, while tourism in Kashmir has slowed due to security concerns.

However, destinations such as Vietnam and Thailand continue to see steady demand. Pilgrimage tourism remains strong too, with Varanasi and Ayodhya attracting visitors even months after the Kumbh.

Industry representatives also observed that more families are planning their vacations around Christmas and New Year’s this year instead of Diwali. They noted that families opt for staying in their homes with their family during the festival, while heading off to vacations when their NRI relatives come home during Christmas and New Year.