With US-Iran tensions creating uncertainty for outbound travel and rising energy prices pushing up travel costs, India’s domestic tourism sector is emerging as a key beneficiary.
“Domestic tourism in India is strong right now and benefiting from subdued outbound sentiment caused by Middle East tensions. Travel disruptions from the US-Iran conflict and airspace closures have made Middle East routes, especially flights to Europe and the US that transit the region, uncertain, expensive or cancelled,” said K Vijay Mohan, managing director of Holiday World.
Mohan described domestic tourism as a ‘saviour’ amid what he called a global crisis. “The lost outbound volume is largely redirecting to domestic markets and not disappearing,” he added.
Post-pandemic, domestic tourism in India has grown significantly. The government has also been promoting domestic travel through campaigns such as Dekho Apna Desh (explore your country).
“We are seeing record sales driven by a clear shift towards domestic travel as high airfares and overall overseas travel costs weigh on consumer decisions. Weekend destinations such as Uttarakhand, Himachal and Goa are witnessing strong demand from major cities. Overall, performance across all key segments has improved compared to last year,” said Ritwik Khare, founder and CEO of ELIVAAS, a luxury villa hospitality brand.
State tourism boards are also seeing the surge and adjusting their strategies, particularly with the summer school holiday period (May to June) approaching.
Dheeraj Singh Garbyal, secretary of tourism and CEO of the Uttarakhand Tourism Development Board, said: “We have been witnessing a steady rise in domestic tourist footfalls over the past few years, particularly across segments such as pilgrimage, leisure and shorthaul getaways. This trend has further strengthened in the current scenario, where geopolitical uncertainties have influenced preferences for domestic travel.”
Garbyal added that Uttarakhand’s proximity to major population centres in North India, especially Delhi NCR, makes it suitable for short-duration and weekend travel, contributing to increased visitor numbers.
“Summer is the peak season for domestic tourism demand, with school holidays and heat-driven travel to hill areas. Hotels and airlines are pricing domestic inventory more aggressively now. I expect to see the biggest jump in hill stations such as Manali, Shimla, Ooty, Munnar, Darjeeling, Gangtok and Araku. Shorthaul beach and weekend spots such as Goa, Puducherry and Vizag from the metros, while spiritual circuits such as Char Dham (Yamunotri, Gangotri, Kedarnath and Badrinath) and Vaishno Devi, are always strong during the summer season,” said Mohan.
Stakeholders are also rolling out strategies to attract domestic travellers. ELIVAAS, for example, is offering promotional deals that include a complimentary third or fourth night in markets such as Goa, Uttarakhand and Delhi.
“We are not just offering villa stays but curating complete experiences for our guests, including local cuisine and immersive activities such as sunset cruises. Through Eli Card, we are providing an additional 20 per cent value to travellers. The card is a preloaded offering that can be used by guests to enjoy food and experiences during their stay,” said Khare.
Uttarakhand is promoting activities such as trekking across Himalayan trails, river rafting in Rishikesh, skiing in Auli and water sports at Tehri Lake. Efforts are also being made to promote lesser-known hill destinations such as Harsil, Munsiyari, Chopta and Kanatal as quieter alternatives to traditional tourist hubs.
“For the summer season, we have undertaken focused and multi-channel promotional campaigns to position Uttarakhand as a safe, accessible and diverse tourism destination. A series of roadshows and B2B engagements are being organised in key domestic markets such as Delhi NCR, Gujarat, Maharashtra and Southern India to connect with tour operators, travel agents and other stakeholders,” said Garbyal.
In addition, the Uttarakhand tourism board is focusing on digital promotion, including social media, targeted campaigns and collaborations with travel portals to reach a wider audience.
“We are promoting weekend escape packages for two nights and three days, with train and flight options bundled with accommodation and sightseeing. We are also highlighting summer Cool-Down circuits, along with last-minute ‘tension-free’ deals that offer flexible cancellation and free date changes. Additionally, we are targeting group and family travellers with offers such as ‘kids travel free’ on select train packages,” concluded Mohan.
