Sanjeev Nanda on How India’s Hospitality Sector Is Managing Record Festive Demand and Short-Haul Travel Boom

The festive travel season has unleashed unprecedented demand across India’s hotels and hospitality brands, with occupancy levels soaring to record highs during the Diwali and New Year periods. As Diwali weekend approached in October, intercity travel modes from buses to flights and hotels operated at near-full capacity. Intercity buses ran at 95–100% occupancy, while hotel bookings rose by 15–20% year-over-year.

This surge is being powered not by traditional long-haul travel but by a robust appetite for short-haul, experience-driven domestic getaways. Across city pairs like Delhi-Rishikesh, Mumbai-Goa, and Bangalore-Coorg, travellers embrace micro-vacations seamlessly fitting into their fast-paced lives. 

Sanjeev Nanda, the hospitality expert, captures the dual nature of this trend succinctly as he observes that “the festive season is both an opportunity and a stress test for hospitality operations,” reflecting the immense potential and operational challenges that come with this boom. 

The Festive Hospitality Boom

India’s hospitality sector has never seen demand like the 2025 festive season. Industry data reports hotel occupancy at near-full capacity, with bus and flight bookings reflecting a similar sky-high trend. For many hospitality brands, this influx of guests has tested their operational readiness to the limit. The surge is not merely about volume; it is about delivering consistently high service despite the pressures of full bookings and high consumer expectations.

Analyzing travelers’ behaviour reveals a distinct pivot from traditional long-distance holidays to short-haul, intensely curated getaways. Popular city-to-destination routes include Delhi–Rishikesh, Mumbai–Goa, and Bangalore–Coorg, reflecting a broader pivot from long-haul itineraries to experience-rich weekend breaks. According to industry data, 71% of road trips in 2025 lasted under two days, up from 66% in 2023.

Spanning 200 to 300 km from major metros, these trips offer immediacy, minimizing travel fatigue while maximizing immersive experiences. Whether it’s spiritual escapes to Rishikesh, beach retreats to Goa, or serene hill stays in Coorg, Indians are redefining the idea of festive travel. Nanda remarks, “Guests today are not just travelling for a holiday, they are chasing moments of escape that fit within their fast-paced lives. This micro-vacation trend signals a paradigm shift towards travel as revitalization, not just leisure.” 

Operational & Service Challenges for Hotels

Record occupancy levels strain a hotel’s most vital assets, its people and service standards. To maintain stellar guest experiences, hotels must skillfully scale staff capacity without compromising quality. Dynamic pricing models come into play, balancing the tightrope between capitalizing on high demand and avoiding guest dissatisfaction due to perceived overcharging. The solution lies not in lavish excess but in seamless consistency.

“Luxury in high-demand periods is not about excess, it is about consistency delivering seamless experiences even when fully booked,” emphasizes Sanjeev Nanda. This requires attentive workforce training, efficient process automation, and real-time responsiveness to evolving guest needs.

Changing Guest Preferences

The new-age festival traveler is experience-centric, seeking more than just a room to rest. The rise in demand for boutique hotels, heritage resorts, and eco-retreats speaks volumes about changing tastes. Guests desire authenticity, festive buffets that spotlight regional cuisine, curated cultural events that enliven surroundings, and local excursions that offer a sense of place. This trend is also fueling rediscovery of local and regional gems, spreading the economic benefits of travel more broadly. The emphasis on experiential offerings transforms hospitality from a commodity to a craft, intensifying competition among brands.

Technology is proving indispensable in managing this dynamic market. Hospitality providers leverage AI-driven dynamic pricing, predictive analytics for booking trends, and flexible inventory management systems to stay ahead. Online travel agencies report a 20–30% spike in festive bookings, underscoring demand’s digital footprint. Technology enables hospitality brands to stay agile, anticipating surges, personalizing offers, and reducing guest friction. In an increasingly data-saturated market, these tools are not mere luxuries but a strategic imperative for survival and growth. 

Beyond immediate commercial success, the festive travel boom invigorates local economies and micro-businesses from food vendors to tour guides across Tier II and III destinations. This diversification in travel patterns drives infrastructure enhancements and strengthens regional tourism ecosystems. The current surge is a harbinger of sustained demand shaping 2026 and beyond. “Festive travel is becoming India’s new tourism engine. The key is not just to manage demand, but to convert it into an industry that focuses on long-term guest relationships rather than transactional wins,” Sanjeev Nanda concludes.