As summer 2025 approaches and schools prepare to shut for vacation, Indian families are planning holidays—but this year, many are facing an unusual dilemma: domestic flights are significantly costlier than international ones.

While exploring the hills of Leh or the serene backwaters of Kerala may have once been budget-friendly options, now they could cost more than a trip to Istanbul or Athens.

Domestic Airfares Soar Ahead of Summer Travel

According to data shared with Moneycontrol by online travel agents (OTAs), domestic flight prices for April, May, and June 2025 have skyrocketed. For instance:

• Economy class tickets from metro cities like Delhi, Mumbai, Bengaluru, and Chennai to Kerala are now priced between ₹8,000 and ₹40,000.

• For the Easter weekend (April 17), a round-trip from Delhi to Thiruvananthapuram costs anywhere from ₹20,000 to ₹40,000.

• Other hotspots such as Srinagar, Dehradun, Kochi, Port Blair, Silchar, Lakshadweep, Sikkim, and Leh are witnessing average roundtrip fares of ₹18,000 to ₹70,000.

Indiver Rastogi, President of Global Business Travel at Thomas Cook India and SOTC Travel, confirmed this spike. He mentioned that compared to 2024:

• Srinagar flights have increased by 21%.

• Leh flights are up by 15%.

• Shimla/Manali (via Chandigarh) flights are costlier by 24%.

• Bagdogra flights have risen by 20%.

The surge is putting pressure on Indian travelers who previously relied on domestic locations for affordable summer getaways.

International Airfare: A Surprisingly Cheaper Option

Interestingly, many international routes have remained stable or even decreased slightly in fare compared to domestic options:

• Delhi–Istanbul: ₹33,000 (up from ₹31,000 in 2024)

• Mumbai–Athens: ₹34,000

• Chennai–Budapest: ₹36,000

• Kolkata–Warsaw: ₹34,000

• Bengaluru–Prague: ₹36,000

These routes have seen only minor annual increases of ₹1,000–₹2,000 and still offer better value than many domestic routes.

EaseMyTrip’s CEO Rikant Pittie explained that competitive pricing, seasonal discounts, and more interest in Europe are the main reasons for this affordability.

Moreover, fares to cities like Paris, Milan, Frankfurt, Zurich, and London have decreased by 4% this year. This is largely due to airlines like Air India and IndiGo expanding their fleet and increasing frequencies to Europe, thus increasing seat availability.

Why Are Domestic Flights So Expensive in 2025?

There are several contributing factors to this domestic fare surge:

1. Limited Flights: Due to maintenance issues and engine supply disruptions, many airlines are operating with reduced fleets.

2. High Demand: The school break and summer heat are pushing families to hill stations, resulting in high load factors.

3. Fuel Prices & Costs: Operating costs for domestic airlines have risen, pushing airlines to increase ticket prices.

4. Lack of Infrastructure in Some Regions: Destinations like Lakshadweep or Sikkim have limited flight options, which drives up demand and cost.

All these factors combined have made travel within India significantly expensive, prompting middle-class families to look overseas.

The Changing Travel Preferences of Indians

According to a February 2025 report by Ernst & Young, travel behavior is shifting dramatically:

• There was a 15% increase in total air passenger movement in India in 2023–24.

• International air passenger traffic jumped by 22% year-on-year.

• Visa applications were 11% higher in the first 11 months of 2024 compared to 2023.

• More airlines are focusing on international connections to meet this growing demand.

As international routes expand and competition intensifies, global destinations have become not just accessible but more cost-effective.

Australia and US Seeing Indian Travel Boom

Countries like Australia and the United States are major beneficiaries of this trend:

• Australia hosted 430,000 Indian travelers in 2024, contributing AU$2.3 billion to their economy.

  • Phillipa Harrison, Managing Director of Tourism Australia, mentioned the rise is due to improved air links. Seat capacity between India and Australia is now 333% of pre-pandemic levels.

• The US saw a 24% increase in Indian travelers in 2023, according to Fred Dixon, CEO of Brand USA.

This data reflects how Indian travelers are now seeing value and appeal in exploring global destinations, whether for leisure, culinary adventures, or business opportunities.

Currency and Hotel Costs Are a Challenge, But Not a Deterrent

While overseas trips offer good airfare deals, costs have increased in other areas:

• The falling rupee and rising hotel tariffs globally have increased overall expenses by 15–20% for international travelers in April–June 2025.

Yet, the surge in domestic travel prices has still made overseas trips relatively competitive.

Rajiv Mehra, President of the Indian Association of Tour Operators (IATO), pointed out:

• High demand for Indian hill stations has made domestic hotels and flights equally, if not more, expensive.

• Countries offering free e-visas have also attracted Indian travelers.

What’s Next? Will Domestic Fares Come Down?

Industry leaders believe that domestic airfares may reduce starting July 2025, as:

• More aircraft are inducted into airline fleets.

• The summer travel peak tapers off, easing pressure on prices.

Rastogi noted that this capacity addition could help stabilize fares and offer better options for local travel later in the year.

Conclusion: Rethinking Summer Travel Plans

The 2025 summer season is showing a clear shift in travel patterns:

• Domestic travel, traditionally considered more affordable, has become expensive due to high demand and limited capacity.

• International destinations, thanks to competitive airfares and better connectivity, are becoming a preferred choice for many Indian travelers.

• As airlines ramp up capacity and new routes open, the travel industry may balance out, but until then, global vacations may actually cost less than exploring India.

If you're planning a trip this summer, it might be time to look beyond borders for better value.

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