This year’s summer holidays are not a simple beach-versus-mountains or Eiffel Tower versus Burj Khalifa decision. Instead, the West Asia war is likely to shape where you travel and how much you spend. Soaring airfares and airspace closures over parts of West Asia are already dampening plans for overseas trips.
The cost of flying to popular destinations such as Europe and the US has risen sharply. Routes from Delhi and Mumbai to key European destinations, such as France, the UK, Spain and Italy have seen fare increases of 20–25%, while travel to the US has climbed even higher by 25–30%, according to Yatra Online. This hike is compared to last year during the May-July period.
, along with the loss of key transit routes due to airspace closures, have driven these increases.
With fewer connecting options via West Asia, travellers are increasingly forced to opt for direct flights to Europe and the US, which are significantly more expensive. For instance, a direct round-trip flight from Delhi to London in June or July is now priced at ₹1.1-1.3 lakh per person, nearly double the cost of a one-stop hopping flight via West Asia with a 2-3 hour layover. While some connecting flights are still operating, uncertainty about routes is discouraging travellers from choosing them.
The impact is not limited to long-haul travel. “Short-haul routes to Southeast Asia have also seen a 5–12% increase, though the rise is lower due to shorter distances and because these routes do not rely on the disrupted Middle Eastern airspace,” said Bharatt Malik, senior VP–air and hotel business, Yatra Online.
are only expected to rise further as aviation turbine fuel (ATF), or jet fuel, has been hiked globally from 1 April. ATF accounts for a significant share of an airline’s operating costs, so higher fuel prices are likely to push up fares. While the government has capped increases for domestic flights, there is no such mechanism for international routes, leaving travellers exposed to further price hikes.
Expenses other than airfare
Alongside higher fuel costs, the rupee’s depreciation against the US dollar and euro over the past year has added to the burden. This has made hotels and tour packages for international destinations, especially those priced in dollars or euros, more expensive.
Abhishek Daga, co-founder of Thrillophilia, said international tour packages are now costing 8–12% more on average compared to last year, with Southeast Asia and the Maldives most affected due to a higher share of hotel and transfer costs denominated in foreign currency. However, the same impact is not visible in tours to Europe or the US as the demand has tapered this year.
“International tour packages are still absorbing a lot of rupee depreciation as demand is lower, which helps balance the weaker currency with discounts in supply,” said Daga.
On local expenses, cab fares have surged, denting budgets in Southeast Asian countries where taxis remain the primary mode of transport because public infrastructure is limited. Amar Kedia, founder of TravelBluez, a boutique travel agency catering to premium travellers, said ride-hailing fares as well as local transport and tour costs have increased by 20–25%.
Moreover, several countries are facing additional cost pressures linked to energy disruptions. Sri Lanka and Thailand have seen hikes in electricity tariffs, while Indonesia (including Bali) and the Philippines åre experiencing intermittent power outages and grid stress. Together, these factors are raising operating costs for hotels, restaurants and tourism services.
Experts said these higher costs have not yet been passed on to tourists. “Hotel prices have been stable so far across most popular Southeast Asian countries,” said Kedia. However, there is a likelihood that price transmission will begin in the coming months, just as Indian outbound travel picks up for the May–July peak summer season.
European travel has seen another change. The option to book with visa rejection insurance, earlier offered by online travel aggregators (OTAs) to safeguard travellers against visa rejections, has now been withdrawn, as per Jimeet Ved, founder of visa and travel consulting firm outofofficedaku. “It’s a risk travellers are not willing to take, as losing airfare and hotel costs in case of visa rejection is a significant burden. While many countries allow applications with dummy or reservation tickets, travellers are not completely insulated from the risk,” he said.
Domestic is better
Domestic holidays make the most sense for you this summer if you are looking to control costs and avoid uncertainty. With international fares rising, on-the-ground expenses increasing in many countries, and occasional disruptions in key tourist markets, travelling within the country offers a simpler, more predictable holiday.
Industry experts say that, compared with short-haul international trips to Thailand or Sri Lanka, domestic travel is not only more affordable and safe but also better aligned with seasonal conditions. Kedia said that if he were advising a client choosing between Thailand or Sri Lanka versus a domestic destination, he would recommend staying within India. “The weather in Thailand or Sri Lanka is not good during summers.”
Travel companies are reporting that rising international travel costs and evolving global conditions are pushing travellers to consider closer-to-home alternatives. “We are seeing a clear substitution trend this season, with travellers shifting from foreign trips to domestic holidays. Destinations such as Rajasthan, Kashmir and drivable hill stations are witnessing strong demand,” said Malik.
Daga corroborated the trend: “Domestic travel searches have risen over 38% year-on-year for the upcoming summer season. Places like Ladakh, Spiti, Kashmir, Kerala, Andaman and the Northeast are seeing strong demand.”
A hike in domestic airfare is also expected to be less severe as the government has cushioned the impact.
The right way to travel internationally
If you still want a foreign holiday this summer, the key is choosing destinations that balance affordability, connectivity and ease of entry.
Southeast Asia, such as Thailand, Sri Lanka, Cambodia and Vietnam, is the most budget-friendly and risk-free international option this year with visa-free or visa-on-arrival access. However, most of these countries would be hot in the May-July period. Kedia said Bali and Mauritius could be the best options weather-wise, as they are south of the Equator, and May-July is the best time to visit. “This year we are seeing demand pick up for Bali and Mauritius for these reasons,” he said.
Flights to both Mauritius and Bali are priced similarly at around ₹50,000-60,000 per person for a round trip in mid-June and haven’t increased significantly either. “Flight to Mauritius, especially, has been stable compared to last year,” Kedia pointed out. However, Bali offers lower-cost hotels, cheaper food and more affordable activities. As per listings on OTAs, 3-star, highly rated hotels in Bali typically cost about ₹3,000-4,500 per night, whereas Mauritius is a resort-heavy country with prices for similar hotels starting at ₹6,000.
Ved said the alternatives are Malaysia and Singapore, but they are slightly more expensive than the countries stated above.
Japan and South Korea are also seeing increased interest, with bookings rising 12-13% this year, said Daga. However, increased demand, coupled with rising fuel prices, has pushed airfare up by 15-25% compared to last year, according to Yatra and Thrillophilia. Both are relatively expensive destinations, but can serve as alternatives for travellers who had budgeted for Europe but are now reconsidering.
Book early for best rates
Ved pointed out that Japan’s All Nippon Airways (ANA) has announced its annual sale, offering round-trip fares from Delhi or Mumbai starting at ₹43,500 per person, compared to the usual ₹55,000-60,000. “Japan is also liberal with visa approvals, so travellers can take advantage of these sales if they are planning a trip this year,” he said.
Travellers are advised to book flights and hotels early to lock in lower prices. “Airfares to Southeast Asia will definitely rise as demand is quite high this year. June still has some reasonable options, so those planning to travel then should book now,” said Ved, adding that flexibility with travel dates can help secure better deals.
For accommodation, booking cancellable options is a prudent strategy, allowing travellers to monitor prices and switch to better deals closer to departure.
This year, early planning, flexible dates and smart routing are as important as the destination itself to keep holiday budgets under control.