Diwali airfare delight! Your flight just got cheaper, prices drop on many domestic routes

Air passengers might have a reason to smile this Diwali season as average airfares on many domestic routes have dropped 20-25 per cent compared to the year-ago period, according to an analysis. Air ticket prices are thought to have decreased due to a number of causes, including increased capacity and the recent decline in oil prices. Airlines employ dynamic pricing algorithms, which raise prices in response to increases in demand, particularly around holidays like Diwali.

One of the largest celebrations in India is Diwali, when a lot of people take holidays or travel to spend time with family. Because airlines modify tickets according to the amount of reservations, this surge in demand results in increased pricing.

According to a research by the travel portal Ixigo, the average airfare on domestic routes has decreased by 20–25%. Due to restricted capacity, airfares increased around Diwali last year, mostly as a result of Go First's suspension. However, since then, more capacity has been added, which has resulted in a 20–25% YoY (year-over-year) decrease in average airfares across important routes for the final week of October. This year, we've seen some respite," Ixigo Group CEO Aloke Bajpai told news agency PTI.

The rates are based on a 30-day APD (advanced purchase date) one-way average fare.

This year, the time frame is October 28–November 3, but in 2023, it is November 10–16. It is around Diwali at this time. According to the data, the average ticket for a Bengaluru-Kolkata trip decreased by a maximum of 38% from Rs 10,195 to Rs 6,319 this year. The cost of tickets on the Chennai-Kolkata route has decreased by 36%, from Rs 8,725 to Rs 5,604.

The average cost of the Mumbai-Delhi flight has decreased by 34%, from Rs 8,788 to Rs 5,762. Similarly, tickets for the Delhi-Udaipur route are now available for Rs 7,469 instead of Rs 11,296 (a 34 percent reduction). On the Delhi-Kolkata, Hyderabad-Delhi, and Delhi-Srinagar lines, the decrease is 32%.

Currently, oil prices are slightly on the upward trajectory amid rising geopolitical tensions. Meanwhile, there has been a hike in airfares of up to 34 per cent on certain routes.