Airfare Math: The real cost of last-minute travel during festive season

The trip in India during the holidays has always been the stuff of magic and memories, but in recent times, it seems to come with a lot of surprises in prices. A Diwali holiday weekend flight to one of the major metro cities has already surged by 40-50 percent.

Hotel rates: No more last minute bargains

Do you remember when you could get hotel bargains at the last minute? This time it isn't so. For Christmas and New Year celebrations, the luxury of The Westin Goa is asking ₹40,000, Leela Palace Udaipur is ₹1 lakh, and Oberoi Udaivilas' suite is stunningly ₹ 3.5 lakh for the New Year. Budget tourists are feeling the pinch of an increase in price too, a room which is usually available for ₹3,000 to ₹4,000 rupees is expected to touch the ₹8,000 to ₹ 9,000 range.

Peak festive prices weeks in advance

• Budget and homestay options are nearly double their usual rates as well
• Popular resorts have already 60 percent of their year-end bookings, mostly in Goa and Rajasthan

Demand Is outpacing inventory

Why the surge of prices? The answer is straightforward: the trend for pre-booking is going viral. The hotel chains are getting up to 15% more of their bookings in advance compared to the previous year, and top properties in South Goa report being 60% full for the December festive weekends. Families choose their rooms immediately after Dussehra, weddings at destinations are getting double bookings, and groups are taking seats as soon as the long weekend dates come out.

One after another, festivals, weddings, and winter breaks turn into a perfect storm of travel demand. “Sold out” signs are appearing for long weekends and December block dates increasingly.

The Reality of late booking: Surge pricing and FOMO

Here is the trouble of the last-minute bookers: They will face surge pricing and less choices when the demand is high. With high demand and prices, the inventory of the accommodations and seats you want may be almost out. You’ll almost always be charged a premium for your booking if it is at your favorite hotel or on your favorite seat and at the same time there will be no availability.

On the most popular dates, railways and buses have started putting the “waitlist” sign.

For walk-in or late bookings, if at all, there will be extra charges by hotels, space might be the issue as well

International trips? Watch out for the rupee

Do you dream of going abroad for a relaxing break? Take care! Late bookings, combined with the continuous weakening of the rupee, will escalate the cost of trips from India to Singapore, Dubai, or even Thailand.

The bottom line

“Wait and book” is a risky game this holiday season. Every day you delay, availability goes down and prices go up. So, if you have plans to tour, purchase your tickets and hotels now before “Sold Out” signs turn into your freaky festive stories.