Tactical reset in travelling patterns, not a slowdown: Travel agents offer a ground reality check

Airfares up 60%, bookings down by nearly a third, and revenues hit by up to an average 20%: India’s outbound travel market has gone under strain as West Asia’s airspace had shut down key corridors. Yet demand endures, redirecting sharply towards short-haul Asian destinations and domestic travel, reshaping how, not whether Indians travel. T3 spoke to the agents to dig in deeper, an exclusive report below:

What began as a geopolitical flashpoint in late February has rapidly escalated into one of the biggest aviation disruptions in recent years, directly hitting the world’s busiest east–west travel corridor. Following US and Israeli strikes on Iran, large swathes of West Asian airspace, including key zones over parts of the Gulf, were either completely shut or severely restricted, forcing airlines globally to suspend, reroute, or delay flights. 

The fallout thereafter was immediate and far-reaching. Critical aviation hubs such as Dubai, Doha, and Abu Dhabi, through which a significant portion of India’s outbound traffic to Europe and North America flows, faced operational disruptions, capacity cuts, and safety advisories. 

With airspace closures squeezing available corridors, airlines have been forced into longer, fuel-intensive diversions, pushing up both travel time and ticket prices.  In some cases, global airfares have now surged 40–60% within weeks, with India–US return tickets touching INR 3 lakh, nearly double typical fares, as per the recent estimates. Aviation bodies have further flagged increased safety risks and congested alternate flight corridors, adding another layer of complexity to long-haul travel planning. 

For India’s travel agents, who sit at the frontline of consumer-facing side, this disruption is translating into a daily operational grind. According to early March 2026 estimates from industry stakeholders, the larger agencies reported revenue impacts in the range of 12–15% for the quarter. At this juncture, the agents are now navigating constant fare and currency fluctuations, backend pressures, rerouting complexities, delayed confirmations, and mounting refund pressures, even as travellers hesitate, reassess, or shift plans altogether.

Against this backdrop, T3 spoke to the travel agents to understand the on-ground situation and shift in traveller behaviour patterns. The result however is a paradoxical market: demand hasn’t disappeared, but the pathway to converting that demand has become significantly more complex and risk-laden.

Bookings hit; margins squeezed as transit disruptions deepen

Across agencies, the impact is indeed being felt on multiple fronts: booking cycles are elongating, conversions are slowing, and margins are coming under pressure due to constant reworking of itineraries. 

“We have seen nearly 25–35% disruption in outbound bookings on Europe/US routes that typically transit via the Middle East,” said Riaz Munshi, Managing Director, N Chirag Travels.  “While some itineraries have been salvaged through alternative carriers or longer routes, the overall impact has been significant. Revenue loss is estimated at around 15–20%, factoring in cancellations, reduced margins due to rebookings, and increased operational effort. Additionally, fare volatility and visa-linked uncertainties have made conversions slower, further impacting business momentum,” he added. 

Echoing this, President of IATO & Founder & MD of Erco Travels, Ravi Gosain noted that nearly 25–30% of outbound bookings have been impacted, translating into a 15–20% revenue hit due to refund liabilities and restructuring costs. “The disruption of key transit hubs has led to uncertainty among travellers, particularly for peak summer departures. While some passengers have opted for alternative routes via Southeast Asia or direct flights, the higher airfares and limited capacity have suppressed conversions,” he said. 

President of TAFI & Partner at Shoiz Travels LLP, Abbas Moiz also confirmed that “most outbound bookings routed through West Asia… have been cancelled until at least April 30,” with rescheduling beyond mid-May and rerouting via Europe or Pacific corridors. Moiz added that this situation is expected to negatively affect revenue and may have a significant impact on overall profitability.

However, for some agents, the disruption is far more acute. “90% of bookings in this segment have been deferred, cancelled or re-routed… the impact is showing more in delayed bookings, refunds and margin pressure,” said Vinay Arora, Director of ATG Holidays Pvt Ltd. “Those already ticketed, especially on European carriers, are mostly still travelling, but the sharper hit is among travellers whose visas were approved and who were still to book tickets, many are now postponing or cancelling because of high airfare.” 

Similarly, for Vansh Arora, Executive Director, Flag Holidays, 70–80% of outbound bookings have been cancelled, deferred or re-routed with heavy operational load and tangible short-term revenue loss. “Client trust is crucial now — agents must proactively communicate, expedite refunds and offer safe alternatives; equally, clients should rely on verified agents and avoid coercive pressure,” he asserted. Arora also told T3 that MICE movements across remain largely unaffected.

Yet not all see a collapse in demand. Gurdeep Singh Gujral, Managing Director, Gujral Tours and Travels observed, “We are not seeing a sharp drop… travellers are rescheduling or rerouting rather than cancelling outright,” though currency fluctuations and rising costs are adding caution. “It is not stopping them, but it is making them more cautious in how they plan and spend,” added Gujral. 

Short-haul gains, flexibility becomes currency, domestic sees uptick

While the challenges persist, the estimates point that India’s outbound travel market is not showing any signs of slowing; it is recalibrating. Also shown through exclusive insights from a recent T3 Travel Poll suggesting that travellers are pivoting towards short- and medium-haul destinations.

While over 60% of respondents reported some level of hesitation among travellers towards long-haul travel, only 28% indicated outright cancellations, underscoring that the sentiment is more cautious than negative. 

When it comes to destination preference, T3 Poll shows that the demand for Asia region is on the rise as markets like Thailand, Sri Lanka, Vietnam, and Cambodia have recorded a 20–30% uptick in bookings compared to February 2026, driven by competitive pricing, visa ease, and direct connectivity. Japan and Australia/New Zealand, while long-haul, continue to remain resilient due to their perception as stable and well-connected destinations. Interestingly, domestic travel has also seen a 7–10% rise in bookings, though not as sharply as expected. 

Across the board, agents also point to these clear behavioural shifts: less about whether to travel, and more about how.

Acknowledging there’s a visible inclination towards Southeast Asian destinations and domestic travel, Arora from ATG Holidays added, “Travellers are prioritising shorter, more predictable journeys,” especially with the holiday season approaching.

For Munshi too, there’s a noticeable shift towards Southeast Asia and domestic travel also seeing a strong uptick. “Travellers are becoming more cautious, prioritising cost, convenience, and certainty. For the upcoming holiday season, we expect demand to lean more towards short-haul international and premium domestic experiences rather than traditional long-haul itineraries,” he told T3. 

Gosain highlighted evolving booking patterns saying that for the upcoming travel season, the travellers are booking closer to departure, prioritising flexibility, insurance, and better cancellation policies… avoiding complex itineraries. “Long-haul itineraries, especially those involving multiple transits, are witnessing hesitation due to concerns around safety, delays, and unpredictability.”

From a pricing lens, Moiz cautioned that even short haul isn’t immune: “Rising oil prices, a depreciating rupee, and limited air seat availability are impacting budgets,” while domestic travel remains the fallback, albeit with supply constraints. “Holiday destinations with pleasant climes, continue to serve as a reliable alternative for travellers. Though with limited supply of hotel rooms, availability and price will be a challenge within India,” Moiz added. 

Adding another layer, Arora from Flag Holidays noted a growing preference for security and flexibility, saying the travellers now prefer refundable fares and ‘safe’ destinations… with strong demand for Southeast Asia (Singapore, Malaysia, Thailand, Vietnam) and curated long-haul like their 10‑night Japan cherry‑blossom group, which remains strong, especially during uncertain times.  

Meanwhile, Gujral framed it as a mindset shift: “People are choosing destinations that feel straightforward and dependable. We have also seen a clear rise in domestic travel, with destinations like Goa and Himachal Pradesh gaining strong interest.” Though he said that long-haul travel is still on people’s minds, for now, the short-haul and domestic options are becoming the immediate choice.

Temporary shock or structural shift? Industry sees both

On whether this is a passing storm or a long-term reset, the trade remains divided but aligned on one point: change is underway.

Munshi summed it up as dual-layered: “It is both a temporary disruption and an early signal of a more adaptive, value-driven travel pattern.” 

Gosain maintained that this is largely a “temporary reaction” but prolonged disruption could lead to structural changes like preference for direct connectivity and diversified hubs. Over the long term, the industry may need to adapt by offering more flexible, resilient, and diversified travel options to mitigate similar risks, he signaled. 

ATG’s Arora echoed caution: “If disruptions and high fares continue, travellers may start preferring easier routes, shorter flights, and more flexible plans. So even when the situation settles, some of this caution could stay.”

For Gujral, the sentiment remains largely optimistic: “The intent to travel is intact… what we are seeing is cautious optimism and more informed decision-making.” 

Arora from Flag Holidays described it as “a temporary flight-to-safety with a medium-term shift toward flexibility in booking behaviour.” 

Taking a more strategic view, Moiz positioned this as an inflection point: “This must be recognised as an opportunity to start a process of reducing our reliance on foreign players. We are aware that our travel and hospitality stakeholders are ramping up their capacity to meet the Indian travel demand, both domestic and outbound. These initiatives should be supported by appropriate policy frameworks, infrastructure improvements, and logistical advancements. It is essential to systematically identify and address current deficiencies and proactively implement revisions to meet the Indian travellers’ expectations in the coming decade.”