Sanjeev Nanda on India’s Festive Travel Surge: How Hotels Are Adapting to Short-Haul Demand

 

India’s hospitality industry is witnessing one of its busiest festive seasons yet, with hotels across the country reporting record occupancy levels during Diwali and New Year. Sanjeev Nanda, a global hospitality veteran, shares insights into how hotels are managing this unprecedented boom and adapting to travellers’ changing habits.

Festive Demand Reaches New Highs

The 2025 festive period has set fresh records for India’s tourism sector. Intercity transport networks, from flights to buses, are operating at near-full capacity, while hotel bookings are estimated to have risen by nearly 20% compared to the previous year.

Unlike the pre-pandemic era, when international getaways dominated, Indian travellers are increasingly opting for shorter, experience-driven domestic trips. Routes such as Delhi–Rishikesh, Mumbai–Goa, and Bengaluru–Coorg are witnessing heavy movement as families and professionals embrace quick, restorative breaks.

Sanjeev Nanda calls the phenomenon “both a windfall and a wake-up call” for hotels, which must now deliver consistent service quality despite sustained operational pressure.

The Rise of Short-Haul Travel

A new travel pattern has emerged across Indian metros, characterized by short-haul, micro-vacations lasting under two days. According to industry data, more than 70% of road trips now fall within a 200–300-kilometre range. This reflects the priorities of an emerging traveller class that seeks efficiency, comfort, and novelty without the logistical burden of long-distance travel.

“Travellers today are seeking meaningful escapes that fit within their schedules,” says Sanjeev Nanda. “They are not travelling to disconnect; they are travelling to reset.”

This shift has also redefined how hospitality brands curate experiences. From wellness retreats in Rishikesh to boutique resorts in Coorg, hotels are positioning themselves as gateways to rejuvenation rather than mere accommodation providers.

Managing the Operational Challenge

While the festive surge boosts revenue, it also stretches hotel resources. Staffing shortages, service bottlenecks, and pricing dynamics present immediate challenges. Dynamic rate adjustments help manage demand, but overpricing risks alienating loyal customers.

“True luxury during peak seasons isn’t about excess,” explains Nanda. “It’s about reliability, ensuring that every guest receives the same level of attention even when the hotel is operating at full capacity.”

To achieve this, properties are investing in automation and AI tools for forecasting, scheduling, and guest management. Leading chains are even deploying predictive analytics to anticipate surges and personalize guest interactions.

Technology and Experience Go Hand in Hand

Digital transformation has become the backbone of hospitality operations during this high-demand cycle. Real-time booking systems, automated check-ins, and data-driven pricing models have made hotels more agile. Online travel agencies report a 25–30% increase in bookings, reinforcing the digital nature of the festive travel boom.

Nanda emphasizes that technology should not replace the human touch but strengthen it. “Technology allows consistency, it gives teams time to focus on what truly matters: guest experience.”

Economic and Cultural Ripple Effects

The short-haul travel boom has extended beyond large cities, benefiting regional economies and small businesses. Local artisans, caterers, event planners, and transport operators across Tier II and III cities are seeing tangible gains. This decentralization of travel demand is fostering inclusive growth within the sector.

“The festive season is driving India’s tourism engine in a new direction,” Sanjeev Nanda concludes. “The goal now is not just to manage this surge, but to convert it into sustainable guest relationships that define hospitality’s future.”