Start festive and winter sales now
ICRA says the FY27 outcome depends on festive-season demand. Open enquiries for Diwali, year-end and winter holidays early, and follow up on held quotes. Leisure travel peaks in October, per the NSO survey.
Industry report · Apr–Sep 2026
Indian Aviation & TourismResilience, record highs and recovery
Prepared by Flyshop.in for travel agents and trade partners. Data as of 29 October 2026.
DOMESTIC FLOWN APR–SEP
78.6 milliondomestic passengers flown (786.1 lakh)
RECORD MONTH MAY 2026
153.9 lakhIndia’s biggest aviation month ever
INDIGO REVENUE DERIVED
+22.8%revenue from operations, Apr–Sep
INBOUND AUGUST
+10.55%foreign tourist arrivals (6,91,247)
OUTBOUND JAN–SEP
+33%Indian arrivals in Vietnam
LOAD FACTOR SEPTEMBER
81.1%passenger load factor
1
A market that kept moving and set a record
- A new all-time record. May 2026 saw 1,53,89,701 domestic passengers on 1,02,953 flights, the first time any month passed 1.53 crore passengers (+9.5% YoY).
- Strong aircraft utilisation. Load factors were 79.0% in August and 81.1% in September, with 143 passengers per flight in September (140 a year earlier).
- Airlines are earning more per seat. IndiGo’s yield rose 21.3% in Q1 and 34.3% in Q2, and its cargo revenue grew 37% in Q2.
- Inbound tourism is recovering. Arrivals grew year-on-year in May, June, July and August; January–July arrivals were level with 2025 at about 5.07 million.
- Demand is shifting to new destinations. Vietnam, the Philippines, Japan, South Korea and Mauritius all saw double-digit growth in Indian arrivals.
- Policy support is in place. ₹5,000 crore ECLGS 5.0 credit-guarantee scheme approved on 5 May; ICRA still forecasts +3–6% domestic traffic growth for FY27.
2
Domestic market share: strong carriers, growing challengers
Who carried India’s domestic passengers
Share of domestic passengers, September 2026 (DGCA)
IndiGo 65.4%Air India Group 26.8%Akasa Air 5.6%SpiceJet 0.6%Alliance Air 0.4%Other carriers 1.2%
Source: DGCA monthly report as published in press. “Other carriers” (derived) is the remainder after the named airlines (100 − 98.8).
Passengers carried by airline
September 2026, lakh
Source: DGCA as published in press. SpiceJet ≈0.73 lakh.
Air India Group market share
May–September
Source: DGCA. Share rose from 23.9% in June to 26.8% in September; passengers grew from 28.75 lakh in July to 31.65 lakh in September (+10.1%, derived).
Airline by airline: the bright spots
IndiGo
Holds 65–67% of the market. Highest-ever domestic traffic and best on-time performance in May. Operates 432 aircraft to 97 domestic and 46 international destinations, with ₹52,685 crore in cash at the end of September (₹39,929 crore free).
Air India Group
Held 23.9–26.8% of the market, with share rising in August and September.
Akasa Air
Crossed eight lakh monthly passengers for the first time in May, holds a share of 5.5–6.4%, and has a ₹740 crore ECLGS sanction.
Alliance Air
Recorded 70.5% on-time performance in May, a strong reliability option for regional routes.
3
Domestic air travel by month
Domestic passengers, Apr–Sep 2026
Lakh passengers
138.1Apr
153.9May
134.6Jun
120Jul
121.3Aug
118.2Sep
Source: DGCA; June and July derived from DGCA cumulative totals. May was the highest-ever month for domestic traffic.
Calendar-year traffic for January–September 2026 stands at 1,223.53 lakh, within 1% (−0.82%) of 2025. Capacity was actively matched to demand: September departures were about 82,845, which is why planes were fuller (81.1% load factor).
4
Tourism by type: what travellers come for
Religious and leisure travel are the two biggest demand engines.
Domestic overnight trips by main purpose
Share of trips
Source: MoSPI / NSO Domestic Tourism Expenditure Survey 2025-26 (July 2025–June 2026, 365-day reference period), as reported by press (Tribune, BusinessToday, Curly Tales). Covers four leading purposes (leisure, pilgrimage, health and medical, shopping); the small remainder is not itemised in the coverage reviewed. Please verify against the MoSPI release before quoting externally.
Indian outbound departures by purpose
2025
Source: Ministry of Tourism, as cited by Flyshop.in. “Other / unspecified” (7.9%) is derived as the remainder. Indians made a record 32.83 million trips abroad in 2025 (+6.3%).
- Pilgrimage is the anchor. Pilgrimage and religious travel is the largest purpose of domestic overnight trips (about 48%) in both rural and urban India, a year-round, dependable market for agents.
- Leisure peaks in May and October. Leisure and holidaying leads urban trips at 36.4%, and May and October are peak months for leisure trips per the survey.
- Outbound is led by leisure. Leisure is the biggest outbound segment at 43.4% of departures, followed by diaspora travel at 34.1%.
5
Inbound tourism: a clear recovery path
Foreign tourist arrivals to India, 2026
Thousands
730Mar
534Apr
517May
584Jun
723Jul
691Aug
Source: Ministry of Tourism. Monthly values are rounded in the portal. September data not yet published.
May–Augyear-on-year growth every month
+10.55%August arrivals, 6,91,247
₹15.74 lakh crtourism contribution, 5.22% of GDP (2023-24)
8.46 crorejobs supported; WTTC forecasts US$286.1 bn for 2026
- Bangladesh is growing again in 2026, and arrivals from all other countries combined rose about 4.3% in 2025.
- Core source markets stay strong: the US, UK, Australia, Canada and Bangladesh.
6
Outbound tourism: steady demand, new places
Indian arrivals by destination: growth vs 2025
Source: national tourism organisations as compiled by TripDataset (third-party; verify before quoting externally). Periods differ by country (Jan–Aug or Jan–Sep). Across 12 tracked Asia-Pacific destinations, Indian arrivals rose 1.2%.
Indian departures abroad, year-on-year
Ministry of Tourism · the gap to last year narrowed from April to August
Source: Ministry of Tourism / Bureau of Immigration. April −22.5% (provisional); June −2.6%; August −4.07%.
- Early-year strength. January 2026 departures were up 9.06%, and August reached 27.62 lakh.
- Thailand held flat (+0.1% Jan–Aug).
- Southeast Asia bookings are rising. One operator reported Thailand, Vietnam and Bali bookings up 25%, 18% and 15% (single-operator figure, not market-wide).
7
Opportunities for travel agents in the second half
Sell pilgrimage and leisure together
Religious travel is about half of domestic overnight trips; leisure peaks around May and October.
Lead with growth destinations
Vietnam, Japan, South Korea, the Philippines and Mauritius are all growing.
Use the widening airline choice
Air India Group and Akasa are gaining or holding share, and Alliance Air offers strong reliability on regional routes.
Book peak dates early
Load factors are above 80%, so early booking protects clients’ preferred dates and fares.
Target inbound recovery
Focus on source markets already growing year-on-year; Bangladesh and Japan arrivals grew in April.
Confirm all-in fares and rule changes
Thailand visa-free stay reduced to 30 days from 15 September 2026; Australian visa biometrics from 26 October.
8
Outlook
ICRA’s current FY2027 forecast is domestic traffic growth of +3–6%. Festive-season demand is the key driver for the second half, with October DGCA traffic data (usually published about four weeks after month-end), September inbound arrivals and Air India’s audited results still to come.
Sources: DGCA (via press), ICRA (via Aviation Today / Indian Aviation News, 29 Oct 2026), InterGlobe Aviation results, Ministry of Tourism, TripDataset, MoSPI / NSO Domestic Tourism Expenditure Survey 2025-26 (via press). Compiled from public sources; figures are subject to revision. Not financial, legal or investment advice.
9
Selling flights and hotels: turning demand into bookings
Flights and hotels sit at the centre of most itineraries. The data shows why comparing value carefully wins customers.
Compare options on every flight sale
Show different departure times and nearby airports where practical, and offer one-way, return and multi-city combinations that fit the itinerary. In September the two largest airline groups carried more than 92% of domestic passengers, so checking alternatives matters.
Show the complete payable fare
Include taxes, baggage, seat selection and applicable surcharges, and explain fare rules, cancellation charges and change conditions before ticketing. Airlines revised fuel surcharges in October, so revalidate held quotes.
Build flight-and-hotel packages
Pair flights and hotels for leisure, business, family and group travel. Offer alternatives by location, star category, cancellation policy and total price, and add transfers or activities where they add real value.
Plan connections with care
Allow enough transfer time and avoid tight self-transfer combinations. Re-check schedules before departure, explain disruption policies clearly and offer flexible or refundable options for time-sensitive trips.
Which routes to focus on.
The H1 data does not rank city pairs, so we do not name definitive “top sectors”. Agents can review live inventory and booking demand on major business, technology, government, education and leisure corridors, such as Delhi–Mumbai, Delhi–Bengaluru, Mumbai–Bengaluru, Delhi–Hyderabad and Delhi–Kolkata, and on the city pairs most relevant to their own customers.
A note on hotels.
The sources reviewed for this report have no comparable H1 hotel occupancy or room-rate dataset, so we do not give a hotel growth figure. Demand varies by city, season, event calendar, property category and traveller type. Customers value clarity on baggage, check-in, cancellation conditions, hotel taxes, meal plans, location and payment deadlines.
10
Fixed departures: group tours that are easier to sell
Scheduled group tours with set dates and defined inclusions help agents sell faster, without building every itinerary from scratch.
What is a fixed departure?
A group tour that runs on a pre-planned date with a published itinerary and defined inclusions. Depending on the package, it can include accommodation, transfers, sightseeing, meals, tour coordination and selected flights. Check the inclusions, exclusions, group size and departure status for each tour.
Why customers choose group tours
Convenience (itinerary and key arrangements planned in advance), guidance (tour coordination and local support), a social experience, and clear dates and inclusions that are easy to compare.
How agents can sell them
Understand the customer’s dates, budget, destination and travel style. Share the full itinerary and explain inclusions and exclusions. Confirm seat availability, minimum group size, payment schedule and cancellation terms, and follow up promptly because group seats and promotional prices may be limited.
Product themes to build on
Domestic holidays, international sightseeing, cultural journeys, nature and adventure, family travel, pilgrimage, seasonal experiences and multi-destination itineraries. Pilgrimage alone is about 48% of domestic overnight trips.
Documents and readiness
Explain visa requirements, passport validity and any documents needed for the destination before confirming. Departure dates, prices and seat availability should always be confirmed against current inventory before a tour is offered to a customer.
11
International and destination selling: options around the traveller
International travel changed shape in the half-year, with traffic moving toward Asian and island destinations. Agents who offer choice are best placed to benefit.
Offer more than one destination
Present options at different price points instead of relying on a single itinerary. Match each destination to the traveller’s budget, dates, flight availability, visa rules and current advisories.
Compare total trip cost
Add up flights, hotels, transfers, activities, visa charges and baggage so customers see the true cost of each option.
Where the opportunities are
Short- and medium-haul Asian holidays (Vietnam, Japan, South Korea, the Philippines), island and leisure travel (Mauritius), multi-country itineraries where connections and visas are practical, and business, family and visiting-friends-and-relatives travel.
Established markets still matter
The UAE and Saudi Arabia remain major destinations for Indian departures, and Thailand remains a significant leisure market. Figures use different periods and methods, so they should not be read as one dataset.
Visa and documentation readiness. Visa rules can change and depend on passport, purpose of travel, duration and transit points. Verify requirements with the relevant embassy, consulate or official immigration source. Check passport validity, visa processing time, travel insurance, return or onward tickets, and any destination-specific health or entry requirements. Build buffers where schedule changes could affect connections.
12
How travel agents can grow their business in H2 FY2026–27
October 2026 – March 2027. A practical plan built on the data in this report. It is a planning aid, not a forecast.
The second-half opportunity
938–989 lakhdomestic passengers expected in Oct–Mar (derived, from ICRA’s +3–6%)
~873 lakhin the same months of FY26
With load factors above 80% and September departures down 8.1% YoY, seats are limited, so agents who book early can secure the best dates, fares and stays for their clients.
Grow a pilgrimage and religious travel line
About 48% of domestic overnight trips are for pilgrimage and religious purposes, the largest share in both rural and urban India. Offer group and family packages combining transport, stay and sightseeing, with options for senior citizens.
Package health-and-medical and leisure trips
Health and medical trips are 29.6% and holidaying and leisure 22.1% of domestic overnight trips. Bundle flights, stays and assistance to raise the value of each booking.
Lead outbound with growing destinations
Indian arrivals are up 33% in Vietnam, 31.6% in the Philippines, 19% in Japan, 18.9% in South Korea and 13% in Mauritius, and Thailand held steady. Build ready-made winter itineraries for these markets.
Use the January–March window
January 2026 outbound departures were up 9.06% (29.33 lakh), and March 2026 foreign arrivals reached 7,30,000. Promote year-end, new-year and spring trips early to catch these peaks.
Offer clients a choice of airlines
Compare IndiGo (65.4% share), Air India Group (26.8%), Akasa Air (5.6%) and Alliance Air (0.4%) on timings, fares and reliability. Alliance Air had 70.5% on-time performance in May.
Quote all-in fares and win trust
Fuel surcharges of ₹375–₹1,200 per domestic ticket were revised from 6–9 October. Show the complete fare at ticketing and re-check held quotes, with clear change and refund terms.
Sell visa and documentation support
Thailand’s visa-free stay for Indian passport holders is reduced to 30 days from 15 September 2026, and Australian visa applicants in India may be asked for fingerprints and a facial image from 26 October. Guiding clients turns queries into bookings.
Inbound agents: focus on recovering markets
Foreign arrivals grew year-on-year from May to August (August +10.55%). Prioritise growing source markets, and plan early for corporate and MICE demand as it returns.
Source: ICRA (29 Oct 2026); DGCA; Ministry of Tourism; MoSPI / NSO Domestic Tourism Expenditure Survey 2025-26, as shown earlier in this report. The suggestions are Flyshop.in’s planning ideas, not published forecasts.
For travel agents and businesses
How Flyshop.in can help your business
Launch or grow your travel business with inventory and booking solutions, without building every travel technology component yourself.
Explore travel business solutions with Flyshop.in →Flyshop.in is a B2B travel platform built for travel agents, agencies, small tour operators and entrepreneurs. It brings travel inventory, booking tools and support into one place, so you do not depend on multiple suppliers or offline processes.
Flight, hotel, bus and holiday bookings
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White Label Travel Portal
A ready-to-use, cloud-based booking engine with secure payment integration. Launch a portal under your own logo, domain and design identity, and set your own markups for flights, hotels or holiday packages.
Travel API connectivity
Flight, hotel and bus APIs for technology-led partners and B2B platforms, including distributing flight inventory to sub-agents with real-time data.
Packages and fixed departures
Holiday-package and fixed-departure opportunities to sell alongside flights and hotels, and grow the value of every booking.
Visa assistance
Visa-assistance services to support your international bookings and give clients a smoother journey.
Training and support
A support team to help with training and assistance as you set up and grow your booking business.
Why travel agents choose Flyshop.in
One platformFlights, hotels, buses and holidays in one workflow, instead of several supplier logins.
Your brandSell under your own logo, domain and business identity with a white label portal.
Your pricingSet your own markups by service, based on your client base.
Real-time inventoryLive supplier availability through travel APIs.
Built to scaleA cloud-based booking engine you can extend with APIs as your business grows.
Who it is for
Travel agents and agencies; small tour operators; entrepreneurs starting a travel business; and technology-led partners building integrated booking journeys.
A practical business perspective.
This report does not establish a guaranteed income figure for travel agents. Earnings depend on booking volume, product mix, supplier commission or markup, service fees, cancellations, payment costs and overheads. A sustainable business tracks contribution per booking, not sales value alone.
Getting started
Explore Flyshop.in’s inventory and booking solutions at www.flyshop.in.
Choose your model: book through the agent platform, launch a White Label portal, or connect through Travel API.
Launch and grow with training and support, adding hotels, packages, fixed departures and visa services as your clients ask for them.
Availability, rates, inventory and product terms should be confirmed at the time of booking. Subject to supplier terms. Product details are drawn from Flyshop.in’s own website and articles; confirm current features, launch timelines and terms with Flyshop.in.
Plan the second half with Flyshop.in
Use these insights to position fares, packages and routings for your clients. Explore travel business solutions with Flyshop.in: flights, hotels, packages, fixed departures, White Label and Travel API.
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