Refundable Travel Options See 35% Spike Amid Thailand-Cambodia Row, Other Geopolitical Conflicts
Refundable choices are the go-to buffer for travellers across flights, hotels and packaged tours as conflicts, war fears and natural disasters keep headlines volatile.
Refundable travel bookings have surged by 35% so far in the year, as Indian travellers hedge against rising global uncertainty ranging from geopolitical tensions, deadly crash, to recent border conflicts in Thailand and Combodia.
While the first half of the year was marked by anxiety and caution, the travel industry is expecting some signs of relief in second half of the year. Despite the turmoil, actual cancellations remain limited, with the bulk of planned personal, business and MICE (Meetings, Incentives, Conferences and Exhibitions) trips staying on track.
Travellers are simply hedging their plans, not dropping them, says the Outbound Tour Operators Association of India.
OTOAI, which represents over 600 members including big players like MakeMyTrip, EaseMyTrip, Yatra.com and Kesari Tours, says the industry expects the pent-up demand from a muted first half to reflect in the next few months. “We expect H2 to make up for at least 10% of the shortfall from H1,” Himansh Patil, President, OTOAI told NDTV Profit.
“With 2025 being the year of geopolitical tensions, the unfortunate Air India plane crash — travellers are cautious, buying refundable tickets, hotel bookings and packages, yet very few translate into cancellations,” Shravan Bhalla, Vice President, OTOAI said. “Despite the tensions between Thailand and Cambodia, we saw only a minor blip in cancellations — about 5–10% — and that too during August, which is anyway a lean month for Indians travelling to Thailand.”
The shift comes even as flyers scrutinise aircraft types post the Ahmedabad Air India tragedy, paying extra for peace of mind. “Travellers are more cautious about what plane they fly on, even if it pinches their pocket,” added Bhalla.
Himanshu Patil, President of OTOAI, said domestic shocks like the Pahalgam terror attack too caused momentary jitters, but not mass cancellations. “Travellers are treading with caution but not cancelling their plans, because holidays have been planned months in advance and paid for,” he said.
Refundable choices are the go-to buffer for travellers across flights, hotels and packaged tours as conflicts, war fears and natural disasters keep headlines volatile. But if industry projections hold, the cautious optimism points to a robust rebound just as the festive and year-end holiday season kicks in.
