India-Pakistan Tensions: Events, Flights, Hotels See Cancellations As Conflict Dents Sentiments

Rising tensions between India and Pakistan and continuous action at the borders have resulted in events and bookings getting cancelled across the country.

"Dear Ibtida Patrons, In light of recent events, we're pausing to stand in solidarity with those affected. Electronic musical - Surrender has been rescheduled to July 2025...

We are holding space for the families affected, standing in solidarity with our nation and praying for peace to prevail. We'll return when the time is right, with renewed purpose and a stage set to stir every soul," reads a post social media platform Instagram, by Ibtida, a community that hosts old school style baithaks.

From mehfils in Mumbai to heritage walks in Delhi, to a sitar concert in Indore, the ongoing escalations in the India-Pakistan conflict is already beginning to dent the contact-intensive services sector across the country.

The situation is playing out sensitively, said Pranav Rungta, vice president at the National Restaurant Association of India. In several parts of the North including Delhi, there are cancelations for parties and large gatherings, he said.

Places such as Chandigarh or parts of New Delhi around the India Gate that are pockets of high risk, along side parts of Punjab and Rajasthan and are seeing a higher impact, he explained.

After all, the BCCI has suspended even the IPL by a week to avoid providing fodder given the strength of the crowds at the matches, he cited.

As many as 32 airports across north and west India are closed for operations till May 15, including Amritsar, Bikaner, Leh, Shimla and Srinagar among others.

"Traveler sentiment remains cautious, with increased concerns around safety and uncertainty", said Rikant Pittie, CEO and co-founder at EaseMyTrip. Several airlines have reduced or suspended operations, leading to a sharp rise in cancellations and rescheduling across travel services, he said, adding that focus remains on providing guidance and support to travellers in impacted cities including Srinagar, Jammu, Amritsar, Leh, Chandigarh, Dharamshala, Bikaner, Jodhpur, Kishangarh, and Rajkot.

Limited Impact... For Now

Elsewhere, the industry is in wait-and-watch mode. Sarita Pereira, chief executive chef at Lovefools- a restaurant housed in a heritage bungalow in a quant lane in Bandra says that while she can feel the ripples, they are minor at this juncture. "We almost had a cancellation of a ten member group for lunch earlier today but they eventually decided to show up", she said.

So far, impact on economic activity on a national level, is expected to have been limited. "The ongoing India-Pakistan conflict will likely increase risk premium in asset markets, but we don't think this factor by itself will necessitate a change in our baseline macro forecasts as we are not expecting the situation to escalate out of control," Kaushik Das, chief economist at Deutsche bank stated in a note published on Friday.

"We would expect the RBI to intervene to contain volatility, and to ensure orderly functioning of the financial markets," he said, adding that India is showing signs of a cyclical recovery post a slowdown.