IndiGo flight cuts, mandated by Indian DGCA, disrupt December hotel bookings

December 12, 2025 at 06:52 PM•1 min read

IndiGo's government-mandated flight cuts are causing a 10-15% drop in December hotel bookings across India.

Key Points

1IndiGo faced a 10% government-mandated reduction in flight operations, leading to thousands of cancellations.
2Indian hotel chains anticipate a 10-15% drop in December forecasts due to widespread flight disruptions.
3Hotel room cancellations surged from a typical 2% to 10-15% during the peak of IndiGo's operational crisis.
4The operational turbulence of IndiGo, India's largest airline, significantly impacts the country's travel and hospitality sectors.

Indian hotel chains are bracing for a significant downturn in December forecasts, anticipating a 10-15 percent drop, following thousands of IndiGo flight cancellations over the past week. This widespread disruption stems from a 10 percent reduction in IndiGo's flight operations, mandated by the Indian Directorate General of Civil Aviation (DGCA).

The turbulence in India's aviation sector, directly linked to the IndiGo crisis, has triggered a wave of hotel room cancellations. This surge in cancellations comes at the onset of what is traditionally a peak month for the hospitality industry. Rahul Deb Banerjee, Chief Operating Officer at The Clarks Hotels and Resorts, confirmed that typical cancellation rates, usually around 2 percent, climbed sharply to approximately 10-15 percent during the height of the disruption.

As IndiGo operates as the largest airline in India, its operational challenges have a substantial negative impact across the country's travel and tourism ecosystem, directly affecting associated hospitality sector revenues during a crucial period.