Following the recent attack in Jammu & Kashmir's Pahalgam that claimed the lives of at least 26 tourists, India’s travel and tourism sector is grappling with widespread operational disruptions. Panic-induced mass departures have brought key tourism hubs like Srinagar and Jammu to a standstill, with aviation, railways and hospitality services thrown into chaos. Soaring airfares, severe train and bus congestion, and large-scale booking cancellations have severely affected the region—just months into the Government of India’s high-stakes “Visit India Year 2025” campaign.
The government has issued an official directive urging all tourist service providers to waive cancellation fees and extend all possible assistance to affected travellers. In an official release dated April 23, 2025, the Ministry of Tourism has urged all travel service providers to waive cancellation fees and assist affected tourists.
"All travel agents, OTAs, hoteliers, and transport providers are requested to fully support tourists, including waiving cancellation charges," said the release.
Due to increased demand, major airlines reported a surge in one-way airfares from Srinagar to metro cities, ranging from Rs 7,000 to Rs 15,000. Indian Railways saw full bookings on trains like Shalimar Express and Jammu Tawi–New Delhi Rajdhani, with a 24 per cent rise in cancellations. Private buses on the Jammu-Srinagar-Delhi route also faced capacity issues and surged fares.
While hotels such as Lemon Tree, Radisson, and local properties in Pahalgam and Srinagar reported up to 40 per cent of cancellations on the hospitality front, online platforms like MakeMyTrip, Goibibo, and Airbnb are updating their refund and cancellation policies in response.
Travel associations like FAITH, IATO, and TAFI are coordinating with members to manage the crisis, while the Ministry of Civil Aviation and Indian Railways are monitoring fare fluctuations and passenger flows to stabilize the situation.
Data from flight aggregators shows an exponential increase in fares from Srinagar to major metros post-attack, driven by emergency departures:
Airline Pre-Attack Avg. Fare Post-Attack Fare Range
Airlines, including IndiGo and Air India, have announced additional flights and fare waivers, especially on the Srinagar–Delhi and Srinagar–Mumbai routes. However, in many cases, dynamic pricing and third-party platforms are reflecting inflated last-minute fares.
The Civil Aviation Ministry is reportedly in talks with carriers to impose temporary fare caps and prioritize return logistics for stranded tourists.
Indian Railways has seen near-100% booking rates for Jammu and Srinagar departures. The Vande Bharat Sleeper Express (newly launched on the Srinagar–Delhi route) has experienced the most pressure.
Class Normal Fare Current Fare
Further, the Jammu Tawi to Delhi leg—used as a transit escape route—is also overbooked across all premium classes, with waitlists exceeding RAC in most trains. The Railways is expected to announce special trains in coordination with the Ministry of Home Affairs.
Bus operators in the Kashmir-Jammu-Delhi corridor are running at maximum capacity. Private services listed on platforms such as RedBus show dynamic pricing models spiking dramatically.
Bus Type Old Avg. Fare Now
JKRTC (Jammu & Kashmir Road Transport Corporation) has deployed additional buses, yet availability remains scarce due to heightened demand from departing tourists, local evacuees, and tour groups cancelling mid-journey.
Kashmir’s tourism industry, contributing around 7–8 per cent of the region’s GDP, is grappling with significant short-term disruptions following the Pahalgam incident. In 2023, Jammu and Kashmir saw 20.68 million domestic tourist arrivals, a notable rise from 18.5 million in 2022. With April to June being a peak season, the attack has caused over 80 per cent of booking cancellations in popular destinations like Srinagar, Gulmarg and Pahalgam within just 24 hours.
This situation has pressured hotels, guesthouses and houseboat owners to comply with the Ministry of Tourism’s directive, which urges them to waive cancellation fees and provide assistance to affected tourists. However, the Kashmir Hotel & Restaurant Association (KHARA) has appealed to the Centre to set up a financial support mechanism for smaller operators struggling to follow the advisory.
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Industry experts estimate the incident could result in a ₹400–₹500 crore loss for Kashmir’s tourism-dependent economy in the short term. This includes mass cancellations, a negative global perception, and lost bookings. The incident's fallout may not be confined to Kashmir alone; it could also impact tourism in other regions, such as Northeast India. Safety concerns raised by travellers might deter tourists from visiting areas like Assam, which recorded over 4.5 million domestic arrivals in 2012–13. The Assam Tourism Development Corporation (ATDC) and the North East Tourism Development Council (NETDC) are enhancing digital campaigns to reassure travellers while monitoring the situation.
Kashmir receives 1.5–2 lakh tourists annually from Northeast India, particularly during peak vacation periods. Of these, Assam alone contributes 35,000–50,000 tourists. The ongoing crisis could disrupt this flow, affecting inter-regional tourism.
Reportedly, the “Tourism Disaster Response Fund” petitioned by Travel Operators for Kashmir aims to support SMEs in the sector. With the government's “Visit India Year 2025” campaign focusing on Kashmir as a key destination, stakeholders are urging the Centre to provide security reinforcements and incentives. If safety concerns persist and support mechanisms are delayed, India could face a 6–8 per cent decline in domestic tourism in Q2 FY25, severely affecting small operators and state tourism boards.
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