Pahalgam terror attack: Hospitality sector braces for booking cancellations

Anticipating largescale travel booking cancellations for Jammu and Kashmir in the aftermath of the in Pahalgam, aggregators and tour operators on Wednesday said they are working with airlines and hotels to offer free date change and cancellation waivers to travellers.

Hospitality industry players expect the terror attack to sow fear in the minds of tourists who were keen to visit Jammu and Kashmir, adversely affecting the livelihoods of people in the state who are dependent on tourism.

At least 26 people — mostly tourists — were claiming allegiance to The Resistance Front — a shadow outfit of the Pakistan-backed banned terror group Lashkar-e-Taiba — on Tuesday at the Baisaran meadows a short distance from Pahalgam. The attack marks the first time in recent memory that tourists were specifically targeted, heightening safety concerns among travellers.

"As per the early observations, flight cancellations jumped seven times, and a drop in future bookings by nearly 40 per cent," said Manjari Singhal, chief growth and business officer, Cleartrip.

Earlier, it was reported that travel industry leaders in Kolkata, a key hub for travel to Jammu and Kashmir, claimed that the incident could undo years of recovery and growth that followed a long period of militancy in the valley.

"This will have significant ramifications," said Anil Punjabi, national committee member of the Travel Agents Federation of India. "More than 30 per cent of Kashmir's tourist inflow is from eastern India, especially West Bengal."

Other travel operators in Kolkata also expressed apprehensions about the inevitable fallout of the attack. Sudipto Mukherjee, director of Citi Safari which had organised a promotional campaign on behalf of J&K Tourism in the city soon after the Covid pandemic, told NH he received his first cancellation request this morning as the full extent of the attack became clear.

"I received the first call from a family who had booked a visit in the last week of May. They now want to visit Arunachal Pradesh instead, while there are a few queries for Himachal too," he said.

"This is madness," Bilolaksha Das, chairman of the eastern chapter of the Travel Agents Federation of India, told PTI. "There have been terror attacks in Kashmir before. But never were tourists identified and killed. The entire tourism industry and all its partners revolving around Kashmir, both in the valley and various parts of India, will go for a toss after this incident."

Das also told PTI that tour operators have been receiving calls nonstop from panicked clients looking to cancel or defer their plans.

As per official data, Jammu and Kashmir recorded a historic footfall of 2.35 crore tourists in 2024, up from 2.11 crore in 2023 and 1.88 crore in 2022. This included both domestic travellers and pilgrims heading for the Amarnath Yatra and Vaishno Devi shrine, as well as about 65,000 international tourists.

Various economic surveys had hailed this consistent growth in tourism as a critical sign of "normalcy" returning to Jammu and Kashmir. The sector had benefited from better infrastructure, improved connectivity, and strong government-led promotional efforts. But the Pahalgam attack may have jeopardised all of that.

"As travellers navigate this difficult situation, our teams are working round the clock with airline and hotel partners to provide flexibility and assistance on bookings/ cancellations. Our on-ground team is doing everything in their capacity to offer support to travellers. We remain committed to providing continued assistance to both our customers and partners during this difficult time," a MakeMyTrip spokesperson said.

EaseMyTrip chairman and founder Nishant Pitti said, "In light of the ongoing situation in Srinagar, we at EaseMyTrip are fully committed to supporting our customers who are travelling to or from Srinagar. We understand the uncertainty this situation may cause and are here to minimise any inconvenience to your travel plans. To ensure flexibility, we have extended free change and cancellation waivers for all bookings made on or before April 22, applicable for travel up to April 30".

FAITH (Federation of Associations in Indian Tourism & Hospitality) general-secretary Rajiv Mehra said for the people of Jammu & Kashmir, tourism is not just a livelihood, , their legacy and their hope.

"This attack has not only harmed innocent lives but has also dealt a cruel blow to the thousands of families who depend on tourism to survive. From houseboat owners and hoteliers to local guides and artisans, every individual in this chain of warmth and welcome is affected," he observed.

Indian Association of Tour Operators (IATO) also expressed its deep anguish and pain on selected targeting of tourists in Kashmir by a group of terrorists, saying it strongly condemns the cowardly terror attack "which is clearly designed to deeply impact tourism in Kashmir and create an atmosphere of fear".

"We are shocked and appalled at these attacks in our country. Since 2020, the J&K region has seen a steady upswing in tourism numbers going from 3 million in 2020 to close to 24 million in 2024. This 8x huge surge in tourists impacts and improves the lives of the long-tail of the tourism industry and leads to the prosperity of the locals. The Pahalgam attacks will sow fear in the tourists who want to visit this beautiful region and set it back in the near term," said Arjun Baljee, president, Royal Orchid Hotels.

With PTI inputs