Why flights are so expensive during Diwali and Holi

Every festive season, flight prices skyrocket—and no, it’s not greed, it’s demand economics in motion.

Airlines use something called dynamic pricing. Algorithms adjust fares in real time based on seat availability and how fast people are booking. When Diwali or Holi comes around, everyone wants to travel at once, but aircraft capacity is fixed. As seats fill up, ticket prices rise steeply until the last one sells.

This happens because demand during festivals is price inelastic—people travel regardless of cost to meet family or attend weddings. Airlines know this and price accordingly to maximize revenue per seat.

Add in high fuel prices, airport congestion fees, and limited routes to smaller cities, and festive airfare becomes a perfect storm of scarcity and necessity.

Economically, it’s efficient pricing. Emotionally, it feels like daylight robbery. But that’s how markets work—where demand spikes, so do prices.