India Changes Airline Booking Rules as Travel Costs Rise

India has introduced new aviation rules designed to make flying simpler and more transparent.

The Ministry of Civil Aviation said airlines must make 60 percent of seats available for free selection.

Airlines were also told to seat passengers booked under the same Passenger Name Record (PNR) together where possible and to publish clear policies for pets, sports equipment, and musical instruments.

The rule reflects a broader shift in India’s fast-growing aviation market

India’s domestic aviation market has been growing quickly, with passenger traffic reaching record levels in recent years. As more families, first-time fliers, and price-sensitive travelers use air transport, the government is putting more focus on fairness and transparency.

In 2021, airlines were allowed to unbundle services and charge separately for them. That helped carriers increase ancillary revenue, but it also made booking more confusing. The new directives suggest the government now wants a better balance between airline earnings and passenger convenience.

Corporate travel is becoming more expensive as routes change

Meanwhile, Indian travel company Pickyourtrail said some businesses are avoiding routes through the Gulf because of disruption linked to the war involving the US, Israel, and Iran. Instead, they are choosing longer alternatives through hubs, such as Singapore, Japan, Hong Kong, and Frankfurt.

That shift is pushing up prices, especially for refundable and flexible tickets. According to the company, some alternative routes are now costing nearly two times more.

The latest tourism push is focused on local communities

India’s newest tourism move is aimed at smaller destinations and local operators. On March 17, 2026, the India Tourism Development Corporation and the Ministry of Tribal Affairs launched a training program for tribal homestay owners. The goal is to improve hospitality standards, support local livelihoods, and encourage tourism in nature-based and less crowded areas.

Demand for travel in India is still rising, even as airlines face growing financial pressure. That wider backdrop helps explain why the government is stepping in now: as more people fly, regulators appear more willing to make sure basic services such as seat access and family seating remain fair and easier to navigate for passengers.

Photo by Parker Hilton on Unsplash