Srinagar hotel prices crash 22%, airfares surge 46% after Pahalgam attack: Report 

Hotel rates in Srinagar have dropped 22% while outbound airfares have spiked by 46%, revealing the sharp disparities and ethical pitfalls of dynamic pricing in the wake of a crisis, according to a new report by Sciative Solutions. The findings come over a week after the terror attack in Pahalgam, in which 25 tourists and a ponywallah were killed, triggering a sharp decline in local tourism and a rush for outbound travel.

Sciative Solutions, a firm specialising in algorithmic pricing tools, released a report analysing price behavior in Srinagar's hospitality and aviation sectors. The data reflects how pricing algorithms — designed to respond swiftly to demand changes — can produce contrasting outcomes with serious human impact.

As per the report, room rates in Srinagar dropped by an average of 22% in the week following the attack, with some hotels slashing prices by as much as 46% in a bid to attract bookings amid plummeting occupancy.

Fares for flights leaving Srinagar surged 46%, with certain routes seeing unprecedented hikes. The Srinagar–Kolkata route witnessed a 213% increase, jumping from ₹7,666 to ₹24,000. Meanwhile, inbound fares to Srinagar dropped by up to 53%, reflecting a collapse in tourist arrivals.

Hotel occupancy fell 30%, while airlines profited from a surge in last-minute travel demand. The pricing divergence has created what Sciative called a "fragmented tourism environment," complicating travel for both locals and visitors.

“Dynamic pricing can be a powerful tool, but during times of crisis, the human element must be prioritized,” said Vijeta Soni, Co-founder & CEO of Sciative Solutions. “Our analysis shows how pricing algorithms, without ethical safeguards, can exacerbate vulnerabilities. Businesses must not allow profitability to overshadow the human impact of their pricing decisions.”

Dr Anshu Jalora, Founder & Managing Director of Sciative Solutions, noted, “The stark contrast between hotel and airline pricing during the crisis underscores the complexities of dynamic pricing systems. While technology enables efficiency and profitability, we must be mindful that these algorithms reflect the values we program into them.”

The report stressed the need for responsible AI frameworks that incorporate ethics into real-time decision-making, especially during emergencies.