India’s Intercity Bus Travel Hits Record 79 Per Cent Occupancy in 2025: Premium Routes, Longer Journeys Drive Growth

Published on December 26, 2025

By: Tuhin Sarkar

India’s intercity bus travel sector has witnessed a stunning recovery in 2025, with occupancy rates hitting 79%, reflecting a vibrant resurgence driven by rising demand for premium travel experiences. The latest study by Sciative Solutions, a leader in AI-powered pricing intelligence, highlights how longer routes, premium seating, and intelligent demand forecasting have significantly contributed to higher revenues and stronger occupancy. This surge comes at a time when domestic travellers are choosing comfort, reliability, and quality over cheap options, reshaping the future of India’s bus mobility landscape.

With the rise in demand for luxury travel, the sector has shifted from volume-based recovery to intelligence-led growth, and operators are leveraging AI pricing to optimise seat allocation and maximise profitability. From South India’s thriving business corridors to East India’s lucrative premium routes, the intercity bus travel sector is evolving rapidly. Here’s how India is leading the way in premium bus travel and what the future holds for this booming sector in 2026.

India’s Premium Bus Travel Boom: A Surge in Long-Distance Routes and Better Amenities

India’s intercity bus sector has matured, and 2025 has shown that premiumisation is the key driver of growth. According to the latest Sciative Travel Report, the occupancy per trip for intercity buses has stabilised at 79%, a robust indicator of sustained demand for higher-value travel experiences. With an average revenue per trip of INR 40,892, it is clear that Indian travellers are increasingly willing to pay for comfort, reliability, and luxury services. The rise in occupancy is not just about more people travelling, but about better value and quality experiences becoming a new norm.

Premium bus services have gained massive popularity across India’s interstate and intercity corridors, with longer routes like overnight services becoming especially attractive. Customers are now looking for more than just a seat on a bus; they’re opting for premium seats that offer more space, reclining options, and superior service. The sector’s shift towards luxury travel and experiential journeys reflects the growing demand for comfort and style, making bus travel not just a necessity but a sought-after experience.

Sciative Travel Report: AI Technology and Pricing Intelligence Fuel Growth

The pivotal role of AI-powered pricing intelligence in shaping India’s intercity bus sector cannot be overstated. Sciative Solutions’ Agentic AI-led pricing system has been instrumental in enabling bus operators to accurately forecast demand, set competitive prices, and optimise seat allocation. This level of precision has led to a higher average highest seat sold price, which in 2025 stood at INR 4,692. Operators have embraced data-driven insights to meet traveller expectations and maximise revenues.

With this technology, operators are able to better predict peak travel times, cater to demand fluctuations, and offer competitive prices without sacrificing profitability. As a result, long-distance, premium bus journeys are in high demand, especially along popular routes in regions like South India, West India, and East India, which have emerged as the highest-performing areas for revenue generation. AI-driven pricing is now an essential tool for the industry, with operators using it to stay ahead of market trends and to cater to a discerning customer base.

South and West India Lead the Way in Revenue Efficiency and Occupancy

The South and West regions of India have emerged as front-runners in the intercity bus travel boom, with occupancy rates in both regions surpassing 84%. South India has particularly shone in revenue efficiency, averaging INR 50,278 per trip. Business corridors and long-distance overnight routes have played a key role in boosting these figures. Cities like Bangalore, Chennai, and Hyderabad are central to this growth, with corporate travel contributing significantly to the demand for luxury buses.

In West India, a combination of weekday business travel and weekend leisure demand has resulted in balanced growth. Cities like Mumbai, Pune, and Goa have established themselves as crucial hubs for intercity bus routes, with strong demand for premium travel experiences. Whether it’s business executives seeking comfortable overnight travel or leisure travellers enjoying long-haul journeys, the premium bus travel market in South and West India is only going to expand further in the coming years.

East India’s Rising Star: High Revenues from Premium Routes

While East India had a comparatively lower occupancy rate of 72%, it stood out for having the highest average revenue per trip at INR 48,999. The demand for longer routes with limited supply, combined with premium seating, has made East India a key growth area for premium bus services. Routes such as Kolkata to Bhubaneswar and Bhubaneswar to Ranchi have seen substantial uptake in high-end bus travel, reflecting a shift in regional travel preferences towards luxury services.

Premium seat pricing in East India reached an astonishing INR 14,800, the highest in the nation, reflecting the growing willingness of travellers to pay for better service and comfort. The region’s strong uptake of premium seats is a clear sign that premiumisation is no longer confined to major metropolitan areas but is spreading across India’s regional corridors as well.

Tier-2 and Tier-3 Cities: The Hidden Gems of India’s Bus Travel Growth

The surge in Tier-2 and Tier-3 cities is one of the most exciting developments in India’s bus travel sector. As infrastructure improves and regional connectivity rises, these cities are fast becoming the new growth engines of the intercity bus travel market. Operators are beginning to focus on these emerging hubs, where there is growing demand for premium travel experiences. Places like Indore, Nagpur, Coimbatore, and Vadodara are all seeing higher occupancy rates for long-distance buses as business and leisure travellers look for more convenient and comfortable options.

In these regions, premium bus routes offer a competitive advantage, with luxurious amenities, exclusive seating options, and tailored services making these routes more attractive to both business travellers and vacationers. The expansion of luxury bus fleets and improved infrastructure in these cities is contributing to the increasing profitability of the sector, which is expected to grow even more in the years to come.

The Future of Intercity Travel in India: A Premium Shift to 2026 and Beyond

India’s intercity bus travel sector is entering a new phase of growth. The shift towards premiumisation, driven by AI-powered pricing, is redefining the intercity travel experience in India. As occupancy rates soar and revenue per trip increases, it’s clear that premium bus travel is here to stay. With regions like South India, West India, and East India leading the charge, and Tier-2 and Tier-3 cities emerging as important players, the industry is on track for sustained growth into 2026 and beyond.

India is now at the forefront of luxury and premium bus travel, with data-driven insights and intelligent demand forecasting paving the way for future success. As premium seating, longer routes, and luxury services become the norm, the Indian intercity bus sector is well on its way to becoming one of the most profitable and resilient segments of the travel industry. The focus on quality experiences and luxurious comfort will continue to attract discerning travellers, ensuring a bright future for the Indian bus travel market.