Indians will have to pay 15% more for their international trip this summer

Rising hotel prices and a depreciated rupee have made international vacations for Indians notably more expensive by 15%-20% this summer. While Europe and Southeast Asia are impacted the most, Indian travelers continue to seek exotic destinations, ...

By ET Online | Feb 27, 2025, 12.46 PM IST

The falling rupee and rising hotel prices have made international vacations more costly for Indians this summer. The year-on-year increase for the April-June period is between 15% and 20% compared to last year, with tour operators transferring the price hike to travelers.

The impact is more for the European destinations, followed by Southeast Asian countries. However, it has not discouraged travel plans of people, as more Indians are booking for exotic destinations.

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Indian Association of Tour Operators (IATO) president Rajiv Mehra told TOI, the current 15%-20% rise is the steepest since 2017-18 and 2018-19, where both the years had witnessed similar jump in the cost of international tour packages due to rupee depreciation. "The cost of tour packages has gone up because dollar is expensive. Moreover, unprecedented rush in hill stations in India are making domestic air travel and hotels expensive. So, people are looking at overseas destinations," he said. Announcements of free e-visas by several countries to attract Indian tourists has kindled their interest, he added.

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The rupee fell 51 paise to close at 87.2 per dollar on Tuesday, marking its sharpest decline in three weeks. It weakened to an all-time low of 87.95 against dollar on Feb 10.

Sriharan Balan, MD of Madura Travel Service said, standalone tour operators have been hit as dollar is becoming stronger. "Normally, advance bookings for Europe start in Dec every year and we commit a price on tour packages. When it becomes expensive, we have to pass it onto customers, which is challenging as they will not accept it. Moreover, the outbound tourism for Chinese has revived post-Covid and it is one of the reasons for the rising hotel tariffs globally," he added.

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Travel fintech SanKash is experiencing a 67% YoY rise in value of loans disbursed for April-June this year over the corresponding period of 2024.

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A multiple-entry Schengen visa allows access to 31 countries within the Schengen Zone, but its benefits extend beyond Europe. Several countries offer entry to Indian travellers with this visa. However, it's important to be aware of the fine print, as visa regulations can change unexpectedly—so always verify with the relevant embassy before you travel.