Mumbai: The rupee's depreciation is costing Indian travellers a pretty penny. Not only are air fares costlier, but also overhead travel costs, including hotel tariffs, and sight-seeing and shopping expenses have also increased.
A 14-day budget holiday to the US for one person would have cost around Rs 1.25 lakh in January 2012. With the
rupee dropping from Rs 45 against the dollar in 2011-end to Rs 60 now, the same package costs Rs 1.8 lakh. Other popular destinations like Canada, Singapore and Dubai have also become more expensive as their currencies have gained against the rupee. As a result, leisure travel to the West and Southeast Asia will suffer considerably, say experts and travel agents.
The rupee's tumble started in 2011-end. "That was the first blow, making many alter travel plans. Costs spiralled above budgets," said a Fortbased travel agent. "With the rupee's latest fall around two weeks ago, bookings for American holidays for the next three or four months are at least 30% less than usual."
Against the Canadian dollar, the rupee has fallen from Rs 51 last year to Rs 57—a 12% fall. Travel costs have risen accordingly. The Singapore dollar cost Rs 38 in 2011; today it is Rs 45—an 18% rise in two years. The value of the Australian dollar has risen by 22% in two years—from Rs 45 in mid-2011 to Rs 55 today. Against the euro and the pound, the rupee has fallen 22-25% over two years. "Air tickets to London are 20% more expensive now," said a travel agent. The overall cost of a holiday in Britain is about 30% more today, which is comparable to the increase in the cost of an American holiday.
20% fall in forex travel card biz seen
When the Indian rupee weakens, the forex travel card market shivers. A forex card is a prepaid card on which foreign currency is loaded and can be only used while travelling overseas. "The retail business would see a dip of 20% if the rupee continues to fall," a top player said. Already, forex card sellers, largely banks, are seeing the impact on the amount of currency loaded. The forex travel card market, estimated at $1.9 billion in India, has grown at 15-18% in the last two years, primarily driven by the retail segment comprising leisure, medical and student travellers. P 15 Travel spots in West out of bounds
Mumbai:Had the rupee not lost so much ground against the pound, recent tourism promotions by Britain would have attracted better response.
"A holiday in continental Europe, too, is becoming out of bounds. Indian travellers need to increase their budgets by almost 40% to afford a European holiday," said an Andheri-based tour operator. "Greece has become quite popularamong Indians because of a short travel duration, but the rupee's depreciation will affect travel to that country."
A five-day trip to Singapore in 2011 used to cost about Rs 50,000 for one person. "Today it would be Rs 75,000," said Rajesh Rateria of Cirrus Travels. "The budget traveller has shifted to cheaper holiday options or shortened trip durations. Since US packages aren't shorter than 10 days, those who had planned a holiday there have changed plans and opted for destinations within India."
Relatively, Dubai used to be much cheaper than western destinations, but it too is more expensive for Indians than two years ago, said Pradip Lulla of Cupid Travels. The reason is the dirham has gained 36% against the rupee in the last two years.
"Only travel related to business and education will stay steady. Indians will continue to travel, but budget travellers will look for alternatives," said Lulla.  |
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