Foreign travel gets more costly as rupee depreciates

Many travellers are looking at shortening their stay by a night or two or are rethinking their hotel options

Travel News
Travel News

The rupee's free fall has pushed up the cost of tour packages by 5% to 10% from last month's rates. While for most, the dearer holiday packages may mean little, cumulative expenses are likely to pinch. Travel firms say depreciation of the rupee will impact shopping, sightseeing, eat-outs and accommodation. 

Many travellers say they are trying to offset the increased costs by opting for cheaper accommodation. Most travel firms charge an additional 50 paisa to Re 1 on the currency value as a hedge against any possible fluctuation in the value of rupee which stood at 58.15 against a dollar on Monday. 

"They will have to pay about 10% extra on the package , which can be a dampener for those on a tight budget. If a person is spending about 1,000 dollars on a package, paying 100 dollars more will matter to him. Many travellers are looking at shortening their stay by a night or two or are rethinking their hotel options. Hotels, especially those in Europe, are very expensive, which affects the overall cost of the trip," says Vijay Thakur of the Indian Association of Tour Operators. 

Firms are trying to attract customers through unique offers . Cleartrip, for instance, has introduced EMIs. "The EMI option is meant for people who want to spread out the impact of rupee depreciation ," says Noel Swain, executive vice-president , supplier relations, Cleartrip. 

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