Tour operators offer packages with fixed rate of exchange

Promote destinations which have stable currencies vis-a-vis rupee

Scared to plan a holiday abroad amidst depreciating rupee? Fret not. Tour operators are trying to lure customers with customised packages that have been designed keeping the currency fluctuations in mind, with value additions that reduce impact of the depreciating rupee.

In their attempt to sweeten the deal, travel firms have come up with offers like fixed rate of exchange for dollar and rupee for limited periods, or are trying to promote destinations whose currencies have been more stable compared to the Indian rupee, like Australia and New Zealand.

For example, Kuoni-SOTC has come up with an offer to visit destinations like Malaysia, Singapore, Kuala Lumpur at fixed exchange rate of Rs 60 to a dollar. At present, the US dollar is hovering around 65 to a rupee. Earlier in March this year, the rupee was around 54 vis-a-vis the dollar.

Vishal Suri , chief executive officer, tour operating, Kuoni India claimed, "The rise in bookings has been considerable. With the launch of holiday packages where the traveller could still plan their vacation at discounts at a Fixed ROE we are very optimistic that our customers will continue to opt for holiday packages."

The fluctuations in the currency has pushed several tourists to cut short their holidays or opt for cheaper destinations. According to industry estimates, while 10-15 per cent are cancelling overseas holiday plans, others are in a wait and watch mode expecting the rupee to regain some lost ground vis-a-vis the dollar.

Thomas Cook (India) Ltd managing director, Madhavan Menon pointed out, "Swings in the rupee have seen an upside too, the Australian dollar being a case in point, having fallen from Rs 57.53 (April 11, 2013) to Rs 54.63 (August 7, 2013). At Thomas Cook India, the fall in the AUD, coupled with stability of the New Zealand Dollar, has been leveraged by our product teams via the launch of our Australia tour with New Zealand-Free."

He also added, "The South African rand has remained fairly stable and we have leveraged our buying clout to offer very attractive consumer benefits on our South Africa tours, including: Kenya free, complimentary upgrades to five star hotels and child travels free." The South African rand is around 6.5 vis-a-vis the Indian rupee at present.

The move has been "clearly impactful", Menon claimed. "We are already seeing strong forward booking position, upward of 22 per cent."

Cox & Kings, however, pointed out that customer preference does not solely depend on whether the countries have a stable currency. "For example, from July till date, the rupee has depreciated vis-a-vis the dollar by 7.8 per cent whereas the South African rand has depreciated vis-a-vis the US dollar by 3.7 per cent, so the difference is not significant that will enable the customer to change destinations. Some first timers will opt for this but by and large it all depends on the attractiveness of the destination and not depreciation of the rupee," said Sanjeev Chhajer, vice president, Cox & Kings Ltd.

Nonetheless, keeping in line with the trend, Cox & Kings too has come up with value-additions in its offerings now and is promoting destinations like Australia and New Zealand. For example, it is offering an eight night package in Australia which would give the customer five nights in New Zealand free.

"We have introduced value additions to the tours so that customers do not feel the pinch. Cox & Kings has its own strategy and the aim is to give the customer a product with value additions to cushion the depreciation in the rupee," Chhajer said.