Rupee dip against US dollar adds baggage to overseas travel costs

As the rupee weakens past 90/$, outbound travellers may adjust itineraries or reduce spends, while inbound and domestic tourism gain as India becomes more cost-competitive.

India’s outbound travellers may shorten international holidays or reduce discretionary spending overseas as the rupee slipped below the psychologically critical 90-per-dollar level on Thursday before closing slightly below it. 

The rupee’s slide, however, makes India a comparatively cheaper destination for inbound foreign tourists. Travel firms expect package prices to rise by 5–10 per cent, depending on destination and inclusions. 

Abhishek Daga, cofounder of Thrillophilia, an artificial intelligence-powered travel and expe­riences platform, said long-haul demand for the US, Canada, and Europe may see slight moderation as trip costs climb. Travellers with bookings already in place may rework budgets by trimming shopping plans, limiting upgrades, or shortening stays in the near term, he said. 

Echoing this, Karan Agarwal, director at Cox & Kings, said the company has not seen a marked shift away from outbound travel yet. “Most travellers who had planned an overseas holiday are going ahead, but some are twe­aking itineraries — adjusting hotel categories or dropping an extra day,” he said. 

“We expect an increase of at least 5–10 per cent in airfare and another 12–15 per cent in accommodation costs for outbound travellers,” said Vivette D’Cruz, partner at Deloitte India. 

Existing international tourists visiting India may choose to stay longer, D’Cruz added. Domestic travel could also get a 4–5 per cent uplift. 

According to Thrillophilia, travel packages to the US, Canada, and Europe have already risen 8–12 per cent, depending on hotel grade and inclusions. For Australia and New Zealand, prices are up 6–9 per cent. With resorts priced in dollar terms, the Maldives and Mauritius may see a 5–8 per cent increase, while West Asia and Southeast Asia could see a smaller 2–5 per cent jump, making them relatively more affordable compared with long-haul destinations. 

“There’s a large segment of outbound travellers who are price sensitive, and this dollar move will impact them,” said Anil Kalsi, board member at the Federation of Associations in Indian Tourism & Hospitality. “However, the net increase is 2–3 per cent, and those already spending big usually don’t mind paying a little more. But if the dollar keeps climbing, many will reconsider foreign trips.” 

Destinations such as Vietnam, Thailand, Indonesia, Sri Lanka, Türkiye, Oman, Georgia, Azerbaijan, and Malaysia are expected to see only marginal cost increases due to lower US dollar exposure. 

Daga pointed out that these markets offer strong value, short-to-medium-haul access, and competitive pricing for Indian tourists. Meanwhile, domestic favourites such as Goa, Uttarakhand, Himachal Pradesh (workations and winter breaks), Rajasthan (festival and year-end tourism), Kerala (premium family travel), and Kashmir–Ladakh (snow and adventure) could grow more attractive as dollar-linked costs rise. 

Long-haul hurts most; Asia stays kind to wallets

• Long-haul, dollar-linked fares (US, Europe, Australia): 8–12% rise expected over next quarter
• Mid-haul (Türkiye, Dubai, Oman): 3–6% rise, buffered by competition and seat capacity
• Short-haul Asia (Thailand, Vietnam, Singapore): minimal impact (0–3%) due to limited dollar linkage

(Airfare movement depends on routing and airline capacity; figures reflect industry estimates) Source: Thrillophilia