78% Indians plan higher overseas spending but forex costs a worry: Report

Hidden charges and confusing exchange rates are major concerns for international travellers

A reduction in Tax Collected at Source (TCS) may encourage Indians to holiday abroad but managing travel funds is the biggest concern of international travellers, according to a new survey by Wise, a money transfer company.

 

The survey found that hidden foreign exchange charges, confusing conversion rates and uncertainty over the actual cost of spending abroad are causing more anxiety than many traditional travel hassles.

 

The findings come from Wise's Passport & Paisa: India Travel Money Report 2026, based on a survey of more than 1,050 Indian international travellers across age groups. The respondents were drawn from across North, South, East, West, Central and North-East India, offering a broad picture of how Indians are planning and managing overseas travel in 2026.

 

 

The report found that nearly 78 per cent of Indian travellers plan to increase their international travel spending after the Budget 2026 decision to reduce TCS on overseas travel to 2 per cent. However, concerns around travel budgets continue to outweigh worries about visa processing, flight disruptions and connectivity issues.

 

The forex blind spot in travel planning

Indian travellers are spending significant time comparing airfares, hotel prices and holiday packages, but many appear to pay less attention to the exchange rates and fees applied when they spend overseas.

 

According to the report, hidden exchange-rate mark-ups and non-transparent pricing are the biggest foreign exchange frustrations among travellers. Difficulty comparing exchange rates across providers is another major concern.

 

This matters because almost half of the respondents spend less than Rs 1 lakh per person on an international trip. For travellers operating within a fixed budget, even small mark-ups embedded in exchange rates can increase overall travel costs.

 

The survey found that “zero forex markup” was one of the few cost-related features valued consistently across generations, highlighting growing demand for greater transparency in overseas spending.

 

Why travel money costs matter

Foreign exchange costs are often less visible than airfare or hotel expenses. While travellers can easily compare ticket prices online, the final cost of converting rupees into foreign currency is often harder to assess.

 

Travellers may pay through a combination of currency exchange services, forex cards, debit cards, credit cards and ATM withdrawals. Each method can carry different charges, including mark-ups on exchange rates, foreign transaction fees or withdrawal charges.

 

As a result, travellers who focus only on headline exchange rates may underestimate the total cost of spending abroad.

 

Taneia Bhardwaj, South Asia expansion lead at Wise, said many travellers carefully compare flights and accommodation but often have little visibility into the exchange rates or mark-ups applied when they make payments overseas.

 

"A traveller can spend days comparing flights and hotels, but lose money quietly at the point of payment because the forex cost is hidden inside the rate," she said.

 

Reliability beats rewards

The survey also offers insight into how Indians choose travel payment products.

 

Global card acceptance emerged as the most important factor when selecting a forex or credit card for overseas travel. This ranked ahead of lounge access, reward programmes, eSIM benefits, low ATM fees and other lifestyle perks.

 

The finding suggests that travellers prioritise certainty over premium benefits. A card being declined abroad can create immediate inconvenience and financial stress, making reliability more valuable than rewards.

 

The report found that transparency, ease of access and confidence that a card will work internationally are becoming key considerations for travellers.

 

India remains cash-heavy overseas

Despite India’s rapid adoption of digital payments at home, cash continues to play a significant role in international travel.

 

Around 38 per cent of respondents said they exchange foreign currency before departure, making cash the most commonly used method for managing travel money abroad. International debit and credit cards follow, while digital multi-currency accounts account for only 9 per cent of usage.

 

The survey found notable generational differences. Gen Z travellers remain the most cash-dependent group, while Gen X travellers are more likely to use cards. More experienced international travellers also tend to rely on a mix of payment methods rather than a single option.

 

The findings highlight a contrast between domestic and overseas spending habits. Indian consumers have become accustomed to instant digital payments through UPI and other platforms at home, yet many continue to depend on cash and traditional forex products while travelling internationally.

 

Southeast Asia remains the preferred destination

The report found that Southeast Asia remains the most popular overseas destination for Indian travellers, attracting 34 per cent of respondents. Europe follows at 15 per cent and the Middle East at 14 per cent.

 

Travel preferences differ across generations. Gen Z travellers show stronger interest in destinations such as Japan and South Korea, while Gen X respondents are more inclined towards Europe, Australia and New Zealand. Millennials display the strongest preference for Middle Eastern destinations, reflecting employment opportunities and family ties in the region.

 

What travellers should keep in mind

The findings underline an important personal finance lesson for overseas travellers: managing foreign exchange costs can be as important as securing cheaper flights or hotel deals.

 

Before travelling abroad, consumers should compare exchange rates across providers, understand foreign transaction charges on their cards, check ATM withdrawal fees and assess whether forex mark-ups are built into quoted exchange rates.

 

As international travel gains momentum following the TCS reduction, transparency around travel money is likely to become a more important factor in holiday planning. The survey suggests that while Indians are increasingly confident about travelling abroad, many still have opportunities to manage their overseas spending more efficiently.