A Rs 1.5 Lakh Eurotrip Now Costs More Than Rs 2 Lakh – Here’s How Singed Budget Travel Exchange Rates Came

Overseas travel continued with strong vigor after two years of restrictions caused by COVID. Global foreign tourism registered an 182 percent year-on-year increase during January to March, according to the recent UNWTO World Tourism Barometer.

The sector is still trying to emerge from pandemic losses but is facing further turmoil in the form of the Russia-Ukraine war, rising inflation, and the crazy exchange rate. However, this did not prevent the departure of the Indians, according to tspoke to our CNBC-TV18.com operators.

The depreciation of the Rupee

“As a result of rising fares and destination costs, along with the appreciation of the dollar, the costs of tour packages have risen by 10-20 per cent on average for international travel,” said Rajeev Kale, president and head of country of leisure travel and MICE segment in Thomas Cook India. MICE represents meetings, incentives, conferences and exhibitions.

Here is a list of some destination package costs before and after the pandemic as well as the current value of the rupee compared to the destination currencies.

Destination 2019 2022 Money INR
United States* 1,44,940 2,18,500 1 USD 79.55
Europe: Switzerland, France, Italy and Austria 1,60,900 2,44,900 1 Euro 79.76
Turkey 1,30,000 1,65,000 1 Turkish lira 4.58
Egypt 1,40,000 1,69,000 1 Egyptian Pound 4.21
Australia 2,54,000 3,54,000 1 Australian Dollar 53.48

(*US package rate is no fare. Source: SOTC and Thomas Cook)

Giving the example of a 9-10 day tour in Europe, Himanshu Patil, director of Kesari Tours said: “Before the pandemic, it cost approximately Rs 1.5 lakh, including fares. Now, a customer will cost approximately Rs 2 lakh for the same package. ”

Manish Jeloka, co-head of products and solutions, Sanctum Wealth, said the Indian rupee was “a victim of fears of a global recession” with the rapidly rising environmental rate. Sticky crude prices despite worsening macros are also not helping, he said.

Jeloka said the rupee continues to be under pressure vis-à-vis other developed market currencies including the Euro, Pound, Yen, and Australian Dollar, “but should be better than many emerging currencies. money in the market due to the natural strength of the economy ”.

Time is money

Aside from more expensive hotels and fares, the weakening rupee is also causing travelers to spend on visas. “While most visa fees remain similar to pre-pandemic levels, the total cost in INR has increased,” said Daniel D’Souza, president and head of national holidays at SOTC Travel.

There has also been an overall increase in the cost of including a mandatory courier charge for each visa application, Kale said. “The need for applicants to be personally present for Switzerland and France visas also increases travel costs, especially for customers outside the station,” he said.

With the ongoing COVID-19 pandemic, each country is constantly changing visitor regulations and testing requirements. “These costs are borne by travelers, either in terms of money or time, which effectively means money,” said Puru Chattre, a frequent traveler based out of Australia.

Air tickets are getting expensive

ATF, or jet fuel prices, hit a record high after rising 16.3 percent on June 16. The cost of aviation fuel has risen 91 percent over the past six months and nearly doubled in 2022.

To make up for the airlines ’losses during the pandemic and with the ATF price increase, the cost of air travel also increased.

D’Souza said that with strong pent-up demand, supply-side constraints and rising jet fuel prices, SOTC has seen an increase in fares. “But we expect it to be stable in increasing the capacity of airlines and routes even in a phased manner,” he said.

But this did not prevent the Indians from flying

Indiver Rastogi, president and head of the global business travel group at Thomas Cook (India) and SOTC, said despite capacity constraints and ATF pricing increases resulting in a 25-30 per cent increase in fares, the Travel sentiment is at an all -time high.

“We have witnessed a strong continuum in demand from our corporate and leisure segments,” he said, adding that there has been unprecedented demand for leisure travel and “airfares from Mumbai/Delhi/Bengaluru among holiday favorites. such as Europe (Switzerland, France, Italy and Austria) saw a 30-40 percent increase ”.

Kale also said that despite the hurdles of rising total costs by approximately 10-20 percent for international travel, there has been an increase in travel as a result of confined demand. “Our customers are willing to increase travel costs by 20 percent as they make their long -awaited vacation,” he said.

Destinations visited by Indians

According to D’Souza, short-haul favorites are seeing growing demand. “Holiday costs have increased by 15-20 per cent for Singapore, Indonesia, Maldives, Mauritius and 10-15 per cent for Dubai, Abu-Dhabi – Yas Island, Malaysia, Thailand, and Vietnam,” he said.

Vacation costs also rose by about 10 per cent for mid-haul destinations like Turkey and Egypt and more than 25 per cent for long-haul destinations like Europe, USA and Australia, according to D’Souza.

Kale said Thomas Cook has witnessed an unprecedented demand for destinations like Europe in the summer, which is primarily dominated by the family segment. “We continue to witness a significant continuum with healthy needs of 30-40 percent of our pre-pandemic levels driven not only by families, but increasingly from young professionals, millennials, and couples as well. also from our corporate MICE groups, ”he said.

Boost from festivals, events, and new airline routes

Kale said that with the continuous reopening of destinations like Australia and New Zealand, and closer to Bhutan, they are seeing a great pipeline for the Dussehra-Puja-Diwali holidays.

“Increasing wind capacity and the introduction of new routes such as Bengaluru-Sydney also serves to boost business,” Kale said.

In addition, sports events such as the World Cup in Qatar, F1 in Singapore, and Australia’s T20 bonanza later this year are already seeing intense interest from the leisure and corporate MICE company segments.