India’s outbound travel industry is staring at a difficult summer after Prime Minister Narendra Modi urged citizens to avoid unnecessary foreign trips as part of efforts to curb the country’s swelling import bill during the Gulf crisis.
Travel operators say the appeal could further weaken overseas holiday demand that had already slowed due to inflationary pressures and rising travel costs. Industry representatives estimate inquiries and bookings for international holidays this summer have fallen by 10-15 percent compared with last year.
The April-June period is traditionally the peak outbound travel season for Indian families, especially to destinations such as Europe, Australia and Southeast Asia, coinciding with school vacations and milder weather abroad. However, soaring crude oil prices following tensions in West Asia have sharply increased aviation fuel costs, leading airlines to raise fuel surcharges and ticket prices.
The situation worsened after Iran’s closure of the Strait of Hormuz disrupted a significant portion of global oil and liquefied natural gas supplies, pushing crude prices up. Along with appeals to reduce foreign travel, Modi also urged Indians to cut fuel consumption and postpone gold purchases for a year to help contain the country’s import bill.
The Prime Minister’s remarks triggered a sell-off in shares of listed travel companies and online booking platforms such as EaseMyTrip, Yatra Online and Ixigo, as investors feared weaker demand for overseas tourism in the near term.
Industry executives warn that the travel sector may now have to rely more heavily on domestic tourism, which typically generates lower profit margins for travel agents and tour operators. Domestic travel accounts for only a limited share of earnings for many companies that depend significantly on outbound holiday packages.
Tourism remains a major contributor to the Indian economy, with the sector valued at more than $230 billion and supporting around one in every 10 jobs. India’s outbound travel market has also expanded rapidly over the past decade, driven by rising incomes, easier visa access and the influence of social media travel trends.
Despite current concerns, analysts believe the impact may be temporary. They say demand for overseas holidays could recover if crude oil prices stabilise and airfares ease in the coming months.