A sharp fall in the rupee is quietly reshaping the cost of foreign travel, forcing Indian tourists to rework budgets and rethink plans. With the currency hovering near record lows against the US dollar, even unchanged itineraries are now significantly more expensive in rupee terms.
The rupee has weakened to around ₹94–₹95 against the dollar, marking a depreciation of nearly 10 percent over the past year. The decline has been driven by elevated crude oil prices amid Middle East tensions, persistent foreign fund outflows and a strong dollar supported by high US interest rates.
This has a direct impact on overseas travel, where most expenses—from airfares to hotels and local spending—are linked to foreign currencies. As a result, the same trip now costs 12–20 percent more than it did a year ago, a Financial Express report shows.
A ₹2 lakh trip now costs about ₹2.2–₹2.4 lakh
A ₹3 lakh budget may rise to ₹3.3–₹3.5 lakh
A ₹5 lakh family vacation can increase by ₹60,000–₹90,000
A ₹6 lakh trip may now cost ₹7 lakh
A typical $3,000 trip that earlier cost around ₹2.4–₹2.5 lakh now requires nearly ₹2.8–₹2.9 lakh, implying an additional outgo of ₹40,000–₹70,000 without any upgrade in travel plans.
The increase is visible across all components of travel:
Airfares: up 7–18 percent due to fuel and leasing costs
Hotels and local expenses: up 15–20 percent
Visa fees, insurance and TCS: higher due to currency linkage
Even basic expenses have risen sharply. A $100 hotel room that earlier cost about ₹8,200–₹8,500 now comes closer to ₹9,500.
Long-haul destinations such as the US, the UK, Europe and the UAE have become significantly more expensive, with costs rising 15–20 percent. These regions are closely linked to the dollar or euro, amplifying the impact of rupee depreciation.
In contrast, destinations such as Thailand, Vietnam and Indonesia have seen relatively lower increases of around 9–12 percent, making them more attractive for cost-conscious travellers.
Rising costs are beginning to influence travel decisions:
15–20 percent of price-sensitive travellers are postponing or cancelling trips
Many are opting for shorter durations and tighter itineraries
Discretionary spending on shopping and premium experiences is being cut
Travellers are also becoming more cautious with payments, increasingly using prepaid forex cards and planning expenses in advance to avoid exchange rate shocks.
Beyond flights and hotels, several often-overlooked expenses are also rising:
Forex conversion mark-ups on card payments
Dynamic pricing in flights and accommodation
Higher daily spending on food, transport and activities
These incremental costs can significantly inflate the overall travel bill.
Despite the cost escalation, demand for international travel remains resilient. Instead of cancelling plans altogether, most travellers are adjusting budgets, modifying itineraries or choosing alternative destinations.
Book flights and hotels early to lock in prices
Stagger forex purchases to average exchange rates
Use prepaid forex cards to reduce mark-ups
Opt for all-inclusive packages to limit currency exposure
Choose destinations where the rupee has better value
Travel during off-season and remain flexible with dates
A weaker rupee has made overseas holidays costlier by up to ₹1 lakh in many cases. While the pressure on budgets is real, smarter planning and cost control can help travellers manage the impact without giving up on their travel plans.
