Higher Travel Expenses for Summer 2025
Indian travellers planning international trips this summer are expected to face significantly higher costs compared to previous years. Reports indicate that outbound travel expenses for the April-June 2025 period have surged by 15-20%, making overseas vacations more expensive than before. The increase is driven by multiple factors, including the depreciation of the Indian rupee and rising hotel tariffs worldwide. Despite these challenges, travel demand remains strong, and many Indian tourists continue to plan international holidays.
Depreciation of the Indian Rupee and Its Impact
One of the primary reasons for the rising cost of international travel is the depreciation of the Indian rupee. Over the past few weeks, the rupee has declined to 87.2 against the US dollar, marking its sharpest fall in three weeks. As a result, the purchasing power of Indian travellers has weakened, making everything from flights and hotels to dining and shopping abroad more expensive.
A weaker rupee means that Indian tourists have to spend more for the same level of expenses they would have incurred last year. Exchange rates play a crucial role in determining travel budgets, and with the rupee struggling against major global currencies, Indian travellers are now feeling the financial strain.
Rising Hotel Tariffs Adding to Expenses
Another major factor contributing to increased travel costs is the rising price of hotel accommodations in key tourist destinations. With travel demand rebounding worldwide, hotel tariffs have increased substantially. Many popular tourist destinations, including those in Europe and Southeast Asia, are witnessing a surge in visitors, which has driven up the prices of hotel stays.
Industry experts suggest that the resurgence of outbound tourism from countries like China has contributed to higher occupancy rates, leading to costlier accommodations. As demand increases, hotels adjust their pricing accordingly, pushing the overall cost of travel packages higher.
Europe Among the Most Expensive Destinations for Indian Tourists
Travelling to Europe has become notably more expensive for Indian tourists in 2025. The combination of a weak rupee, higher airfares, and increased hotel rates has resulted in a steep rise in travel costs to European countries. While Europe remains a highly sought-after destination, the cost factor is now making travellers reconsider their itineraries and budgets.
Tour operators have noted that certain European cities, especially those that attract a high volume of summer tourists, have seen an even sharper rise in accommodation prices. The cost of dining and sightseeing in Europe has also risen, further adding to the financial burden of Indian tourists.
Southeast Asia Remains a More Affordable Alternative
While Europe has seen the highest cost increase, Southeast Asian destinations remain relatively more affordable. Countries such as Thailand, Malaysia, Indonesia, and Vietnam continue to attract Indian tourists due to their relatively lower travel costs.
However, even in these destinations, hotel and airfare prices have risen compared to last year. Although the percentage increase is lower than in Europe, budget-conscious travellers are still feeling the impact of inflationary pressures.
Changing Travel Preferences Among Indian Tourists
Despite the rising costs, demand for international travel remains strong among Indian tourists. Many travellers are adjusting their budgets or modifying their travel plans rather than cancelling their trips altogether.
A growing number of Indian travellers are shifting from domestic to international destinations. Several domestic tourist hotspots, including hill stations in India, have become overcrowded and expensive, leading many to consider international destinations instead.
Countries offering free e-visas or simplified visa procedures for Indian passport holders are also attracting increased interest. Some travellers are opting for destinations that provide promotional discounts or favourable currency exchange rates to minimise costs.
Insights from the Travel Industry
Industry experts believe that the current increase in travel costs is the steepest seen in recent years. According to Rajiv Mehra, President of the Indian Association of Tour Operators (IATO), the 15-20% price rise is the highest since the 2017-2019 period. He attributes this increase primarily to the depreciation of the Indian rupee, which has made international travel more expensive for Indian tourists.
Tour operators are adjusting their package prices to reflect these cost increases, but they report that demand for travel remains steady. Many travel agencies are advising customers to book early to lock in current prices before further increases take effect.
Future Outlook for International Travel from India
As global economic conditions remain uncertain, there is potential for further increases in travel costs in the coming months. Continued fluctuations in currency exchange rates, higher oil prices affecting airfares, and increasing demand for accommodations in peak travel seasons may further impact pricing.
Travellers who plan ahead, take advantage of discounts, and explore alternative destinations with lower costs may still be able to manage their expenses effectively. Travel industry experts recommend comparing multiple destinations, booking in advance, and keeping an eye on exchange rates to make the most of their budgets.
While international travel has become more expensive for Indian tourists, their enthusiasm for exploring global destinations remains unchanged. With careful planning and budgeting, many travellers are finding ways to adapt to the rising costs and continue their journeys abroad.
