Customers are reducing the duration and spend on long-haul holidays to manage overall budgets more efficiently
| Photo Credit:
IMRAN NISSAR
Indian travellers are choosing short-haul international destinations and budget options as rupee weakness makes overseas travel costlier.
According to Bharatt Malik, Senior Vice-President (flights and hotels), Yatra Online Ltd, overall tour prices are 8-12 per cent higher compared to last Christmas and 10-15 per cent higher compared to this summer.
Airfares and hotels rates are higher year-on-year due to a combination of factors such as strong demand, inflation across global travel services and limited availability in favourite destinations.
Rupee impact
Depreciating rupee has also pushed up holiday costs. Indian rupee which is among the worst Asian currency breached 90 to the US dollar level in early December.
“Demand has remained intact despite higher costs. However, we are seeing customer preference towards budget or less expensive options. Destinations like Dubai and Vietnam are seeing strong traction. Among domestic destinations Rajasthan and North-East States are witnessing good demand,” said Bhavesh Oza, co-founder My Travel Bazaar.
Customers are also reducing the duration and spend on long-haul holidays to manage overall budgets more efficiently, Malik said.
“On routes such as Thailand and Vietnam increased capacity, particularly additional seats from IndiGo, VietJet, SpiceJet, AirAsia and Thai carriers have helped keep fares largely stable year-on-year. In contrast, long-haul routes and Dubai continue to see higher fares, especially around Christmas and New Year, due to sustained demand and tighter capacity,” he added.
A tour cost comprises airfare and on-ground costs. While airfare and visa fees are paid in rupees, the on-ground costs (hotel accommodation, sightseeing, meals etc) are linked to US dollars or euros. Thus, increased demand and rupee weakness also impacts prices.
According to Union Tourism Ministry data, 30.89 million Indian nationals travelled overseas in 2024, a growth of 10.79 per cent over 2023. Around 42 per cent of them travelled for leisure and holidays. The remainder comprised students, businesspersons and Indian diaspora members.
Preferred destinations
Vietnam, Georgia and Azerbaijan saw the highest growth in Indian arrivals in 2024 due to increased connectivity and easy visa norms. Other destinations that reported high growth of leisure tourists from India included Kazakhstan, Uzbekistan and Indonesia.
In absolute terms UAE, Saudi Arabia, the US, Thailand and Singapore continue to see the most number of Indian travellers. UAE holds the number one rank with 25 per cent of all travellers in 2024.
Published on December 14, 2025
