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Revenge travel : That was one of the dominant trends globally post the covid pandemic. While that trend continues to play out, foreign holidays are all the rage among Indians now. And it reflects in the data put out recently by the Reserve Bank of India: International travel was the top reason why Indians spent money abroad in fiscal 2022. To be sure, this includes business travel as well but there is empirical data, and ubiquitous Instagram photos posted by people from exotic locations, that clearly point to the trend that more Indians are holidaying abroad than ever.
Revenge travel : That was one of the dominant trends globally post the covid pandemic. While that trend continues to play out, foreign holidays are all the rage among Indians now. And it reflects in the data put out recently by the Reserve Bank of India: International travel was the top reason why Indians spent money abroad in fiscal 2022. To be sure, this includes business travel as well but there is empirical data, and ubiquitous Instagram photos posted by people from exotic locations, that clearly point to the trend that more Indians are holidaying abroad than ever.
But, here is the dampener for those wanting to quench their wanderlust this year. Prices are soaring in tandem with the increase in travel demand. The costs of travelling to popular international destinations, such as Europe and USA, have skyrocketed. For instance, in the last one year, airfare for a round-trip from Mumbai to Paris has increased by around 50% and now hovers around ₹80,000 per person. This fare is for a passenger travelling by economy class in a direct flight on this route and allows at least one checked-in baggage.
But, here is the dampener for those wanting to quench their wanderlust this year. Prices are soaring in tandem with the increase in travel demand. The costs of travelling to popular international destinations, such as Europe and USA, have skyrocketed. For instance, in the last one year, airfare for a round-trip from Mumbai to Paris has increased by around 50% and now hovers around ₹80,000 per person. This fare is for a passenger travelling by economy class in a direct flight on this route and allows at least one checked-in baggage.
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Ajay Awtaney, founder, LiveFromALounge.com (LFAL), an Indian aviation and travel-focussed website, said airfares to Europe have surged an average 70% in the last two years. “There is limited capacity (in terms of airline fleets) and massive demand from people wanting to fly. So, the airlines are pricing tickets higher but these are still selling like hot cakes,” he said.
“Middle East routes—from New Delhi to Dubai or Bangalore to Dubai— have also seen a 40-50% increase in airfares compared to last year. A round trip fare from New-Delhi to Dubai was approximately ₹24,000 last year . It is about ₹35,000-40,000 this year,” said Aloke Bajpai, co-founder and group CEO, ixigo.
Same is the trend with hotel prices. “Hotel tariffs in Paris have seen around a 20% year-on-year surge from pre-covid times. Prices in hostels for single beds in shared dormitories have more than doubled,” said Jimeet, founder of travel blog outofofficedaku.
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A back-of-the-envelope calculation shows that a couple planning to visit Europe in June will need to shell out around ₹2.8-3.5 lakh for a 8-day trip that includes refundable flight tickets and visa fees). Don’t forget that, beginning July, foreign tour packages and all international transactions done through forex and debit cards (there is no clarity from the government yet on the use of credit cards) will attract a 20% TCS (tax collected at source), which will notably push up your upfront costs.
But, higher expenses are no reason to shelve your international trips. Instead, you can opt for a change in destination—one that enriches your tourist experience and where the airfares and accommodation costs are lower . Also, spending smartly on food and local commute can cut down your overall costs. Mint gives you some travel hacks to let you enjoy a nice international holiday this summer.
Think closer
Southeast Asian (SEA) countries are the perfect alternative to Europe and the US for Indians currently. These are located closer, have easier Visa guidelines for Indians, and airfare and accommodation costs are almost half compared to some of the popular European destinations (see graphic). Also, the rise in hotel tariffs and airfares in these countries have been marginal this year as travel restrictions in place for Chinese residents, who have so far fuelled tourism demand here, have not been completely lifted.
Travel agents and online booking portals pointed out the reasonable airfares to countries like Thailand, Vietnam, Singapore, Maldives and other SEA countries, making them a preferred choice for Indians for the upcoming season. “We have seen a significant rise in booking for South East Asian countries for this summer. Airfares are currently higher compared to pre-covid levels, with domestic fares rising 25-30% and international fares on some European routes going as high as 60-70%. So, destinations like Cambodia, Thailand and Vietnam are an attractive option for Indian travellers who are seeking affordable yet exotic vacations,” said Bajpai.
Jimeet attributed the surge in hotel prices in Europe to the Euro strengthening against the dollar. “Local hotel owners have increased prices to earn more from US travellers, but this has translated into higher tariffs for Indian citizens because the rupee has weakened against the dollar,” he said.
Visa costs and restrictions
Given the waiting period and restrictions imposed on visas by most western countries currently, this is one parameter travellers should not ignore while planning their holiday. The waiting period to get an appointment for a Schengen visa is two to three months. For the US, it’s much higher, at six to nine months. Also, both these visas are not guaranteed.
“Rejections have come down this year, but there’s still a risk. This prompts families to think that if their visa is to get rejected, they will lose ₹40,000-50,000 in visa fees alone. And, if they have booked a non-refundable air ticket, the entire airfare is lost as well,” said Jimeet.
Bigger groups should look at countries offering cheaper visas and having fewer entry restrictions. For instance, Japan’s visa fee is almost negligible at ₹500 and Hong Kong allows a free-of-cost pre-arrival registration for less than 14 days, which means that the budget to spend on flight and accommodation will open up for you in these destinations. Similarly, visa fees in Vietnam, Cambodia and Bali are under ₹3,000, which makes it easier on the pocket.
News reports suggest that Egypt will soon allow visa on arrival for Indians at a cost of ₹2,060, down from the current fee of ₹8,473.
Alternatives to hotels and cabs
Holiday apartments and BnBs (bed and breakfast) are a cheaper alternative to hotels. A well-equipped kitchen in apartments also gives you the option to cook your meals if you may want to save on costs occasionally. Of course, holidays are to relax but when you are travelling for longer periods of two to three weeks, cooking at least one meal in a BnB can save about 50-70% per meal.
Holiday apartments make more financial sense for bigger groups than for single travellers or even couples because these are usually let out as a single unit. For instance, an apartment with two bedrooms for five people in Bangkok is priced at roughly ₹8,200 per night, which makes it a good deal for a big group with costs coming to ₹1,640 per head. However, a couple will be better off staying in a hotel.
You can also save on local commute in countries such as Japan and Thailand that have reliable public transport networks and so you don’t have to hire taxis for inter-city travel. However, the same can’t be said for Bali though it offers the cheapest Bnb options among its SEA peers. Here, you can save on accommodation costs to make room for a comfortable taxi ride. In Dubai, renting a car for self-driving is better as fuel is cheap there. Make sure that you do your research on the fastest and cheapest way to travel instead of blindly relying on travel agents and hotels for taxis.
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