Outbound travel costlier but biz is brisk

Kolkata/Mumbai: The Indian traveller headed overseas is seemingly little deterred by the rising cost of travel owing to the depreciating rupee.
There has been a 15-20 per cent price increase in outbound travel packages, Mr Madhavan Menon, Managing Director of Thomas Cook India, told Business Line. But for the frequent outbound traveller this price increase is “minor”, say travel industry experts. The currency fluctuation has had a selective effect on customers, said Mr Subhash Motwani, director of Mumbai-based travel agency Compact Travels: “The increase in package prices has not impacted the outbound travel to dollar-dominated countries such as the US, places in the Far East and Egypt, as the variation (rupee against dollar) has only been of about Rs 4-5. However, travel to euro-dominated countries has seen a marginal impact of 10 per cent as the appreciation of that currency against the rupee has been much more.”
Another reason is that international airlines have not hiked fares, creating the perception that overseas travel is still within reach. “While airfares in the domestic market went up as ATF prices rose, international airlines did not hike fares,” said Mr Motwani.
16/08/08 Shobha Kannan/Shubhra Tandon/Business Line

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Categories: Foreign Aug 2008, Indian Aviation- In General Aug 2008