Pay more for Diwali vacation

MUMBAI: If you have been planning a vacation abroad this Diwali, be prepared to shell out some extra money. The Indian rupee has been sliding precipitously against the US dollar, and its going to cost you some. A dollar now costs Rs 46.37 — Rs 4 more than in early August. In January 2008, the dollar was Rs 7 cheaper.

“The higher dollar rate is affecting outbound tourism,” says Shankar Srinivasan, vice-president, TJ Travels (formerly TravelJini). Agrees Vishal Suri, chief operating officer, Leisure-Outbound, Thomas Cook India: “The rates for all international packages have increased by 10-15% over the last two months because the value of the dollar has increased to that extent.”

This increase in package prices has led to cancellations. Vijay Mehta, vice-president of a financial securities firm, had been planning his family’s first international holiday in October. But plans to take his family to Thailand and Indonesia are off now. “Earlier the holiday package would have cost me Rs 31,000 per person. However, my travel agent called on Tuesday and said that I now have to pay Rs 10,000 extra per person. I had no option but to cancel the holiday,” says Mehta.  

“The rates for all international packages are quoted in US dollar as it is easier to understand. Moreover, hotels abroad quote the tariff in dollar terms,” says Suri of Thomas Cook.

“A three-night, four-day package to Singapore, which cost Rs 35,000-36,000 per person two months ago, would now cost Rs 42,000 per person. As the dollar is our base rate for tours to anywhere in the world, all rates would be affected to that extent,” says Srinivasan of TJ Travels.

Airfare and visa fees are paid in Indian rupees, and hence do not pinch much. But expenditure on hotels, sightseeing, and shopping happen in dollars, increasing costs by a minimum of 10%. Net result: “Our Diwali season bookings this year may not be as
robust as every year,” says Srinivasan.

Travel to destinations in south-east Asia is expected to be more affected than the United States and Europe. “Thailand, Malaysia and Singapore will be affected as a huge chunk of entry-level travellers go there,” says Lalit Seth, chairman and managing director, Raj Travels and Tours.

First-time or entry-level travellers constitute 35% of the total outbound travel in India. They include those who save to take budget trips to the Far East.

“Earlier a passenger could go to Bangkok, stay in a three-star hotel and come back for Rs 30,000. But now he has to spend more than Rs 50,000, says Nandita Bedi, director, Vibrant Tours and Travels. “The return air ticket to Bangkok costs Rs 28,000. And when Indian travellers go to Bangkok they like to go on cruise, shopping, etc. which brings the total package to Rs 1 lakh per person,” she says.

Tour operators who booked early and paid up have less reason to fret, for their dollar conversion rate has been locked in. “But tour operators who have booked and not paid for the bookings in entirety have to pay a higher rate,” says Suri.

All in all, an expensive Diwali for those looking to go abroad.