With summer vacations a couple of months away, many are probably planning their holidays now. You look at the weather, options for sight-seeing and other leisure activities, shopping, ease of travel, etc.
You should also look at how the currencies of countries you are planning to visit have performed against the rupee.
Since January 1, the rupee has fallen by 3.1 per cent against the American dollar, by 6.6 per cent against the euro, by 4.7 per cent against the Singapore dollar, by 6.5 per cent against the Malaysian ringgit, by 3.4 per cent against the UAE dirham, by 0.6 per cent against the pound and by 0.5 per cent against the South African rand.
And has gained by 0.6 per cent against the Australian dollar and by 6.4 per cent against the Russian ruble.
With its weakening against major currencies like the US dollar and euro, will you have to increase your budget as air fares and hotel rates rise?
If you have already booked your package, what can you do to reduce expenses during the trip?
If you need to change your destination, will you have to incur additional costs?
Most holiday packages include air fares, accommodation and local transfers.
Usually, the bigger tour operators offer packages at the same rates that you booked, even if the rupee declines between the time you make the booking and the date of travel.
What will increase is the cost of food, sight-seeing, shopping or any extra activities you do on your own.
Neelu Singh, Director at Ezeego1.com, says: "Most people usually make foreign travel plans well in advance.
"A large number of Indian travellers looking to travel this summer have already booked their packages, which include air fare, hotels and sight-seeing.
"There might be a slight increase in shopping prices."
Karan Anand, head of relationships at Cox & Kings, says, "There is a certain minimum outlay of money for any foreign trip, especially for families.
"Trip prices to the US, for example, have not increased substantially this year, despite the rupee depreciating against the dollar."
This is partly because the price of an airline ticket has stabilised at lower levels than last year.
"Looking at it from that point of view, trips to destinations such as Europe, West Asia, Australia, Southeast Asia and Africa are less expensive as the rupee has been quite firm against their currencies year-on-year in addition to lower airfares," he adds.
Change in destination?
America and Europe continue to be favourites among Indian travellers, especially among those opting for high-end packages. Other favourites include Southeast Asia (Bali, Thailand, Singapore).
There has been an increase in enquiries for trips to Russia, Greece and Turkey this year, according Ranjeet Oak, chief business officer at MakeMyTrip.com.
Anand says he has seen demand for trips to China, Africa, Australia and New Zealand.
Amit Agarwal, senior marketing manager for India & Southeast Asia at Hotels.com, says, "Holidays are being cut short, short-haul destinations are being preferred and people are opting for non-dollar destinations such as Sri Lanka, Dubai, Bali and Phuket or sticking to domestic destinations such as Kashmir, Kerala and Goa.
The fluctuating rupee has shifted focus on destinations where currencies are largely stable and fit into the budget of tourists."
Book in advance, opt for group tours
People planning to take international trips should start booking in advance, as further falls in the rupee can increase air fare costs, impacting the overall travel budget.
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