By Pavan Kavad, Managing Director, Prithvi Exchange
A weaker rupee, coupled with elevated airfares and geopolitical disruptions, is not slowing travel demand, but it is fundamentally changing how Indians are budgeting, planning, and spending overseas.
Over the past few months, the rupee’s relative weakness against major currencies like the US dollar, British pound, and euro has significantly increased the cost of international travel. Every component, from air tickets and accommodation to local expenses and forex purchases, has become more expensive in rupee terms. At the same time, global factors such as airspace restrictions and fuel price volatility have pushed airfares sharply higher, especially on long-haul routes to the US, UK, and Europe.
Higher budgets becoming the new normal
Indian travellers are responding by stretching their budgets rather than cutting back entirely. Travel, especially among students and young professionals, remains a priority—whether for education, work, or leisure. However, the average spend per traveller has increased noticeably. What earlier required a budget of ₹2 to 3 lakh for an international trip is now inching closer to ₹3 to 5 lakh, particularly for long-haul destinations.
For students heading abroad, this shift is even more pronounced. Higher ticket costs combined with a weaker rupee are increasing upfront expenses, leading to larger forex requirements. Many are now converting higher amounts in advance to hedge against further currency depreciation, resulting in bigger and earlier remittance transactions.
A shift toward smarter, flexible travel
While demand remains resilient, behaviour is becoming more strategic. Travellers are booking earlier to lock in better prices and exchange rates, often 6 to 10 weeks in advance compared to the earlier 3-to-5-week window. Flexibility has also become key, many are choosing alternate routes, longer layovers, or less conventional transit hubs to manage costs.
There is also a noticeable shift in destination preferences. Short-haul and relatively affordable destinations in Asia are gaining traction, while long-haul travel to the US and Europe is becoming more selective and need-based. Among students in particular, discretionary travel, such as short visits home, is being reconsidered, with many opting to stay back or travel within their host regions instead.
Forex trends reflect changing travel patterns
From a forex perspective, these shifts are clearly visible. There is an increase in the average ticket size of transactions, as travellers account for higher travel and living costs. At the same time, transactions are happening earlier, with customers looking to secure favourable exchange rates amid volatility.
Interestingly, while the number of transactions linked to short-haul or regional travel is increasing, long-haul travel-related remittances are becoming more planned and consolidated. This reflects a broader trend, Indians are not travelling less, but they are spending more thoughtfully.
The road ahead
Looking ahead, outbound travel from India is expected to remain strong, but with a more value-conscious approach. Even if currency pressures ease slightly, elevated airfare levels and global uncertainties may continue to influence travel decisions in the near term.
In 2026, the story is not about declining travel demand, it’s about evolving behaviour. Indian travellers are adapting quickly, balancing aspiration with affordability, and in the process, redefining how and where they spend abroad.
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