Lack of hotel rooms pushing up travel costs for Indian tourists

Overall travel costs are not easing just yet for Indian tourists as hotel rates remain firm due to limited supply, Mahesh Iyer, managing director and CEO of Thomas Cook India, told Mint.

- Varuni Khosla

Iyer said while international airfares are flat compared to last year, a stronger euro—up 5% versus the rupee over the past year—could dent European travel demand. However, relative stability in the US dollar vs the rupee (USD is up 1.9% versus INR over the past year) means Indians are holidaying in the US at levels similar to last year, he added.

The sharp rise in the euro is expected to hit international outbound tourism, especially this summer, as Europe is generally a larger part of the holiday portfolios of many travel companies, including Thomas Cook India. Europe contributes 41% of its international travel business in the peak of summer.