Rupee at 90: Brace for a currency premium on your overseas trips

Price hikes are sharper in Europe, Maldives, other dollar-linked destinations; Southeast Asia is mostly insulated

- Shipra Singh

The rupee slipping past the 90 mark against the US dollar may seem like a headache only for those planning a trip to the United States. But the reality is far wider—and costlier. Across Europe, the Maldives, and even parts of Southeast Asia, overseas holidays are quietly becoming more expensive, as currency depreciation ripples through airfare, hotel rates, and on-ground expenses.

The rupee touched a record low of 90.7 against the dollar on Monday, down from around 86.5 six months ago and roughly 85 a year ago—a depreciation of nearly 6.25% in just 12 months. Yet, the effects are not uniform. While some destinations are witnessing sharper price hikes, others remain relatively insulated thanks to local currency pricing and strong domestic tourism demand, leaving travellers facing a mixed picture as they plan their holidays.

Packages cushion pain

Airfares and hotel tariffs in most countries are dollaror euro-linked, making currency movements a direct cost factor for Indian travellers. The effect varies sharply between those booking packaged holidays and do-it-yourself (DIY) travellers.

For holiday packages, the impact is cushioned as travel companies contract inventory 6-12 months in advance at fixed rates. “These are negotiated rates for bulk inventories, which cushions travellers from sudden currency swings,” said Karan Agarwal, director, Cox & Kings, a tour operator brand.

As a result, existing season-long packages are unlikely to be repriced overnight, though most new bookings will gradually reflect higher costs.