Advantage, Inbound

& Kings, “International exchange rates are governed by through an exceedingly complex mechanism that works on a nation’s balance of payment. The fluctuations are based on a basket of indices, but seeing the overall performance of Indian economy, the slide of the rupee was not unexpected.”

Suggesting a fresh ray of hope, Sen said, “Most hotels and service providers are quoting in INR and thus mitigating any exchange fluctuation risk. Nevertheless, with the rupee devaluating to the US dollar, the American market will get a natural impetus, due to the increased purchasing power of the dollar.” Here, Surinder Singh Sodhi, Senior Vice President & Head, Leisure Travel Inbound, Thomas Cook India is quick to add that the FTOs should pass on reasonable benefits to their Indian counterparts.

“The fall in rupee has made tour packages a lot more affordable. However, in some cases, foreign agents may increase their profit margins and hence only pass on limited benefits to the customer. The depreciation in the rupee also reflects in a hike in fuel prices,” said Sodhi. Goyal opines that the rupee should be such a level that helps both the segments. “It is really a surprise that the INR is being devalued so much, in spite of the fact that the government is taking all the measures to stop this fluctuation. Even so, the government is not able to control it. As I mentioned earlier, rupee value to remain around

` 45/$ with 5 per cent plus or minus, so that neither the inbound nor outbound tour operators are affected.”