Outbound: ` freefall hits travel

As the rupee hits new lows, travel agents and tour operators have geared up to face the challenge and are devising innovative ways to tackle the situation.

The rupee’s freefall against the dollar is the latest blow to the stuttering growth story of India. As of now, $1 was a little above

` 59. There has been a slide of over six per cent in the value of Indian currency over the past six months and this affects the outbound tourism industry in India as well. According to experts, foreign tour cost has risen by 11 per cent. The depreciation of rupee is burning a bigger hole in the pockets of Indians travelling abroad who are thus, now rethinking their plans. Typically, half of for- eign tour costs are paid in foreign currency. While tickets and visa charges are paid in rupees, the hotel costs and ground transport cost at destinations are paid in foreign currency. Except for Europe, Australia, New Zealand and South Africa, travel agencies get quotations from local hotels and service providers in US dollars. As a result, a fluctuation in the dollar price can obviously impact tour costs. Travel agents and tour operators have geared up to face the challenge and are devising innovative ways to tackle the problem.