Surge in airfares with dip in value of Rupee
Posted on: 26/Aug/2015 11:11:43 AM
As rupee value is falling down, the rates of international airfares is increasing. This is a time when more number of Indian students fly abroad for taking up studies in overseas universities. This has naturally increased demand for air travel. According to travel professionals, increased airfare and weakened value of rupee have impact on outbound tourism in the following months. This is likely to modify the holiday habits of Indian globetrotters belonging to the middle class.
During last month, the fare for India to UK and Europe was Rs 51,000. This has surged to Rs 68,000. And the return fare from India to New York and Chicago or Washington was Rs 73,000 and Rs 84,000 in July but this has increased to Rs 96,000 and Rs 91,000. Benson Samuel of Riya Travels says this increase in fare is due to the onset of student travel season. From Rs 32,000, the return fare to Mauritius is increased to Rs 40,000.
There are two components of airfares says Anil Kallsi of Delhi based World Travels. They are base fare and taxes or surcharge. The latter depend on the value of currency. As they have surged, there is an increase in airfare by Rs 3,000 to Rs 4,000.
None of the airline has commented on this increase in fare. The Singapore Airline has increased the fuel surcharge by Rs 300 in the charges of return ticket.
If the value of dollar keeps getting dearer, traveling to West will be affected, says Sharat Dhall, the President of Yatra, travel portal. This has brought a mental block among all tourists as they will have to burn more from their pockets for everything. As the currency marketing is emerging to be a hit, it will be wiser to choose traveling to places like Thailand as those will be comparatively economical, he added.
There will be an increase in cost of packages by half of the fall of Rupee value. Hence, if there is a 5 percent fall in rupee, there will be 2.5 percent increase in fares of packages.
The marketing head of Expedia India, Manmeet says not most Indians will cancel their ticket despite fall in value of rupee value. Instead, they choose to manage within their holiday budget by altering other aspects.
