Indians head to Russia, New Zealand, Canada for holidays as currencies fall

(THE TIMES OF INDIA)Travel bookings from India to destinations in Europe, Russia, Canada and New Zealand have seen an uptick by 25-30 per cent this season, according to travel companies, as weakening currencies in these regions promise to give holiday-makers more for their money.

"A weak international economic climate has a lot of opportunities to offer to budget travellers. Indians who plan to visit countries whose currencies have devalued can enjoy more value for their money and spend more," said Neelu Singh, CEO of Ezeego1.com, a travel portal.

While the strengthening US dollar may be discouraging Indian travellers from hitting the country's shores, data compiled by ETIG shows that currencies such as the Russian ruble, Swedish krona, Australian dollar, Canadian dollar, New Zealand dollar, the Euro and Danish krone have depreciated by 10-50 per cent against the rupee over the last two years (since February 2014). This weakening against the rupee is allowing travel companies to offer lucrative packages and low rates, making Europe, Russia, Canada and New Zealand attractive for Indian budget travellers, who otherwise tend to kept away from these destinations.

For instance, Delmos Aviation, a Delhi-based company specialising in travel to Russia, has created a three-night package to Moscow starting from Rs 40,999. This includes return airfare, visa fee, 4-star accommodation, and sightseeing.

"Earlier only luxury clients and niche travellers were travelling to Russia because it was unaffordable. Now the idea is to increase the numbers by bringing the destination within reach of the mass travelers, and the ruble is helping us do this," said Charu Makin, director of Delmos Aviation, which operates tourism business under Visit Russia brand.

Outbound tour operators said prospective travellers can save 15-20 per cent of the total travel cost at the current exchange rates, depending on the destination.

"The Indian traveller has benefited from global currency depreciation vis-a-vis the rupee...This also has a multiplier effect on air fares, hotel tariffs, shopping and sightseeing," said Karan Anand, head, relationships, Cox & Kings.

Value-conscious travellers are seeing this as an ideal time to make bookings to Europe, Russia, Australia, New Zealand and Canada.

Vishal Suri, managing director of Kuoni India, said the company has seen over 35 per cent growth in bookings to Australia in recent times. Thomas Cook India too reported demand growth of over 25 per cent to Australia-New Zealand and over 15 per cent growth in forward bookings to Canada.

Travel companies are leveraging the currency benefit and reworking their packages to offer more value to customers. "Our strategy to inspire consumer uptake has been two pronged: recalibrate our product portfolio — enhancing our packages and these work well in light of the depreciating rupee," said Rajeev D Kale, president and CEO of MICE, domestic and sports tourism, Thomas Cook (India).

According to Amit Agarwal, senior marketing manager at Hotels.com (India & SEA), while Indian travellers continue to travel and choose alternative holiday options within their budget, travel patterns have changed, with holidays being cut short and short-haul destinations being preferred.

Favourable currency has also brought the focus of several new foreign markets such as the Philippines, Cyprus, Rwanda, Indonesia and Egypt on the Indian outbound travel segment, which, according to industry estimates, is expected to touch 50 million by 2020. Moreover, Indians are one of the top spenders when it comes to travelling overseas, and several markets are ready to tap this potential, said Singh.