Indian Outbound Travel Weakens 14% Growth Streak as Airlines Cut Flights on Fuel Costs
Updated
Updated · The Economic Times · May 13
Indian Outbound Travel Weakens 14% Growth Streak as Airlines Cut Flights on Fuel Costs
7 articles · Updated · The Economic Times · May 13
Forward bookings for overseas trips from India have turned weak, with airlines reporting little fresh demand even though they have not seen large-scale cancellations yet.
Air India has already reduced frequencies to several European and North American cities as high jet fuel prices and the West Asia crisis make many international routes uneconomic.
Modi's call to postpone foreign travel for a year has added to the pressure, after travel firms earlier reported a 10%-15% drop in overseas inquiries.
Domestic tourism operators expect that lost outbound demand will shift into premium local vacations, road trips and travel to Tier 2 and 3 destinations.
Industry groups say cutting outbound travel may save foreign exchange, but India still needs stronger inbound tourism; foreign arrivals remain below pre-pandemic levels even as outbound travel has risen more than 14% since Covid.
As foreign travel stalls, can India’s booming domestic tourism replace the lost billions from international holidays?
How will the unprecedented Strait of Hormuz closure permanently alter India's global travel and trade ambitions?
Amid a historic oil crisis, can patriotic appeals truly fix India’s economy, or are tougher measures on the horizon?