Outbound travel slows as Indians rethink foreign holidays amid crisis and costs

Prime Minister Narendra Modi’s appeal for Indians to postpone foreign travel for a year has led to a slowdown in outbound bookings, though large-scale cancellations have not yet occurred. Airlines report weak forward bookings due to soaring airfares—driven by higher jet fuel prices—and a weaker rupee, which has made international trips more expensive. Air India has reduced flight frequencies to European and North American destinations, citing unsustainable operating costs. Industry officials confirm that while existing bookings from before the West Asia crisis are still being honored, fresh outbound travel demand has nearly vanished. An airline official noted that ticket price hikes risk further dampening demand, as travelers prioritize cost-saving measures. The Federation of Associations in Indian Tourism and Hospitality (FAITH) highlights that reduced outbound travel saves foreign exchange but warns that India must also focus on attracting more international tourists to offset losses. Domestic tourism is thriving as travelers shift focus to premium vacations, adventure trips, and experiential travel within India. WanderOn CEO Govind Gaur observed a surge in demand for road trips, group travel, and destination celebrations, particularly in Tier 2 and 3 cities. The Hotel Association of India (HAI) emphasized that stronger domestic tourism conserves foreign exchange while boosting hospitality growth and infrastructure utilization. Industry leaders urge the government to ease visa restrictions, improve connectivity, and enhance global tourism promotion to reverse India’s low foreign tourist arrivals—currently around 2 crore annually. Despite a 14% post-pandemic rise in outbound travel, India has yet to recover pre-pandemic international visitor numbers. The shift toward domestic tourism is seen as a strategic move to build a more resilient travel ecosystem amid geopolitical uncertainties.