War, currency, fuel prices: Why summer holiday plans are shot

Indian travelers are experiencing significant disruptions to summer holiday plans due to geopolitical tensions in West Asia. Kajol Bheda, founder of Scribbld, nearly missed her connection in Istanbul because of airspace restrictions, forcing her to choose longer layovers or direct flights for safety. The conflict has affected 42% of India’s outbound tourism between April and August, with May seeing 29.4 lakh travelers and August 27.5 lakh, according to the department of tourism. Nearly 11% of May travelers headed to the U.S., while 12% of April’s 25.7 lakh travelers went to Canada, often transiting through West Asian hubs now impacted by missile strikes. Sajin Nowshad of Akbar Travels noted that 40% of traffic to Europe or America relies on Middle Eastern carriers, leading many to defer travel after U.S.-Iran attacks. Reserve Bank of India data shows travel-related outward remittances dropped to $1.09 billion in March from $1.3 billion in February and $1.65 billion in January. Travel costs have also risen sharply, with a Hyderabad businessman paying 50% more for tickets to San Francisco due to rerouted flights and soaring fuel prices. The Strait of Hormuz blockade, a critical oil transit route, pushed crude oil prices above $100 per barrel, increasing aviation turbine fuel costs, which account for 28.7% of airline operating expenses. Air India suspended routes like Delhi-Chicago until August to manage rising fuel expenses. Some travelers, like Sriparna Ray from Bengaluru, canceled plans to Greece due to safety fears, abrupt cancellations, and higher ticket prices. The weakening rupee further strained budgets, forcing many to postpone trips. Online travel aggregator MakeMyTrip reported a 2% sequential decline in air ticketing revenue, falling to $58.73 million from $60.07 million, alongside a 6.2% drop in gross bookings.