Rupee at 90: Why your holiday to Europe, Maldives, and parts of Southeast Asia may cost more

Subscribe to enjoy similar stories. The rupee slipping past the ₹90 mark against the US dollar may sound like a problem mainly for travellers heading to the United States. But the reality is broader—and more expensive.

From Europe to the Maldives and even parts of Southeast Asia, overseas holidays are quietly getting dearer as currency depreciation filters through flights, hotels and on-ground spending. The rupee hit a record low of 90.7 against the dollar on Monday. Six months ago, it was around 86.5, and a year ago about 85.

In just 12 months, the currency has depreciated roughly 6.25% against the dollar. The impact, however, is far from uniform. While some markets are seeing sharper price increases, others remain relatively insulated due to local-currency pricing and strong domestic tourism demand.

Airfares and hotel tariffs in most countries are dollar- or euro-linked, making currency movements a direct cost factor for Indian travellers. The effect varies sharply between those booking packaged holidays and do-it-yourself (DIY) travellers. For holiday packages, the impact is cushioned as travel companies contract inventory 6–12 months in advance at fixed rates.

“These are negotiated rates for bulk inventories, which cushions travellers from sudden currency swings," said Karan Agarwal, director, Cox & Kings, a tour operator brand. As a result, existing season-long packages are unlikely to be repriced overnight, though new bookings will reflect higher costs. Moreover, the increase in costs will also not be sudden or steep, largely because the rupee has been weakening gradually over the past year.