When Nikita Rathi was making her summer travel plans this year, she was aware of what lay in store – the rising cost of tour packages and escalating air fares. So instead of opting for a week-long package tour to Himachal Pradesh, she decided to scour the travel portals and put together her own plan to fit her pocket.

This summer, travellers are bracing for a more expensive holiday season and many are planning their tours in cost-effective ways. Holiday packages are expected to go up by almost 20 per cent, as compared to the usual summer travel season, tour operators say.

“The airfares have been mounting throughout last year due to reasons like increase in the ATF costs and the volatility in the aviation industry, leading to an overall hike of 10 to 20 per cent. Now with the hike in service tax, tour package costs are headed northwards,” said Mr Manmeet Ahluwalia, Marketing Head, Expedia India.

Hit to inbound tourism

Industry experts say that the inbound segment, which is already witnessing a dip due to slowdown in key source markets, may be further affected as a result of this. “This will lead to a drop in foreign tourist arrivals and could be a further dampener to the growth rate in foreign exchange earnings,” said Mr Madhavan Menon – Managing Director, Thomas Cook (India) Ltd.

Tour operators say the overall increase in the travel costs for domestic sectors will be 10 to 12 per cent this year and for international trips, 15 to 18 per cent.

“Among other factors, international travel costs have shot up due to the high exchange rates,” said a Mumbai-based tour operator.

Smart travel tips

Travel operators list some tips that can help cut corners while planning trips:

Business hotels are usually cheaper on weekends and leisure hotels are cheaper on weekdays. So, book accordingly.

While planning the travel itinerary, try and pick flights that get you to your destination in time for a check-in by 2 p.m. (global standard).

If you decide to use public transportation, buying a tourist visitor pass is more economical. It is valid for 3-10 days and includes trains, buses, trams, ferries and other modes and works out better than buying single tickets each time.

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