Travel Forex trends: The inbound travel forex in India is expected to touch $31 billion in 2024 as compared to the $28.7 billion travel forex witnessed last year, Indian Association of Tour Operators (IATO) Vice President Ravi Gosain told Republic Business. Comparatively, the outbound travel forex from India is expected to see an annual increase this year to reach $38 from the $27.1 billion mark recorded in 2023. Apart from IATO, many other tour and travel sector stakeholders have also indicated an 8-10 per cent increase in outbound travel forex.
Forex travel trends
Both the inbound and outbound travel will witness a healthy increase in the next three years due to Indian carriers adding more aircraft to their fleet. Air India and Indigo have already placed large-scale orders which will see deliveries from 2026, said Indian Association of Tour Operators (IATO) Vice President Ravi Gosain.
“Increase in outbound will be higher than inbound because of the surge in Indians travelling abroad for both business and leisure. As per Gosain, Air India and Indigo are rapidly adding new countries to their flight schedule connecting them directly to Indian cities. This will reduce airfares and make travel affordable, added Gosain.
Notably, projections charting the trajectory of India’s aviation sector are expecting the addition of 3,500 new aircraft by 2047. Airlines at present have placed confirmed 1,500 aircraft orders, for strengthening the existing fleet of 810 aircraft, as per a KPMG and FICCI report issued earlier this year.
Travel agencies upbeat
The positive sentiment regarding a boost to travel forex has also been expressed by travel agencies. Thomas Cook (India) Limited is seeing a significant uptick in its prepaid card business, up by 20 per cent YoY, Deepesh Varma, Executive Vice President – Foreign Exchange, told Republic Business.
“We are seeing a strong demand for currencies like Turkish Lira, Indonesian Rupiah, Vietnam’s Dong. Digital penetration is on the rise with increased customer confidence and convenience and our digital platforms now contribute 20-25 per cent to our business,” said Varma. “The need for doorstep delivery has become a key consumer demand,” added Thomas Cook India Forex Executive Vice President Varma.
“While top drivers for our forex business continue to be Europe, UAE, Thailand, US and Canada, we are witnessing strong emergence of short and free/easy visa destinations like Vietnam-Cambodia, Georgia, Turkey, Sri Lanka,” added Thomas Cook India Forex Executive Vice President Varma.
