Planning to go abroad in 2019? Check the rupee rate impact on your travel

NP NEWS 24 ONLINE:  The movement in the rupee rate automatically changes your travel route. According to a report, the year 2018 was not a great year for those who chose to travel overseas for vacation and education but unfortunately, the fall in rupee is likely to continue in 2019 as well.

According to an expert, “We witnessed massive depreciation of rupee during the mid-year. The rupee moved from 63 to 74 per dollar, the biggest move in rupee since 2013. Part of this is because of stronger global crude oil prices and we saw the reflection on India’s current account deficit which stood at 2.4% of the gross domestic product (GDP) in June quarter and 2.8% in September quarter. The bigger reason for depreciation of rupee was on the capital account side. While the year 2013 was completely current account problem, in 2018 we saw stress both on current account side as well as on the capital account side.”

2019 will remain neutral and not tight as global liquidity condition has already changed from accommodative to neutral.

“At least for the first half of the year, we see the dollar remaining strong, means we expect rupee to depreciate anywhere between 3% and 6% in 2019,” he added.

Considering the rupee condition, here is a look at how you can plan your holiday in 2019:

The depreciating rupee has affected international travellers but people continue to travel. Anand Menon, vice president and head travel tours, leisure travel, FCM Travel Solutions explained that people will still travel even if rupee swings by 3-6%. The number of days for the trip may come down. For Europe, typically you will spend 15 days at least. But if the rupee depreciates by 8-10%, then the duration will come down to 7-10 days. Travellers will reduce the duration but they wouldn’t stop going to places like Europe.

By booking in advance, you can save 11-33% of your travel cost. The major international destinations that travellers are planning to opt for include Phuket, Istanbul and Moscow. You will get a better deal not just on flight but on accommodations as well if you plan beforehand. Avoid taking loans for holidays. Start saving and put your money either in liquid funds or fixed deposits depending on the income.