**Title:** International Travel Set for 4-5% Growth This Summer
**Meta Description:** International travel is projected to rise 4-5% this summer, despite challenges from rising euro rates affecting European destinations.
**URL Slug:** international-travel-growth-summer-2025
**Headline:** International Travel Anticipated to Increase by 4-5% This Summer
As summer approaches, international travel is expected to see a growth of 4-5%, driven by a relatively stable US dollar against the Indian rupee. However, the recent rise in the euro may impact demand for European travel, according to Mahesh Iyer, the managing director and CEO of Thomas Cook India.
Indian travelers have experienced some relief in airfares, with domestic ticket prices decreasing by 4% year-on-year in the current fiscal year. Despite this, overall travel expenses remain high as hotel rates continue to rise due to limited availability. Iyer noted that while international airfares have remained stable compared to last year, the euro’s appreciation—up 5% against the rupee—could negatively affect travel to Europe. Conversely, the US dollar has only increased by 1.9% against the rupee over the past year, allowing Indian tourists to maintain their travel levels to the US similar to last year.
### Impact of Euro Fluctuations
The significant increase in the euro is likely to affect international outbound tourism this summer, particularly since Europe constitutes a substantial portion of many travel companies’ offerings, including Thomas Cook India, where it accounts for 41% of their international travel business during peak summer months. Iyer explained that even a modest 3-5% increase in pricing can significantly raise the overall cost of holidays. Nevertheless, he anticipates that the outbound travel sector will still grow by 4-5% compared to last year, driven by interest in the US, Europe, and various short-haul destinations within India.
### Domestic Travel Trends
Consumers may benefit from the 4% year-on-year decline in average domestic airfares this fiscal year, although this is subject to exceptions during peak travel periods and blackout dates—times when travel rewards and discounts are unavailable. However, Iyer cautioned that pressure on domestic hotel prices is likely to persist, meaning that the average spending on domestic holidays may not change this year. According to Hotelivate, a hospitality consultancy, hotel room rates in India surged by 70% over 2023 and 2024, with five-star deluxe hotels seeing an average nightly rate increase of 20.2% to ₹15,655 in FY24.
### Recent Challenges in Travel
In recent weeks, airlines and hotels have reported an uptick in cancellations, attributed to the Pahalgam attack and the ongoing India-Pakistan conflict. Iyer mentioned that prior to these events, Thomas Cook was experiencing high double-digit growth in its travel and tourism business for FY26. However, since the attack, there has been a noticeable decline in forward bookings for holidays.
### Conclusion
In summary, while international travel is poised for growth this summer, challenges such as fluctuating currency rates and geopolitical tensions may influence consumer behavior and travel costs. As the industry navigates these complexities, travelers can expect a mix of opportunities and hurdles in their holiday planning.
### FAQ
**Q: How will the rise in the euro affect travel to Europe?**
A: The increase in the euro may lead to higher overall holiday costs, potentially reducing demand for travel to European destinations among Indian tourists.
