NEW DELHI: Indians are going places, literally. With more than 20 million Indians spread in the world, their growing disposable income and changing lifestyle clubbed with affordable airlines, outbound travel is rising at the rate of about 25 per cent a year.
According to a report jointly prepared by the Centre for Asia Pacific Aviation and Expedia group, in 2016, there were 21.9 million foreign departures from India, of which 4.8 million were purely leisure trips. The report suggests that by 2025 there will be 13.9 million international leisure departures from India, making it the second fastest growing outbound tourist market after China.
International travel is no longer confined to the rich — the middle class is taking the plunge more often. Bucking the notion that international trips are expensive, little bit of research and advanced financial planning can make it a really memorable experience.
Building a travel corpus
My financial planner suggested me to go for an SIP every month and that helps me to create this corpus, for one year or one and half year. The idea works and it leaves you with a dedicated fund without sealing away from your regular savings. You can decide the monthly contribution depending on the estimated budget. Sometimes people opt for personal loans also, which although sounds convenient can prove expensive in the long run.
Realistic estimate
Another important aspect is to get a realistic estimate of your expenditure. Ideally given the disparity of value between the Indian Rupee and most international currencies like the US Dollar, the Euro one you should plan for a cost of at Rs 75,000 to least Rs 1.5 lakh per person for a vacation lasting 7 days, depending on location. This includes airfare, accommodation, food, travel and entry fees to various attractions. However while doing your budget math, take into account the fluctuating conversion rates Rs 69 for a dollar can upset your whole calculation if you have calculated your budget on Rs 65 per dollar.
Smart planning
It is better to customise your plan rather than going for an international package. As flight tickets and hotels contribute a major part of the expense so if you book them in advance, you can get some really good deal and save a significant portion of your expenses. Plan things in advance and make sure you have looked into a suitable mobile data plan and travel cards that can save on local commutes.
Make sure your ATM card works in the country you are visiting and check on the transaction cost to avoid any bill shocker.
Also, you may not be interested in everything that the city offers you can add and edit itineraries depending on your taste and interest. If the city has good public transport, it can also help on saving lots of your money. You must keep local currency. Not every place takes credit or debit cards.
It’s not rocket science
● Check that your passport has at least six months validity for getting visa. Apply for visa in advance
● Financial statement of six months that requires a fix amount as minimum balance
● Keep sufficient local currency of destination country
● Take a data plan so that you do not get bill shockers
● Check for ATM withdrawal charges, credit card and debit card transaction fee