India’s travel industry is recalibrating for the season ahead after Prime Minister Narendra Modi urged citizens to avoid unnecessary foreign trips, a call that coincided with an already softening summer for outbound tourism. Overseas inquiries had eased by 10% to 15% even before the appeal, as inflation and higher airfares prompted many families to rethink European and Australian holidays during the April to June school break.
The broader context is one of global economic pressure. Crude oil trading above 100 dollars a barrel, following Iran’s closure of the Strait of Hormuz, has pushed up fuel surcharges and import costs. Modi also encouraged Indians to moderate fuel consumption and gold purchases to help ease the country’s import bill during the Gulf crisis.
Travel aggregator stocks felt the sentiment shift, with EaseMyTrip, Yatra Online, and Ixigo among those affected. Industry bodies are now urging the government to strengthen inbound tourism as a counterbalance, while domestic travel, though lower in margin, is being looked at more seriously as an alternative focus.
Analysts are measured in their outlook, pointing out that Modi’s remarks remain a suggestion rather than a policy shift, and that easing crude prices could support a recovery in the months ahead.
