Headwinds ahead for India’s travel sector after Modi calls for foreign holiday restraint

AdvertisementIndiaAsiaSouth AsiaHeadwinds ahead for India’s travel sector after Modi calls for foreign holiday restraint

Inflationary pressure from rising fuel prices has already knocked down summer travel inquiries by as much as 15 per cent

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ReutersPublished: 1:11pm, 13 May 2026India’s travel industry fears that an appeal by Prime Minister Narendra Modi to avoid unnecessary foreign travel will squeeze new bookings after inflationary pressure knocked down summer overseas inquiries by as much as 15 per cent, industry and analysts say.

The pullback is set to hit the peak season for outbound tourism, when affluent families ‌seek cooler locations in Europe and Australia, during school holidays that run from April to June.

“The prime minister has a great following, and people sometimes take his advice very seriously … they may postpone it to next year,” said Ravi Gosain, president of the Indian Association of Tour Operators, with more than 2,000 members.

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“We [had] already seen a 10 to 15 per cent reduction in inquiries or business for this summer season.”

The travel pullback is unfolding against a backdrop of rising global inflation, with crude oil trading above US$100 a barrel after Iran’s ⁠closure of the Strait of Hormuz choked off a fifth of global supply of oil and liquefied natural gas.

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