Europe trips could burn a bigger hole in your pocket as rupee near all‑time low against the euro

Economic Times

2 days ago

Agencies The rupee has fallen to its lowest level ever against the euro, making trips to Europe more expensive for Indian travellers, adding to rising costs for accommodation, meals and transport. Higher airfares and longer flight times caused by airspace restrictions because of the Israel‑Iran conflict has also made travel more challenging and costly as carriers adjust to new flight paths and fuel expenses.The trend comes at a time when more Indians are choosing Europe for summer and year‑end trips.
The rupee hit a record low of Rs 100.48 per euro on June 25, 2025. The rate dipped slightly to Rs 100.32 on June 26, but remains near its highest level ever, making accommodation, meals, sightseeing and transport costlier across Europe. The rupee has weakened sharply over the past decade. In 2015, one euro was Rs 72.12. By 2020, it rose to Rs 84.64, and by 2023, Rs 89.20. In 2024, it crossed Rs 90.55, and in June 2025, it surged past Rs 100 for the first time. The trend has been sharp in recent weeks. In the last week of April, one euro cost Rs 95.48. By early June, it rose to Rs 97.75. On June 23, 2025, the rupee crossed the Rs 100 mark against the euro for the first time, hitting an all‑time low. On June 25, it peaked at Rs 100.48. The rate was Rs 100.32 a day later, reflecting slight easing.
More Indians travel despite rising costs
Even as the euro becomes more expensive, more Indians are visiting Europe. According to Schengen visa data, over 1.3 million visa applications came from India in 2023, making it one of the top three source countries. Travel agents say growing income levels and interest in international holidays are keeping demand strong despite the rising conversion rate. 'People are still making trips despite the higher rate. They're choosing shorter trips or selecting more affordable accommodation, but Europe remains popular,' said a Mumbai‑based travel operator.
Overtourism adds pressure The rise in visitor numbers has led to overtourism concerns across Europe. Cities like Venice, Barcelona and Amsterdam have introduced tourist taxes and tighter regulations. Venice now charges an entry fee for day‑trippers, and Barcelona has restricted short‑term rentals in certain neighborhoods.In Spain, rising tourist numbers have sparked protests in popular cities and islands. Residents in Barcelona, Mallorca and the Canary Islands have held rallies and put up signs complaining about overtourism, rising rents and pressure on local infrastructure. They have called for stricter rules, tourist caps and higher taxes to balance the benefits of tourism with the needs of local communities. With the rupee at its weakest point and popular destinations imposing new restrictions, trips to Europe are expected to remain challenging and costly for Indian travelers throughout the year.
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