Chennai: Even as Indian travellers plan to spend more on overseas holidays following the recent reduction in Tax Collected at Source (TCS), most remain unclear about the true cost of foreign exchange, with hidden forex charges and non-transparent pricing remaining major pain points, according to Wise’s Passport & Paisa: India Travel Money Report 2026.A significant share of the more than 1,000 Indian international travellers surveyed across generations and geographies revealed that they do not have a clear understanding of what they actually pay when spending abroad, the report said.“Travellers know they are paying for foreign exchange, but they simply do not know how much of that cost is buried within the rate itself,” said Taneia Bhardwaj, South Asia expansion lead at Wise.The report showed that nearly 78% of Indians intend to increase international travel spending following the 2% reduction in TCS on overseas travel. However, 38% of travellers still exchange cash before travelling abroad.“A less-discussed concern is emerging as one of the biggest anxieties for Indian travellers—foreign exchange costs. Exchange rate fluctuations, currency conversion markups, ATM withdrawal charges, foreign transaction fees and dynamic currency conversion often remain hidden expenses that can significantly increase the overall travel budget. Many travellers still prefer exchanging cash before departure, driven by familiarity and concerns over hidden card charges abroad. However, even while comparing forex rates, they often overlook embedded margins and service fees, discovering the true cost only after reviewing statements on their return,” said Rajiv Mehra, general secretary of FAITH.“The growing outbound travel market offers an opportunity for banks, forex providers and travel companies to improve consumer awareness through transparent pricing, clearer fee disclosures, prepaid forex cards, multi-currency wallets and real-time spending alerts,” he added.Deepesh Varma, chief business officer – foreign exchange, Thomas Cook India, however, believes experienced travellers are relatively aware of ways to manage their travel spending efficiently.“It is usually first-time international travellers who require guidance on forex instruments, exchange rates and overseas transaction costs. We cater to both groups by offering forex prepaid cards that are available on quick-commerce platforms and can be activated in under an hour,” he said.
