Travellers plan flights and hotels down to the detail, but rarely see the true cost of forex: Taneia Bhardwaj, Wise

International travel is becoming more accessible for Indians and with the recent reduction in Tax Collected at Source TCS many are planning to spend more on overseas trips But while travellers carefully compare airfares and hotel prices the true cost of foreign exchange often receives far less attention According to the recent Passport amp Paisa Report by Wise Indian travellers are increasingly prioritising transparency reliability and greater control over how they spend abroad signalling a shift in what they value when managing travel financesIn this conversation with Midday Taneia Bhardwaj South Asia Expansion Lead at Wise discusses the findings of the survey changing consumer behaviour and why understanding exchange rates and hidden fees has become just as important as planning the trip itself1 Nearly 7837 of Indian travellers plan to increase their international travel spending following the TCS reduction Do you expect this policy change to accelerate outbound travel from India significantlyIndias outbound travel momentum is already evident and the reduction in TCS is likely to support that confidence further What we found in our latest report is that nearly 7837 of Indian travellers are actually planning to ramp up their overseas spending because of this policy change Itrsquos a clear sign that exploring the world is becoming less of a rare luxury and more of a regular meaningful part of life for many of us whether thatrsquos for a welldeserved holiday studying abroad or finally visiting familyWhen you lower that initial financial hurdle it gives people the breathing room to focus on the experience itself Wersquore seeing travellers reallocate those funds to stay a few days longer visit that second city or simply dive deeper into the local culture But with that increased spending comes a natural more thoughtful shift people are becoming much more conscious of their hardearned money They care deeply about their budgets but theyrsquore often frustrated by the blind spots those hidden markups and exchange rates that quietly eat away at their funds without them even realising it2 Do you believe Indian consumers today are becoming more conscious about transparency in financial products particularly when travelling overseas Indian consumers appear to be paying closer attention to transparency in financial products particularly regarding international spending What stood out in our report is that travellers care deeply about their budgets but often have limited visibility into the exchange rate or markup applied when paying overseasTravellers may spend days comparing flights hotels and itineraries in detail but often have far less visibility into the cost of foreign exchange itself People know they are paying for foreign exchange they simply do not always know how much of that cost is buried inside the rateThis creates a sharp contrast between how Indians pay at home and how they spend abroad In India consumers are used to digital experiences that are instant transparent and easy to understand As people become more accustomed to that level of clarity there is likely to be a growing expectation for the same experience when spending internationally3 Global card acceptance emerged as the most important feature when choosing a travel card even ahead of rewards and lounge access Does this signal a shift from lifestyledriven benefits to utility and reliabilityThe survey results suggest that reliability remains a fundamental need for travellers Global card acceptance ranking ahead of rewards and lounge access may reflect a simple preference for confidence and ease when spending internationallyThe moment a travellers card does not work abroad can create its own form of money anxiety It is a small moment but it can be particularly disruptive when someone is in an unfamiliar place and simply wants confidence in being able to pay for everyday experiencesWhile lifestyle benefits still appeal to younger travellers the priority abroad is peace of mind Travellers value reliability transparency and ease of use above all else as these remove the stress of paying for things in a new country4 As international travel becomes more frequent how do you see travel money management evolving over the next few years Will multicurrency accounts and digital wallets become more mainstream among Indian travellersBehaviour does appear to shift with experience The more Indians travel the more deliberate they become about managing money abroad While cash remains popular today there is likely to be growing interest in solutions that offer greater visibility and control including multicurrency accounts and digital walletsOur report found that despite Indias rapid adoption of digital payments at home many travellers still rely on cash and traditional foreign exchange products when they travel internationally Over time that behaviour may begin to change as people become more familiar with products that allow them to hold convert and spend money in multiple currencies more seamlesslyThe underlying need is quite simple travellers increasingly want a clearer and more predictable way to manage their money internationally As overseas travel becomes more frequent digitalfirst solutions could become a more familiar part of how Indians prepare for and manage international spending5 The Wise Travel card was launched in India last year with a focus on transparency and the midmarket exchange rate What has been the consumer response so far and what trends have surprised you the most The response has been very encouraging Demand for the Wise Travel Card has been strong from day one with 4037 of users on our waitlist ordering their card within the first two months of launch During the initial phase the card was used across 54 countries with Europe and APAC accounting for the majority of spending What stood out was how quickly travellers embraced digitalfirst payment habits with 5437 of all transactions being contactless and over 8037 of customers opting for both physical and digital versions of the card We also saw adoption beyond metro cities indicating that demand for transparent and reliable international spending solutions extended well beyond Indias largest urban centres6 If you had to give three pieces of advice to Indians planning an international trip this year particularly around managing their travel budgets and foreign exchange what would they be First pay attention to the exchange rate youre getting and be mindful of hidden fees The midmarket exchange rate which is the rate you typically see on Google is the fairest benchmark for currency conversion Many providers add a markup to this rate or include charges that are not immediately visible and even small differences can add up and significantly impact your travel budget especially if youre working with a fixed amount of moneySecond try to understand the total cost of spending abroad before you travel including any fees or markups that may not be immediately visible Having a better understanding of the total cost can help travellers make more informed decisions and avoid surprises laterThird choose payment methods that offer transparency and reliability International travel already comes with enough planning and uncertainty and greater visibility over how and where you spend can make managing money abroad feel much more predictable

Travellers plan flights and hotels down to the detail, but rarely see the true cost of forex: Taneia Bhardwaj, Wise

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Travellers plan flights and hotels down to the detail, but rarely see the true cost of forex: Taneia Bhardwaj, Wise

Other Articles

Mid-Day Fast