Overseas Travel Queries Rise After Budget 2026 Lowers TCS on Tour Packages; Bali, Krabi and Oman See Higher Interest

Budget 2026 has reduced the tax collected at source (TCS) on overseas tour packages to 2%, making international travel more affordable for Indian travellers and driving a noticeable increase in enquiries for destinations such as Bali, Krabi and Oman, as per news reports. 

Impact of the 2% TCS on Travel Bookings 

The new flat 2% TCS replaces the previous 5% and 20% rates, removing the threshold that previously applied.  

This change reduces the upfront cost for travellers, encouraging them to convert intent into confirmed bookings. Travel operators report a 35% rise in April bookings and a 4% uptick in enquiries for the last few days. 

Destination Trends and Demand Shifts 

Interest has grown in Southeast Asian and Middle Eastern locations. Bali, Indonesia; Krabi, Thailand; and Oman are among the top destinations receiving increased enquiries. Emerging favourites include Turkey, Georgia, Azerbaijan and parts of Eastern Europe. 

Premium Package Uptake 

With the lower TCS, travellers are more willing to upgrade to premium inclusions. Approximately 30–32% of bookings now include luxury accommodation, unique experiences or multi‑city itineraries, reflecting a shift towards experience‑led travel. 

Read More: CBDT Invites Stakeholder Inputs on Draft Income-tax Rules Ahead of April 2026 Rollout! 

Projected Growth in Outbound Tourism 

India’s outbound tourism is expected to grow at a CAGR of 11.4% between 2024 and 2034, reaching $55.38 billion. The policy change is anticipated to add 15–20% growth in international travel volumes over the next 6–12 months, especially for Q2–Q4 2026 departures. 

Conclusion 

The 2% TCS on overseas tour packages has lowered the financial barrier for Indian travellers, leading to higher enquiry rates and a rise in bookings for popular destinations such as Bali, Krabi and Oman. The change also supports a broader trend towards premium, experience‑rich travel. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.