World Tourism Day 2026 special: 5 common money mistakes Indian tourists should avoid
Planning an international trip involves more than just booking two-way flights and accommodation. Things such as daily spending, high currency exchange costs, lack of travel insurance and other unexpected expenses can push the overall trip budget higher than most travellers initially estimated.
Hence, knowing where travellers tend to overspend can help keep an overseas holiday financially manageable. This becomes even more important if you are travelling on a strict budget, with little to no financial cushion in case the expenses exceed your expectations. Here are five money mistakes that Indian tourists should avoid during their next vacation.
Skip the airport counters for cash
Exchanging money at airport counters can be convenient, but they tend to offer the most expensive rates due to high footfall and limited competition. In some cases, the charges can be as high as 10% and 12% of the value of the amount, Mint reported earlier.
If you need foreign currency for your trip, compare exchange rates and charges in advance and avoid exchanging a large amount at the airport unless necessary. An Indian traveller can get foreign currency from public and private banks and authorised money exchange centres.
Travel cards are another option, and travellers can purchase them by approaching banks directly, the report said.
Ignoring TCS rules
Foreign travel packages are now be taxed at a flat 2% rate, replacing the earlier 5% rate (up to ₹10 lakh) and 20% for amounts above that threshold. This overhaul was announced during the Union Budget 2026 and has been implemented from the beginning of the new financial year.
However, tax Collected at Source (TCS) paid on foreign travel or overseas tour packages is fully refundable or adjustable against your total income tax liability when you file your Income Tax Return (ITR) for the financial year in which the travel expenses were incurred.
Taking airport taxis without checking rates
Unmetered or airport-gate taxis routinely overcharge unknowing tourists for the first ride into the city. This can make a hole into your pocket, especially if the currency of that country is stronger than the Indian rupee.
Hence, travellers are advised to research local public transit, pre-book official airport transfers, or use ride-hailing apps active in that country.
Skipping international travel insurance
Saving a few thousand rupees on insurance can be your biggest financial mistake during a foreign trip, in case medical emergencies arise. Many countries such as Turkey, Russia, the United States and Cuba, mandatorily requires foreign visitors to purchase an insurance that meets each country’s entry requirements.
Getting a travel insurance may not only be useful during sickness, but also aids in covering other emergencies that may arise during the stay or flight-related woes. A valid international travel insurance is necessary for Indians who are travelling to these countries to get visa on arrival because without it, the visa procedure would not proceed, according to a report by Policybazaar.
Keep emergency money separate
Finally, avoid keeping your primary card, backup card and all your cash in the same wallet or bag. In case the bag gets lost or stolen, a traveller should have some backup option to make payments in a foreign country.
Important booking information, travel insurance details and emergency contact numbers should also be easily accessible. Therefore, you must also keep important documents such as passport in a secure place.
Additionally, the Unified Payments Interface (UPI) is now accepted in 11 other countries, meaning you can simply make payments using your phone.
Greece and the Maldives are the latest nations to adopt UPI, according to a statement issued by the Press Information Bureau (PIB). The other places where UPI is accepted include Cambodia, Bhutan, Nepal, Singapore, the United Arab Emirates (UAE), France, Sri Lanka, Mauritius and Qatar.
