The reduction of Tax Collected at Source (TCS) on overseas tour packages from 20% to 2% has helped sustain outbound travel demand, even as a weaker rupee and rising international hotel tariffs continue to inflate holiday budgets. Harmandeep Singh Anand, Managing Director, Jagsons Travels, said the tax cut has eased customers’ upfront financial burden and prevented bookings from slowing. “The 20 per cent TCS had become a psychological barrier. While the lower rate has restored confidence, rising travel costs have absorbed much of the benefit, making it more of a cushion than a booking catalyst,” he said.
Janice Alyosius is a travel and MICE journalist focusing on business travel, destination marketing, aviation and industry policy. She leads editorial content at MICEtalk and also writes for TravTalk, covering global trends, trade developments and key industry conversations. With regular reporting from tourism forums, conventions and on-ground industry events, her work blends news-led analysis with strong industry voices, offering clear context and relevance for travel trade professionals and decision-makers.