ITDC switches to Euro pricing amid currency concerns

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India Tourism Development Corp is to switch pricing in its duty-free outlets from dollars to Euros following the US currency's recent rapid devaluation

India Tourism Development Corp (ITDC) is to switch pricing in its duty-free outlets from dollars to Euros following the US currency's recent rapid devaluation. The move, to be implemented within a month, was also prompted by the strong pound sterling, which has risen 15-20% against the rupee since the beginning of November.

An ITDC spokesman told TRW that the currency fluctuations had simultaneously eroded its margins and dented its price offer, with goods bought in dollars losing value daily and those bought in sterling pushing up dollar retail prices. Euro pricing in its stores would stabilize the situation, he said. ?It will allow us to maintain greater control over the real sales value, and means that we will not make the currency exchange losses we have suffered recently.?

Despite the currency problems, the retailer is anticipating a 10% growth in revenue through 2004, to be achieved through updating stores and the anticipated tourism growth. Passenger numbers in Indian airports have risen 10-15% year on year in the past two months, according to ITDC, and the company achieved revenues of Rs1.2bn ($26m) in 2003.

For more on travel retailers' currency worries and other issues affecting the trade in 2004, see TRW's retailer survey, online tomorrow.

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