With the continuation of the COVID-19 pandemic crisis, the nightmare for the Travel and Tourism sector is still not over. In April 2021, online travel aggregators (OTAs) there has been a decline of 41% in monthly online traffic, according to a report submitted by JM Financial. However, this year, the sector has already braced itself for the upcoming impact. Hotels are adopting new initiatives like expedited hotel-hospital partnerships, easy cancellations, and extensions on reservations, low-cost EMIs, & pay-at-the-hotel schemes.
To refresh their business, many OTAs offered staycations to domestic travelers last year as both international & business travel had come to a halt. People cautious and optimistic.
The travel & tourism sector saw a decline of 10-15% in the April-June quarter of 2020, a 25% decline in July-September 2020 and it rose to 70% in the January-March 2021 quarter.
In April 2021, 44% of Indians felt safe staying in a hotel according to a Deloitte survey.
The industry analysts expect the travel to increase with the onset of the monsoon season with all the necessary safety protocols in place (like RT-PCR tests, E-pass) which would help the business.
Tourism is expected to grow by 6.7% and is expected to reach Rs 35 lakh crore by 2029, according to India Brand Equity Foundation. The tourism and hospitality industry contributed to 6.8% of India’s GDP in 2019, as per World Travel & Tourism Council.
Mindful travel
In light of the second wave of the pandemic, airline and hotel players are being mindful of consumer safety and have subsequently ramped up their efforts to offer safety assurance and a convenient hassle-free booking experience. To enhance flexible travel booking, MakeMyTrip has recently introduced a free cancellation policy in the train bookings segment which allows passengers to avail of a full refund in case of ticket cancellation before the chart is prepared.
Saffron Stays has introduced a membership program, called First Family Membership, that offers a “hassle-free experience for both members & non-members”, to deal with numerous queries from the customers, says the founder, Devendra Parulekar.
Aloke Bajpai, CEO & director, Ixigo, said that they are raising awareness regarding hygiene maintenance and vaccination and have recently introduced a vaccine slot finder on their app to help users book slots.
Some Silver Lining
Many business hotels have resorted to deep discounting— cutting rates to almost 50% of pre-Covid prices — in April and May, states Jaideep Dang, MD, Hotels & Hospitality Group, JLL. The industry has focussed its energies on areas where there is a need, he added.
Several city hotels have tied up with hospitals in the nearby area, offering their room inventory for patient care and quarantine. Lemon Tree Gurgaon, for example, has partnered with Medanta Hospital.
After a drastic fall in revenue in April 2021, Rajat Mahajan, partner, Deloitte India, noted that the travel industry is expected to pick up faster in the next quarter, as compared to last year.
Follow and connect with us on Facebook, LinkedIn & Twitter
