As the pandemic rages on, India’s travel and tourism sector continues to take a beating. In April 2021, online travel aggregators (OTAs) witnessed an aggregate decline of 41% in monthly online traffic, according to a report by JM Financial. However, this time, as opposed to last year, the sector has braced itself for impact. Expedited hotel-hospital partnerships, and flexibility for travellers through easy cancellations and extensions, low-cost EMIs, and pay-at-the-hotel schemes are among the few initiatives being adopted by hospitality and travel companies.
Last year, several OTAs offered staycations and workations to address the lull in travel, as both international as well as business travel had come to a halt. In 2020, people were cautious but optimistic, say analysts. The travel and tourism sector saw its revenue decline to 10-15% of pre-Covid levels in the April-June quarter of 2020. In July-September 2020, it went up to 25% of pre-Covid levels, and in the January-March 2021 quarter, it rose to 70%.
According to a Deloitte survey conducted in April 2021, 44% Indians feel safe staying at a hotel. The industry expects that with the onset of the monsoon season, people would like to venture out with adequate safety protocols, like a compulsory Covid-19 negative report, which could enable safer travel and have less of an impact on business compared to last year.
As per India Brand Equity Foundation, the tourism sector is expected to grow 6.7% to reach Rs 35 lakh crore by 2029. In 2019, the tourism and hospitality industry contributed 6.8% of India’s GDP, as per World Travel & Tourism Council.
Mindful travel
During the second wave of the pandemic, mindful of the needs of consumers, airline and hotel players are focussing on offering safety assurance and a convenient booking experience. A spokesperson from MakeMyTrip says, “Amid rising uncertainty, we are working towards providing more flexibility to our travellers in making modifications or last-minute adjustments to their essential travel bookings.” Under its train bookings segment, MakeMyTrip has recently introduced a free cancellation policy that allows a passenger to avail a full refund in case he or she cancels the ticket before the chart is prepared.
Several players in the industry are seeing queries trickling in for long stays. To fulfil this, SaffronStays has introduced a membership programme, called First Family Membership, that offers a “hassle-free experience for both members and non-members”, says Devendra Parulekar, its founder.
A faster and smoother vaccine roll-out, the industry hopes, will boost the travel sentiment going ahead. Aloke Bajpai, CEO & director, Ixigo, says, “We are raising awareness on the importance of maintaining hygiene and getting vaccinated; we have recently introduced a vaccine slot finder on our app to help users book slots.”
Good times ahead
Business hotels especially are in a quandary as international travel remains suspended. Many of them have had to resort to deep discounting — slashing rates to almost 50% of pre-Covid prices — in the months of April and May, says Jaideep Dang, managing director, Hotels & Hospitality Group, JLL. “The industry is focussing its energies on portfolios where there is a need,” he adds.
Several city hotels have tied up with hospitals in the vicinity, offering their room inventory for patient care and quarantine. Lemon Tree Gurgaon, for instance, has partnered with Medanta Hospital.
Unlike last year, there is better clarity on Covid-related restrictions this time around. Besides, the industry is pinning its hopes on a slightly higher consumer confidence index, given that consumers are now largely well-versed with safety and hygiene practices. After a drastic fall in revenue in April 2021, Rajat Mahajan, partner, Deloitte India, notes, “the travel industry is expected to pick up faster in the next quarter, as compared to last year.”