September 29, 2022

Travel: India’s travel industry expected to reach 70% of pre-Covid revenue this fiscal year | India Business News

NEW DELHI: India’s tour and travel industry could see revenue increase this fiscal year to more than 70% of pre-pandemic levels, building on pent-up demand and boosting people’s confidence to travel to as pandemic risks diminish, said a Crisil assessment study of the country’s three largest players who account for more than half of the national tour and travel industry.
While full recovery to pre-pandemic levels is only expected by FY2024, continued recovery with improved operating profitability, supported by cost control measures and healthy liquidity should support the industry.
“Business travel is also expected to rebound more than 70% as companies increasingly return to work from the office. However, segments such as outbound and inbound travel are expected to see a more gradual recovery as restrictions in other countries gradually ease,” said Naveen Vaidyanathan, Director, Crisil Notes.
The industry, which provides services such as air/bus ticketing and hotels/packages for leisure and business trips in India and abroad, has been the hardest hit by the Covid -19.
After the initial shock of the pandemic in the first half of fiscal 2021, which paralyzed the entire industry, tour operators and tour operators experienced a gradual recovery in the second half, with an improvement in air traffic and demand for national short stays.
In the first quarter of fiscal 2022, however, the severe second wave of the pandemic dampened the recovery, also during the peak summer travel season, reducing revenues to less than 20% of pre-pandemic levels. .
The third quarter of fiscal 2022 saw the industry recover healthily as the second wave subsided, lifting revenues to 60% of pre-pandemic levels on strong pent-up demand. Air traffic reached around 70% of pre-pandemic levels during the third quarter, driven by domestic traffic.
The third wave in the last quarter of fiscal 2022 was only a dent in the road to recovery given its lesser severity, shorter and limited government lockdowns, and improving rates. vaccination. With that, the industry appears to be firmly on the road to recovery, with revenues estimated at over 40% of the pre-pandemic level last fiscal year, over 70% in the current one, and a full recovery likely over the course of in fiscal year 2024, from lows. by 20% in fiscal year 2021.