The Hindu Business Line : Recession forces travel cos to work harder

Bangalore, June 6 This year’s summer holiday season, which has seen a late start with consumer travel queries just picking up, has forced national tourism organisations (NTOs) and travel companies to come out with some “unique” packages. The credit-crunched Indian consumers are being offered good deals by travel industry stakeholders and this year’s trend will be guided by “short breaks” and “all-inclusive packages with value additions” to woo travellers.

Down 10-15%

“Recession has impacted the travel plans of the masses, and the holiday momentum to a certain extent,” says Mr Kavi Ghei, Director, TRAC Representations, a company engaged in NTO representation and tourism PR. According to the Travel Agents’ Association of India (TAAI) estimates, the overall business for this year’s holiday season will see a downturn of 10-15 per cent.

Rates lowered

To keep the wheels of business moving, prices have also been brought down. “We can safely say that while the Indian traveller may not have splurged this time; they have enjoyed a holiday at prices that were at least 25 per cent cheaper than last year,” says Mr Karan Anand, Head (relationships and supplier management), Cox and Kings India Ltd. For destinations such as Malaysia, Singapore and Thailand, prices have dropped 10-40 per cent, while it has been a 10-20 per cent drop for Europe, and 10 per cent for destinations in the Asia-Pacific region — Australia, New Zealand and Fiji. Industry experts say the discounts could have been higher, but the dollar and Euro conversion rates have affected the effective discounts.

Affordable luxury

While affordable luxury has become the operative word in the segment, many packages are also riding on the “value for money” factor. To meet this requirement, airlines reduced air fares and hotels slashed room rates, which made it easier for agents and tour operators to offer exclusive cost effective deals to their customers. Outbound travel, including cruise vacations (ranging between nine nights and 10 days), have been in demand this season and short trips or weekend trips have been the trend in the inbound segment, says Ms Richa Goyal Sikri, Director (Group Business Development), STIC Travel Group.

“The traveller’s response so far to competitively-priced package has been positive with greater travel momentum towards destinations such as Malaysia, Thailand and Singapore followed by medium getaways — Dubai and Mauritius,” says Mr Ghei.

ENJOYING MOMENTUM

Some industry analysts say that even in these tough times, the leisure travel segment continues to enjoy the momentum. According to them, travellers are ready to pay more for experiential holidays for the extra services and exotic destinations.

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Recession forces travel cos to work harder