May 26 2020: A survey carried out by Business of Travel Trade (India) reveals the alarming fact that 4 in 10 travel & tourism companies stare at complete shutdown in next 3 to 6 months.
The survey also highlights the fact that 81% of T& T companies saw 100% decline in their revenue due to COVID-19 while another 15% have lost revenue up to 75%.
- 73% Travel companies have gone for adjustment of workforce including pay cuts, deferment of salaries, termination of contracts, while 67% have gone for steps like reduction of overheads.
- About 38.6% travel companies are going for job cuts and another 37.6% of the companies are considering the option.
- 80% of travel companies and professionals are not satisfied with Government’s (Centre & State) efforts to address the tourism crisis created by Covid-19.
The BOTT Travel Tracker, was conducted in partnership with India’s top 7 National Associations of Tourism and Travel representing different segments: IATO, TAAI, ICPB, ADTOI, OTOAI, ATOAI and SITE. Over 2300 travel and tourism business owners and company representatives participated.
The survey also touched upon new travel trends like rise of solitary and Do-It-Yourself travel and innovations like popularity of touch-less technology, voice-activated services and more automation in the hospitality sector.
Says Jyoti Mayal, President, Travel Agents Association of India (TAAI):“The Travel and Tourism sector is going through a very bad phase. It has taken a severe beating due to the COVID-19 outbreak with lakhs of people dependent on it suffering immense losses and job cuts. The survey has further confirmed our fear that travel companies are staring at partial and complete shutdown in addition to job cuts, adjustment of workforce in form of pay cuts, deferment of salaries and termination of contracts. This is an unprecedented situation and the government should extend some relief for the survival of thousands of companies.”
Link to the BOTT Travel Tracker