Outbound Looks Bearish Following Market Crash And Quake
By Raadia Mukadam /Mumbai

Outbound tour operators are reeling from the twin blows of the recent stock market crash and the Gujarat earthquake. Industry sources reveal that all the leading tour operators have suffered a setback in their leisure business recorded this year.

“This has undoubtedly been a bad season for outbound tour operators with losses mounting up to 50 per cent, though we are probably better off than our competitors. Statistics reflect that we are 14.3 per cent behind the revenue generated last year. This could be attributed to the overall drop in the economy. The stock market has plunged by Rs 200,000 crore, which signifies evaporated money, leaving the passenger with little inclination to travel,” revealed Lalit Sheth, managing director, Raj Travels and Tours. Travel agents have been compelled to surrender the seat blocks they hold in various airlines following the cancellation of prior bookings and passengers’ apparent disinterest in holiday plans for this season because of lack of funds.

Cruise bookings are no exception to this trend. “Even cruise bookings have taken a dip. This time last year we had no cabins left to offer on Super Star Virgo for the entire season, which is not the situation this year. We are optimistic that things will pick up but regrettably, the season is not the same as last year,” said Vijay Puthran of Star Cruises, India.

Ravi Sharma, managing director, Skytrack Travels, Mumbai, lamented that his business has taken a beating with cancellations and refunds to the proportion of almost 60 per cent of the turnover this season. “Many of my clients have cancelled their travel plans and things are looking very bleak. The recent calamities have diluted the marketing efforts of tour operators and various tourism boards, who have marketed and campaigned extensively.”
Arvind Tandon, managing director, Faraway Places, said, “I cannot quantify the loss of business in terms of percentage, but I can certainly say that even if we do not register a loss, we probably will not register a growth either. Most of the leisure travellers are Gujarati’s who have lost money due to the quake or the crash of the stock market”.