Tour operators will hit over 70% of pre-COVID revenue this financial year

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India’s tour and travel industry could see revenue increase this fiscal year to more than 70% of pre-pandemic level (fiscal year 2019-2020), building on strong pent-up demand and increasing people’s confidence in travel as pandemic risks decline, CRISIL Ratings announced on Tuesday. While full recovery to pre-pandemic level is only expected by FY 2023-24, continued recovery with improved operating profitability, supported by cost control measures, and liquidity healthy will support credit profiles from here, he said.

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 pandemic of 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 2021-22, 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, led by domestic traffic, CRISIL Ratings said in a report.

“High pent-up demand, eased restrictions and increased consumer confidence are expected to cause domestic travel to rebound to over 80% of pre-pandemic levels. Business travel is also expected to rebound to over 70% as businesses are increasingly returning to work However, segments such as outbound and inbound travel are expected to experience a more gradual recovery as restrictions in other countries are gradually eased,” said Naveen Vaidyanathan, Director of CRISIL Ratings .(ANI)

(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)

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