Tour packs money guzzlers

Deep discounts for travel have backfired on tourists who booked packages for Europe back in November and December. They now stand to lose money from the airlines and from the hotels where they paid a 25 per cent advance.

With Covid-19 forcing countries to self-quarantine, the global travel industry has incurred a loss of $47 billion which may go up to $113 billion.

Industry experts say that for India, the disaster has just begun. The next 15 days will show how drastic the situation is as the numbers will roll out.

“Group bookings are `40 lakh comprising families of 25-30,” Tulsidas Ratnam, a tour-packager for groups from Hyderabad said. “They have lost their airline fares and about `5 lakh paid for hotel booking. Italy is a popular destination and the maximum losses are here. European visas are valid for six months, but will people travel before the next season?”

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Some airlines with refund policies are rescheduling and giving alternate dates, but this option is only for regular airline fliers.

European bookings in January for the summer

2020 (post-April 20) were minimal. The Covid-19 scare reduced bookings drastically.

Tourists wanted to wait and watch the situation in China. With Italy and Iran affected by

Covid-19, the tourism industry took a beating as there were no fresh bookings and old ones were cancelled.

“Individual tour operators have lost `10 lakh each,” travel agent Srinivas Rao said. “Tour companies are losing `10 crore and more. There will also be lay-offs if the situation does not improve.”

Due to the Covid-19 scare, Kerala as tourist spot is already affected. Domestic tourism to North India is now under watch as the numbers are high in these states. Tourists will now wait till April 15 to see if there is any hope for domestic tourism in the summer.