Resurgence of Indian outbound travel
The Indian outbound travel is a growing market in the post-pandemic world but is battling challenges on several fronts such as the visa issue, cash flow, soaring travel expenses and steep airfares. TTJ takes a look at some of the most distinguished outbound travel houses in Kolkata to gather info on the ground reality, the trending outbound destinations and the road ahead for outbound travel.
With the festive season round the corner in the eastern belt of India and particularly Bengal, once again it’s that time of the year when upwardly, mobile-class of travellers pack their bags and fly down to foreign shores. The global destinations have opened up and with the ease of travel norms, a strong force of Indian travellers are holidaying in international waters. Riding high on wanderlust, the outbound tourists are ready to brave all challenges. Having said this, the outbound travel groups are grappling with a plethora of issues ranging from cost-cutting and increase in travel costs to soaring airfares and delays in procuring visas of Western countries.
Europamundo Vacations, headquartered in Madrid and owned by JTB Group offers over 3,000 global tours every year. According to Aparna C. Basu Mallik, Country-Head, Europamundo Vacations, “Our global travel organisation offers the largest selection of brochured tours. We have tours in several languages, including English, Spanish, Portuguese and Arabic. We work exclusively on a B2B platform and our tours are sold out in more than 150 countries through travel agents.”
The global travel group will soon be unveiling its new products in September, this year. Basu Mallik said, “There are several issues plaguing the Indian outbound travel market, including the visa issue, but the Indian traveller is quite resilient. Spain has emerged as a promising destination while Turkey, Scandinavia and the United Kingdom have climbed the popularity chart.”
The outbound travellers have already started availing of the year-end tours of the group. “We have inducted tour managers in our organisation and imparted training to them in order to cater to new-age travellers in post-pandemic times. We have achieved 80 per cent growth of the pre-pandemic times,” added Basu Mallik.
Take the case of Kolkata’s Aryan Leisure and Holidays, an old-treasured travel house that came up way back in
2002 and is in constant quest of new outbound destinations. Starting from air ticketing to procuring visas and devising both outbound and domestic tours, the group offers all kinds of travel services under one umbrella. Sanjeev Mehra, Director of the travel organisation said, “The current trending outbound destinations are Kenya, Maldives, Mauritius and South-East Asia. There are visa issues for travellers heading to European destinations and Canada. Students are travelling abroad for higher studies. We have popularised Bahrain for outbound travellers in the eastern zone. At the moment, we are focusing on Myanmar. Besides, there are other emerging outbound destinations, like Abu Dhabi, Saudi Arabia, Ras-Al-Khaimah and Ho Chi Minh in Vietnam. Destination weddings are happening in Ras-Al-Khaimah and travellers opt for a threenight tour of the destination. Tourists also prefer to spend seven nights in Oman which has come up well and is replete with deserts, beaches and mountains. Indigo operates direct flights from Kolkata to Hanoi and Ho Chi Minh.” Cambodia is a bucket-list destination for travellers since it has the age-old Angkor Wat shrine.
The Indian travel sector has encountered a plethora of challenges in the post-COVID era. Mehra further said, “We have gained a lot of info and we need to change with time and technology. Personalised service is significant for Indian travellers. The Indian outbound travel market and hospitality groups will grow steadily and will rebound in the next fiscal. We are looking for a great travel season. In today’s era, there are more FITs, solo men and women travellers, families, honeymooners and kids travelling.” Mehra pointed out that lowering the airfare will not solve the ongoing issue instead more direct flights from Kolkata to Western countries need to be introduced.
Mehra added, “The eastern region was once neglected by the Central government, but now things have started looking up. Tata Group is revamping its flight operations and is all set to launch direct Air India flights from Kolkata to London and other destinations in Western countries next year. Vistara and Indigo will launch similar flight services from Kolkata to Western countries in 2023.”
Globe All India Services Limited, a major outbound travel group based in Kolkata with an annual turnover of Rs 750 crore has spread its wings across
eight destinations in the country. In the context of the outbound travel market, Kaushik Ghosh, Chief Operating Officer of the group, said, “There will be a decline in corporate travel in the outbound market in the upcoming period. Since most corporate groups have incurred losses over the past couple of years, they do not intend to shell out on travel anymore. The corporate sector has apprehended that the most convenient way to manage a business without coughing up a huge amount is through online mode. With uncertainty looming ahead in life, people intend to experience touring different destinations and spend quality time with their family and friends. Hence experiential travel, holiday travel and MICE activities will surge ahead. There will be more conferences in the upcoming period.” In a nutshell, the corporate world is looking at reduced-cost structures.
Ghosh averred that South-East Asia remains the most sought-after destination owing to the price factor. Turkey as a destination has picked up momentum and European destinations like London, France, Germany, Switzerland and Italy are quite promising for both MICE and leisure travel.
There is a high demand for both domestic and global travel in current times. The pertinent question is: what are the challenges encountered in the sphere of outbound travel? Ghosh further said, “The biggest challenge for travel groups is managing cash flow. With rising airfares and hotel expenses, the overall travel expenditure has drastically gone up. At the same time, banks are a bit reluctant to pay credit limits to travel organisations because travel is an uncertain business. The corporate world is pushing for higher credit limits. The rising cost is making investment steeper for travel companies. It is quite unfortunate that the Central government has not taken any concrete steps to provide financial support to the travel fraternity during the COVID-19 outbreak and to get the COVID-ravaged travel economy back on track. Several financial aids have been announced, but the tourism sector has been completely sidelined. The tourism sector generates high employment options and contributes around 10 to 12 per cent of India’s GDP.” Revival of the tourism sector has to be the topmost priority of the government.
As a reputed travel organisation, the group is on track and has strategised well. It is no longer engaged in business fields that are not profitable. Regarding the issue of high airfare, Ghosh said, “It is high time that the Central government steps in to create a congenial environment for the airlines, hospitality sector and travel industry to work together. It is next to impossible to lower the airfares in the wake of high fuel prices. The government should closely monitor to bring down the fuel prices.”