INDIA INBOUND Still Awaiting a Bounce Back
Inbound travel to India, particularly in the leisure segment, experienced an abrupt halt owing to the COVID-19 pandemic. While there has been a gradual resurgence of inbound tourists post-pandemic, the numbers are yet to reach pre-pandemic levels. Numerous challenges continue to impede a swift recovery. TTJ engaged with some industry stalwarts to gain insights into the ground realities.
Looking at the current travel scenario in India, things look pretty gung-ho, with domestic carriers expanding their network and flight frequency and enjoying higher yields. Hotels, too, have nothing to complain about, enjoying higher-than-normal occupancy rates and ARRs. Overseas flights are packed to capacity despite high-priced airfares, while embassies struggle to keep up with visa issuance.
The COVID isolation of countries activated a new market source, and this is not the usual corporate or business traveller
or overseas tourist. This new market is an explosion of a relatively dormant segment of the “domestic traveller.”
It is the domestic traveller, whether travelling over weekends, on staycations, or exploring the country, that came as a lifesaver for the Indian hotel industry. The icing on the cake was the increased demand for destination weddings and celebratory functions within India, responsible for record occupancies and increased revenue. The foreign tourists were no longer missed, except for the inbound tour operators whose livelihood depended on them.
The loss of inbound tourism for India is a big gain for our neighbours and countries offering capacity and a competitive travel product. The loss of a big chunk of charter business in Goa is a living testament to the current scenario.
Current Challenges
Reflecting on the current landscape of the travel industry, Ravi Gosain, Managing Director, Erco Travels, shares his insights into the challenges. He explains, “The non-availability of first-class hotels, a limited number of flight seats, and the increased cost of other input products act
as spoilsports. Hotels in India are busy catering to the surged demand of domestic travellers, weddings, and corporate events; similarly, on international flights, most seats are occupied by Indian travellers despite the increase in flights.”
Shedding light on the journey of challenges, Sanjay Razdan, Managing Director, Razdan Holidays, mentions, “First and foremost, the challenge was to educate the travellers worldwide that India is safe to travel. Having overcome this, due to the emphasis on domestic tourism, the number of domestic travellers has increased manifold, resulting in hotels, airlines, and other connected services getting increasingly expensive owing to heavy demand. Keeping the costs under control has been one of the biggest challenges in the last two years.”
Bringing a refreshing perspective, Tejbir Singh Anand, Founder and Managing Director, Holiday Moods Adventures, shares, “As an adventure inbound tour operator, I see a notable shift and change. The new traveller is seeking experience travelling to India and demands unique native experiences that create engaging stories for their social media content. The traveller today wants to experience the natural heritage around them and the joy of new discoveries, making their stay unique with immersive experiences.”
“We now approach travellers with our beliefs, values, and principles to attract like-minded customers. Our mantra is go green: protect the environment, respect local cultures, and nurture local arts and culture alongside building activities and adventure experiences,” adds Tejbir.
Lack of Promotions
The closure of overseas tourism offices of the Ministry of Tourism, Government of India, without setting up an alternative foolproof mechanism has added to the woes of the inbound industry. Sanjay Razdan, expressing his concerns, explains, “There is hardly any promotion globally, and we have been trying to impress upon the government without much success to date. The government plays a crucial role in shaping inbound travel through policies and initiatives, and we are trying our best to impress them through the IATO platform. Promotional campaigns must re- start soon.”
Echoing his sentiments, Captain Swadesh Kumar, Managing Director, Shikhar Travels, shares his opinion, “We are an adventure tour operator; the world needs to know that India is much more than just forts and palaces. With the closure of the overseas tourism offices, there is no proper dissemination of information. The concerned officials in the overseas embassies are clueless. Adventure Travel needs a domain expert on the subject to address local queries and concerns and promote adventure tourism in India. Currently, there is a wide gap in this context.”
He further adds, “We have the Himalayas, and that offers us great scope for adventure activity, be it climbing, trekking, or hiking. Additionally, tremendous scope exists for skiing and activities like paragliding, but these need to be promoted and developed.”
Ravi Gosain sheds light on the overarching issue of a lack of demand for India in overseas markets. He highlights, “We need a strategic long-term marketing plan, be it trade fairs, roadshows, print or online media advertisements, or inviting bloggers and tour operators to promote destination India.”
The Real Challenge
India has not successfully expanded its inbound market share; rather, in the current scenario, the market share has further dropped. Initiatives to position India as a prime destination globally have not yielded the desired results, with marketing endeavours falling short. Also, we have not been able to develop new markets. The need of the hour is a strategic long-term marketing plan where India is globally positioned as one of the top 10 destinations.
Market Dynamics
Compared to pre-COVID times, inbound business to the country is down by almost 50 per cent, a figure that finds ground amongst most operators and is not a very comfortable spot to be in. Reasons abound and have been highlighted by many industry players. Despite the downturn, there is a collective spirit of optimism as operators work towards overcoming hurdles, fostering recovery, and envisioning a future marked by growth and stability. The predicament clearly shows, as Ravi Gosain explains, “Personally, our company, Erco Travels, has had a good inbound season compared to the previous year, and we hope the trend will continue. The only worry I have is that most of the business is done on an ad hoc basis, so it is very difficult for us to make plans and budgets.”
For Tejbir Anand, the focus remains primarily on Europe and the UK, where their adventure segment thrives. “We did not try targeting new markets for the adventure segment, as the biggest honeypot is Europe, and rather than reinventing the wheel, we thought of concentrating on the existing market to revive it. Our existing markets are in the UK and Belgium, where we get regular business,” elaborates Tejbir Anand.
Currently, caution and consolidation of existing businesses and markets prevail in a top-of-mind position with most operators, a sentiment also expressed by Sanjay Razdan, “We are trying to consolidate on our present markets.”