Home / Impact / Travel Industry Jolted By Lockdown Says Report, 40% Companies Face Risk Of Complete Shutdown In 3-6 Months

Travel Industry Jolted By Lockdown Says Report, 40% Companies Face Risk Of Complete Shutdown In 3-6 Months

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According to BOTT Travel Sentiment Tracker report prepared in partnership with with seven national associations like IATO, TAAI, ICPB, ADTOI, OTOAI, ATOAI and SITE, Around 40 per cent companies operating in the travel and tourism sector are staring at the risk of complete shutdown over the next 3 to 6 months.

Nearly 36 per cent of such companies are likely to witness a temporary shutdown. The report said that 81 per cent travel and tourism companies have lost their revenue up to 100 per cent while 15 per cent of the companies have witnessed it slide up to 75 per cent.

The BOTT Travel Sentiment Tracker survey was done online with over 2,300 travel and tourism business owners and company representatives across the country over a period of 10 days.

“The pandemic has hit the travel and tourism sector hard with as many as 40 per cent companies facing the risk of complete shutdown in the next 3 to 6 months while another 35.7 per cent might go for a temporary shutdown,” it said.

The survey report further revealed that 38.6 per cent travel companies are going for job cuts and another 37.6 per cent of the companies are considering the option with uncertainty looming large.

“The travel and tourism sector is going through a very bad phase. It has taken a severe beating due to the COVID-19 outbreak with lakhs of people dependent on it suffering immense losses and job cuts,” the report said.

This survey has further confirmed fear that travel companies are staring at partial and complete shutdown in addition to job cuts, adjustment of workforce in form of pay cuts, deferment of salaries and termination of contracts, according to the survey.

“This is an unprecedented situation and the government should extend some relief for the survival of thousands of companies,” Travel Agents Association of India president Jyoti Mayal said.

As per the survey, 73 per cent travel companies have gone for adjustment of workforce including pay cuts, deferment of salaries, termination of contracts, while 67 per cent have gone for steps like reduction of overheads. About 49 per cent are deferring their capital expenditures and interestingly, 41.6 per cent companies are introducing new services.

About Impactnews Desk

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