India’s travel sector is staring at immense Job and revenue losses due to the Coronavirus Lockdown.
Different Industry estimates show how the pandemic is going to hit the travel industry in the coming months.
Tourism and hospitality remain one of the worst-hit sectors of the Coronavirus epidemic. Some industry experts believe that the COVID-19 outbreak will change the travel industry forever.
India’s Travel Sector: COVID- 19 Challenges
Estimates from the National Sample Survey (NSS) and Periodic Labour Force Surveys (PLFS), India could see a loss of around 136 million jobs across industries due to the lockdown and Coronavirus spread.
|According to Confederation of Indian Industry (CII), as many as 20 million jobs might be lost if the tourism industry doesn’t rebound by October|
|Federation of Association in Indian Tourism and Hospitality (FAITH) stated an estimated 70 per cent of the 5.5 crore people employed in the tourism business could lose their jobs.|
|The hotel industry may see only 15-20 per cent of the yearly Rs 37,000- crore revenue in 2020.|
Hotel Industry witnessing immense losses
Hotel industry which includes the organised and unorganised hotels including 1, 2,3,4 and 5-star hotels are facing immense losses in wake of COVID19 breakdown.
Industry gurus are of the view that in 2020, the industry will only be able to make 20 per cent of its annual revenue.
The revenue losses come as hotels are witnessing a sharp decline in the occupancy rates. Hotel room occupancies have declined by as much as 70 per cent in March when the lockdown was announced.
An extension of the lockdown could bring the percentage even lower.
The hotel industry in India is finding it hard to sustain the brunt of this pandemic. There are also speculations that even if the problem is tackled in the near future, it might take quite a while before people start to travel and trade and tourism resume to its original state.
India’s Travel Sector facing job losses across all verticals- Online & Offline
India’s travel sector not only includes large capital structures such as hotels, but it also includes smaller unorganised players. These include such as local travel guides, local tour operators, etc. The current downturn will hit people employed with travel at all levels.
According to Federation of Association in Indian Tourism and Hospitality (FAITH), An estimated 70 per cent of the 5.5 crore people employed in the tourism business could lose their jobs. This includes hotels, tourism companies, middlemen, etc. The job losses have already begun.
- MakeMyTrip, Cleartrip, ixigo and hospitality chain Fab Hotels are among the companies looking at salary cuts while a few others have started sacking staff.
- TravelTriangle laid off over 250 employees amidst the COVID crisis.
- Travel Startups are also among the hardest hit by the COVID-19 outbreak.
Acko, Bounce, MakeMyTrip, others hardest hit by COVID-19 turn to layoffs, salary cuts, Economic Times
TravelTriangle lays off over 250 employees due to COVID crisis, Entrackr
Hotel industry staring monumental wipeout of revenues, high job losses, Money Control
Over 136 million jobs are at risk due to Corona lockdown — Here are the worst-hit sectors, Business Insider