40% travel firms staring at ‘complete shutdown’

Mumbai, May 25

Around 40% companies operating in the travel and tourism space are staring at the risk of complete shutdown over the 3-6 months, says a report, even as the domestic flights resumed operations today after over two-month suspension.

Also, nearly 36% of such companies are likely to witness a temporary shutdown, according to the report by BOTT Travel Sentiment Tracker in partnership with seven national associations like IATO, TAAI, ICPB, ADTOI, OTOAI, ATOAI and SITE.

The report said 81% firms have lost their revenue up to 100% while 15% of the companies have witnessed it slide up to 75%.

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% companies facing the risk of complete shutdown in the next 3 to 6 months while another 35.7% might go for a temporary shutdown,” it said.

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

“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% travel companies have gone for adjustment of workforce including pay cuts, deferment of salaries and termination of contracts. — PTI

39% companies go for job cuts

• As per report, 81% travel and tourism companies have lost their revenue up to 100% while 15% have witnessed it slide up to 75%
• The survey was done online with over 2,300 travel and tourism business owners and representatives across the country in 10 days
• 38.6% travel firms are going for job cuts and another 37.6% are considering the option with uncertainty looming large