INTRODUCTION

Tourism is travelling basically for leisure, business or for any other purpose. It can be
domestic i.e. within the country or international i.e. moving abroad. It is a part of service and
hospitality sector, and covers a lot more sectors such as aviation sector, transportation sector,
Hotels, resorts, rental services and entertainment arena such as casinos, malls, theme parks,
amusement parts, etc.
For India, Tourism holds a key place in service sector due to India’s rich cultural heritage and
colourful culture. There were estimates of this industry providing 52.3 Million jobs in the
country by 2028. According to World Travel & Tourism Council, India secured a rank of 10th
in terms of travel and tourism sector’s contribution to GDP. Apart from that, For 2019, Travel
and Tourism Industry contributed to 6.8% of total GDP. The GDP Contribution of the travel
and tourism industry is constantly growing through the years as seen below:

Apart from that, if we see quick analysis, we see that maximum travel and tourism industry
revenue has been sourced through leisure travel:
For Foreign travel and tourism market, the leading source countries of foreign tourists
arrivals in india in 2019 were :
The tourism industry of India is economically important and grows rapidly. The World Travel &
Tourism Council calculated that tourism generated INR6.4 trillion or 6.6% of the nation’s GDP in
2012. It supported 39.5 million jobs, 7.7% of its total employment. The sector is predicted to grow
at an average annual rate of 7.9% from 2013 to 2023. This gives India the third rank among
countries with the fastest growing tourism industries over the next decade. India has a large
medical tourism sector which is expected to grow at an estimated rate of 30% annually to reach
about 95 billion by 2015.

RESEARCH PROBLEM
 To find out the growth trend of tourism sector in Indian Economy.
 To find out how tourism sector got influenced by International, Economic and
Political events.
 To find out how tourism sector has got impacted by the government rules and
regulations.
 To find out how tourism sector leaders (companies) have performed versus laggards 
(companies) in that sector.  What made the leader companies winners in that sector.
 To find out the growth trend of tourism sector in Indian Economy
Tourism industry is key sector in Government’s Economic Development Program.
This sector has become a fastest growing sector in India.

Tourism Industry before COVID:

In FY18-19
The data by World Travel and Tourism Council (WTTC) reveals that in 2019 the tourism
industry in India contributed INR 194 billion to India’s GDP. The industry also supported
87.5 million jobs, 12.75% of total employment in 2018-19.
In FY19-20
Indian tourism industry contributes 9.5 percent of the GDP which is close to the contribution
on developed countries. In FY19-20, 39 million jobs were created in the tourism sector in
India; this accounted for 8.0% of the total employment in the country.In 2019, India recorded
10.8 million foreign tourist arrivals, a growth of 3.2% from 2018, earning USD 29.9 billion in
foreign exchange earnings. India was ranked 34th in the Travel and Tourism Competitiveness
Report 2019 published by World Economic Forum, up six positions from 40th in 2017.In
2019, 2.93 million foreign tourists availed the e-visa services, a y-o-y growth of 23.6%.

Impact of COVID on Tourism Industry:

Indian travel and tourism sector, which includes hotels, travel agencies, tour operators,
destinations, family entertainment venues, restaurants and air, land and sea transportation,
amongst others.
Given various travel restrictions imposed by the Indian government as well as governments
across the globe, various advance bookings have been cancelled. According to the apex
sectorial body, Federation of Associations in Indian Tourism & Hospitality (FAITH) most of
the summer holiday bookings have also been cancelled (about 60 per cent), thereby impacting
domestic tourism. The industry is projected to witness a loss of US $ 13.266 billion on
account of impact of COVID-19 pandemic.
The tourism industry also going to see a job cuts for 40-50 million people in India. The
Ministry of Tourism in its press release on April 10, 2020, also accepts that the tourism
industry is being badly hit in India and is regularly talking to its stakeholders on tourism
related issues. Hotels have been closed throughout India during the lockdown period along
with all kind of transport movements in India. The transport industry itself absorbers around
5 crores of jobs.
The Indian hotel industry has also been hit by the pandemic; estimated losses for 2020
increased to USD 6.3 billion and may reach USD 14 billion depending on the persistence of
the lockdown. This includes hotels and accommodation in both organized and unorganized
segments.With large scale cancellation of travel plans by both foreign and domestic tourists,
there has been a drop in both inbound and outbound tourism of approximately 67% and 52%
respectively from January to February as compared with the same period last year
The travel ban has largely impacted tour operators and travel agencies as the restrictions have
not only affected current bookings, but future bookings too. With March and April being
peak season for Indian travellers heading to both domestic and international destinations,
nearly 90% bookings of hotel and flights have been cancelled for the same period.
For tour operators and travel agents across the length and breadth of the country, average
losses in revenues compared with the same period (March & April) last year have been in the
range of 50-80%.
Several hotel businesses and travel operators in India including Ixigo, MakeMyTrip, OYO,
Mariott International, Treebo Hotels, FabHotels, and Lemon Tree Hotels have announced
plans to reduce senior employee salaries and introduced unpaid leave options in order to cope
with the financial impact caused by the crisis.

Indian Tourism Industry might benefit after COVID:

For perspective, Indians spent a whopping USD 26 billion on international travel last year, as
per World Bank estimates. The quantum of money spent by Indians on foreign shores is equal
to a tenth of the travel and tourism sectors contribution to the Indian economy. Contrary to
what some may presume, Indians are among the most lavish spenders in the world.
According to Forbes, an average Indian spends around US$ 1,200 per overseas trip. In
contrast, an American spends US$ 700 while a Briton spends US$ 500. The average Indian
spend is in fact almost four times more than even the Chinese, the biggest volumetric
influence of global travel and tourism. With the sheer volume of activity that jet-setting
Indians splurge on, there would be a resultant spike in economic activity.
The timing could not be more opportune as the Ministry of Tourism has been working
tirelessly on strategies to boost domestic tourism. A result of the prime minister’s
independence-day speech last year, when he exhorted citizens to explore 15 new destinations
over the next three years. The ‘Dekho Apna Desh’ campaign by the ministry is likely to
intensify in coming months as early initiatives and teasers have been well received.
We expect a post Covid-19 world will usher in some significant changes:
 Domestic travellers would expect a perceivable change in health and safety standards
when they have interface with stakeholders in the tourism value chain.
 Hospitality particularly will see technological innovation percolate for confidence
building measures of their guests.
 Road trips from major population centres will see a sizeable uptake for the months to
come.
 Family and multi-generational travel will be in vogue.
 Demand for responsible travel will be real, no longer limited to mere lip service and
by lines as nature and wildlife products will grab the attention of high spenders.
 Travellers will demand more gratifying ‘experiences’ as they bond with near and dear
ones.
 Travel insurance, once an afterthought will gain wider acceptability among flyers.
Restrictions on international travel will see a spurt in domestic tourism activity. KPMG in
India estimates that domestic tourism activity will touch 2.8 billion by 2022. The drivers of
growth could be two-fold. First, there would be multiple citizens coming out of nearly two
months of lockdown who would be itching to travel and experience normalcy. We could see a
weekend tourism boom, with people traveling to familiar destinations preferring cars over
mass transit options. Second, 40 million Indians who would have otherwise planned to
vacation overseas are largely restricted to domestic travel. As confidence in air travel
resumes, long haul destinations beyond the ‘four-hour travel barrier’ will see heightened
activity. Together these travellers will generate significant additional revenue for the
currently ailing industry.
2) To find out how tourism sector got influenced by International, Economic and
Political events.
INTERNATIONAL EVENT:
 Global Recession: The 2008 economic recession has resulted in the remarkable
reduction in the international tourist arrivals due to which there was the loss of
employment, sale of goods and services, investment and income of those households
which were directly or indirectly engaged in this profitable economic activity. The
tourism and hotel service in India was no exception, but it did not impacted india in
that manner and magnitude as the other countries of the globe were affected by 2008
global economic recession. It is because india shown unprecedented growth in
Medical and and Domestic industry. The FTAs had a negative percentage change (-
3.3)in 2009 due to global negative impact of 2008 global economic recession. The
table shows FTAs from 1997-2011:
 H1N1 Pandemic: H1N1 Pandemic has negative impact on the tourism industry in
terms of tourists inflows. This disease spreaded worldwide in 2009 but in India, it
outbreak and had led to significant morbidity and mortality in the year of 2015. There
was significant fall in tourism industry growth. In 2009, The percentage change in
foreign exchange Earnings(FEE) in US $million was -5.9% and Percentage change in
foregin Tourist arrival (FTA) was -2.2%. In 2015, the Percentage of FTA declined
from 10.2% to 4.5% as compare to previous year. The Non Residents Indians arrival
had registered negative growth of 3.15% in 2015.
 COVID 19 Pandemic: The CARE Ratings projected that the Indian tourism industry is
going to book a revenue loss of Rs 1.25 trillion which is 40 per cent decline in its
revenue over 2019 in calendar 2020 due to the shutdown of hotels and deferral in flight
operations since the lockdown imposed after coronavirus (Covid-19) pandemic has hit the
country. The same study has also highlighted that during April-June, the Indian tourism
industry is expected to book a revenue loss of 30 per cent year-on-year.
According to Grand Thorton Report, The travel and tourism industry in India is
looking at up to 40 million job losses (both direct and indirect) and about USD 17 billion
in revenue loss in the next one year.
The Indian hospitality sector has also been hit by the pandemic and estimated losses for
2020 increased to USD 6.3 billion and may reach USD 14 billion depending on the future
condition. This includes hotels and accommodation in both organised and unorganised
segments.

Political Event:
 Abolition of Article 370: As Kashmir is famous for its natural beauty and
picturesque locations and Favourite destination for domestic tourist as well as
international tourist. After the abolition of Article 370, lockdown was imposed in
Kashmir. According to the IndiaSpend, due to this in 2019, the number of tourists
 arrival between August and December has fell to 43059 from 316434 in 2018. The
following table shows the number of tourist arrivals during these months.
Months Number of Tourists arrival
August 2019 10130
September 2019 4562
November 2019 12086
December 2019 16281
Tourism accounts for 7% of state’s gross domestic product.

 US and UK Economies: India gets most of the Foreign Tourist arrivals from US and
UK. In 2019, India’s tourism sector was hit by the global economic slowdown
headwinds. Foreign tourist arrivals grew a mere 2.12 per cent in the first half of
calendar 2019 — the lowest as compare to the last four years.
BREXIT in the UK and recession fears in large parts of Europe and the US have
created nervousness among people and they are not willing to spend money on travel.
Bangladesh, the US, the UK, China, Sri Lanka, France and Canada are among the top
15 source markets for foreign tourist arrivals (FTAs) in India. These countries account
for over 75 per cent of the total FTAs. Many of these economies are either impacted
by the economic slowdown or are facing geopolitical issues. All these factors
influence the tourism sector and economic growth as well.

To find out how tourism sector has got impacted by the government rules and
regulations.
In the early days of independent India, GOI was focused more on Roti Kapda & Makan So,
they didn't pay much attention to the tourism sector. The first step ever taken for the tourism
industry was the creation of the Indian Tourism Development Corporation (ITDC) in 1966
with aim of developing tourist infrastructure & services. Various states like J&K, Himachal
Pradesh, Goa & Kerala are mostly dependent on tourism and they used to make 5 year plans
for developing and promoting tourism. 1967 marks another milestone with the formation of
the Ministry of Tourism, GOI.
Finally in 1982, the first tourism policy was incorporated by the government of India in the
wake of Asian Games 1982. The main focus was on accommodating, transporting and
entertaining the large number of visitors. During that time tourism was India’s largest net
earner of foreign currency. Making of a tourist circuit like golden triangle which connects
Delhi-Jaipur-Agra & the Bombay-Goa shopping and beach circuit. Apart from this various
alternatives circuits which were focused on rural & backward cities called contels
(Condominium Hotels) were developed according to data by GOI.
In 1987, Formation of a special public tourism finance corporation with thought of inviting
private investors and entrepreneurs to participate in tourism development. The opening of
Indian market in the 1990s created a strong need to focus on tourism & investments &
peoples from other countries are now recognizing India as a rapid emerging economic
superpower. Right from 1997 the department of tourism was working on a new National
Tourism Action Plan and this action plan was finally translated into a tourism policy in 2002.
This new policy starts with the idea that the tourism industry is to be used as one of the
development tools i.e. it can generate high quality, mass employment and prosperity among
vulnerable groups in backward areas. This policy however does not include any kind of clear
strategy nor assigning responsibilities and roles across government & private agencies. Most
of the things mentioned in policy were dependent on state government.
The government is heavily supporting the tourism industry, which bodies well for long-term
growth. The country is implementing new tourism policies that include infrastructure
development to boost connectivity, such as developing the cruise industry and creating new
air routes. Overseas marketing campaigns are contributing to growth alongside the
development of niche tourism markets, such as medical and wellness, religious and spiritual
tourism, as well as meetings, incentives, conferences and exhibitions. The government has
also strongly targeted the domestic market with campaigns aimed at boosting domestic
tourism.
Tourist Police: 1.In March 2018, Ministry of Tourism initiated State Governments/Union
Territory (UT) administrations of India to deploy tourist police.
2.In November 2019, Nagaland deployed a separate tourist police.

Tax Incentives: In 2019, the Government reduced GST on hotel rooms with tariffs of Rs.
1,001 (US$ 14.32) to Rs. 7,500 (US$107.31) per night to 12% and those above Rs. 7,501
(US$ 107.32) to 18% to increase India’s competitiveness as a tourism destination.

Safety and Security Measures: 1. The Ministry of Tourism has launched a 24x7 toll free
multilingual tourist information helpline in 12 languages to provide information related to
travel in India.

2. Ministry of Tourism issued guidelines on Safety and Security for States/UTs along
with tips for tourists.

3. Ministry of Tourism Launched social media awareness campaign in the spirit of

‘Atithidevo Bhava’ to develop importance of good conduct and behaviour towards
tourists.

Incentives from Ministry of Tourism: 1. Providing assistance in large revenue-

generating projects.

2. Supporting public private partnerships (PPP) for infrastructure development such as

viability gap funding.

3. Under budget 2019-20, Government introduced a Tax Refund for Tourists (TRT)
scheme similar to countries like Singapore to encourage tourists to spend more in India
and boost tourism.

Project Mausam: 1. Under ‘Project Mausam’, the Government proposed to establish

Cross Cultural linkages and revive historic maritime cultural and economic ties with 39
Indian Ocean countries. In 2015, the Government linked China Silk Road project with
Project Mausam.
 E-tourist Visa: 1. The number of tourists arriving on e-Tourist Visa grew 23.6% year-on-
year to 2.36 million in 2019.

2. Foreigner travelling to India on e-Tourist Visa will receive a pre-activated BSNL SIM
card loaded with talktime and data.

India Tourism Mart 2019: 1. In September 2019, the second session of India Tourism
Mart (ITM 2019) was organised. It was a three-day event organised by FAITH
(Federation of Associations in Indian Tourism and Hospitality) and the Ministry of
Tourism, Government of India. 160 exhibitors from across the country came together to
interact and transact business.

Incredible India 2.0: Incredible India 2.0 campaign focusing on niche tourism in order to
promote India as a 365-day destination to overcome seasonal challenge.

Dekho Apna Desh campaign to incentivise frequent domestic travel within one year.

Swadesh Darshan:1.Under this scheme, Government has identified 15 circuits which

include Krishna Circuit, Buddhist Circuit, Himalayan Circuit, Northeast Circuit, Coastal
Circuit, wildlife circuit and tribal circuit based on specific themes

PRASAD Scheme: 1. National Mission on Pilgrimage Rejuvenation & Spiritual

Augmentation was implemented by the Ministry for enhancing the facilities and
infrastructure provided at pilgrimage centres across the country. Under Budget 2020-21,
the Government has allocated Rs. 207.55 crore (US$ 29.70 million) for the development
of tourist circuits under PRASHAD.

Statue of Unity: 1.Statue of Sardar Vallabhbhai Patel, also known as ‘State of Unity’,
was inaugurated in October 2018. It is the highest standing statue in the world at a height
of 182 metres. It is expected to boost the tourism sector in the country and put India on
the world tourism map.

2. Over 3 million tourists visited the Statue of Unity since it was inaugurated, resulting in
a revenue of Rs. 82.51 crore (US$ 11.81 million).

The following table shows the trend of FTAs in India:

 Growth in tourist arrivals has been due to flexible Government policies and initiatives,
developed rail & road infrastructure, ease in availability of E-Tourist Visa to foreign
tourists with a CAGR 7.96%. During 2019, foreign tourist arrivals (FTAs) in India stood
at 10.89 million by achieving a growth rate of 3.20% year-on-year.

Tourist arrivals through e-Tourist Visa has increased with a CAGR 39.44% during 2016
-19 to reach 2.93 million tourists in 2019.

Several relief measures have been recommended to the Government of India -

According to recent study done by Deloitte stating that In the 18-34 age group, 41 percent
people feel safe flying right now and 38 percent are comfortable staying in a hotel. In the 35-
54 age group, less than 45 &t feel safe taking a flight or staying in a hotel. Surprisingly in the
55+ age group, more than 65 % of people feel safe flying or staying in a hotel because of
lower anxiety levels compared with wave 1.

Six-month moratorium to be extended to a minimum 12-month moratorium period on all

working capital, principal, interest payments, loans and overdrafts

• Permit one-time rescheduling of principal/interest dues in line with the estimated cash flows
of each project post recovery from COVID-19 without treating it as restructuring, re-
classification/downgrading in asset qualification and requirement of additional provisioning.

• 12-month waiver of all statutory dues including customs, excise and license fees and
increase in insurance premiums

• Stimulus package to provide salary support to businesses

• ESI contribution to be deferred for 12 months. Insurance corpus of ESI should to be used to
provide wages to all covered workers

• Waiver and/or reduction of GST on products offered by the sector for a 12-month period

• Direct cash support for the aviation sector (airlines, ground handling and airports)

• Waiver of parking and landing charges

• Short-term, interest-free or low-interest loans for rebuilding businesses in the form of term
loans and working capital loans

• Create a separate tourism fund under the aegis of Ministry of Tourism, accessible to the
industry as a collateral free, 10 year loan, with a moratorium of two years and minimal rate of
interest to support businesses stabilise in this time of crisis

To find out how tourism sector leaders (companies) have performed versus laggards 
(companies) in that sector.  What made the leader companies winners in that sector.
Sector leaders based on revenue:

1.Thomas Cook (India) Limited-Tour operators

2. Taj Hotels and Mariott hotel- Hospitality Sector

3. MakeMyTrip-Online Booking

Sector laggards based on sales:

1. cox and kings Limited

2. Aruna hotels Ltd.

3. ritco tours and travel Limited

About the companies:

1. Thomas Cook (India) Limited: Leader

Thomas Cook (India) Ltd. (TCIL) is the leading integrated travel services company in the
country offering a broad spectrum of services that include Foreign Exchange, Corporate
Travel, MICE, Leisure Travel, Value Added Services, Visa & Passport services and E-
Business. The company set up its first office in India in 1881.

The Thomas Cook India Group spanning 25 countries across 5 continents, a team of over
8388 and a combined revenue in excess of Rs. 6948.3 Cr. (over $ 0.93 Bn.) for the
financial year ended March 31, 2020, operates leading B2C and B2B brands. Thomas
cook limited in India  registered a significant 21% growth in demand. Despite having an
impact because of its goodwill, it has been able to maintain a secure financial position.

According to Thomas Cook India’s Holiday Readiness Report - Future of Travel post
COVID-19: 64% respondents were keen on a domestic holiday; 75% ranking health &
safety as a primary concern. To ensure a perfect blend, Thomas Cook’s Staycations are
designed to allow Indians to unwind at hotels in their home city or at a convenient
driveable distance close to home - saving on time, additional travel expenses and without
the stress of complex itinerary planning. Hotels have been carefully selected under the
Company’s Assured Program in partnership with Apollo Clinics, to ensure health and
safety standards. Less time spent on travelling results in more time on the actual holiday -
to rest, relax and indulge in precious me-time or family fun time.

 Affordable and accessible – The offers and prices are such that it makes the holidays
of people really affordable and accessible in the European region.
 Availability of customization and flexibility – Thomas Cook provides a great deal of
customization and flexible options for holiday packages design as per the needs of the
individuals. This makes them one of the favourite travel shops.
  Global presence – The Company has a global presence in multiple domains like
flights, hotels, resorts, holiday packages and many others making it a truly global
travel company.
 Widespread coverage of destinations with a huge customer base – Thomas Cook
covers more than 100 destinations all over the world and caters to around 7 million
customers for different travel needs.
 Diverse employee strength all over the world – Having more than 20000 employees
sitting and traveling around the world again gives the company a global image
improving its brand awareness as a whole.
  Increased brand awareness by associating with international sporting events – The
major association with London Olympics 2012 boosted up the brand awareness and
recall to a great extent. They have also been major sponsors of some football clubs
like Manchester City and Peterborough United which have helped in improving the
brand value.
 Strong brand presence with effective promotional activities – The brand is present in
all the major promotional mediums like TV ads, digital media and hoarding
advertising establishing its presence everywhere.

2. Cox & Kings Limited: Laggard

Cox & Kings Limited (CKL) was the longest established travel company in the world since
1758. Headquartered in India, it was a premium brand that caters to the overall travel needs
of the Indian and International traveller.

Cox & Kings was a financially sound company with stable revenue and profit and with
constantly increasing networth and diversity in operations. Below image evidences the same:

With constant increase in operations and continuous expansion of business, increased

borrowings are justified. Company was maintaining healthy profits with good dividend
payout of 20% till FY 2017-18 which has led to belief that company is a financially sound
company and company’s share was trading over Rs 200 till the end of the year 2018.
 Below reasons has led to decrease in value of the company from 1.2 Billion Dollars (Around
9000 Crores) in FY 2017-18 to Rs 16.77 Crores Market Capitalization as on date.

Reasons for failure are:

1. Leverage Buyout:

East India Travel Company, Tempo Holidays, Holiday Break and LateRooms Ltd some of
the companies acquired by Cox & Kings. These acquisitions led to increased debt and
thereby huge finance cost on the company.

2. Unrelated diversification:

Cox & Kings has opted for aggressive risk-taking approach whereby acquiring various
companies with debt funds and some of them are in business that is not related (education
business and NBFCs etc.) to the main business of packaged holidays of the company.
Such acquisitions will have following impact:
 No / negligible synergy effect for current business
 Lack of focus on main business due to various unrelated businesses
 Lack of focus resulting loss of stake in core business to competitors thereby decreased
cashflows from the same.
3. Cash Crunch and Huge Debt:
leverage buyouts led to cash crunch as a result of increased debt obligations since
acquired businesses could not perform as expected. This has resulted in company
selling some of its business units for the purpose of raising funds for meeting debt
obligations.
4. Siphoning of funds and fraudulent Financial statements: Yes Bank, which has Rs
2267.22 Crores outstanding from the company has ordered for Forensic Audit from
PWC since the company has defaulted in repayment of Rs 200 Crores in the month of
June 2019 despite having Rs 723 Crores of Cash & Cash Equivalents and Rs 2,031
Crores Debtors as on 31st March 2019. This has unveiled siphoning of crores of rupees
and fraudulent financial reporting happened in past 4 years.
Comparison of amounts payable as per Audited Financial Statements for the period
ended 31st March 2019 with information filed on 14th April 2020 with Liquidator
upon bankruptcy has shown following discrepancy (Amount in Crores):

Particulars 31-Mar-19 14-Apr-20 Difference

 Financial Creditors 1,985.84 5,901.32 3,915.48

 Operational Creditors & Workmen 675.57 747.15 71.58

  2,661.41 6,648.47 3,987.06

Difference of 71.58 Crores of due to Operational Creditors and Workmen is not a

major difference since Financial information from 01st April 2019 is not made
available by the company but difference of Rs 3,915 Crores reveals suppression of
 debt by the company.

6000
Profi t Comparision
5000

4000
Profit(in Rs. Million)

3000

2000

1000

-1000
Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
YEAR
Thomas Cook (India) Ltd. Cox & Kings Ltd.

Hospitality Sector : Leader

1. Sarovar Hotels and Resorts: Sarovar Hotels, India's Leading Hotel Chain is an
opulent chain of both leisure and corporate hotels which provide immaculate
services. Their motto is “Hygiene & Safety is Our Priority, Because YOU
Matter”. They focused on maintaining the highest standards of cleanliness and
hygiene. The points which make them stood as leader are:
 Thermal Scanning at the entry gate.
 Maximum Guest per hall 50% of capacity.
 Check out the Arogya Setu app.
 WHO-approved cleaning and sanitizing.
 Seating Plan as per social distancing norms
 Pre-portioned starters for enhanced safety
Cost cutting measures: Individual hotels have been able to bring down their daily
expenses by 60-70 per cent, especially by downsizing air conditioning operations and
the number of floors that are operational per hotel. Cities that had multiple hotels (of a
group) had limited the operations to only one hotel. Besides this, there is a deferment
of rentals and annual maintenance contract renewals.
2. Marriott Hotel: Marriott had granted a full-year extension to everyone who
had earned their status in 2019 (for 2020), making their status valid through
February 2022 instead of February 2021. Overnight, Marriott has made some
more perks and promotional pricing happen for members, which will make
things better for members when they finally get back on the road again. They
focused on customer experience.
3. Laggards: Aruna Hotels: Aruna Hotels Ltd. is a public limited company
incorporated on 9 September 1960. It is classified as Non-govt company and is
registered at Registrar of Companies, Chennai. Aruna hotel is a luxurious
hotel preferred built on a spacious area of more than an acre. The business
centre has state-of-the art business facilities. It organizes meetings,
conferences and other business meets. The hotel also provides facilities to
conduct informal functions like wedding, receptions, birthday parties and
other social functions in the hall.
 With high operating and financial leverage, estimated cash breakeven occupancy
for a typical 200-room premium hotel is at about 38-40%. Financial leverage is
high, given the asset-heavy nature of the industry, with average interest cover of
2x and total debt by EBITDA of 5x in ICRA’s sample of 50 hotels across credit
profiles.
At present the hospitality industry in India is operating at 10-15 per cent
occupancy and losses are mounting. It is expected that there will be a 30-50
per cent decline in revenue per available room (RevPARs) during FY2021.

Online Booking :leader

1. MakeMyTrip: MakeMyTrip.com, India’s leading online travel company was founded in the
year 2000 by Deep Kalra. Created to empower the Indian traveller with instant booking and
comprehensive choices, the company began its journey in the US-India travel market. It
aimed to offer a range of best-value products and services along with cutting-edge technology
and dedicated round-the-clock customer support.

Today, MakeMyTrip is much more than just a travel portal or a famous pioneering brand - it is a one-
stop-travel-shop that offers the broadest selection of travel products and services in India.
MakeMyTrip is the undisputed online leader, with its share of the travel market extending to more
than 50% of all online sales, a fact evinced by the trust placed in it by millions of happy customers.

Remaining reliable, efficient and at the forefront of technology, MakeMyTrip’s commitment and
customer-centricity allows it to better understand and provide for its customers’ diverse needs and
wants, and deliver consistently. With dedicated 24x7 customer support and offices in 20 cities across
India and 2 international offices in New York and San Francisco (in addition to several franchise .

 Good Returns on Capital Expenditure – MakeMyTrip Limited is relatively successful at

execution of new projects and generates good returns on capital expenditure by building new
revenue streams.
 Reliable suppliers – It has a strong base of reliable suppliers of raw material thus enabling the
company to overcome any supply chain bottlenecks.
 Highly skilled workforce through successful training and learning programs. MakeMyTrip
Limited is investing huge resources in training and development of its employees resulting in
a workforce that is not only highly skilled but also motivated to achieve more.
 Strong dealer community – It has built a culture among distributors & dealers where the
dealers not only promote the company's products but also invest in training the sales team to
explain to the customer how he/she can extract the maximum benefits out of the products.
 Strong distribution network – Over the years MakeMyTrip Limited has built a reliable
distribution network that can reach the majority of its potential market.
 Highly successful at Go To Market strategies for its products.
 Automation of activities brought consistency of quality to MakeMyTrip Limited products and
has enabled the company to scale up and scale down based on the demand conditions in the
market.
 High level of customer satisfaction – the company with its dedicated customer relationship
management department has been able to achieve a high level of customer satisfaction among
present customers and good brand equity among the potential customers.

2.Ritco Tours and Travel(laggards): Ritco Travels & Tours Pvt. Ltd. is a private limited
company incorporated on 20 September 2010. Ritco Travels & Tours is a small-sized
company with revenues of Rs.67 million as per the latest annual report of the company for
the year ended 31 March 2020. Ritco Travels provides the following services

 Domestic and International Air Ticketing

 Passport and Visa Assistance
 Hotel Booking, Railway Booking, Conference Hall booking
 Travel Insurance
 Domestic and International Tour Packages
 Inbound, Outbound and Incentive Tour Packages

Analysis of impact of COVID on the sector

The Asia Pacific region, in particular, is heavily exposed to the pandemic and related travel
restrictions. As a result, Covid-19 will remain the greatest downside risk to the country's tourism
sector over the short term, at least. Although the Indian government remains steadfast in its
commitment to developing the tourism industry, short-term priorities have had to shift toward the
immediate Covid-19 crisis and its severe economic impact. Over the medium term, we expect slow
but steady recovery to India's tourism industry, as controls lift, panic subsides and the outbreak is
under control. But even by 2024, we do not expect total arrivals to reach their pre-Covid, 2019 high.

Latest Updates in the Tourism Sector

 According to the Federation of Associations in Indian Tourism and Hospitality, the Indian
tourism industry could experience 38mn job losses - approximately 70% of its total workforce
- due to Covid-19.
 In late June 2020, the Union Aviation Ministry stated that the government is considering
establishment of 'individual bilateral bubbles' with the US, the UK, Germany and France for
allowing airlines of the respective countries in the agreement to operate international
passenger flights.
 In order to come up with key strategies for India to harness the potential of its large domestic
tourism market, T3 partnered with Association of Domestic Tour Operators of India to
organise an e-Conference recently titled 'Domestic Tourism: An Opportunity Unexplored'.
 On May 25, India resumed domestic flights but there has been growing concern that lax
enforcement of safety measures will contribute to the spread of Covid-19 via the country's air
 routes. On July 6, Kolkata Airport barred flights arriving from six Indian cities, including
Delhi and Mumbai, until at least July 19.
 Delhi International Airport Limited, which operates Indira Gandhi International Airport, said
it is working towards the commissioning of the terminal soon to support the movement of
passengers flying on chartered flights from the airport. An official from the airport said the
terminal may be operational as early as by the end of July 2020.
 Thanks to the Vande Bharat Mission for the evacuation Indians, Delhi and Mumbai airports,
for the first time, handled flights to and from some countries, which they hope will become
regular destinations on their charts, once international operations resume. The new
destinations included the following: Auckland, Christchurch and Wellington (New Zealand);
Brisbane (Australia); Cairo and Marsa Alam (Egypt); Domodedovo (Russia); Dublin
(Ireland); Ankara (Turkey); Hamburg-Finkenwerder(Germany); Johannesburg (South Africa);
Manila (the Philippines); Ras Al Khaimah (UAE). Chartered fights of several foreign airlines
came to India for the first time: BH Air, SCAT Airlines, Garuda Indonesia, Lion Airlines,
Cambodia Angkor Air, Lanmei Airlines, Egyptair, Niger Air, Air New Zealand, Air Peace
Limited, Qantas Airways, South African Airways and Brussels Airlines. 

CONCLUSION
Travel industry was one of the first industries to be hit and I think one of the last industries to
maybe make a comeback.

Elizabeth Becker, author of Overbooked: The Exploding Business of Travel and Tourism, notes that
the pandemic “decimated” the $8 trillion global travel industry overnight. “Those essential pillars of
21st-century global travel—open borders, open destinations, and visa-free travel—won’t return in
the short term or even medium term,” she says.

Tourism Industry faced its worst three quarters ever over a century. We would also like to remind
you all that tourism industry has also faced if not worst but still destructive affects before this year
also because of many socio, economic, political factors but every time it bounces back and thrives.

We are very optimistic that industry will recover soon though recovery may be slow.

Some of the opportunities for tourism industry , we can conclude are as follows:

1. There will be growth in domestic tourism as people after the pandemic will prefer short trips
and untapped destinations where they can easily reach by using their private vehicles.

2. The pandemic has been hard on people and many are desperate for holidays. So there is
switch in focus towards leisure customers.

3. It is predicted that Eco travel is a new trend as there is growing concern among today’s
travelers for ethical and sustainable tourism options.

Also tomorrow’s tourists will tend to rely more on technology. With the introduction of the next
generation apps and online services,tourism.
The factors such as foreign exchange earnings, international tourists spending, domestic expenditure
on tourism and capital investment by all industries related to travel and tourism are critical in
making tourism industry an engine of economic growth.

A growing middle and upper class should help in fuelling demand for domestic tourism. The
long-term growth potential of the huge domestic market, which significantly outweighs the
international market, is a very attractive prospect for investors

Total contribution by travel and tourism sector to India’s GDP was expected to increase from
Rs. 15.24 lakh crore (US$ 234.03 billion) in 2017 to Rs. 32.05 lakh crore (US$ 492.21 billion)
in 2028 but due to Covid 19, something new is waiting.

Reference COVID-19 impact: Several hotels may shut down permanently

because of rising credit level