The Indian travel and tourism industry, which has been already reeling under the impact of the global slowdown, could next be a victim of the swine flu outbreak. India issued a travel advisory on Monday asking citizens to avoid ‘non-essential travel’ to New Zealand, Mexico, the US, Canada, Spain, France and Britain. Among these countries, the US and the UK are the biggest destinations for Indian travellers.
Moreover, a team of doctors has been stationed at the nine major international airports to screen all the inbound tourists especially from these countries. Considering that it is unclear when the disease would be contained, the travel industry could witness cancellations and a further drop in the business.
“Most of the corporate travel is undertaken by professionals from the IT & the ITeS industry and the US and the UK are their biggest markets. So, definitely outbound travel will get impacted,” said Praveen Gandhi, CEO, Carlson Wagonlit Travel India, one of the largest corporate travel companies in India. He added that corporates take these advisories pretty seriously.
For leisure travel, Mexico and Spain are not very popular among Indians. However, the US, UK and France are some of the biggest attractions for people on holiday from India. “Though it is non-season in New Zealand right now, Indians are travelling to the country as it is summer vacations here. However, people travelling with family and kids are likely put a hold on their plans after the advisory,” said Pradeep Lulla, president of the Travel Agents Federation of India.
Financial Express
Thursday, April 30, 2009
Travel loans take a beating as slump bites
There are few takers for travel loans, say tour operators, even as the season for outbound travel has set in. They attribute the contraction in demand to the economic slowdown and higher interest rates for travel loans.
People usually opt for travel loans for outbound travel, especially to destinations like Europe, US, Australia and New Zealand among others. Summer holidays (April-July) account for 60% of the total outbound travel in a year. Last year 10 million Indians travelled abroad.
Says Karan Anand, head, relationships and supplier management at Cox & Kings, "The concept of travel loans is still at a nascent stage. But it was beginning to catch up. However, we don't expect to see the same kind of growth we saw last year.'' Last year only 5-7% of the total travellers opted for a travel loan, as many consider travelling abroad as a luxury. Cox & Kings has an arrangement with Citibank for the same.
Travel firms also say that travel loans, which are clubbed under the personal loan segment, is not a top priority for banks. Though there is enough liquidity in the banking system, banks are reluctant to disburse loans which they fear could be on the default category. Another reason why travellers are not keen on borrowing is that personal loans comes with a higher interest rate (12-19%) as compared to housing, auto or education loan among others. Also, operators feel that people may be hesitant to undertake expensive holidays, that too with a higher interest rate, considering that India Inc has slashed pays and also there are job cuts.
Bankers, however, maintained that they don't have any data on travel loans, as they club it along with personal loans. "We don't offer travel loans. Anyone who applies for a personal loan can use it for whatever purpose he wants to. We don't ask them any questions,'' said an official with a foreign bank. "All we look at is the person's credentials, history, his repaying capacity,'' he added. According to another private lender, banks may not be too keen to disburse personal loans as they are unsecured and carry a heavy default risk. "When somebody is going through financial difficulties, he or she is not likely to default on the housing loan. Most likely they are going to default on their personal loans first, then the car loan and only then they would think of defaulting on the housing loan. That is why personal loans are considered risky by banks,'' he said
Times Of India
People usually opt for travel loans for outbound travel, especially to destinations like Europe, US, Australia and New Zealand among others. Summer holidays (April-July) account for 60% of the total outbound travel in a year. Last year 10 million Indians travelled abroad.
Says Karan Anand, head, relationships and supplier management at Cox & Kings, "The concept of travel loans is still at a nascent stage. But it was beginning to catch up. However, we don't expect to see the same kind of growth we saw last year.'' Last year only 5-7% of the total travellers opted for a travel loan, as many consider travelling abroad as a luxury. Cox & Kings has an arrangement with Citibank for the same.
Travel firms also say that travel loans, which are clubbed under the personal loan segment, is not a top priority for banks. Though there is enough liquidity in the banking system, banks are reluctant to disburse loans which they fear could be on the default category. Another reason why travellers are not keen on borrowing is that personal loans comes with a higher interest rate (12-19%) as compared to housing, auto or education loan among others. Also, operators feel that people may be hesitant to undertake expensive holidays, that too with a higher interest rate, considering that India Inc has slashed pays and also there are job cuts.
Bankers, however, maintained that they don't have any data on travel loans, as they club it along with personal loans. "We don't offer travel loans. Anyone who applies for a personal loan can use it for whatever purpose he wants to. We don't ask them any questions,'' said an official with a foreign bank. "All we look at is the person's credentials, history, his repaying capacity,'' he added. According to another private lender, banks may not be too keen to disburse personal loans as they are unsecured and carry a heavy default risk. "When somebody is going through financial difficulties, he or she is not likely to default on the housing loan. Most likely they are going to default on their personal loans first, then the car loan and only then they would think of defaulting on the housing loan. That is why personal loans are considered risky by banks,'' he said
Times Of India
Economic slowdown changing travel trends, say experts.
The economic downturn is unlikely to affect the Indian tourism industry but only trigger a change of travel trends and preferences in the market, according to industry experts. “Now travellers lay more emphasis on the location choice as compared to the brand,” ITC hotels division chief executive Nakul Anand said at a tourism conclave held Thursday ahead of India’s oldest travel and tourism mart, SATTE 2009.
“People want guilt-free holidays these days, due to recession and other such factors. The concept of volun-tourism has also come up, wherein people go to new places and voluntarily associate themselves with a social cause while enjoying their stay and travel,” Anand added.
Richard Bangs, co-founder of the US-based adventure travel operator Mountain Travel, stressed that while the slowdown had left many jobless, there was still a large segment which had time and money to invest in travel.
“Conventionally, there were two types of travellers - time rich, cash poor and cash rich, time poor. After the recession there are people who are time and cash rich,” said Bangs, considered one of the founders of adventure tourism.
“Many of them invest their time and money in safaris in the African continent. India is a new potential market segment to tap,” he stressed while speaking at a session on the significance of niche and luxury tourism.
Deep Kalra, chief executive of popular travel portal Makemytrip.com, said the industry had to also focus on the market demand.
“During this economic slowdown, people haven’t really cut down on their travelling. Their way of travelling has changed. Now most people prefer shorter but frequent trips instead of taking really long breaks at once. So the industry needs to work on this.”
The two-day SATTE 2009 mart starting Friday is the 16th edition of the event that over the years has grown to become a leading travel exchange platform in Asia. Organisers estimate a 20 percent increase in overseas buyers, interested in promoting the rich heritage of “Incredible India” abroad, this year.
Summing up India’s position in the industry, Naveen Berry, chief coordinator of SATTE said: “A recently released report by a leading global audit and consulting firm pegs the worth of the Indian tourism business at $42.8 billion annually by 2017 (from the present level of $27 billion).”
Asian Age
“People want guilt-free holidays these days, due to recession and other such factors. The concept of volun-tourism has also come up, wherein people go to new places and voluntarily associate themselves with a social cause while enjoying their stay and travel,” Anand added.
Richard Bangs, co-founder of the US-based adventure travel operator Mountain Travel, stressed that while the slowdown had left many jobless, there was still a large segment which had time and money to invest in travel.
“Conventionally, there were two types of travellers - time rich, cash poor and cash rich, time poor. After the recession there are people who are time and cash rich,” said Bangs, considered one of the founders of adventure tourism.
“Many of them invest their time and money in safaris in the African continent. India is a new potential market segment to tap,” he stressed while speaking at a session on the significance of niche and luxury tourism.
Deep Kalra, chief executive of popular travel portal Makemytrip.com, said the industry had to also focus on the market demand.
“During this economic slowdown, people haven’t really cut down on their travelling. Their way of travelling has changed. Now most people prefer shorter but frequent trips instead of taking really long breaks at once. So the industry needs to work on this.”
The two-day SATTE 2009 mart starting Friday is the 16th edition of the event that over the years has grown to become a leading travel exchange platform in Asia. Organisers estimate a 20 percent increase in overseas buyers, interested in promoting the rich heritage of “Incredible India” abroad, this year.
Summing up India’s position in the industry, Naveen Berry, chief coordinator of SATTE said: “A recently released report by a leading global audit and consulting firm pegs the worth of the Indian tourism business at $42.8 billion annually by 2017 (from the present level of $27 billion).”
Asian Age
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