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Local Bookings will mainly drive the Travel Businesses in India.

Community - HC by Community - HC
May 15, 2021
in News, Tourism Management
Reading Time: 3 mins read
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NEWS – Happenings of Hospitality
Local Bookings Will Drive Travel Business, Meanwhile…
hostel chain Zostel’s CEO Dharmaveer Singh Chouhan added that the hospitality sector had just started making a recovery and another lockdown could be devastating for the segment as a whole.

Zostel was one of the companies that introduced long term backpackers rental offering to capitalise on the concepts of staycation and workation trends. The company continues to offer the option, but believes that it could note a 35% dip in its booking as the second wave comes by.

Praxis Global’s Singhal too believes that local short-distance tourism, especially medium-to-long-term stays will continue to witness good demand, especially since a lot of people from metro cities are breaking out of the cities to stay there.

Barring that segment, all the other hospitality offers will nosedive substantially. “There was a 70% drop in occupancy last year, we can expect a similar 70-75% drop in the next two months,” he added.

It is important to note that companies like OYO, Fab Hotels and Treebo had decided to open their doors as a quarantine facility for suspected Covid-19 cases as well as those who have to compulsorily self-isolate themselves.

Softbank-backed OYO had also come on record to say that the company noted a 50% to 60% drop in its occupancy rate and revenues. The decline in OYO’s revenues led to the salary cuts, furloughs and layoffs across all 80 countries it was operating in, walking the company to a breakeven point with revenue dipping to $30 Mn.

The company, which claimed that it was recovering well from the pandemic blues, will once again start experiencing negative growth as the second wave comes over. The second wave will strain such businesses even further.


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