Travel trade finds 2nd wave of COVID-19 more lethal for business, jobs

Industry observers expect more governments to announce a ban on flights, or travel advisories, unless there is a dramatic arrest in cases in India.

The second wave of COVID-19 has crippled the travel industry.

Air and train bookings have plunged nearly 70 percent, foreign airlines are cancelling flights to India, and people are travelling only for emergencies. For the travel trade, the ground situation looks worse than last year.

"That is because all of us, customers included, had nearly learnt to live with COVID-19. But this second wave, the uncertainty is high. Now if you fall sick, you are unsure of a hospital bed, medicines or getting oxygen," Jyoti Mayal, President, Travel Agents Association of India (TAAI), told Moneycontrol.

India recorded over 3.3 lakh cases on April 23, with 2,263 people losing their lives. Many states have called for emergency supply of oxygen, with Delhi - a travel hub - one of the most impacted.

The change in circumstances has been sudden. Until February, the travel industry was recovering smartly. "Bookings in some airlines had improved to 70 percent of the pre-COVID-19 levels. For us too, business was getting back. But now everything has come to a near standstill," said Mayal, who runs the New Delhi-based New Airways Travels (Delhi) Pvt Ltd.

This has brought back fears of job losses. Estimates say at least 1.5 lakh people in the travel industry have already been laid off. "Job losses may increase now. We will know the real damage when the businesses reopen, when they will, that is," Mayal said. The travel industry veteran has been working from home since March last year.

TAAI claims to be the biggest of its kind in the country with over 2,400 members in 70 cities in India.

"Many of my industry colleagues have already shut shop and have taken up alternate business opportunities. Some have opened up cloud kitchens, and others have gotten into medical equipment," she added.

The recovery

Domestic air traffic had recovered enough for airlines to call for complete lifting of the cap that government had put on capacity utilisation. Currently, there is a cap of 80 percent.

Industry officials had estimated a full recovery to the pre-pandemic level by the end of the first quarter of the present financial year. "It looks difficult now. One needs to wait and assess the situation," Mayal said.

While there is the option to do virtual events, like it was done last year, now there is a fatigue slipping in. "We had done an event during the lockdown and even got 2,800 participants. But I doubt if we can get similar participation now," said the travel entrepreneur.

Events are one of the biggest travel segments, that help drive the industry. Others include corporate travel and leisure. "Most of the segments are down now. Now people are traveling only on emergency," Mayal said.

The industry, she added, has approached the government for help. "We have reiterated our demand for an industry status, which will help us access credit. We have also asked for financial aid. This could be even in the form of direct transfer of money to employees who have been impacted," Mayal said.