The tour and travel sector is expected to see robust revenue growth of 12-14% in the next fiscal year, driven by higher airfares and a resurgence in volume. According to a report by CRISIL, the industry has already experienced a record 30% growth in the current fiscal year, which signals a strong recovery. With airfares returning to pre-pandemic levels and the number of travelers steadily increasing, the tour and travel sector is poised for a healthy financial performance in the coming year. This positive outlook is a welcome relief for a sector that has been severely impacted by the COVID-19 pandemic and subsequent travel restrictions.
The resurgence in airfares has been crucial in boosting the financial prospects of the travel sector. As demand for travel increases, airlines have been able to increase ticket prices, leading to higher overall revenues. Additionally, the volume of travelers is steadily returning to pre-pandemic levels, as more people regain confidence in traveling and restrictions continue to ease. This combination of increasing airfares and volume is expected to drive the revenue growth of the sector in the next fiscal year.
The report highlights that the recovery in the long-haul travel segment has been particularly robust. As international travel gradually resumes, travelers are opting for long-haul destinations, leading to increased revenue for tour and travel operators. This trend is expected to continue in the next fiscal year, further contributing to the overall revenue growth of the sector.
The outlook for the tour and travel sector is a positive sign for the overall economy as well. The industry plays a key role in promoting tourism, both domestically and internationally, and its recovery will have a cascading effect on other related sectors. The revival of the sector will lead to increased employment opportunities, foreign exchange earnings, and economic growth.
However, it is important to note that the recovery of the tour and travel sector is contingent upon the control of the COVID-19 pandemic. Any resurgence in cases or the emergence of new variants can disrupt travel plans and hamper the industry’s recovery. Therefore, it is crucial for authorities to continue monitoring the situation and implementing necessary measures to ensure a safe and sustainable revival of the sector.
In conclusion, the tour and travel sector is expected to witness a healthy revenue growth of 12-14% in the next fiscal year, driven by higher airfares and a resurgence in volume. The sector’s recovery is a positive sign for the overall economy and will have a positive impact on employment and economic growth. However, the control of the COVID-19 pandemic remains a crucial factor in determining the sector’s future performance.
