Travel Industry is the worst-hit Sector amid Covid-19

COVID-19 is not only impacting the health of the people worldwide but also has a more significant impact on the economy and travel industry mainly. It has taken a toll on every industry, but travel and tourism have been the worse hit. With no airlines operating throughout the world, and all of us should stay at home, going out on an expedition is a far thought.

Losses Incurred by the Indian Travel Industry

According to the World Travel and Tourism Council, about 50 million people may lose jobs in the travel and tourism industry.
The tourism industry accounts for about 10% of the total global GDP. It may take about 10 months for the industry to recover after the world recovers from this pandemic, which seems unlikely as of now.

Image Courtesy: Image by Richard Mcall from Pixabay

Moreover, the stocks related to the travel and tourism industry dropped down by a whopping 70% for this year in these few months.
With the suspension of domestic as well as international flights amid COVID-19, the Indian travel industry is being greatly affected.
In the wake of the COVID-19 outbreak, WTTC has urged governments to follow certain measures like:
Providing Fiscal support to global travel and tourism industries, and extending unlimited interest-free loans.
Inject liquidity and cash in the Travel and Tourism Industry
Protecting the livelihood of employees of the tourism sector

Measures that are taken by the Indian Government

Indian Government is also working for the best interest of the general public and the economy as a whole. Finance Minister Nirmala Sitharaman has announced a relief package amounting to 1.7 Lakh crores.
In addition to these measures, the (Reserve Bank of India) RBI, is providing three-month EMI relaxation on loan repayments so that the livelihood of the poor and middle segment can be secured amid COVID-19 pandemic.
Furthermore, RBI has also reduced the repo rate by 75 points, CRR by 100 points to free up liquidity. More relief packages for worst-hit sectors like the Travel industry are still worked upon by the government.

Some Suggestions

The measures mentioned above may not be enough therefore the government need to keep looking for better means to ensure COVID-19 pandemic doesn't take away the will to live.

Here are some of the suggestions by industry leaders and economists on the same:
SpiceJet CMD and WTTCII President Ajay Singh advised the government to urge domestic and international tourists to disseminate the message of 'Postpone Travel, don't cancel' on Incredible India website. 

'For the first couple of months, this could potentially be handled through mandatory leave and leave-without-pay initiatives for 1-2 months' is stated by a CAPA report. 

Apart from this, economists suggest getting rid of the pandemic quickly with 'Whatever-it-takes' approach. To prevent economic slowdown, governments need to focus on bringing bankruptcies down to ensure they have money. "This is the time to bring out the big artillery; this is not a time to be timid, but to do whatever it takes, fast." they said.

Other measures may include tax relief, gaining from inheritance tax and imposing relaxation on other taxes like buyback tax and Foreign Portfolio Investment (FPI) can help out in balancing the economic slowdown and further help the travel industry to recover.


Financial and political commitments are the only reliable key to ensure the revival of the tourism industry. UNWTO has joined hands with WHO and calls on governments to include tourism as a priority sector in COVID-19 recovery plans and actions. 

Flights Likely To Be Allowed In Staggered Manner After Lockdown

The government is planning to allow domestic and international flight operations in India in a staggered manner after lockdown period.

According to the Aviation Ministry officials, airlines are free to take bookings for any date post April 14, 2020.

The 21 day lockdown ends on April 14, if everything goes well.

The Narendra Modi government announced a 21-day lockdown starting from March 25 to control spread of the Covid-19. As a result, all domestic and international commercial passenger flights were also suspended for this time period.

Deeper revenue impact of the COVID-19 pandemic on the global air transport industry

The corona virus pandemic has left the airlines in lurch as the revenues have fallen significantly. The aviation sector is one of the worst affected sectors because of Covis-19.
Because of Corona Virus, all the airlines are impacted and have announced various cost cutting measures including pay cuts. While Indigo and Spicejet have announced up to 30% pay cut, Vistara has asked many of its employees to go on leave without pay.
Similar measures of pay cut and leave without pay, were taken by Goair  Air Deccan seems to be hit hard by the lockdown and have announced indefinite suspension of flight operations. The company also asked all the employees to go on sabbatical without pay.

Airlines Open Flight Booking from April 15

In a hope that the pandemic impact will subside soon, the major airlines are taking domestic bookings for dates post April 14. However, Air India is taking bookings for dates post April 30 only.
Air Deccan is not taking any bookings as of now and it is not clear when it would restart operations.

"As the virus is still spreading in India, we are thinking to permit domestic and international flight operations post April 14 in a staggered manner.
Airlines are free to take bookings for any date post April 14," a senior Civil Aviation Ministry official said.

"However, if the lockdown is extended post April 14, airlines will have to cancel the tickets booked for that time period," Aviation Ministry Official.