‘India has moved from a savings economy to a spending economy & this is visible in travel’
macroeconomic factors impacting discretionary spending on travel. India will also see a per capita income moving from $2500 to $4000 in the next five years. While this looks small when compared to other nations, in absolute numbers, we are a 1 billion economy," he said.
The company reported a consolidated income from operations for the June ended quarter (Q1 FY24), at ₹1898.9 crore, a near doubling from ₹976.1 crore reported a year ago. Net profit during the quarter rose ₹70.9 crore compared to loss of ₹6 crore a year ago, which was impacted by the Omicron wave. Its travel and related services segment reported a revenue of ₹1468.87 crore, more than doubling year-on-year (YoY).
The leisure hospitality business grew 12% YoY to ₹115.3 crore in Q1 FY24. Its financial services business like forex cards etc., doubled from ₹47.9 crore last year to ₹91.5 crore this fiscal. For its outbound travel business, the recovery is still at 50% of pre-pandemic levels.
But disruptions by airline operators did wreak some havoc. While domestic travel was trending at around 100% till April, overall domestic business was definitely impacted by GoAir’s grounding and the cancellations led to the company having to give refunds. “Customer confidence took a nosedive due to this at that time and it had an impact on our domestic travel business.
Overall, domestic travel recovery now is 60%. On the international front, long haul is still plagued with visa challenges, more importantly in the European visas where we saw some pains coming into the business. Our rejection rate has been close to 8% and that has impacted the growth we saw otherwise," he added.
Read more on livemint.com
