Travel got the biggest hit due to COVID19 outbreak. This is the time when the travel came to a standstill. The travel and its allied sectors got the biggest hit. All types of travel like business travel, leisure travel, MICE travel etc got equal hit. This not only led to dip in revenues of the company but also led to mass level unemployment. The quantum of collateral damage is quite huge.
If we analyse the factors affecting the travel and tourism sector, the main two factors are as below:
- Fear Psychosis: People fear for lives and health the most. These are two places where people do not want to take any chances. All activities stop if these two factors get affected. With COVID19 outbreak, fear is mounting in the minds of people. People will not want to go out and come back with disease. This will be on minds of many travellers for quite sometime. This fear psychosis will forbid them to travel for next few months. However, this will not be that easy to overcome. Also, selection of destinations will be quite limited.
- Decline in disposable income: The travel leisure segment used to move on disposable income of travellers. This amount is left after paying all essentials. This is the amount which is left in hand at the end of the month. This keeps the leisure industry moving. Not only travel, this makes restaurants, cinema halls, malls etc to move. Due to ongoing COVID crisis, the income of many people (and companies) got a hit. So, their spend will also get lower. Their first preference will be food and security.
Above two factors are going to affect the tourism and allied industry in negative manner. It will take time to come out of this.
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