Demonetisation and increase in service tax have already taken its toll on the travel industry but this season, travel companies expect to make up for it with leisure business coming from countries in western Europe with the UK still being a favourite destination for Indian leisure travellers.

Aniket Vichare, an executive handling outbound leisure tours under ‘Duniya Dekho’ at Cox & Kings is confident that despite the recent terror attacks in Western Europe, the maximum business for his travel company this summer will come from this market, one of the most profitable for the travel industry. Despite terror attacks in London recently, factors like the weak sterling, lower air fares and hotel rates which are making the UK a desired destination instead of the US which has already seen a decline of travellers by 25 per cent post the changing visa policy under Donald Trump’s administration.

Rakshit Desai, Managing Director, FCM Travel Solutions, said, “favourable exchange rates and lower airfares have led the UK to become a strong market this summer where we have seen a 20 per cent growth compared to last year. The weak sterling is giving Indian travellers good value for their holidays in leisure travel this year.’’

In fact, airfares to the UK have dropped considerably due to more capacity provided by large airlines and lower fuel cost which makes gateways from places like Istanbul much cheaper than last year.

“Last year, airfares from Mumbai to London were at almost ₹60,000 and now one can fly for as low as ₹32,000 via places like Istanbul. With more of sale points and capacities getting added by aircraft carriers, fares are definitely lower this season to the UK,” added Desai.

However, leisure travel to the US has taken a backseat with travel companies witnessing almost a 25 per cent drop in demand compared to last year.

Sriram Rajmohan, CEO, Club 7 Holidays, said, “Indians are disinterested in going to US this summer and there has been a decline of almost 25 per cent for us. However, mainland Europe remains a top destination despite all the terror attacks.”

Immigration policy

Stringent immigration policies of late have been the main reason for Indian travellers getting wary to travel to the US. “There is a fear factor among Indian travellers about not being allowed to enter the US and travel has taken a backseat by almost 25 per cent since the time of demonestisation was announced till now,’’ said Madhav Pai, CMD, WOW Holidays and former Director at Thomas Cook.

More than 60 per cent of outbound travel takes place during the summer months from April to July, primarily driven by family holidays.

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