Tourism players find their sweet spot in elections

The period between April and June in India has always seen a spurt in leisure activities, including tours, coinciding with the school summer break.

Add to this the frenzied trips that political workers, leaders, mediapersons and officials undertake in the run-up to the polls, and what you get is a bumper season for the tourism industry.

Already, many fleet-footed players are cashing in on the opportunity. Akshar Travels of Ahemdabad, for example, is offering an ‘election tourism’ package. The company has already got 1,600 confirmed requests so far. The tour covers shadowing a candidate and “understanding” Indian democracy and its history. The tours can range anywhere between two days and seven days and cover approximately 10-12 destinations in Gujarat, Delhi, Maharashtra and Goa, among others.

Thomas Cook India has launched a ‘ Ghar Jao Vote Karo’ campaign that will extend from March 26 to May 19. As part of the campaign, a pre-election discount of ₹1,000 on return air tickets (per adult) is offered on production of documentary proof such as Voter ID and Aadhaar cards. The last date of flight departure is May 19, coinciding with the last date of polling.

“During elections, people prefer going back home to cast a vote that could add on to the travel in polling areas,” said Sharat Dhall, COO, Yatra.com.

Pavethra Ponniah, Vice-President and Sector Head, Corporate Sector Ratings, ICRA, said there could be a short-term spike in average room rate and occupancy for the hospitality industry.

Citing an in-house report, Ponniah added that the demand for rooms is expected to continue to grow by about 8-9 per cent Y-o-Y over the medium term, led by increasing domestic travel, buoyant MICE activity (meetings, incentives, conferences and exhibitions) and higher foreign tourist arrivals, despite immediate term headwinds from global geopolitical concerns and increasing local airfare.

She added that Mumbai, Delhi and Chennai may see an increase in travellers which will lead to higher prices.

No impact on leisure travel

According to Cox and Kings, the elections will not dampen family travel. Karan Anand — head, relationships, Cox & Kings Ltd. said: “We have seen election cycles in the past, andwe do not anticipate any disruption in the travel plans of customers. The schedule is out and people are aware of the dates of elections and have adjusted their travel dates accordingly.”

According to experts, leisure destinations such as Goa, Kerala, the North East, Himachal Pradesh and Jammu Kashmir could see a significant drop of more than 20 per cent in F&B revenues a few days before and after the Code of Conduct comes into play/ends. There has been no significant impact on fares due to election in these destinations. Northern States such as Rajasthan, Uttar Pradesh and Madhya Pradesh may see slight jump in occupancy up to 10 per cent but there may not be any change in fares.

But business-related travel could take a hit for a short duration.

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