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Dark clouds looming over travel, hospitality sectors

Nina Varghese

CHENNAI, Sept. 17

THE gloom is yet to set in. The travel and hospitality industries are uncertain as the first rush of cancellations roll in. But all will depend on how this week's lead story will play itself out.

A highly placed hotel industry source said that after a disastrous half year, business had just started picking up when the attacks in the US happened. The period from mid September to early October is not, yet, the actual tourist period so hoteliers acr oss the country are keeping their fingers crossed that the situation should ease off and cancellations not run into the peak period.

The Taj Group, which manages and owns the largest chain of hotels in the luxury and leisure segments, has across the network registered cancellations of over 7,500 room nights, according to a source. There have also been cancellations of banquets and par ties.

Hotel industry sources said that every star hotel in the city has registered cancellation of anything from seven to 10 room night per day. This would have a major impact on the industry, Mr M.O. Koshy, Vice-President, GRT Grand Days, said. If the situati on eases then the peak tourist period will not be impacted.

On the travel side, there is uncertainty all around. People are still hoping that things would return to normalcy. But corporates are not taking any chances. A number of companies, both IT and old economy, have banned overseas travel, according to Mr Gop inath Nair, Chief Operating Officer and General Manager South, Cox & Kings.

A number of companies have put out travel advisories restricting employees' travel to West Asia. Those who are on short trips have been asked to return immediately to base.

Mr Nair said that during the last seven days, especially over the week end, there have been a number of cancellations. The company has also received a number of calls from clients who want to be re-routed and do not want to touch the US, he said.

Incentive travel has been put on the hold. Companies are advising their employees to fly only if necessary.

Though this is not the time for outbound leisure travel, some stragglers have been caught out. A Chennai-based travel company had to abort its trip to Israel after paying for travel, board and land arrangement. Depending on how the scenario unfolds, the company hopes to invoke the force majeure clause to get its non-refundable deposit from the airlines back.