Omicron Variant: Setting Back Travel Space
With worries being raised over the new Coronavirus variant Omicron, travel businesses that saw sturdy gains during November from global outbound, are getting unsteady.
They were expecting a recovery as travel came back to normal —with a reprisal — as people look to reconnect, explore new destinations, or revisit reliable favourites.
As per fresh guidelines, all approaching travellers have to submit travel plans for the 14 days with a negative COVID-19 report on a government gateway that keeps up with constant air travel data.
Omicron has come as a dampener to the upcoming travel season. The central government has issued Omicron specific guidelines such as mandatory RT-PCR testing for international arrivals alongside the possession of a genuine COVID-19 test report. There are some other conditions as well. For instance, all states with international airports have been told to ramp up their vigilance, contact-tracing and contingency efforts to prevent an Omicron outbreak in the country.
“There has been confusion amongst travellers and people have delayed their travel bookings,” said Arun Bagaria, Co-Founder, TravClan. Further, he added “We have seen a 10-15 per cent dip in our daily bookings. The new variant is likely to bring down the number of foreign tourists expected to arrive in India in the next few months. However, this is too early to predict as to what extent the impact will be.”
The surge in Omicron cases is going to slow down the global tourism industry’s revival in the short term. The good thing is that governments all over the world have acted swiftly to contain this new variant and that might result in a much shorter duration of the outbreak. However, for now, the Christmas and New Year seasons are likely to be affected.
India has put out a list of over 50 countries at-risk. At the same time, the WHO (world health organization) has advised against being overly worried, and as long as the standard testing, social distancing, face mask and other protocols adhere, “we might not see another lockdown or full-fledged suspension of travel.” Bagaria mentioned.
“We believe that as air-bubble arrangements continue in the picture, there will be sustainability though slightly muted demand for overseas leisure travel. However, it is too early to quote numbers, but there are going to be some cancellations or rescheduling of overseas tours," said Bagaria.
The pent-up demand for travel is expressed due to the recent news about the Omicron variant.
“We have seen a 12 per cent decline in demand for domestic flights week on week. The drop has been less than expected due to the higher adoption of our EzCancel product that offers 100 per cent refunds and cancellations in any uncertain situation," said CBO, Cleartrip Prahlad Krishnamurthy.
We've also noticed a 5 per cent increase in average ticket prices. Over the last few days, demand for overseas flights has also decreased by 5 per cent week on week.
Omicron is unlikely to cast a shadow on the long-term outlook of the travel industry due to the learnings and preparedness that the world has gained in the last two years. As we know, some countries have shut borders, and more restrictions will follow if the new variant spreads further. However, with a proactive approach and adherence to protocols, it is possible to mitigate the risks without shutting down the travel operations.
Further, even if Omicron delays the resumption of international travel, it might not make much of an impact on domestic travel. As of now, things are unfolding and we will have a clearer picture in the weeks ahead, but the long-term travel industry outlook continues to be healthy and we are still keeping our 2022 and beyond projections unchanged.
