Thomas Cook India Highlights Challenges Due to High Airfares
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Madhavan Menon, Executive Chairman of Thomas Cook India, recently discussed the challenges of high airfares. He explained that limited airline capacity and increased travel demand post-pandemic are the main reasons for the high costs. The grounding of around 200 domestic aircraft has worsened the situation, affecting major carriers like IndiGo and Air India.
Menon noted that while this situation has led to short-term difficulties, it is a global issue affecting many regions, not just India. He remains optimistic about the long-term prospects, pointing out that substantial orders for new aircraft by IndiGo and Air India will eventually enhance capacity and potentially reduce airfares. These new deliveries are expected to commence between 2027 and 2033, signaling a future drop in travel barriers and costs (mint) (Business Today).
Despite these challenges, Thomas Cook India has reported robust financial performance, with a total income of ₹7,435.6 crore for the fiscal year ending March 31, 2024, a significant increase from the previous year’s ₹5,111.2 crore. This growth is attributed to a surge in travel bookings, both domestically and internationally, driven by a new cohort of travelers entering the market post-pandemic (mint).
Menon also highlighted the changing dynamics in the travel market, where short-haul international trips might become more affordable than domestic travel due to strong domestic demand and rising hotel rates within India. Destinations like Georgia, Kazakhstan, Vietnam, and Azerbaijan are becoming popular among Indian travelers seeking diverse experiences (mint).
Looking ahead, Menon hopes that corporate travel will make up for the lack of major international events in 2024. He expects increased spending on meetings, incentives, conferences, and events (MICE). He also stressed the need for better infrastructure, like new airports and improved connectivity through initiatives such as the Vande Bharat routes, to support the travel industry’s growth. (Business Today).
