Click to play videoMumbai: The beaches of Thailand seem to be more attractive than the beaches of Goa – both for the experience and for the price.
Industry players say there has been a marginal dip in domestic travel in the last few months primarily because India has become at least 30 per cent more expensive to travel than neighbouring countries like Singapore, Thailand and Malaysia.
“We did a survey and we found that people who were travelling within India are now going abroad because India is not value for money,” says Director, Kesari Tours, Veena Patil.
Five-star accommodation in India now ranges on an average between $300-$500 a night. In Singapore, Malaysia or Sri Lanka, you can get a similar room for about half the price between $150 and $200.
In the past six months, air tickets have also seen a 20 per cent average increase. As a result, a peak day fare between say Mumbai and Kerala is equal or more than the fare between Mumbai and Bangkok at Rs 13,000.
These costs are also turning some foreign tourists away to other destinations
“Hotel rates are so high that in places like Turkey, you can get it at half the price, so Europeans will like to travel to other places than to India,” says Vice Chairman, Mercury Travels, Ashwini Kakkar.
Travel agents are already sounding alarm bells for 2008. With very little new supply coming in on the hotel side and consolidation in the aviation industry, they say prices are unlikely to come down.
Last year, hoteliers preferred a to sell fewer at higher prices than fill up the hotel at lower rates. As a result last year, occupancies dipped but revenues soared. If this trend continues then it could adversly impact the tourism industry in India over the next few years.
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