Coronavirus to hit revenues, we’re prepared: MakeMyTrip CEO
As Indians cancel plans to go abroad in summer holidays owing to Coronavirus concerns, online travel aggregator MakeMyTrip is bracing itself for a severe turbulence
As more and more Indians cancel and several more plan to shun plans to go abroad in summer holidays owing to the growing Coronavirus concerns, leading online travel aggregator MakeMyTrip is bracing itself for a severe turbulence as its over-all revenues are set to be hit at least for the first half of this year.
According to Deep Kalra, Founder and Executive Chairman MakeMyTrip, the word of travel has been ravaged due to global coronavirus (COVID-19) outbreak.
"People initially weren't travelling to China, Hong Kong and then, the list included Singapore, South Korea and now European countries. A lot of people are putting their plans on hold. It's a very difficult time and one can only hope this will stop soon," Kalra told IANS during a candid interaction.
"It's clear that coronavirus will impact over-all revenues because of the cancellation of holiday plans. But we are taking all the major steps to minimise the impact," Kalra explained.
Several Indian travellers have called off their travel plans especially to South East Asian cities. Travel industry experts have said that business related travel on South East Asian routes has been impacted badly but leisure travel has been worse affected.
The International Air Transport Association (IATA) has estimated that air travel demand will not only decline in the current calendar year, but may lead to loss of revenues of as much as $29 billion for the airline sector.
"There is no travel company that would not have been impacted due to this new virus," said Kalra.
At least 28 cases of new coronavirus have been reported from India. The virus has affected more than 60 countries across the globe.
According to market experts, hotel occupancies in India have declined 10-15 per cent and cancellations have risen around the same magnitude in the past few weeks.
Sector players also said that the impact has been severe on the premium hotel segment while mid-range and affordable segments have so far not been affected.
Kalra, however, said the company has done a few investments in early-stage travel technology startups and will continue to do this despite the rising concerns over Coronavirus.
The company has already invested in more than 10 travel startups.
"If we come across any thing good to invest, we will go ahead with the investment," Deep said.