The travel and hospitality business have not only witnessed a stagnation, but even the immediate future of the industry looks bleak at this moment. The industry has already faced huge revenue losses and uncertainty on when the tourism and hospitality will bounce back has deepened the crisis further. The representations business which has been booming for the last few years in India, has also suffered the brunt.
Most, if not all clients, have either slashed their promotional budgets or some have even paused all activities and engagement. Despite, these adverse conditions, representation companies in India have been quite innovative in terms of promoting their principals.
Speaking about the present scenario, Sanjay Sondhi, CEO, OM Tourism said, “The coronavirus outbreak has immobilised the tourism industry affecting all sectors. The representation companies worldwide were also not spared. As hotels all over the world were shut, destinations closed their borders to contain the pandemic. Flights, travel agencies, the entire tourism sector came to a complete standstill and as a result many representation companies had to face the consequences like cut in the monthly fees or no fees.”
Echoing similar opinion, Joseph Fernandes, CEO, Indijo Consulting added, “Like almost everything else in the travel and tourism business; the representation business too is on pause. Clients have either paused, suspended, or have truncated contracts. While on the one hand, there is a downturn in the business, on the other hand, there has been a slew of new representation companies that have opened over the past year, and during the lockdown. In a nutshell, the status of the representation business can be described as, high competition in a slow marketplace.”
The pandemic being an unprecedented challenge, the traditional routes of marketing has taken a backseat and now representations are compelled to think out of the box.
“We are always pushing ourselves to think differently for our clients. The pandemic was a different challenge altogether, but we have been successful in adapting to change by thinking on our feet. One such example is India’s first ever virtual roadshow conducted by Tourism Authority of Thailand that was conceptualised and executed by BRANDit. Tourism boards that do not have a representation office in India can efficiently use the digital platform to create brand presence via various tools like online webinars, trainings, etc. These not only turn out to be cost effective but also filter the right profile of travel agents that is best suited for the destination,” Lubaina Sheerazi, CEO & Co-founder, BRANDit, said.
During the entire lockdown period, most of the representation companies have used the digital marketing tools efficiently to promote their clients. Also, representation companies strongly feel that digital marketing is here to stay and will play a key role in future marketing.
Pranav Kapadia, Founder & Director, Global Destinations said, “The ultimate survivors and winners are going to be the ones who quickly learn to adapt to the ever-evolving environment. Innovation and creativity are aspects that we practice very seriously at our organisation and what better time than now to implement these to the fullest. We are also having partners engage with the travel trade by way of webinars, information sessions, Instagram/Facebook live etc, keeping them abreast of current situation in our partner countries besides rolling out digital content on their platforms as well as sharing the same on our platforms.”
During this lull period, most of the clients are looking to train the travel trade fraternity and be prepared for the tourism resumption. “The last few months have been tough not alone for our business but the world over. So along with the battle against COVID – 19 we have been battling to keep our spirits high and focus clear. Having said that IRIS REPS quickly understood that sales would be impacted as no flight operations and so we quickly turned our focus to training. Iris Reps have organised webinars, training session for the products under the banner with the intention of keeping the products fresh in the mind of the sellers,” Alefiya Singh, Director, Iris Reps, said.
Globally, tourism is now picking up with a handful of destinations opening borders and airlines getting a go ahead from their respective Governments. Tourism businesses are now gearing up to restart and look forward to welcoming the Indian outbound travellers.
Speaking about the advice to clients, Sondhi said, “All our principals understand resilience is the only solution for this huge devastation. Our suggestions for them was to be constantly in the mind of the travellers, so the best way to interact with the consumers and travel agencies are the digital platforms. Our endeavour is to be digitally present and reachable as much as possible.”
Singh added, “Traveller’s confidence is still low, and the recovery is slow. Domestic will lead international travel by six months plus. For international travel, we need to be quick in opening up and persuading international tourists that they are safe. Risk-free travel booking will be a new norm as free cancellations become a number one priority. Pre-sale offers and deep discounting on perishable inventory will also become popular. Another trend is insurance coverage for travellers.”
India will remain one of the most lucrative markets for majority of the destinations, hotels, airlines, DMCs post the pandemic. Tourism stakeholders are gearing up to cater efficiently to the Indian outbound post covid-19. “A tourism powerhouse, India is a key source market for several destinations given its tremendous potential and therefore cannot be ignored. Countries are already gearing up for the first wave of Indian outbound tourism. Although the initial recovery post pandemic will be slower, tourism boards are using their time effectively to connect with the travel trade by conducting destination training programmes, webinars, and online workshops to enhance knowledge about their product & offerings. The initial step that brands have effectively implemented to communicate is the importance of safety,” Sheerazi informed.
With all the players entering the digital space, some players feel that effective communication is important, but one should not overload the travel trade fraternity with communication. Instead, brands should now focus on understanding what will be the new requirements from the market.
“Communication that is consistent and relevant is extremely important. But there is a fine line between communication and communication overload. Communication is more about listening rather than telling. What we are doing is providing easy access to information and have communicated where to find it, rather than just push it out. We think we have been extremely successful in having an interactive relationship with the market on behalf of our clients. We continue to learn from the market by asking the right questions and providing what the market wants,” Fernandes elaborated.
Post the pandemic, representation businesses will witness a sharp demand as most of the industry stakeholders would want to re-strategise their business. Representation companies are gearing up to harness the potential of this business post the covid-19 pandemic. “Many new partners with some very interesting product offerings are already considering India very seriously. They have already seen the scale and potential that India as an outbound market can offer and are also aware that the Indian traveller is way resilient compared to any other. In fact, we already have a few products ready and, in the waiting, to be launched in India soon. Furthermore, I expect a shift in buying where the consumer will go back to the traditional travel agent who will then work with a local trustworthy representation company. With the pandemic, globally everyone is suffering financially hence it will be important that our trade partners work with companies who are financially stable and strong as well as look after their client’s safety Internationally on ground,” Kapadia added.
Further speaking about the future of the representation business, Sondhi added, “As India is the biggest source market for many destinations, airlines and hotels, representation companies will always survive and will soon be in full action. I am optimistic, when other tourism companies observe how the representation companies supported their clients during the crisis period, more and more destinations, hotels, airlines will think of having their representations in India.”
Sharing similar opinion, Sheerazi said, “I do see this as an opportunity in many ways for the representation business. While we have constructively used this time to form deeper connections with the travel trade and media industry, upgrade skill sets and think out of the box for our clients; it also gives us the chance to form new partnerships. However, the limitless possibilities of the virtual world help break barriers giving room to untap the potential of the Indian travel market like never before.”
