Life after Covid-19 has truly changed. After the 2020 pandemic, certain industries, professions, and professionals saw both an upsurge and a downsurge. The tourist industry was amongst those to experience a crazy roller coaster.
The startups in the tourism industry have known what it’s like to see the downside in the business. Business is uncertain, and uncertain external events might have an impact on the industry’s basis.
Some of the renowned companies in the Tourism sector include:
OYO Rooms: OYO Rooms is a hospitality company that provides budget accommodation to travellers across India. It was founded in 2013 and has since expanded to over 800 cities in India and several other countries.
MakeMyTrip: MakeMyTrip is an online travel company that provides a range of services such as flight bookings, hotel bookings, and holiday packages. It was founded in 2000 and is now one of the largest online travel companies in India.
Cleartrip: Cleartrip is another online travel company that provides a range of services such as flight bookings, hotel bookings, and holiday packages. It was founded in 2006 and is known for its simple and user-friendly interface.
Goibibo: Goibibo is an online travel company that provides services such as flight bookings, hotel bookings, and bus bookings. It was founded in 2009 and is known for its competitive pricing and deals.
Airbnb India: Airbnb is a popular platform for short-term accommodation rentals. It was founded in 2008 and has since expanded to over 100,000 cities across the world. Airbnb India was launched in 2016 and has become increasingly popular among Indian travellers.
Thrillophilia: Thrillophilia is a travel platform that provides a range of services such as adventure activities, camping, and trekking. It was founded in 2009 and has since become a popular platform for adventure seekers.
TravelTriangle: TravelTriangle is an online marketplace that connects travellers with local travel agents. It was founded in 2011 and has since become a popular platform for customized travel packages.
Pickyourtrail, ScoutMyTrip, goMowgli, Tripoto, ExTravelMoney, Nearify, TripHobo, iTraveller, SeekSherpa, SOTC, Expedia are other startups in the tourism industry.
According to Startup Talky, as per the Indian Tourism Statistics 2022 report, in 2019, India saw 10.93 million foreign tourist arrivals, which dropped by 75% in 2020. In 2021, the travel and tourism sector in India contributed roughly 178 billion U.S. dollars to the country’s GDP. Moreover, due to Covid-19 restrictions, the number of foreign tourists visiting India in 2021 fell to 1.52 million from 2.74 million in 2020, a 44.5% decrease, even though foreign exchange earnings increased during the same time.
These startups persisted in operating their businesses even during challenging times. Despite suffering significant losses and being scrutinized, none of the startups gave up or sold their businesses.
The potential reasons for doing so could be:
Huge Potential Market: The tourism industry in India is a massive market with enormous potential for growth. India has a rich cultural heritage, diverse landscapes, and many tourist destinations, which make it an attractive destination for global travellers.
Technological Advancements: With the rise of technology and the internet, travel planning and booking have become more accessible and convenient than ever before. Startups in the tourism industry are leveraging technology to create innovative solutions that make travel planning and booking easier and more efficient for customers.
Low Barriers to Entry: The tourism industry has relatively low barriers to entry compared to other industries, making it a lucrative sector for startups. Startups in the tourism industry have started small but have grown rapidly due to the market’s huge potential.
Changing Consumer Preferences: There has been a shift in consumer preferences towards personalized and customized travel experiences. Startups are capitalizing on this trend by offering tailored travel packages and experiences that cater to individual preferences.
Overall, the tourism industry in India presents a vast market opportunity for startups, and with the right strategy, innovation, and execution, startups can successfully tap into this market and create significant value for themselves and their customers.
However, in the last two years, as the situation improved, there have been a couple of positive signs of recovery and growth. With these have come the fast-changing trends and developments that in turn have become a ray of sunshine to these startups.
The following may be some of the driving forces underlying these developments and trends:
Emphasis on Domestic Tourism: With international travel restrictions and safety concerns, there has been a shift towards domestic tourism. Startups in the tourism industry are focusing on promoting domestic tourism and creating innovative solutions to cater to the needs of domestic travellers.
Adoption of Technology: Startups are adopting new technologies such as artificial intelligence, virtual reality, and augmented reality to create immersive travel experiences and improve customer engagement.
Collaboration and Partnerships: Startups are forming partnerships and collaborations with other companies in the ecosystem to create value and offer unique services to customers. For example, some startups are collaborating with local tour operators, homestays, and other service providers to offer curated travel packages.
Sustainability and Responsible Tourism: There is growing awareness and concern about sustainability and responsible tourism. Startups in the tourism industry are incorporating sustainable practices and promoting responsible tourism to attract environmentally conscious travellers.
Startups that can adapt to the changing market dynamics, adopt new technologies, focus on customer needs and preferences will be well-positioned to succeed in the future.
Additionally, the Indian Government’s encouragement for these startups is an underrated element. The Indian government has announced several measures to support the tourism industry; such as different schemes like Atmanirbhar Bharat Abhiyan, Startup India, Swadesh Darshan and PRASAD schemes, and Digital India. Startups in the tourism industry can benefit from these initiatives and leverage government support to grow and expand their businesses.
