Bengaluru, 13 April
DBT Bureau
Travel industry is on a roll with all the related segments including hotels, aviation, and luggage witnessing high sales on robust consumer demand.
Brokerage firms said that earnings in the fourth quarter (Q4 of FY24) are likely to be inline with investors’ expectation for companies operating in this space.
“The overall travel environment remained buoyant during the quarter represented by healthy growth in hotels, luggage and aviation sector,” brokerage firm, Prabhudas Lilladher wrote in a note.
According to the report, in hospitality, all India average occupancy stood at around 66-68% in January 2024, which increased to 72-74% in February. Occupancy levels are higher by around 200 basis points year-on-year indicating demand momentum is intact.
Similarly, airlines companies have seen good growth during the January-March period. According to rating agency ICRA, domestic air passenger traffic is estimated at around 154 million in FY24, a year-on-year (YoY) growth of about 13%.
“The domestic air passenger traffic in FY2024, thus, surpassed the pre-Covid levels of around 142 million in FY20. For March 2024, domestic air passenger traffic was estimated at around 135.2 lakh, around 6.9% higher than around 126.4 lakh in February 2024. Further, it grew by around 4.9% on a YoY basis,” ICRA said in the report.
According to the report, the country’s aviation industry is expected to report a significantly lower net loss of Rs 30-40 billion in FY2024 and FY2025 over Rs 170-175 billion in FY2023.
As the travel industry does well, the luggage segment is also likely to post decent fourth quarter results.
“For luggage, while demand from modern trade witnessed a minor hiccup due to a massive fire at Reliance mall in Jamnagar (inventory stocking plan of the retailer was revisited leading to an impact on primary sales for luggage players), growth in the e-com channel continues to remain robust,” Prabhudas Lilladher said.
