A weakening rupee and correction in hotel prices may bring in more foreign tourists this winter season. At least, that’s what the travel industry is hoping.

Arjun Sharma, CEO, Le Passage to India, an inbound travel firm, said, “Packages and rack rates floated for the winter season are about 7-8 per cent cheaper compared with last winter. This makes India an attractive destination for foreign footfalls.” However, high airfares could play spoilsport, he added.

Global travel firm TUI holds 50 per cent stake in Le Passage to India. The latter earns a chunk of its revenue from inbound travel. There are 14 sub-brands under Le Passage. The company has completed 10 years and is expanding in the domestic and outbound tourism segments.

Sharma said while the Indian travel industry was facing a huge churn, the desire to travel had not been impacted. But “higher airfares and currency fluctuations are impacting outbound tourism.”

Asked if the company was looking at any acquisitions, Sharma said, “As of now we are looking at growing organically, investing in people, brand-building and focusing on technology as well as widening our presence online.”

Sharma has also invested in the shopping mall business as well as hotels under the Select Group. He said, “We are looking for acquisitions in the shopping mall segment. We are also in talks for international affiliation in the hotel segment.”

With the hotel industry under pressure with low average room rates and occupancies, Sharma said, “the next 12-18 months for the industry are very challenging. Rising costs due to inflationary pressure and financial problems have led to a large number of stressed assets. I am surprised the industry has not yet raised the red flag like the aviation industry.”

Meenakshi.v@thehindu.co.in

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