The young and restless Indian generation is giving in to their wanderlust and is adding newer destinations to their travel bucket list. While exploring the country, many of them are willing, nay keen, to explore economic accommodations that don’t stretch their Budget.
This has seen the backpacker hostels concept take off in a big way in India. Companies like The Hosteller, Hideaway Bedzxz and goSTOPS give millennials and Gen-Z demography access to branded high-quality accommodation.
According to Pallavi Agarwal, Founder and CEO, goSTOPS, the Union Budget 2022 has given new hope for this business segment, as pent-up travel demand sees a boost. She explains why these announcements will provide these companies with a much-needed fillip in the post-pandemic ‘new normal’, which has spawned new travel trends and practices.
What are some highlights of Budget 2022 that will have a positive impact on your business?
The Budget 2022 announcement aimed at spurring public investment and spending to modernize infrastructure and support growth is a welcome move. Being one of the hardest-hit industries during the pandemic, it plays a vital role in the economy’s revival. Along with the government’s strong focus on hospitality in the proposed Budget, we are now in a better position to accelerate the recovery of India towards higher growth.
Can you be a bit more specific?
The extended guarantee cover under ECLGS with an additional allocation for hospitality increased investment towards boosting the transport infrastructure through PM’s Gati Shakti National Master Plan and introduction of the National Ropeways Development Programme are promising measures. These will empower the struggling MSMEs in hospitality, ensure further sustainable pickup in domestic travel and expand employment and entrepreneurial opportunities for the youth.
Further, the government’s push towards promoting skilling initiatives, providing extended tax benefits, and rolling out measures like ePassports to enhance seamless travel, will give the much-needed impetus for the revival of travel and hospitality.
Will that be enough to boost the beleaguered travel and hospitality sector?
Focusing on productivity enhancement, inclusive development, boosting digital infrastructure, and promoting tech-enabled development, will lay the proper roadmap and aid in rebooting the industry on a stronger and more sustainable footing.
While the pandemic has resulted in highly volatile consumer confidence towards travel and a drastic shift in consumer priorities, the Budget is sure to aid inbound revival and act as a stimulant to get the sector back on its feet. This will equally harness its impact towards GDP contribution, employment generation, and skill development – much needed as the country heads towards recovery, revival, and growth.
