Dubai: Airfares and hotel prices have certainly dropped from their post-pandemic highs, but they remain higher than pre-pandemic levels. And according to Gaurav Bhatnagar, Joint Managing Director of TBO Tek, these high prices aren’t likely to return to 2019 levels anytime soon.
“Whether airline pricing or hotel rates, prices have eased off their peaks. However, the new normal is pricing that’s higher than what it used to be before the pandemic,” Bhatnagar explained. He also added, “I don’t think prices will change dramatically. My advice: if you’re planning to travel, book early. Prices rarely decrease. Premium destinations, quality properties, and top-tier hotels will always command a premium. Expecting a significant price drop is unrealistic
In the past year, airlines have increased seat availability and supply chain issues impacting aircraft production are starting to ease. He said that India, in particular, has seen a notable rise in air capacity, with airlines like Air India and IndiGo expanding their fleets to meet growing demand.
Bhatnagar stated that demand is gradually returning to pre-pandemic levels. It has even surpassed those levels in some regions, such as the Middle East. “APAC, however, is still not where it was back in 2019, mainly due to slower outbound travel from China,” he said.
While travellers may not see prices return to 2019 levels, Bhatnagar believes the current stability points to a more balanced market where supply and demand align.
He continued, “Our view is that there has been no significant adverse movement in travel compared to last year, despite challenges like geopolitical tensions, ongoing wars, and the U.S. political turbulence. Travel has shown remarkable resilience. The industry has bounced back quickly despite turbulence in currency values, policies, and disruptions caused by conflicts.”
A year ago, the demand-supply gap made travel quite expensive post-pandemic. While travel volumes were returning to pre-pandemic levels, prices remained high. Though prices are still above pre-pandemic levels, they have either eased slightly or stabilised at a more reasonable level—not as extreme as immediately after the pandemic.
Travel industry to soar to new heights
TBO Tek Limited, a travel distribution platform established in 2006, offers various travel services, including air ticketing, hotel bookings, car rentals, cruises, and rail services. The company, which went public last year, is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The company operates globally, including the UAE, a market where the company expects robust growth.
“We expect it to be a strong year. One advantage is the timing—Ramadan is early this year so that we will have three to four months of summer travel following it. Additionally, hopefully, geopolitical tensions will calm down when summer arrives. The impact of U.S. elections and other global factors should also stabilise by then,” he said.
Bhatnagar believes that the travel industry will continue to experience significant growth this year, especially in the luxury segment. “One key trend is that people prioritise travel as a significant expense over many other things. There is a growing propensity to pay for luxury experiences while travelling, which is reflected in the numbers,” he said.
“Passenger growth may be happening across all segments, but the dollar value growth in travel spending is concentrated at the top end of the spectrum. Luxury and premium travel are also very important revenue drivers for us,” stated Bhatnagar. The company is also heavily invested in Saudi Arabia in inbound and outbound travel.
