Thomas Cook, the online travel aggregator, emphasizes the urgent need for infrastructure development in Ayodhya and Lakshadweep as these destinations gain prominence on India’s tourism map. The company identifies the demand for enhanced connectivity and high-quality hotels in these regions and plans to address the need through its hospitality brand, Sterling Resort.
Debasis Nandy, President, and Group CFO of Thomas Cook, highlights the capacity constraints in Ayodhya, primarily in terms of the number and quality of hotels, leading to plans for expansion. Nandy mentions the potential of Ayodhya and Lakshadweep to attract overseas travelers, especially with the expected revival of foreign tourist arrivals (FTAs), which are gradually returning to pre-Covid levels.
“In Ayodhya, there is a capacity constraint in terms of rooms and quality of hotels as there are mostly three-star hotels. As that grows, tourism will grow. Also, there is a capacity constraint in terms of the number of hotels in Lakshadweep. There are minimal facilities there which have to expand,” says Nandy.
Sterling Resorts Reported a 60 Percent Occupancy in the December
The company’s hospitality brand, Sterling Resorts, reported a 60 percent occupancy in the December quarter of FY24, with an average room tariff of Rs 6,588. Thomas Cook anticipates Ayodhya and Lakshadweep to become major attractions for both domestic and overseas tourists, especially as the government emphasizes spiritual tourism in Budget 2024.
Nandy points out the growing interest of foreign tourists in exploring new regions in India, such as Varanasi and Ayodhya, along with the emerging concept of the new golden triangle of Varanasi-Prayagraj-Ayodhya. The company plans to expand its presence in Ayodhya and is actively seeking suitable properties. Additionally, Lakshadweep is on the radar, with plans to explore the region later this year.
While acknowledging the infrastructural challenges, particularly in flight connectivity, Nandy remains optimistic about the potential of these destinations. He notes the success story of Andaman, which evolved from being a less-traveled destination to one of the most visited in the past decade.
The CFO emphasized the positive trend in inbound tourism’s quick revival and downplayed the reduction in the government’s allocation for overseas promotion from Rs 100 crore to Rs 3 crore, stating that India continues to be an attractive destination.
In the December quarter, Thomas Cook reported a profit of Rs 89.6 crore, a significant increase from Rs 26.3 crore in the same period a year ago.