Primarily Travel Industry is considered a very sensitive industry in any country that can be affected due to law in order situation, political instability and slow economy of the region. Major reason is that travel industry is based on extra money circulation. If a family or an individual have disposable money, they make travel plans. Some people will hesitate to accept the fact that a large amount (black money) still is being used for travel expenses by travelers. But good news is that now this trend is being lessened day by day due to a transparent monetary system that is being adopted by Travel Agencies now a days. I feel that we are inching towards to get a well organised industry status. There is no doubt at all that travel Industry will feel the heat due to demonetization in the country at the moment but future is bright. In out country we are seeing a new-gen growth who are quite clear about their payment terms. But at the same time Govt needs to take care of these transparent practices. If they are serious to patronize these kind of habits, it should come forward with some policies to encourage them to use white money. At the moment we are being burdened with very heavy taxes. Govt needs to ease it. So that people can make travel plans that can fit into their budget.
INR 500 / 1000 demonetization will have major impact on travel industry
As there is a limitation cap in foreign exchanges at the moment, it will definitely leave a dent on Indian Outbound Travel. With demonetization, we are expecting that use of plastic money will be rising but it has its own limitation as at the moment there is a sense of confusion at the moment.
I strongly feel that in future demonetization would be extremely significant on our tourism industry. It will have a positive impact on services for sure.