Travel companies cheer, but Delhi traders on edge, ET Retail

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The G20 summit weekend is turning out to be a business opportunity for travel companies even as retailers and traders in the National Capital Region (NCR) are getting anxious over closures and the likelihood of their outlets being shut September 8-10.

This will also mean the loss of opportunity to widen their customer base with a number of foreign nationals visiting India, said representatives of multiple retailers’ associations.

SOTC and MakeMyTrip are, however, seeing a rise in business thanks to those choosing to skip out of the NCR during that period shooting up in the last few days. Schools, colleges and some private offices are shut and the rest will turn to remote working, executives told ET.

“Given that schools will be closed, also certain corporates, businesses, we are witnessing an unusual surge in travel,” said Indiver Rastogi, president and group head, global business travel, Thomas Cook (India) and SOTC.

Rajesh Magow, cofounder and group CEO, MakeMyTrip, said, “The government’s official holiday announcement over the G20 meet days has triggered an increase in searches for cities within drivable distance from Delhi.”

Security measure
MakeMyTrip has seen a surge in searches for accommodation bookings in destinations such as Sawai Madhopur, Manesar, Amritsar, Vrindavan, Agra, Udaipur, Jaipur etc. “We have also seen some traction for Rishikesh and Corbett National Park but largely speaking, the plains dominate the search for bookings over hills,” Magow said.

Retailers are worried about the impact on sales in the capital region.

Sales will be hit with the closure of shops and malls on September 8, 9 and 10, said Rahul Mehta, chief mentor, Clothing Manufacturers Association of India, CMAI.

Kumar Rajagopalan, CEO, Retailers Association of India (RAI), said, “It is important to Make in India, but it is also important to sell in India. We feel it would be beneficial to create a window of timings when shops and markets can be kept open.”

Weekends constitute close to 40% of a store’s weekly sales. “We are talking of over 10% of a store’s August sales budget, which is huge. We appreciate the government’s security concerns, and we are happy to cooperate,” said Mehta.