₹10,000 Crore Stuck: The Liquidity Crisis Killing Indian Tour Operators

New Delhi:

The numbers are brutal. India’s outbound travel sector is staring at losses in the range of ₹8,000–10,000 crore . Cancellations have spiked to around 30% —up from the usual 8%. Refunds worth roughly ₹3,500 crore are stuck . Another ₹4,000–5,000 crore is locked in airline credits .

This is the Cash‑Flow Massacre .

Geopolitical shocks—Middle East tensions, the Air India crash, and IndiGo’s extended fleet grounding—have created a perfect storm. MD of a well known company, puts it bluntly: “Money got stuck for long periods. Clients constantly followed up for refunds. Rescheduling meant extra effort with zero additional revenue.”

For small operators, this is existential. The Karnataka State Travel Operators Association (KSTOA) has compared the crisis to the COVID‑era shock , appealing to the Prime Minister for loan moratoriums and tax deferments. The grim reality: a majority of cancellations are linked to events operators couldn’t control. Yet clients still want their money back—yesterday.

B2B Fraternity Take

Cash is king, and right now it’s locked in airline credits. B2B players must renegotiate payment terms to a maximum of 30 days , build relationships with “refund‑ready” consolidators, and aggressively pivot to domestic and Southeast‑Asia‑focused routes where cancellations are lower (Thailand up an estimated 25%). Don’t chase volatile West Asia inventory without hedging.