Why hotel, tourism stocks are down today-IRCTC, Indian Hotels, Easy Trip fall up to 4%

Shares of travel sector firms such as Thomas Cook, Lemon Tree, Indian Hotels, Easy Trip and IRCTC took a major hit on Monday after Prime Minister Narendra Modi urged citizens to avoid unnecessary foreign travel, overseas vacations and foreign weddings. 

Shares of Tata Group-owned chain of hotels Indian Hotels fell over 2% to Rs 656.25 against the previous close of Rs 673.30. Market cap of the firm slipped to Rs 93,946 crore. 

Shares of another domestic and foreign tour operator Easy Trip Planners fell 3% to Rs 
7.66 against the previous close of Rs 7.96. Market cap of the firm slipped to Rs 2811 crore.

Thomas Cook (India) was the top loser falling 5% to Rs 96.79 against the previous close of Rs 96.80. Market cap of the firm slipped to Rs 4360 crore. Thomas Cook (India) is a leading omnichannel travel and financial services provider in Asia-Pacific, offering foreign exchange, corporate travel, MICE, leisure travel, and visa services. 

Lemon Tree Hotels, a leading operator of chain of domestic hotels and international properties in Bhutan, Nepal, and the UAE slipped 3% to Rs 117.50 against the previous close of Rs 120.45. Market cap of the firm slipped to Rs 9336 crore. 

Govt-owned tourism operator IRCTC stock slipped 2% to Rs 552.05 against the previous close of Rs 565.10. Market cap of the firm fell to Rs 44,560 crore. 

On May 10, PM Modi urged Indians to bring back several habits that became common during the Covid-19 pandemic — from work-from-home and virtual meetings to reduced travel and restrained consumption. 
 
The statement comes as the ongoing tensions between US and Iran in West Asia have rattled global oil markets and disrupted energy supply chains, mainly oil, hitting several growth parameters of the Indian economy. 

“During the Corona period, we developed many systems of work from home, online meetings and video conferences. Today, the demands of the times are such that if we restart these systems, it will be in the national interest,” he said.