Bleak situation could lead to more deaths, say travel operators

Shocked by the suicide of Lalit Sheth, MD and chairman of Raj Travels, one of the pioneers in all-inclusive package world tours, travel operators said the bleak market situation could lead to more such incidents.

Shocked by the suicide of Lalit Sheth, MD and chairman of Raj Travels, one of the pioneers in all-inclusive package world tours, travel operators said the bleak market situation could lead to more such incidents.

HT Image

“This could be the beginning of the fall of the travel operator. I would not be surprised if more travel agents commit suicide because survival is becoming extremely difficult,” said Iqbal Mulla, president of the Travel Agents Association of India (TAAI).

Sheth jumped to death from the Bandra-Worli Sea link on Wednesday afternoon, leaving a note that said he had failed to fulfill his family’s responsibilities.

Earlier this year, in an interview, Sheth had told HT that his firm was facing a tough time owing to the drop in bookings. “This year the bookings are the decade’s worst, worse than the recession year of 2008-2009. We are forced to sack staff because bookings for even nearby destinations have dropped,” Sheth said in March.

Holiday planners said the rising crude prices, depreciating value of the rupee and, most critically, the increase in service tax have badly hit the travel sector. “The cost of travel has increased by 15% to 20% [because of these factors], so holiday bookings have dropped,” Mulla said.

Industry insiders described Sheth as a source of inspiration. “He was a man who had seen the best and the worst, but no adversity seemed too great. He always retained his smile and his courteous manner,” said Ajay Prakash, president of Travel Agents Federation of India, which was foundeAd by Sheth.

Jay Bhatia, chairman of TAAI (western region), said: “His demise is a great loss to the travel fraternity.” Insiders said Sheth was known for bouncing back, as he did after incurring heavy losses when Raj Air, an airline started by him in the mid-90s, shut down. “He bounced back and took travel business to a new level,” said a Colaba-based agent.