Indian tour operators have lost all ground to compete with global OTAs

Jay Bhatia, Hon. National Treasurer, Travel Agents Association of India, says, that although the effective rate of tax for a tour operator has increased, the government has removed restrictions on claiming CENVAT credit of the input services. “Now the input credit for all eligible services can be claimed. However, the hotels don’t give a break cost and the competition faced from OTAs still shall persist as regards to a tour operator. The Government is losing a lot of service tax as well as the loss in terms of foreign exchange going out when travellers book through the OTAs. The Indian tour operators have lost all ground to compete with the global OTAs who are promoting and selling online.”