According to a Crisil report, the Indian tour and travel industry expects 12–14% growth in the current and upcoming fiscal years.
The main drivers are persistently high airfares and volumes in many segments that are almost at pre-Covid levels. This expansion includes long-haul travel, for which the need for a visa is becoming less of an obstacle.
Indian tour and travel companies are expanding due to an increase in outbound travel, particularly since the pandemic, and a rise in the demand for quick getaways. It is anticipated that the recent increase in the Tax Collected at Source (TCS) rate will not have a significant effect because over 80% of tour packages have individual trip expenses that are less than INR 700,000.
In order to take advantage of the spike in demand, travel agencies are probably going to boost their promotional spending by 100 to 150 basis points. Metrics related to debt protection, like interest coverage, are expected to increase to over four times from roughly three times in the previous fiscal year.
List of Top 7 Travel Services in India (BSE) based on Net Sales.
| Company Name | Net Sales (Rs. cr) |
| Transcorp Intl | 2,881.22 |
| Thomas Cook | 1,364.03 |
| Easy Trip | 429.83 |
| Intl Travel | 184.05 |
| Yatra Online | 139.85 |
| BLS Internation | 86.82 |
| Mahasagar Trav | 55.05 |
Source: BSE, India, last updated 28 February, 2024
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Reference:
1. Knowles, H., & Westcott, M. (2015). Travel services. Introduction to Tourism and Hospitality in BC.
2. Bodolica, V., Spraggon, M., & Khaddage-Soboh, N. (2021). Air-travel services industry in the post-COVID-19: The GPS (Guard-Potentiate-Shape) model for crisis navigation. Tourism Review, 76(4), 942-961.
3. Feinschreiber, R., & Kent, M. (2009). Taxation of Travel Services in India. Corp. Bus. Tax’n Monthly, 11, 17.
Disclaimer: This news is for information and research purposes only. It is not intended for financial advice.
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