Summary:

CRISIL ratings predict a 15-17% revenue gain for India's tour and travel operators this fiscal year. This growth is driven by increased domestic and international travel, improved infrastructure, higher disposable incomes, changing travel habits, and government efforts to boost domestic tourism. The forecast is based on data from the top four operators, which account for around 60% of the sector's revenue.

Travel operators' credit profiles are expected to remain strong, with robust balance sheets and steady operating margins of 6.5-7%, similar to the previous year. Domestic tourism is supported by 'microholidays,' spiritual tourism, and enhanced infrastructure. Domestic travel benefits from rising inbound travel and strong demand from business and MICE segments, while international leisure and outbound travel are driven by higher disposable incomes, visa-free access, and innovative travel packages. Ms. Poonam Upadhyay of CRISIL noted that 'revenge travel' has evolved into 'regularized travel,' supporting continued revenue growth.

Source: IBEF 

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