Indian Travel Sector Could See 12-14% Growth: India Report
Photo Credit: Rising demand for short getaways propel the growth of Indian tour and travel operators. Pexels.comPexels / Parij Photography
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The Indian tour and travel sector is poised for robust 12-14% growth in the current and upcoming fiscal years. The growth, despite high airfares, shows cost doesn’t matter when it comes to travelling.
The Indian tour and travel sector anticipates 12-14% growth in the current and upcoming fiscal years, according to a report by Crisil.
The driving factors include sustained high airfares and nearly pre-Covid levels of volumes across various segments. This growth encompasses long-haul travel, where visa challenges are gradually easing.
Operational Resilience: Despite increased promotional spending, the operating profit margin is expected to exceed 6.5% in both this fiscal year and the next. This resilience is supported by operating leverage benefits and various cost optimization and automation initiatives implemented since the pandemic. Healthy cash flows and strong balance sheets are expected to bolster credit profiles.
Overseas Travel Dynamics: Growing outbound travel, especially post-pandemic, and rising demand for short getaways propel the growth of Indian tour and travel operators. The recent Tax Collected at Source (TCS) rate hike is predi
