Thomas Cook India eyes 50 million leisure travellers over next five years

Rising disposable incomes, GST reforms, and year-round travel habits are set to fuel India's tourism momentum, with Thomas Cook India projecting 50 million leisure travellers over the next five years

With rising disposable income among Indians, recent Goods and Services Tax (GST) reforms, and travel becoming a frequent habit throughout the year, travel firm Thomas Cook India anticipates a stronger travel-led momentum next year, catering to about 50 million leisure travellers over the next five years.

 

“People are now looking at travel as a necessity rather than a comfort,” Mahesh Iyer, managing director (MD) and chief executive officer (CEO), told Business Standard. “We had about 30 million travellers from India across all (travel) segments, of which 40 to 42 per cent were leisure travellers. That is about 12 million or 13 million (travellers). This number is going to be close to about 50 million over the next five years.”

 

This comes after 2025 faced several moments affecting the travel sentiments of people, starting from the continued effect of geopolitical issues between India and Pakistan in April, the Air India crash in Ahmedabad, Qatar bombings, and the impact of US tariffs and visas. On top of this, adverse weather conditions and the extended monsoon period in India, with the most recent incident being a blast near the Red Fort in Delhi, impacted the industry.

 

How did Thomas Cook India’s travel segments perform in Q2?

 

Overall, in the travel services segment, the company saw a seven per cent increase in sales for leisure travel in Q2 year-on-year (Y-o-Y), as per its earnings release. In the MICE (meetings, incentives, conferences and exhibitions) segment, its sales rose by two per cent in the July–September quarter Y-o-Y. Meanwhile, the corporate travel segment saw an increase of 27 per cent in turnover Y-o-Y in Q2, the release stated.

 

“While from a numbers perspective, our quarter looks a little muted, this has been a resilient quarter for us despite the headwinds and the challenges that we’ve seen across all lines of business. We expect that with all that has happened in the economy with the GST reforms and the improving consumer sentiment, we expect the principal spending to improve in the next quarter,” he noted.

 

Thomas Cook India’s net profit rose by 2.4 per cent to Rs 66.4 crore for the second quarter of 2025–26 (Q2FY26) on a Y-o-Y basis. The company’s revenue from operations rose by 3.5 per cent to Rs 2,073.8 crore in the July–September quarter compared with the same quarter last year.

 

What is driving Thomas Cook India’s expansion in resorts and holiday offerings?

 

For the company, extended monsoons resulted in lower occupancies in its resorts under Sterling Holidays near forest areas. However, the company added seven new resorts in the July–September quarter. By the end of FY26, Iyer added that Thomas Cook India plans to have around 75 to 76 resorts and then scale it up to 100 resorts. Currently, it has 66 resorts. After the acquisition of Nature Trails Resorts (catering to adventure-related travel), which was a part of Sterling Holidays, the company has signed three new resorts, taking the total to six resorts in this portfolio.

 

Its other income jumped by 48.6 per cent to Rs 64.5 crore in Q2FY26 on a Y-o-Y basis. Thomas Cook India’s Pbidt (profit before interest, depreciation and tax) rose by 2.8 per cent to Rs 172.7 crore for the quarter ended on September 30 Y-o-Y.

 

How is the forex and digital travel planning business shaping up?

 

Iyer added that despite the RBI’s LRS data, the company’s revenue in the foreign exchange (forex) segment has been steady, with it expanding its recent partnership with Blinkit for the distribution of borderless forex cards to seven cities. In this segment, its holiday sales jumped by 13 per cent Y-o-Y in Q2, while the overseas education segment grew by 9 per cent in the quarter.

 

“We’re also seeing a clear shift towards technology-driven travel planning. We have built AI tools to help customers plan itineraries seamlessly, supported by video chat or consultant assistance. Currently, we have 22 to 23 per cent digital penetration, and we expect this to grow as customers become more comfortable with AI travel planning,” said Iyer.