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CRISIL Ratings has said that rising domestic tourism and increasing propensity to travel overseas will expand the revenue of India's tour and travel operators by 15-17 per cent this fiscal (FY25). Factors like improving infrastructure, rising disposable incomes, a behavioural shift in travel patterns, and the government's increasing focus on boosting domestic tourism will further support the sector's revenue growth.

It said the assessment was based on an analysis of the country's four major travel operators, who account for about 60 per cent of the sector's revenue. It stated  ‘The credit profiles of travel operators, too, are expected to remain healthy, supported by strong balance sheets and steady operating margins of 6.5-7 per cent, in line with last fiscal, resulting in sizeable cash flows and continuing low reliance on debt.’

In the domestic tourism market, growth is being fuelled by 'micro holidays' (e.g., quick getaways or staycations over long weekends), growing spiritual tourism, and better infrastructure (improved last-mile connectivity) facilitating travel to newer destinations.

It stated an increase in inbound travel (foreign tourist arrivals) to pre-pandemic levels and high demand from the corporate and MICE (meetings, incentives, conferences and exhibitions) segments are also supporting domestic travel. For overseas leisure travel, growth is being led by higher disposable incomes, visa-free facilities from 37 countries, simplified visa processes, including visa-on-arrival and e-visa facilities, among others, and easing visa-related challenges related to long-haul destinations.