India’s hospitality sector is set to experience strong growth in the medium to long term, with demand expected to outpace supply, according to Thomas Cook India’s Executive Chairman, Madhavan Menon.
Expansion Plans and Phygital Model
In an interview with PTI, Menon shared that Thomas Cook India’s expansion plans focus on a “phygital” model, combining physical and digital experiences. The company plans to open around 20 new holiday outlets this fiscal year. These outlets will be a mix of owned and franchise locations, targeting key source markets across Tier 1 to Tier 3 cities and towns.
Financial Performance
Thomas Cook India reported a consolidated net profit of Rs 73.13 crore for the first quarter ended June 30, slightly up from Rs 70.93 crore a year ago, as per a regulatory filing. The company’s total income for the April-June quarter rose to Rs 2,134.33 crore from Rs 1,931.87 crore in the same period last year.
Strong Tailwinds for Hospitality Sector
Menon stated that the hospitality sector in India will continue to see strong tailwinds, with demand consistently outpacing supply. He cited industry reports forecasting long-term demand growth at over 10%, driven by a robust 20% year-on-year increase in domestic tourism. Key leisure markets are expected to grow at a rate of 13%.
Sterling Holidays Expansion
Thomas Cook India’s hospitality arm, Sterling Holidays, is also rapidly expanding its portfolio. Using an asset-right model, Sterling Holidays has achieved its first milestone of 50 resorts and has a strong pipeline of another 20 resorts planned for the next 15 months.
Focus on Phygital Model
“Our expansion plans are focused on a phygital model,” Menon reiterated. This model aims to integrate digital advancements with physical experiences to enhance customer satisfaction and operational efficiency.
Corporate Travel Growth
The steady increase in economic activity, driven by India’s economic growth, is also boosting the corporate travel business. Menon highlighted that the growing economy is fueling more business travel, contributing to the overall growth of the hospitality sector.
India’s hospitality sector is on a strong growth trajectory, with Thomas Cook India leading the way through strategic expansions and innovative models. The company’s focus on integrating physical and digital experiences, coupled with a robust pipeline of new resorts, positions it well to capitalize on the increasing demand in the sector.
