Thomas Cook India has experienced a remarkable surge in revenue and profit during the fiscal year 2023-24, marking its highest-ever performance. This achievement reflects the significant shift in consumer behavior and the robust recovery of the global travel industry following the pandemic. The company’s revenue witnessed a substantial 45% increase, reaching ₹7,426 crore, while net profit soared dramatically from ₹10 crore in the previous fiscal year to a staggering ₹271 crore. This impressive growth is primarily attributed to the resurgence of both outbound and domestic travel, a trend that gained momentum in the wake of the pandemic and has shown no signs of slowing down.
Madhavan Menon, the chairman of Thomas Cook India, observed that the surge in travel, initially perceived as “revenge travel” post-pandemic, has maintained its momentum. As the world gradually emerged from the pandemic’s grip, a noticeable shift in consumer behavior became evident, with travel emerging as a significant beneficiary. This trend persisted throughout the fiscal year, experiencing only a brief lull during one quarter, which was impacted by the heatwave and elections. Despite the potential for a slight slowdown in growth, Menon remains optimistic, stating that the appetite for travel remains robust, indicating a sustained recovery within the industry.
According to a report by MakeMyTrip, holiday searches have witnessed a remarkable 45% increase since the pandemic, with over 100 million individuals annually searching for travel options on the platform. Menon also highlighted a notable demographic shift among Indian travelers, with the average age dropping by 10 years. Unlike the past, where Indian travelers tended to wait for a certain stage in their careers to plan expensive foreign vacations or explore exotic domestic destinations, they are now embracing a more spontaneous approach. They are increasingly inclined to take multiple short holidays, both domestically and internationally, instead of saving for a single expensive trip every few years.
This growing preference for multiple short holidays has significantly impacted Thomas Cook India’s business model. The company’s leisure travel segment experienced an impressive 89% growth in FY24. Today, Indian travelers are increasingly comparing domestic trips with short international getaways to destinations such as Southeast Asia or Dubai, making travel decisions based on convenience and affordability. The MakeMyTrip report further revealed that the number of individuals taking over three trips annually has risen by 25%. Destinations like Dubai, Thailand, the Maldives, Georgia, and Azerbaijan have emerged as popular choices for these short holidays. Menon noted that pre-pandemic, the Maldives was perceived as an expensive destination but has since become a favored choice due to its accessibility and ease of travel.
This shift in travel preferences has positioned Indian travelers as a key demographic on the global stage, particularly as China’s role as a leading source of outbound tourists diminishes. Several countries have recognized this opportunity and have amended their visa policies to accommodate Indian travelers. Menon pointed out that nearly 49 countries now offer either visa-free entry or visas on arrival to Indian citizens, a significant increase from just five countries before the pandemic. The expansion of flight, train, and bus networks has further facilitated the growth of the travel and tourism industry.
Thomas Cook India has also had to adapt its business operations to meet the evolving demands of consumers. Menon acknowledged that customers now interact with the company through various channels, including online platforms and call centers, rather than solely visiting physical branches. This shift in consumer behavior prompted the company to invest heavily in technology during the pandemic, adopting a bottom-up approach to building its technological infrastructure. The integration of technology has enabled Thomas Cook India to streamline operations, reduce employee costs, and enhance productivity. The company has also transformed its content delivery, making information readily accessible online, through call centers, and in branches, while shifting its focus from being a source of information to becoming a facilitator of travel experiences.
The improvement of infrastructure within India has further fueled the growth of domestic tourism. The MakeMyTrip report indicated a 30% increase in tourism to emerging destinations such as Bhubaneswar, Lucknow, and Ujjain. Religious tourism has also witnessed significant growth, with a 97% increase in visits, partly driven by developments like the construction of the Ram temple in Ayodhya. Menon emphasized that despite the widening airline networks and the launch of new trains, there is still a significant demand-supply mismatch in the country. However, he noted that the Indian government has recognized the long-term potential of domestic tourism infrastructure development, which, although it will take time, is expected to attract international tourists as well.
