The recent Indian Union Budget and earnings calls of IndiGo, MakeMyTrip, and Indian Hotels Company Limited (IHCL) were discussed in a recent episode of the Skift India Travel Podcast. The Indian budget for the 2025 fiscal year, presented by Finance Minister Nirmala Sitharaman, fell short of the expectations of the travel industry stakeholders. Key demands from the industry, such as industry status for tourism and a uniform tax rate for hotels, were not met. Thomas Cook (India) expressed disappointment over the lack of reinstated advertising budgets for inbound tourism.
IHCL announced its entry into the branded residences market, starting with Taj Branded Residences in Chennai. CEO Puneet Chhatwal highlighted the potential of this market, which is valued at INR 220 billion ($2.6 billion) and growing annually. IHCL also plans to launch the reimagined Gateway brand and open 25 hotels this fiscal year, with 7 already operational.
IndiGo is focused on enhancing its digital platforms and introduced an AI booking assistant on WhatsApp. The airline is testing in-flight entertainment on the Delhi-Goa route and is expanding its international routes. Despite a 12% drop in net profit for the quarter ending June 30, IndiGo aims for double-digit growth in fiscal 2025 by increasing flights to Central Asia and potentially more destinations.
MakeMyTrip reported its highest-ever quarterly gross bookings, revenue, and adjusted operating profit with a 22% year-on-year growth. CEO Rajesh Magow credited this success to India’s rising middle class, increased disposable income, and changing travel behavior. Emerging destinations like Turkey and Kazakhstan are experiencing an increase in Indian tourists, indicating a positive long-term outlook for outbound travel from India.
Overall, the Union Budget and earnings calls reflect both disappointments and successes in the Indian travel industry. While the budget did not meet the industry’s expectations, companies like IHCL, IndiGo, and MakeMyTrip are making strategic moves to capitalize on market opportunities. IHCL’s entry into branded residences, IndiGo’s digital upgrades and international expansion, and MakeMyTrip’s focus on the rising middle class are indicative of the industry’s resilience and adaptability in the face of challenges. By leveraging these opportunities and trends, companies are positioning themselves for growth in the coming years.
