In an exclusive interview, Debasis Nandy, President & Group CFO of Thomas Cook (India) Group, discusses Budget 2026, AI-driven travel, outbound demand, skilling initiatives and why India could emerge as a global tourism hub this decade.
Better infrastructure doesn’t just make travel easier—it transforms experiences
Thomas Cook has reported a strong quarter. How would you sum up the performance?
We’ve delivered a fairly solid quarter. Profit before tax grew by around 20 per cent year-on-year, while the topline was up close to 4 per cent. Importantly, this growth is before accounting for a one-time labour court-related charge of about Rs 30 crore, which is largely a future liability and not reflective of our operating health.
If you look at the operating performance, it’s encouraging. All our segments reported double-digit EBIT growth. Financial services and travel services grew by around 10 per cent, leisure hospitality also saw similar growth, and we’re beginning to see a turnaround in digital imaging services, which had been under pressure for a few quarters, particularly in the Middle East. This isn’t the end of the journey there, but it’s certainly the start of a recovery.
The Union Budget has reduced TCS on overseas tours and forex remittances. How meaningful is this for outbound travel demand?
There are two clear impacts. The first is perception. While TCS is essentially an advance tax that you eventually get credit for, customers always felt their money was getting locked upfront. With the reduction, that concern eases considerably, making conversations with customers much simpler.
The second impact is structural. Earlier, offline travel companies like ours were at a disadvantage compared to overseas online portals, where customers could swipe credit cards without attracting TCS. That gap is now narrowing. This levels the playing field and should help organised offline players regain some lost ground.
The Budget also places heavy emphasis on rail corridors and last-mile connectivity. How could this reshape domestic tourism?
This is hugely significant. Better infrastructure doesn’t just make travel easier—it transforms experiences. Alongside connectivity, the government’s focus on developing archaeological sites and training nearly 10,000 guides is equally important.
India has long struggled with inconsistent quality in tourism experiences, especially when compared to overseas destinations. That’s one reason inbound tourism hasn’t scaled—we attract barely 10 million international tourists annually, far below comparable destinations. These steps could finally address that gap.
That said, one missing piece is marketing. Infrastructure and quality must be matched with promotion. Unfortunately, the Incredible India marketing budget has been sharply reduced, which is something I wish had been handled differently.
Digital channels and AI are reshaping travel globally. How is Thomas Cook monetising these technologies?
AI will be transformative for travel. We’ve introduced an AI agent called TC, available on our app and website, which helps customers plan trips conversationally. Over the next few months, we plan to roll out a voice-based AI agent and, importantly, regional language capabilities—Hindi, Tamil, Telugu, Bengali and more.
For a country like India, engaging customers in their preferred language is critical, especially in tier-two and tier-three markets.
Beyond AI, we’re innovating on commerce. We’re the only company currently offering end-to-end forex transactions on WhatsApp, and the only one—banks included—selling prepaid forex cards via Blinkit. These initiatives are helping us scale profitably while improving customer convenience.
Many are calling this India’s tourism decade. What role do policy stability and organised players play?
Tourism still doesn’t enjoy the industry status it deserves, which has kept it fragmented. A stable, long-term policy framework will encourage consolidation and bring in larger, more professional players.
Tourism contributes nearly 10 per cent to GDP and about 8 per cent to employment when you look at the entire ecosystem. India has extraordinary depth—diverse destinations, cultures and experiences. Today’s traveller wants unique, experience-led journeys, and India is perfectly positioned to deliver that.
Recently, we’ve also partnered with the governments of Gujarat and Tamil Nadu to jointly develop tourism in those states. These collaborations are critical to unlocking India’s potential.
The Budget stresses skilling in tourism. How important is this push?
It’s vital. Take tour guides, for example—today the sector is largely unorganised, with minimal entry barriers. Structured training and skilling will ensure a more consistent, high-quality experience for travellers.
Better experiences encourage repeat visits and help domestic tourism compete with international destinations. At the same time, tourism can become a major employment generator in tier-two and tier-three towns, drawing local talent into the sector. It’s a win-win for travellers and communities alike.
Finally, are you optimistic about the road ahead?
Very much so. With infrastructure upgrades, digital transformation, skilling initiatives and stronger public-private collaboration, this decade genuinely has the potential to belong to Indian tourism. If we stay focused and execute well, India can emerge as both a leading source market and a global destination hub. |
