The Indian travel and tourism sector is growing at a rapid speed due to high disposable incomes, increasing domestic and international tourist travel, and government policies encouraging tourism. The growth in this sector has pushed travel companies to evolve by using technology, providing services in all travel-related solutions, and broader reach for their business. For investors, travel shares are an opportunity to reap the boom happening in the tourism industry of India.
Discover the best travel stocks in India based on market capitalization for 2024. The best travel companies that have maintained a strong market presence in India will be particularly highlighted, such as IRCTC, EaseMyTrip, Thomas Cook India, and Yatra Online Limited. Each of these companies is different, and all of these companies have significant growth momentum.
Top Travel Stocks in India in 2024
| Rank | Company Name | Market Capitalization (₹ Crores) | Core Business Segment | Key Strength |
|---|---|---|---|---|
| 1 | IRCTC | High | Online Ticketing & Catering | Monopoly in Rail Ticketing |
| 2 | EaseMyTrip | High | Online Travel Booking | Low-Cost Model, Strong Margins |
| 3 | Thomas Cook India | Moderate | Travel Services & Forex | Diversified Portfolio |
| 4 | Yatra Online Limited | Moderate | Online Travel Agency | Corporate Travel Solutions |
1. IRCTC (Indian Railway Catering and Tourism Corporation)
IRCTC is a Government-owned company that has a monopoly in the railway ticketing space of India. It is also involved in catering tourism and packaged drinking water. Playing a critical role in India’s travel ecosystem, IRCTC is the backbone of India’s travel infrastructure.
Market Position:
- Market Capitalization: IRCTC is the largest travel stock in India by market cap, speaking of its dominance and consistency in performance.
- Revenue Streams: The company gets revenue through railway ticketing, catering, tourism, and its Rail Neer water business.
Growth Potential:
- Digital Transformation: IRCTC’s digital platform processes millions of transactions every day, and the potential for revenue growth lies with improvements through technology.
- Tourism Expansion: IRCTC has been helping in the growth of tourism through luxury train services and packages of tours.
IRCTC has the monopoly in railway ticketing, a strong financial track record, and diversified revenue streams. Thus, it is a very safe long-term investment.
2. EaseMyTrip (Easy Trip Planners Ltd)
EaseMyTrip is India’s rapidly expanding online booking travel portal for airline tickets, hotel booking, holiday packages, and bus tickets. The business model is famous for being an asset-light and low-cost company.
Market Position:
- Market Capitalization: The company has a high market cap led by effective operations and profitability.
- Profitability: Unlike most of the other players, EaseMyTrip has been profitable in the long run with a low-cost structure.
Growth Potential:
- Growing User Base: With more and more people coming under the internet umbrella and wanting to book travel online, EaseMyTrip is poised to explode.
- Strategic Partnerships: Partnerships with airlines as well as hotels render the user value-added service, and loyalty towards the company in question.
The low-cost model of EaseMyTrip, the good profitability in the balance sheet, and its foray into tier-2 as well as tier-3 markets make it an attractive stock for investors who are looking at high-growth stocks.
3. Thomas Cook India
Thomas Cook India is the leading company in the Indian subcontinent for the provision of travel services or travel, corporate travel, MICE, and forex. Thomas Cook is synonymous with the trust and quality of its legacy brand.
Market Position:
- Market Capitalization: Though lesser to IRCTC and EaseMyTrip, Thomas Cook India retains a stable market cap that represents an established stand in the marketplace of this industry.
- Revenue Streams: It generates revenues through streams like leisure travel, business travel, and foreign exchange.
Growth Potential:
- Focus on MICE: The corporate travel and events markets will bounce back from the pandemic, thus boding well for Thomas Cook.
- Innovative Offerings: Thomas Cook is seeing innovative travel offerings like sustainable and experience-based packages.
Thomas Cook’s diversified portfolio, focus on premium services, and strong forex business make it a resilient choice for investors.
4. Yatra Online Limited
Yatra Online Limited is a well-known online travel company that provides travelers with significant sources of booking travel services such as flights, hotels, holiday packages, and more. Additionally, the company is considered a major player in this segment through its business-to-business travel platform.
Market Position:
- Market Capitalization: Yatra has a moderate market capitalization but is steadily growing because of its corporate travel solutions.
- Focus on Corporate Travel: Yatra appears to be a favorite business tour operator that renders end-to-end travel management solutions to businesses.
Growth Potential:
- Corporate Partnerships: Its corporate tie-ups related to managing travel and partnering with business travel companies would be its growth avenue.
- Technology Integration: Yatra maintains its lead through the use of AI and data analytics to enhance the user experience.
Now, though Yatra is in a very strong position as far as corporate travel is concerned, along with this growth having also come in the leisure travel, makes it a balanced investment in the travel sector.
Conclusion
With an upsurge in demand for domestic as well as international travel, growing internet penetration, and government efforts like Dekho Apna Desh, the travel industry of India appears to be on a growth trajectory. The best travel stocks in India by market capitalization—IRCTC, EaseMyTrip, Thomas Cook India, and Yatra Online Limited—offer a range of opportunities for investors to benefit from this booming sector.
From IRCTC’s railway ticketing monopoly to EaseMyTrip’s efficient business model, Thomas Cook’s diversified offerings, and Yatra’s leadership in corporate travel, each one offers a unique strength and growth potential. Investing in the market leaders would allow an investor to capture the long-term benefits of this expanding Indian travel and tourism industry.
Frequently Asked Questions (FAQs)
Which is the largest travel stock in India by market capitalization?
IRCTC is the largest travel stock in India by market capitalization.
Is the travel industry a good sector to invest in 2024?
Yes, the travel sector is expected to rise manifold in 2024, as demand for both domestic and international travel is increasingly rising as digital transformation drives the sector further.
How is Yatra Online distinct from other travel companies?
Yatra Online focuses on corporate travel management but also provides all-inclusive travel services for leisure travelers.
What are Thomas Cook India’s key strengths?
The strengths of Thomas Cook India are diversified offerings which include leisure travel, corporate travel, MICE, and forex services.
Why EaseMyTrip is a good investment?
EaseMyTrip’s asset-light model, profitability, and focus on expanding to tier-2 and tier-3 cities are the right reasons why EaseMyTrip would make a good investment for a growth stock.
