Thomas Cook Sees July Rebound in Travel Bookings, Domestic Forward Bookings Ahead of Last Year

Thomas Cook India reports a rebound in domestic travel bookings in July after a sharp dip during Q1 due to geopolitical tensions. Bookings are now slightly ahead of last year, with festive demand and long weekends expected to drive H2 recovery. The company witnessed a 25% YoY increase in forward bookings before April 21, but declined 11% YoY by the end of June.

Thomas Cook India has witnessed a significant rebound in domestic travel bookings in July, following a sharp dip during the April-June quarter due to geopolitical tensions. The company reported that forward bookings were trending 25% ahead of last year before the April 21 incident, but by the end of June, they had declined 11% year-over-year (YoY) [1].

The travel sentiment had taken a hit following the Pahalgam terror attack in April and the Air India crash in June. However, the company has seen a pickup in demand since July, driven by the festive period and long weekends. Mahesh Iyer, managing director and chief executive officer of Thomas Cook India, stated, "Before April 21, our forward bookings were trending 25% ahead of last year. But by the end of June, they had declined 11% YoY. From July onwards, we are seeing a pickup in demand driven by the festive period and long weekends" [1].

Despite some macroeconomic uncertainties, including tariff-related concerns, Iyer expects the second half of 2025 to be stronger in terms of travel sentiment and bookings. The outlook for FY26 remains strong at around 12-15% growth, with demand shifting towards short-haul domestic travel and visa-free international destinations [1].

Thomas Cook India reported a 4.3% YoY decline in net profit to Rs 72.1 crore for the quarter ended June 30, primarily due to a one-time ex-gratia payment of Rs 17.1 crore to retiring Executive Chairman Madhavan Menon, in recognition of 25 years of service. Revenue from operations, however, grew 14.3% YoY to Rs 2,408 crore in Q1FY26. Profit before interest, depreciation, and tax (PBIDT) also rose 4.3% to Rs 171.6 crore for the quarter [1].

Outbound holidays emerged as a key growth driver, with the company building a strong booking pipeline since October 2024 for the summer season. The leisure hospitality and resorts segment posted 8% YoY revenue growth, supported by the addition of 12 new resorts comprising about 1,000 rooms. Average room revenue (ARR) stood at Rs 7,100, with occupancy at approximately 64% in Q1. The company plans to add another 1,000 keys over the next 18 months to expand its resort footprint further [1].

With July seeing a return to positive travel sentiment and the festive season ahead, Thomas Cook India remains optimistic about sustained momentum in both domestic and outbound travel segments through the rest of FY26.

References:
[1] https://www.business-standard.com/companies/news/thomas-cook-india-sees-july-travel-rebound-after-geopolitical-dip-in-q1-125073101687_1.html