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New Delhi: The country's hospitality sector is likely to witness strong tailwinds in the medium to long term, with demand outpacing supply, Thomas Cook India's Executive Chairman Madhavan Menon said.
In an interview with PTI, he shared that the company's expansion plans in India are focused on a phygital model, and it is looking at opening around 20 new holiday outlets this fiscal through a combination of owned and franchise locations, and this will include key source markets across Tier 1-3 cities and towns.
The company reported a consolidated net profit of Rs 73.13 crore during the first quarter ended June 30, marginally up from Rs 70.93 crore a year ago, according to a regulatory filing.
During the April-June quarter, Thomas Cook India's total income rose to Rs 2,134.33 crore from Rs 1,931.87 crore in the year-ago period.
"In the medium and long term, the tailwinds for the hospitality sector remain strong, with demand expected to continue outpacing supply," Menon told PTI.
Citing industry reports, he said the long-term demand is forecasted to grow at over 10 per cent, fuelled by a robust growth of 20 per cent year-on-year in domestic tourism.
According to Menon, the growth rate is expected to be at 13 per cent for key leisure markets.
The Thomas Cook India Executive Chairman shared that the company's hospitality arm Sterling Holidays is also expanding its portfolio rapidly, using an asset-right model, and has already achieved its first milestone of 50 resorts - with a strong pipeline of another 20 resorts in the next 15 months.
"Our expansion plans are focussed on a phygital model," Menon shared.
The steady increase in economic activity on the back of the country's economic growth is also fuelling the growth of the corporate travel business.