Global brokerage firm Jefferies continues to be bullish on the travel and tourism sector, maintaining a ‘Buy’ rating for all the stocks under its coverage.

The foreign brokerage’s stock preference order is Interglobe Aviation Ltd. at the top, followed by Indian Hotels Company Ltd., GMR Airports Ltd., and TBO Tek Ltd.

Jefferies has set target prices of ₹5,260 for IndiGo, ₹1,000 for Indian Hotels Co, ₹77 for GMR Airports, and ₹1,743 for TBO Tek, reflecting its confidence in the growth prospects of these companies within the sector.

According to Jefferies, demand in India—both domestic and outbound—remains strong, even after the normalisation of post-Covid growth.
Industry pricing across segments continues to remain elevated without hurting growth, as Indian consumers increasingly prioritise travel over other spending categories.

Themes for 2025:

– Consumer preference for premium and experiential travel
– Record wedding season, FTA revival, Mahakumbh, and limited supply

– New airports in Navi Mumbai and Noida to further support travel demand

– IndiGo to begin receiving Airbus XLR aircraft

The World Travel & Tourism Council (WTTC) reports that the sector contributed a staggering ₹19.13 lakh crore to India’s GDP in 2023.

Employment in the industry has also seen a robust 10% growth, reaching nearly 42 million jobs—8% higher than pre-pandemic levels. By the end of 2024, an additional 2.45 million jobs are expected to be created, with 31% in direct roles like tour guides and hotel staff, and the rest in supporting industries such as logistics and IT.

India’s tourism sector is on a growth trajectory. Experts forecast that by 2034, the industry’s GDP contribution could double to ₹43.25 lakh crore.

While the momentum is strong, addressing infrastructural and experiential challenges could elevate tourism to become a cornerstone of India’s economic success story.