Best Travel Stocks in India

India-world’s seventh largest country by land area, with an unparalleled scale of diversity from Kashmir to Kanyakumari (North to South) and Puri to Goa (East to West), is also the world’s 7th largest tourism economy. As we progress into 2026, India’s travel & tourism sector- around $268 billion at Dec’25, continues to be a cornerstone of the $4.1 trillion economy-contributing almost 6.5% of the nominal GDP. Travel & Tourism continues to be one of the fastest-growing segments of India’s service-heavy economy and also a big provider of employment and precious foreign exchange (USD).

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India’s travel & tourism industry size may almost double, to around $500 billion by 2035, supporting almost 65 million jobs (vs present ~48 million) to become the 4th largest tourism economy in the world. The sector may grow by around 10-12% CAGR for the next ten years (2025-35) against nominal GDP growth of around 8-10%.

India remains one of the top attractions for both global & local travellers (tourists):

• Vast geographical diversity spans from the northern snow-capped Himalayas to tropical southern beaches, and the in between Thar Desert, fertile plains, the Deccan Plateau, and lush northeastern green rainforests.
• Balanced weather & temperature across the country on average, not too hot or too cold, even during peak winter months-seasonal travel times for most of the foreign travellers.
• As of 2026, India has 44 UNESCO World Heritage Sites (36 cultural, 7 natural, and 1 mixed), ranking sixth globally and showcasing its rich heritage from ancient monuments to pristine ecosystems.

Indian Government Focus on Travel & Tourism Sector

In summary, even if India’s 30% of common people have sufficient capacity for discretionary travel spending (upper layer of the middle class), stable government or private jobs and businesses, equivalent to almost the entire population of the US. The huge influx of domestic travellers & growing YouTubers is causing infrastructure bottlenecks. But the government is also on a war footing to address the issue by developing the required infrastructure for ease of travelling & also doing business in India in its pursuit to become a $30 trillion developed economy, the world’s 3rd largest by 2047-50.

The Indian government is also encouraging domestic travel rather than foreign travel in line with its mantra –‘vocal for local’. Although in nominal terms, India is the 7th largest tourist economy in the world, due to its huge population, it’s also among the lowest on a per capita basis among peers. Thus, the government is aiming to almost double the contribution of the sector to nominal GDP by 2047-50 from present levels of 6.5% to 15%-in line with developed economies (~20%). This will also ensure inclusive & quality employment generation.

Overview of Key Travel & Tourism Stocks for 2026

Here is the list of stocks from the travel and tourism for 2026, transitioning from recovery to sustainable expansion across aviation, hospitality, rail tourism, and online services.

1) InterGlobe Aviation Ltd (IndiGo)

India’s largest & most vital (too big to fail) airline (domestic market share ~65%)-one of the most efficient low-cost carriers globally is benefitting from both domestic & international fleet expansions along with diversifications (new routes). After a turbulent late 2025, domestic operations have largely stabilised, positioning to handle rising air passenger traffic. Also, stable ATF prices are helping a lot, along with normalising diplomatic & travel relations between Indian and China. IndiGo’s scale of operations, younger fleets and disciplined cost structure-it’s a bright spot in the Indian aviation industry listing space and also enjoys a scarcity premium.

2) Indian Railway Catering and Tourism Corporation Ltd (IRCTC)

Virtual monopoly in railway ticketing/online booking, catering, and packaged tourism and special luxury trains on domestic and pilgrimage travel, offering steady revenue & profit visibility. The asset-lite business model, coupled with strong positive cash-flow-IRCTC –a PSE (Public Sector Enterprise), is also enjoying a virtual monopoly and scarcity premium in the listed space. In a developing and relatively poor country like India, rail travel is the preferred mode for most of the common people in the country-IRCTC continues to be pivotal in India’s domestic tourism growth story.

3) Indian Hotels Company Ltd (IHCL)

IHCL, a part of the Tata conglomerate, is India’s largest hospitality company and has iconic hotel brands such as Taj, Vivanta, SeleQtions, and Ginger in the premium to mid-scale segments. IHCL is one of the prime beneficiaries of rising business and leisure travel in India and the subsequent recovery in hotel occupation and average room rates. IHCL’s asset-light business model (acquisitions) and a stress on contract portfolio (hotel leasing) in the affordable mid-scale segments under the ‘Accelerate 2030’ expansion, continues to be a bright spot in the hospitality listed space.

4) ITC Hotels

One of India’s largest, oldest and most reputed hospitality (hotels) chain; it has over 140 hotels in over 90 destinations in premium, mid-market and heritage segments (super-premium). It has some well-established brands like ITC Hotels, Mementoes, Welcomhotel, Storii, Fortune Hotels, and WelcomHeritage, along with a new affordable segment like ITC Ratnadipa* under an asset-light leasing model to capture multiple demand segments, including corporate travel, leisure stays, weddings, events and experiential tourism. Also, ITC hotels are a favourite for Indian and many IPL cricket teams, playing in India. ITC Hotels was demerged from parent ITC in January ’25 and is now listed in the NSE as a separate entity, and is now a pure hospitality play in the listed space.

5) Lemon Tree Hotels Ltd

It’s a dominant player in India’s mid-scale and branded budget hotels segment, targeting price-sensitive business and leisure travellers. Its asset-light expansion model in tier-II & III cities and the overall focus on affordability yet quality, along with geographical diversification, Tree Hotels may be one of the top stocks in the budget hospitality segment.

Conclusion

India- from fragile five to fastest five-now aiming to be the 3rd largest economy in the world-surpassing mighty Germany by the next few years. Leisure & business travel & tourism continue to be pivotal to the vibrant economy in 2026 and beyond. India’s travel & tourism sector is on the cusp of a resilient structural phase as it recovered from the 2020-21 COVID-affected cyclical tailwinds. Looking ahead, improving travel infra (rail/road/air) and related ecosystem (hotels, etc) coupled with rising domestic travelling and the increasing YouTube travel vlogging trends, India’s travel & tourism industry should be robust. And with increasing business travel, formalisation & digitisation industry is reshaping and creating mid-to-long-term opportunities in the listed space.