Motilal Oswal Picks TBO Tek and Ixigo as India’s Travel Boom Winners
**Travel Boom Looms on the Horizon**
India’s travel industry has undergone a remarkable transformation since the early 2000s. From a disorganized, offline market driven by travel agents, it has evolved into a highly digitalized ecosystem led by online travel platforms. The shift is largely driven by surging travel demand, accelerating digital adoption, and changing consumer behavior.
According to a 2020 report by the Ministry of Tourism, India’s inbound tourism sector has been growing at a CAGR of 7.5% over the past decade, with the country welcoming over 10 million international tourists in 2019 alone.
**What’s Driving the Boom?**
Several factors are contributing to India’s travel growth story. As the Indian economy continues to expand, the middle class is becoming increasingly affluent, with a growing disposable income to spend on leisure activities. Additionally, India’s digital ecosystem is advancing rapidly, with mobile penetration reaching over 80%, making it easier for consumers to book travel services online.
**TBO Tek and Ixigo: Key Beneficiaries?
Motilal Oswal, a leading Indian investment bank, has identified two key players in the Indian online travel market: TBO Tek and Ixigo. TBO Tek is a travel technology company that offers a range of services, including travel inventory management, payment gateway, and travel distribution solutions. Ixigo, on the other hand, is a popular online travel platform that allows users to compare and book flights, hotels, and other travel services.
Motilal Oswal sees these companies as key beneficiaries of the Indian travel boom, citing their strong market presence, robust technology platforms, and expanding product offerings.
**What this means**
For investors and industry stakeholders, the Indian travel boom presents a significant growth opportunity. As the market continues to evolve, companies like TBO Tek and Ixigo are poised to benefit from the rising demand for online travel services. With their strong market presence and robust technology platforms, these companies are well-positioned to capitalize on the growth story unfolding in India’s travel industry.
