Yatra Online Ltd Management Discussions

GLOBAL ECONOMIC OVERVIEW

Global GDP grew an estimated 3.4% in CY 2025, aided by easing inflation, resilient labor markets and a gradual trade recovery, though geopolitical tensions, trade policy uncertainty and uneven regional performance clouded the outlook. Inflation stood at 4.1% in CY 2025 and is projected to rise to 4.4% in CY 2026, before easing to 3.7% by CY 2027, though the pace of decline is expected to vary across regions.

Growth was uneven across regions. Advanced economies grew 1.9%, while emerging markets and developing economies grew around 4%, remaining the primary drivers of global expansion. The Eurozone stayed subdued on weak manufacturing and policy uncertainty, China slowed on soft housing demand despite resilient exports, and India continued to grow strongly on robust domestic demand, sustained public investment and stable macro fundamentals.

production of high-bandwidth memory chips that are essential for AI workloads. Together, these investments are shaping a new global technology investment cycle centered around artificial intelligence.

Beyond the technology sector, this investment is beginning to influence broader economic activity. Growing investments in AI infrastructure are supporting business travel associated with data-center construction, technology partnerships and cross-border collaboration, while AI itself is transforming how consumers discover, plan and book travel. Across the travel industry, AI is increasingly being adopted to enhance personalization, automate customer service, optimize pricing and improve enterprise travel and expense management, creating new opportunities for technology-enabled travel platforms.

INDIAN ECONOMIC OVERVIEW

India remained one of the worlds fastest-growing major economies in FY 2025-26, with real GDP growing an estimated 7.7% per Provisional Estimates, up from 7.1% in FY 2024-25, driven by resilient domestic demand, sustained public capital expenditure and stable macro fundamentals. Private Final Consumption Expenditure rose 7.6% against 5.6% in FY 2024-25 on broad-based consumption strength and a favorable monsoon, while Real Gross Value Added expanded 7.9%, up from 7.3%, led by services, manufacturing and construction. Moderating inflation, on easing food prices and prudent monetary policy, allowed the RBI to cut the repo rate to 5.25%. During the year, India surpassed Japan to become the worlds fourth-largest economy, with GDP reaching approximately USD 4.18 trillion.

Growth continues to be supported by favorable demographics, rising formalization, rapid digital adoption, and sustained public and private investment, including government capex across roads, railways, airports, defense, logistics and digital infrastructure, as well as rising private investment in manufacturing, real estate and data centers. Structural reforms across taxation including GST, labor and ease of doing business, alongside a growing digital economy, are accelerating formalization, with targeted policy support benefiting services, MSMEs and digital sectors including IT, skilling and medical tourism.

The Union Budget for FY 2026-27, anchored around the Viksit Bharat vision, prioritizes long-term capacity creation in semiconductors, electronics, biopharmaceuticals, rare earths, clean energy and advanced manufacturing to reduce import dependence, alongside infrastructure spending on freight corridors, waterways, high-speed rail and digital infrastructure. AI integration features prominently across agriculture, energy security and skilling. Near-term growth is further supported by improved credit flow, higher capacity utilization, a favorable monsoon outlook and the GST 2.0 rollout.

India is projected to remain among the fastest-growing major economies, with real GDP expected to grow 6.5% in FY 2026-27, led by domestic consumption, government capex, services resilience and manufacturing momentum, and supported by rising real incomes, strong agricultural output and employment-driven urban demand. Backed by a growing middle class, rising urbanization and formalization, and expanding digital adoption, India remains on course to become the worlds third-largest economy by 2030, targeting a GDP of USD 7.3 trillion.

Global conflicts defined the geopolitical backdrop for the year and left a direct, measurable mark on global aviation, energy costs and travel patterns. Geopolitical tensions across Eastern Europe and the Middle East continued to disrupt international aviation. Airspace restrictions and longer flight routes across Europe and Asia increased fuel consumption and operating costs for airlines, while heightened tensions in the Middle East led to temporary airspace closures, flight cancellations and rerouting across key international corridors. Concerns over critical energy transit routes also contributed to volatility in crude oil prices. Together, these developments increased airline operating costs, affected capacity on certain international routes and weighed on travel confidence.

Despite these near-term disruptions, the long-term fundamentals of the global travel industry remain resilient. Rising business activity, increasing consumer mobility, expanding middle-income populations and continued digital adoption are expected to support sustained growth across leisure and corporate travel. As geopolitical conditions stabilize and international connectivity improves, the industry is expected to benefit from recovering travel demand, expanding airline capacity and continued investment in technology, creating a favorable environment for integrated, scalable and digitally-enabled travel platforms.

An Emerging AI Investment Supercycle

Artificial intelligence emerged as one of the defining global investment themes during the year, with governments and technology companies committing unprecedented levels of capital towards AI infrastructure, computing capacity and semiconductor manufacturing. Global semiconductor sales reached a record USD 795.6 billion in 2025 and are projected to continue growing strongly as investment across the AI value chain accelerates.

The United States remained at the forefront of this investment cycle, led by hyper-scalers and AI platform companies making record investments in data centers and cloud infrastructure. China continued to expand its domestic AI capabilities and semiconductor ecosystem despite export restrictions on advanced technologies, while Taiwan strengthened its position as the worlds leading manufacturer of advanced logic chips and South Korea continued to expand

Global Travel Industry

In 2025, Travel & Tourisms contribution to global GDP totaled USD 11.6 trillion. It grew at 4.1% year-on-year, exceeding overall global economic growth (2.8%) by almost 50%. This includes the sectors direct, indirect, and induced impacts. As a share, Travel & Tourism represented 9.8% of the global economy. Travel & Tourism is also an important source of employment. In 2025, the sector supported a total of 366 million jobs globally, which is approximately 1 in 9 jobs. The sector also accounted for 1 in 3 new jobs created globally. The global travel and tourism sector hit a major milestone in 2025, with worldwide investment in the industry topping USD 1 trillion for the first

The global online travel market size was valued at USD 622.6 billion in 2025 and is projected to reach USD 1,438.4 billion by 2034, exhibiting a CAGR of 9.75% during the forecast period 2026-2034. Rising internet penetration, mobile app adoption, and AI-driven personalization are the primary growth engines. The 32-43 years age group leads with a 35.1% market share in 2025, while Desktop platforms command 67.3% of bookings. Asia-Pacific dominates regionally at 31.8%, driven by China, India, and Japan, followed by North America at 28.4%.

Traveller Expectations Are Evolving Beyond Price

Amid the volatility, the narrative around travel resilience has shifted, and the change shows up in three layers: how much people want to travel, how they decide where to go, and what they now expect once they book.

On demand itself, the underlying appetite remains strong. Demand held up through the year across leisure and business segments, driven by business confidence, consumer purchasing power and travel affordability, underscoring the close link between macroeconomic stability and global mobility.

But the more important shift has been in what travellers now weigh once they are ready to book, alongside price. Recent industry research points to reliability, flexibility and assurance becoming decisive factors in travel decisions: Travellers say they are willing to pay more for brands they consider dependable, trust and reliability are now outranking loyalty programs as a deciding factor in where people book, and hidden fees and unpredictable disruption, rather than headline fares, have become travellers leading source of frustration.

30% of airline customers would pay more for better service and 29% would pay more to fly with a trusted airline because of safety and reliability.

This shift toward valuing certainty over marginal price differences is reshaping how travel providers compete, and is a central reason the industry has turned so quickly to artificial intelligence, not merely to personalize recommendations, but to proactively manage disruption, simplify servicing and give travellers greater confidence that a booking will hold.

Global Business Travel Market

The global business travel market was valued at USD 1,851.6 billion in 2025 and is projected to grow to USD 2,061.2 billion in 2026 and USD 3,255.1 billion by 2033, at a CAGR of 6.7% from 2026 to 2033. Asia Pacific led the market with a 31.3% revenue share in 2025, and the segment continues to be shaped by companies using travel to sustain trade relationships, corporate expansion, and cross- border operations.

Organizations worldwide face mounting revenue pressures, narrowing margins and workforce challenges, even as they adopt sustainable practices. Many are turning to collaboration tools instead of in person meetings to contain costs and reduce their carbon footprint. Companies are exercising greater discretion over travel, curbing trips for business development and sales enablement. Persistent economic uncertainty, trade and tariff disputes, geopolitical conflict and the wider acceptance of remote and hybrid work continue to weigh on the corporate travel market.

North America held a 27.4% share in 2025, with the U.S. accounting for about 72.6% of the North American market and Canada projected to grow at a 7.2% CAGR. Europe held an 18.67% share, with the UK contributing around 24.5% of the European market and Germany projected to grow at 6.8%. Within Asia Pacific, China held roughly 28.7% of the regional market, while India is the fastest-growing country in the region at a projected 8.6% CAGR through 2033, supported by expansion across IT, consulting, finance, and manufacturing and a growing base of trade exhibitions and industry conferences in Mumbai, Bengaluru, and Delhi.

Indian Travel Industry

Economic Contribution and Scale

Tourism contributes 5.22% to Indias GDP and supports 13.34% of total employment, making it one of Indias largest employment generating sectors after agriculture. This places India below the global average contribution of tourism to GDP, which stands at around 10%, indicating continued headroom for growth relative to other major tourism economies. The sector is valued at over

Consumer and Corporate Travel as Complementary Demand Engines

Indias travel market is shaped by two complementary demand engines: consumer and corporate travel. Consumer travel continues to benefit from rising aspirations, higher discretionary spending and evolving lifestyle preferences. Corporate travel is supported by Indias expanding enterprise ecosystem, including the rapid growth of Global Capability Centers, multinational investment and professional services, and is expected to grow over USD 20 billion by FY 2026-27. While leisure travel has seen significant digital adoption over the past decade, managed corporate travel remains comparatively underpenetrated,atapproximately25%,representing significant long-term opportunity as enterprises increasingly digitize travel procurement, policy compliance and expense management.

Diversification and Niche Segments

India offers a diverse portfolio of niche tourism products, including cruises, adventure tourism, medical and wellness tourism, sports tourism, MICE (meetings, incentives, conferences and exhibitions), eco tourism, film tourism, rural tourism and religious tourism, and is recognised as a spiritual tourism destination for both domestic and international travellers. According to the Travel and Tourism Development Index (TTDI) 2024 report published by the World Economic Forum (WEF), India is ranked 39th among 119 countries.

Changing Traveller Behavior

The shift in Indias hospitality story is as much behavioral as structural. Infrastructure layers such as UPI, Aadhaar, DigiYatra and AI are reshaping how travel is booked and experienced, while Traveller preferences are moving away from opulence toward intentional, experience-led journeys, including cultural tourism, wellness retreats, slow travel and hyperlocal stays. Monsoon getaways, winter pilgrimages and rising travel demand from smaller cities are reshaping demand patterns in ways that metro-centric models have not fully anticipated.

Regional Diversification: Tier 2 and Tier 3 Cities

Much of the near-term opportunity in Indian tourism sits in Tier 2 and Tier 3 cities. Metro markets are approaching saturation, while smaller cities remain comparatively underdeveloped despite improving airport, highway and rail connectivity, rising disposable incomes, and demand that regularly outpaces supply. For hotel developers, this translates into lower land costs, reduced competition and stronger growth headroom relative to metro markets.

Aviation Infrastructure Expansion

Indias aviation infrastructure has expanded substantially, with the number of operational airports rising from 74 in 2014 to over 160 today. This growth has been driven in large part by the UDAN regional connectivity scheme, which has operationalized more than 600 regional routes, considerably improving accessibility to emerging destinations and giving rise to new demand centers across the country. As travel becomes more accessible and digitally-enabled, the industry is witnessing a broader geographical distribution of demand, supporting sustained growth across leisure, pilgrimage, wellness and experiential tourism.

Technology as a Structural Advantage

India holds a structural advantage in tourism technology. Most mature markets built their hospitality technology in disconnected layers, property management, customer tools and service platforms that rarely communicate with one another. India, by contrast, has the opportunity to build integrated, intelligence led systems from the ground up, bypassing the legacy silo problem that constrains more established markets.

India Business Travel Market

Indias corporate travel market stood at USD 14.8 billion (1,21,942 crores) in FY 2023-24 and is projected to reach USD 20.3 billion by FY 2026-27, growing at a CAGR of 11.1% driven by steeper airfares and hotel room rates. Air travel dominates corporate spend at USD 8.9 billion, or 60% of the total, followed by hotels at USD 4 billion (27%) and ancillary costs ground transportation, visa, and F&B at 13%.

Indias TMC and corporate OTA market was valued at USD 3 billion (24,862 crores) in FY 2023-24, representing 20.4% of total

USD 200 billion and continues to grow, driving regional development and creating multiplier effects across aviation, hospitality, transportation, retail and allied industries.

Separately, IBEF data on the growth of the tourism and hospitality industry places the sectors direct contribution to GDP at approximately USD 178 billion, with international tourist arrivals expected to reach 30.5 million by 2028.

Market Size and Near-Term Projections

Indias total travel and tourism market is projected at USD 56.3 billion in 2024, growing at 11.7% annually. It is estimated to reach USD 78.4 billion by 2027.

corporate GBV. This share is projected to rise to 23%, or USD 4.7 billion (38,469 crores), by FY 2026-27, growing at a CAGR of 15.7% compared to the 11% CAGR projected for the broader corporate travel industry.

Notably, travel spend among listed companies rose only 1.3 times between FY 2019-20 and FY 2023-24, against 1.8 times revenue growth, reflecting a more conservative approach to travel budgets among listed entities.

The formally managed segment, comprising Travel Management Companies (TMCs) and corporate OTAs, accounts for only a small share of this opportunity, at USD 3 billion, or 20.4% of total corporate GBV, in FY 2023-24. The unmanaged, offline led segment continues to hold close to 80% of the market.

Managed travel leads the market because enterprises are seeking predictable budgeting, streamlined approvals, and centralized vendor coordination, reducing operational complexity relative to fragmented booking processes. North Indias lead is anchored in the concentration of corporate headquarters, multinational offices, government institutions in Delhi-NCR, supported by Indira Gandhi International Airport and a dense network of business hotels and convention centers a position set to strengthen further with the recently launched Noida International Airport at Jewar, which is expected to ease congestion at Delhi IGI and expand connectivity to emerging corridors in Uttar Pradesh and Haryana.

Growth drivers:

• Aviation infrastructure is expanding rapidly - in 2026, the Union Civil Aviation Minister announced plans to add 50 new airports over five years, taking Indias total to nearly 350 by 2047, in line with the Viksit Bharat 2047 vision.

• Global events and conferences are reinforcing Indias position on the international circuit: OTM 2026 is scheduled to host over 2,200 exhibitors from more than 60 countries in Mumbai, reflecting the countrys growing role in hosting large-scale international trade events.

• The startup ecosystem is also a significant become the third-largest startup ecosystem globally, with the DPIIT recognizing more than 2.23 lakhs startups as of March 31, 2026, a base that is driving travel for networking, fundraising, and partnerships.

• Mergers and Acquisition is witnessing a new wave, especially in sectors like pharmaceuticals, manufacturing, and renewable energy. In fact, M&As have grown at a compound annual growth rate (CAGR) of 7.1% from 2014 to 2024. In February 2025 alone, India recorded 226 M&A and private equity deals worth USD 7.2 billion. In the past years, notable domestic and international M&As like Disney-Reliance Entertainment, Bharti Airtel-the BT Group and Adani Group-NDTV attest to a vibrant business landscape, strong confidence in the domestic economic climate and growing global interest in the Indian markets.

• New Policies like Make in India, Startup India, Digital India, Production-linked incentive (PLI) scheme, Mudra Yojana, and Atmanirbhar (Self-reliant) Bharat have boosted domestic production, promoted entrepreneurship, and enabled local businesses, especially Micro, Small and Medium Enterprises (MSMEs) that are fast emerging as an attractive catchment area for OTAs. Policy reforms like Ease of Doing Business, Goods and Services (GST) Tax, and foreign direct investment (FDI) have helped simplify labor and tax laws, reduce tax compliance burden, and attract foreign investments. All this and more have helped the Indian corporate market brace global economic headwinds and diversify, synergizing growth even as global growth prospects remain tepid.

Trends: Companies are increasingly outsourcing travel management to specialized agencies. Domestic carriers are also premiumising beyond budget models IndiGos planned 2026 launch of a dedicated business travel product for Indias busiest routes is a leading example.

Challenges: Rising airfares, accommodation costs, and broader budget pressures are prompting some enterprises to scrutinize travel spend and consider virtual alternatives. Inadequate transport and hospitality infrastructure in tier-two and tier-three cities limits access to emerging markets, while layered GST and state-level compliance requirements add administrative burden and slow reimbursement cycles.

Source:

IMARC Group India Business Travel Market, 2026 2034

VIDECs India Travel Market Opportunity Study, FY 2021-22 - FY 2026-27

Indias Online Travel Market

Indias online travel market was valued at USD 22.8 billion ( 1,88,254 crores) in FY 2023-24 and is projected to reach USD 36.3 billion by FY 2026-27. OTAs held a 64% share, while supplier direct channels held the remaining 36% and grew at a CAGR of 15.5% between FY 2023-24 and FY 2026-27. Online penetration is expected to rise from 40% in FY 2023-24 to 46% by FY 2026-27, driven by greater internet access, smartphone usage and rising incomes.

Offline channels still account for more than half of all bookings across the total travel market, with an even larger share in corporate travel. Penetration varies by segment. Rail led at 83% in FY 2023-24, supported by IRCTCs digital channel. Domestic air followed at 70%, aided by OTA adoption and competitive pricing. Hotels stood at 28% and alternate accommodations at 33%, both limited by fragmented supply. Intercity bus recorded the lowest domestic penetration at 24%, constrained by fragmented supply and SRTC challenges. International air had the lowest overall penetration at 21%, held back by visa requirements, tight timelines, higher scrutiny and elevated fares.

Wider smartphone and digital payment adoption has made leisure Travellers comfortable with self booking, allowing OTAs to expand into corporate travel through their technology and brand strength. This has driven growth in OTA corporate arms, a trend building for over a decade and accelerated by the post pandemic environment. In a capital intensive OTA landscape shaped by discounting for price sensitive leisure customers, corporate clients offer stronger long term value and retention, reinforcing OTA-led digitization across the market.

Government Initiatives Supporting Travel and Tourism

Union Budget Measures Under the Viksit Bharat Framework The Union Budget directs focussed attention toward tourism under the Viksit Bharat framework, with key measures including:

Five Medical Value Tourism Hubs developed in partnership with the private sector, supported by a National Destination Digital Knowledge Grid.

Fifteen archaeological sites redeveloped as experiential cultural destinations.

Development of Buddhist Circuits in the Northeast, with preservation of temples and monasteries across Arunachal Pradesh, Sikkim, Assam, Manipur, Mizoram and Tripura.

Five major tourism destinations across the Purvodaya States, connected by 4,000 electric buses.

Ecologically sustainable Mountain, Turtle and Bird Watching trails in select states.

India to host the inaugural Global Big Cat Summit.

A pilot program to upskill 10,000 guides across 20 iconic tourist sites.

Establishment of a National Institute of Hospitality to connect academia, industry and government.

Tax Collected at Source on overseas tour packages reduced to a flat 2%, removing the earlier 5% and 20% slabs.

Source:

Press Information Bureau Indias Economic Growth & Economic Outlook

Aviation Sector Initiatives

The Government of India has introduced a series of strategic policy and infrastructure measures aimed at strengthening the civil aviation sector and enhancing its long-term attractiveness to investors. In the last decade, Indias skies have grown busier than ever, and the sector now supports over 7.7 million jobs indirectly, including 3,69,000 jobs directly.

DigiYatra, the Greenfield Airports Policy and the Drone PLI Scheme are driving innovation and ease of travel.

In 2026, the Union Civil Aviation Minister announced plans to add 50 new airports over five years, taking Indias total to nearly 350 by 2047, in line with the Viksit Bharat 2047 vision. The airport count has already risen from 74 in 2014 to 163 as of late 2025.

The Protection of Interests in Aircraft Objects Act, 2025 establishes a clear legal framework protecting creditors rights in aircraft assets, covering security agreements, leases and title reservations, enabling international registration of interests, defining default remedies, and streamlining de-registration and export procedures when an airline defaults or goes insolvent. It lowers financing risk for lenders, making aircraft leasing and asset-backed borrowing cheaper and more accessible for

Indian airlines, while giving the DGCA authority to act as the registry body and High Courts jurisdiction over disputes.

Major airport terminals across the country are undergoing significant, government funded upgrades aimed at easing overcrowding at busy hubs and keeping pace with the anticipated surge in passenger volumes.

Recent additions to Indias airport network include Navi Mumbai International Airport, which began commercial operations in December 2025, and Noida International Airport at Jewar, inaugurated in March 2026 with an initial capacity of 12 million passengers a year, expected to rank among the largest airports in Asia once fully developed.

Segment-Specific Government Schemes

Rural Tourism

While State Governments and UTs are primarily responsible for developing and promoting tourist destinations, the Ministry of Tourism supports them financially through schemes like Swadesh Darshan, PRASHAD, and Assistance to Central Agencies for Tourism Infrastructure Development, including in rural, backward and tribal areas. Swadesh Darshan 2.0 has been repositioned around sustainable, destination-centric tourism development, with a sub-scheme for Challenge Based Destination Development. Under PM-JUGA, guidelines have been issued for developing 1,000 homestays in tribal areas, offering financial support of up to5 lakhs per household for construction and 3 lakhs for renovation, alongside training for homestay owners. Budget 2025-26 introduced a dedicated MUDRA Loan category for homestays, with rural homestays made eligible, and the Paryatan Mitra & Paryatan Didi initiative focuses on skilling women and youth as homestay owners, guides and experience providers. Under the Rural Circuit of Swadesh Darshan, two projects were sanctioned, in Bihar and Kerala, totaling 101.62 crores sanctioned, with 86.19 crores already released.

Spiritual Tourism

Spiritual tourism in India is witnessing accelerated growth, supported by increased government investment in pilgrimage infrastructure and destination development during 2025-26. Under Swadesh Darshan 2.0 and related schemes, the government has sanctioned 53 projects worth over 2,200 crores, focusing on sustainable and experience-led tourism destinations. A key initiative is the 165.44 crores Buddhist Meditation & Experience Centre in Bodh Gaya, approved in 2024-25 and actively progressing in 2025-26 to enhance global Buddhist tourism appeal, alongside projects such as the Integrated Buddhist Tourism Development in Shravasti (80.24 crores).

Eco-Tourism

Indias eco-tourism market was valued at USD 21.7 billion in 2025 and is projected to reach USD 51.2 billion by 2034, growing at a CAGR of 9.70%, with 82% of Indian tourists prioritising sustainability. The Budget outlines Mountain Trails in Himachal Pradesh, Uttarakhand and Jammu & Kashmir, Eco and Nature Trails in Araku Valley and Podhigai Malai, Turtle Trails along nesting sites in Odisha, Karnataka and Kerala, and Bird Watching Trails at Pulicat Lake in Andhra Pradesh and Tamil Nadu, all under Swadesh Darshan 2.0.

Adventure Tourism

Indias adventure tourism market is expected to reach a projected revenue of USD 86,377.2 million by 2033, at a CAGR of 20.9% from 2026. Adventure tourism is identified as a key niche product by the Ministry of Tourism, aimed at overcoming seasonality and promoting India as a 365-day destination through the National Strategy for Adventure Tourism, covering state assessment and ranking, skills and certification, marketing, safety management, rescue and communication grids, destination development and governance. Notable projects sanctioned under the SASCI scheme include a Rafting Base Station at Rishikesh (100 crores) and a Siang Adventure & Eco-Retreat in Pasighat, Arunachal Pradesh ( 46.48 crores).

Medical and Wellness Tourism

The Ministry of Tourism has introduced a National Strategy and Roadmap for Medical and Wellness Tourism, focused on building a national brand, improving infrastructure, and enabling digitalization through an online Medical Value Travel portal. Indias medical tourism market is valued at USD 20.4 billion in 2026 and is projected to reach USD 65.1 billion by 2036, at a 12.3% CAGR, supported by treatment costs 60-80% below Western countries, 57-61 JCI-accredited hospitals and 4,650-plus NABH-certified facilities, e-medical visas approved within 48-72 hours across 167 countries, and Union Budget 2026 backing for five dedicated Medical Value Tourism Hubs, with insurance tie-ups in the Maldives, Oman and Mauritius. On the wellness side, Indias wellness tourism market is valued at USD 28.87 billion in 2025, rising to USD 30.95 billion in 2026 and projected to reach USD 43.76 billion by 2031, at a 7.18% CAGR. The Union Budget 2025-26 allocated 20,000 crores under the "Heal in India" initiative, positioning Ayurveda and yoga as exportable services, with E-Ayush visa streamlining and GST revisions effective September 2025 improving affordability for multi-day wellness programs.

Heritage and Lighthouse Tourism

Indias heritage tourism market was valued at USD 33.8 billion in 2025 and is projected to reach USD 61.2 billion by 2033, at a CAGR of 7.9%, driven by pilgrimage and festival tourism and infrastructure projects including those in Mizoram and at the Ramappa Temple in Mulugu. Under the Sagarmala initiative, 75 lighthouses across key coastal states are being developed into tourism destinations, including Indias first riverine lighthouses on the Brahmaputra at Lachit Ghat in Guwahati.

Cruise Tourism

The Ministry of Tourism supports cruise and river cruising infrastructure through financial assistance to State Governments, UTs and Central Agencies, and participated in Seatrade Cruise Global 2024 and the India Maritime Week Conclave 2025 to engage with cruise lines, ports and tour operators. A dedicated Task Force on Cruise Tourism has been set up, chaired by the Secretary (Tourism) and co-chaired by the Secretary (Shipping), with representation from ports, Home Affairs, Health, External Affairs, Customs, CISF and coastal states, to unlock Indias coastline and inland waterway potential.

Source:

Union Budget 2026 27 Tourism, PIB, February 2026 Annual Report FY 2025-26, Ministry of Tourism India

AI and the Future of Travel

Digital Transformation and the Turn Toward AI

Digital transformation accelerated across industries through the year, with AI, cloud and automation reshaping how consumers discover, book and manage travel, and enterprises increasing investment in digital procurement, workflow automation and integrated expense management. Airlines, online travel agencies and hospitality platforms are increasingly experimenting with large language model powered search, AI-generated itinerary planning and AI-led customer servicing, moving these tools from pilot projects toward mainstream use as a direct response to the reliability and personalization expectations described above. This growing embedding of AI across the travel value chain, discussed in more detail later in this report, is raising customer expectations and accelerating adoption of technology-enabled travel platforms offering personalized experiences, operational efficiency and stronger compliance.

According to a Travel Trends survey of 32,800 people across 34 countries, AI adoption in travel planning follows the same generational pattern as travel enthusiasm itself: it skews young. Gen Z leads at 69% using generative AI to plan and navigate trips, followed by Millennials at 64%, then a steep drop to Gen X at 41% and Boomers at just 11%, making Gen Z travellers more than six times as likely as Boomers to consult AI for travel advice. The takeaway: the generation most eager to travel is also the one most willing to hand part of the planning over to AI.

Understanding Agentic AI: The Next Step Beyond Generative AI A 2025 report from McKinsey and Skift, based on surveys of 1,002 travellers and 86 travel executives, draws an important distinction between generative AI and the newer category of agentic AI. Generative AI mostly functions in an advisory capacity, offering suggestions and answering questions when prompted. Agentic AI, by contrast, is designed to act more like a direct report than an advisor. It has three defining features that separate it from earlier AI tools.

First, it can autonomously make decisions and take initiative to accomplish goals, using multistep reasoning to carry out complex actions rather than simply responding to a single prompt. Second, it can call on external tools, APIs and systems to actually execute tasks rather than merely recommend them. Third, it can store and recall long-term, structured memories that track context, progress and user preferences, allowing it to personalize its responses deeply and to handle requests that span multiple sessions rather than starting from zero each time.

Industry-Wide Momentum Behind AI Adoption

AI adoption across travel has accelerated sharply. Only about 4% of Skift Travel 200 companies mentioned AI in their 2022 annual reports, rising to 35% by 2024. AI-enabled travel start-ups captured just 10% of industry venture capital in 2023, growing to 45% by the first half of 2025. Executives surveyed already report measurable benefits: 59% say AI has increased employee productivity, 36% say it has improved output quality, 33% cite better personalization, 30% cite faster decisions, and 26% cite lower operating costs. A majority report more than 6% annual revenue growth and more than 6% annual cost savings over three years from AI adoption.

The Trust Gap: How Comfortable Travellers Are With AI Consumer trust in AI is growing but uneven. More than 90% of travellers express some confidence in the accuracy of travel information, but this comfort is concentrated in low stakes uses such as destination inspiration, and drops sharply for higher stakes situations like visa requirements or customer service issues. Only 2% of respondents are currently willing to let an AI tool independently make or modify bookings without human oversight, a gap agentic AI is well suited to close over time by resolving issues directly rather than only suggesting fixes.

Source:

ETTravelWorld India Tourism Growth Outlook to FY 2034-35 McKinsey Remapping Travel with Agentic AI

Company Overview

Yatra Online, Inc. is the parent company of Yatra Online Limited (formerly known as Yatra Online Private Limited), which is based in Gurugram, India, and is Indias leading Corporate Travel services provider with over 1,300 Corporate customers, and one of Indias leading online travel companies and operates the website Yatra.com.

The Company operates a multi-channel business model spanning direct-to-consumer, corporate travel and B2B distribution. Through its website, mobile applications and partner network, Yatra provides access to a comprehensive portfolio of travel services, including domestic and international air travel, domestic and international hotel accommodations, homestays, holiday packages, rail and bus bookings, cabs, cruises and ancillary travel services. Its platform offers real-time access to over 80,000 hotels in India and more than 2 million accommodation options globally.

Supported by a scalable technology platform, long-standing supplier relationships and a diversified distribution network, Yatra has evolved beyond an online travel agency into an integrated travel management platform, enabling seamless travel experiences for consumers while helping businesses manage travel through technology-driven solutions.

Product & Service Portfolio

Yatra provides an all-encompassing range of travel services designed to meet the needs of both personal and corporate travellers, all accessible through its intuitive platforms and powered by cutting-edge technology.

• Flight Bookings: Domestic and international flight options across all major carriers, with competitive fares, flexible cancellation policies, and round-the-clock customer support.

• Hotel Accommodations: A vast selection of over 81,000 properties across India and more than 2 million worldwide, catering to every budget and preference.

• Vacation Packages: Ready-made travel packages for destinations within India and abroad, bundling flights, accommodation, sightseeing, and activities into one seamless experience.

• Train & Bus Travel: Seamless connectivity through IRCTC and various bus operators, enabling smooth multi-mode journey planning.

• Cab & Car Hire: On-demand local and outstation transport with live availability and flexible pricing.

• Cruise Packages: A selection of cruise experiences covering both Indian waters and international routes.

• Insurance & Visa Assistance: Comprehensive support for hassle-free travel, including visa processing and tailored insurance coverage.

• Local Experiences & Events: In-platform access to events, tourist attractions, and handpicked travel experiences at your destination.

• MICE: End-to-end solutions for meetings, incentives, conferences and exhibitions, covering travel, accommodation and event management requirements.

• AI-powered Expense Management: RECAP enables organisations to digitise expense management on a unified platform, delivering visibility and stronger spend control.

Consumer Business

Yatra continues to hold its place as one of Indias most reputable and trusted travel brands. With approximately 80% of its traffic driven by direct and organic sources, the Company has cultivated a deeply engaged and loyal consumer base, now surpassing 16.2 million B2C customers.

The Company has cultivated a broad ecosystem of partnerships spanning airlines, hotel groups, payment providers, and tourism authorities. These alliances strengthen its service delivery and help sustain a competitive edge.

Yatras dedication to staying ahead of the curve is reflected in its digital-first philosophy, where technology is consistently leveraged to deliver a superior and seamless user experience across all touchpoints.

Key Strengths & Strategies

• Established Market Presence:Yatras decades-long footprint in the Indian travel industry has earned it strong brand recognition and the trust of millions of travellers. Its track record of reliable service and continuous innovation gives it a meaningful competitive advantage.

• Comprehensive Offerings: A standout strength is the Companys ability to offer a truly end-to-end travel experience. By bringing together flights, hotels, trains, buses, holiday packages, activities, cruises, and corporate travel under one roof, it delivers a level of convenience that few competitors can match.

• Leadership in Corporate Travel: With a steadily growing roster of over 1,300 corporate clients, the Company has carved out a dominant position in the business travel segment. Its enterprise solutions, spanning automation, policy compliance, and cost optimization, are highly regarded by large organizations.

• Omni-Channel Distribution: Despite being a digitally-led business, the Company also operates through a network of over 55,000 travel agents spread across India. This blended approach enables it to reach Tier-II and Tier-III cities where digital adoption is still maturing.

• Strategic Collaborations: The Company has cultivated a broad ecosystem of partnerships spanning airlines, hotel groups, payment providers, and tourism authorities. These alliances strengthen its service delivery and help sustain a competitive edge.

• Customer Retention and Loyalty: Through initiatives such as its e-Cash rewards program, responsive customer support, and a platform enriched with user reviews and ratings, the Company drives repeat engagement and long-term loyalty among its faster processing, greater user base.

• Scalability and Expansion Potential: As Indias travel market continues its rapid growth trajectory, the Company is well-equipped to scale alongside it. Rising digital adoption and increasing travel appetite provide a strong foundation for sustainable expansion.

• Operational Efficiency:The Companys asset-light business model keeps fixed overheads lean. Coupled with digital automation across key processes, this approach ensures operational agility and the ability to adapt swiftly to changing market dynamics.

• Visionary Leadership: The founding team and senior management bring with them deep, multi-decade expertise across travel and technology. Their forward-looking approach, combined with a motivated workforce, continues to drive innovation and position the Company for long-term growth.

Corporate business

Yatra is Indias leading B2B Corporate platform by total spend and number of customers, with solutions designed for enterprises of all sizes including small businesses, mid-sized firms, and large enterprises.

Under the Corporate business umbrella, the Companys platform delivers robust value to customers and suppliers:

Yatras Gen AI-driven expense management solution, RECAP, enables organizations to consolidate employee benefits and expense tracking onto a single platform. Key advantages for clients include expenses processed seven times faster, a 96% cut in paperwork, complete oversight and control over spending, a more than 50% boost in employee productivity, and the full digitization of the expenses process.

Yatra for Business: Our integrated corporate travel platform is designed to meet the needs of both SMEs and large enterprises. SMEs benefitfrom an intuitive self-service platform with tailored pricing, GST-ready invoicing and instant reporting, while larger enterprises are supported through configurable travel policies, approval workflows, HRMS and ERP integrations, advanced analytics and dedicated servicing capabilities. Yatra has further cemented its position in the corporate travel space through the acquisition of Globe Travel Services, a well-established corporate travel company. This deal brings with it a client base of approximately 360 corporate accounts, meaningfully expanding Yatras enterprise portfolio and strengthening its operational depth. Globe Travel Services is particularly renowned for its expertise in Meetings, Incentives, Conferences, and Exhibitions (MICE). Combined with Yatras own recent organic growth in the MICE segment, this acquisition positions the Company among the largest MICE players in India, within one of the industrys fastest-growing verticals.

Yatras Use of AI

For a business travel platform such as Yatra, the generative versus agentic distinction set out above matters directly. Yatras stated ambition to be a one-stop, self-book platform for corporate travellers is precisely the kind of workflow that benefits from an agent that can not only recommend a booking but complete it, adjust it during disruption, and remember a travellers preferences across trips without repeated manual input.

Three factors position Yatra well to capture this shift:

Platform Integration:

Yatra runs a single, real-time, integrated system across corporate and consumer travel, rather than the disconnected tools most competitors have stitched together after the fact. AI can be applied directly to booking and servicing, without the systems consolidation that much of the fragmented industry must complete first before it can move toward agentic AI at all.

Operating Scale:

With over 1,300 large and medium corporate clients, approximately 60,000 SME clients and around 16.2 million registered consumers, Yatra has the transaction depth and self-book volume that AI tools typically require to be effective, depth most fragmented competitors lack.

Customer Retention:

Approximately, 97% customer retention, with 71% of the top 100 corporate customers retained for more than five years, gives Yatra a foundation of long-standing institutional trust to introduce agentic capability gradually, starting with lower stakes servicing tasks before extending into more sensitive booking decisions.

Technology

Consumer Technology

A single consumer platform, spanning website and mobile app, that provides real-time booking across flights, hotels, trains, buses, cabs, cruises, holiday packages, homestays and local experiences, rather than separate tools for each vertical.

Real-time inventory and pricing across more than 80,000 hotels in India and over 2 million hotels worldwide, with more than 22 million mobile app downloads and 80% of traffic arriving direct or organic, an indicator of platform-stickiness rather than paid acquisition dependence.

The e-Cash rewards program and an in-platform reviews and ratings system, used to drive repeat bookings and long-term retention across the 16.2 million-plus registered consumer base.

Corporate Technology

A self-book architecture for corporate travel, referred to internally as corporate SBT, that lets employees book within company policy directly rather than routing every booking through a travel desk, an operating model that drives higher operating leverage than agent-assisted booking.

Two tiers of corporate platform: SMEs (tailored fare pricing, GST-ready invoicing, instant booking and reporting) and Corporates for large enterprises (policy enforcement tools, HRMS integration, dedicated travel desk support).

AI Capabilities

RECAP, Yatras Gen AI-driven expense management solution, which consolidates employee benefits and expense tracking onto a single platform, cutting paperwork by 96%, processing expenses seven times faster, and lifting employee productivity by more than 50%.

AI-driven recommendation and smart pricing engines embedded within the consumer and corporate booking flows, used to personalize search results and pricing.

A structural data advantage: because Yatra runs one integrated platform across corporate and consumer travel rather than disconnected tools stitched together after the fact, it starts from a centralized data base that much of the fragmented travel industry still lacks, a prerequisite the industry-wide AI discussion above deployment elsewhere in the sector.

A stated roadmap toward agentic AI, moving beyond advisory recommendations toward tools that can autonomously complete, adjust and rebook trips during disruption, building on the self-book platform and the Companys approximately 97% customer retention as a foundation for introducing this capability gradually, starting with lower-stakes servicing tasks

Human Resources

At Yatra, Human Resource Management (HRM) plays a central role in driving operational success and advancing the Companys strategic objectives within Indias competitive travel and tourism landscape. As a leading online travel agency, Yatra recognizes that the strength of its workforce has a direct bearing on the quality of customer experience and overall business performance.

To build a strong talent pipeline, the Company employs a range of recruitment approaches, including collaborations with academic institutions and active use of digital job platforms. Employees benefit from well-structured training programs designed to sharpen their skills and deepen their domain knowledge, nurturing a workplace culture rooted in continuous learning and development. This dedication to professional growth not only elevates individual expertise but also contributes to greater productivity and higher levels of job satisfaction.

Beyond recruitment and training, Yatra places considerable emphasis on keeping its workforce engaged and motivated. Regular feedback surveys help gauge employee satisfaction, while wellness initiatives are in place to support a healthy work-life balance. These efforts have yielded tangible results, helping to lower attrition rates and strengthen employee commitment to the organization. As of March 31, 2026, the Company, including all its subsidiaries, had a dedicated workforce of 1,583 full-time employees.

Financial Performance

Consolidated Financial Performance FY 2025-26 ( in Mn except per share data)

Particulars	FY 2025-26	FY 2024-25	YoY
Revenue from Operations	10,065	7,914	27.2%
Total Expense	9,798	7,881	24.32%
EBITDA	855	558	53.2%
Profit Before Taxes (PBT)	486	351	38.5%
Tax	18	(15)	220%
Profit after Tax (PAT)	468	366	28%
PAT Margin (%)	5	5
Total Comprehensive Income	464	363	28%
Diluted EPS ( )	2.98	2.33	27.9%

Details of key consolidated ratios

Particulars	FY 2025-26	FY 2024-25	% change	Explanation
Operating Profit Margin (%)	3.89%	2.8%	39%	Due to increase in profit in the current year as compared to previous year.
Net Profit Margin (%)	4.6%	4.6%
Debtors Turnover Ratio (times)	14.89	13.0	15%	Due to increase in sales in the current year as compared to previous year.
Current Ratio (times)	2.08	1.9	9%	Primarily due to increase in current assets in the current year as compared to previous year.
Interest Coverage Ratio (times)	4.88	5.03	(3%)	Variance due to increase in profit in the current year as compared to
Debt Equity Ratio (times)	0.08	0.1	(20%)	Primarily due to increase in equity in the current year as compared to
Return on Net Worth (%)	5.64%	4.7%	20%	Due to increase in profit in the current year as compared to previous year.

Risk & Mitigation

Identifying and mitigating risks are core responsibilities at Yatra Online Limited, serving to protect business continuity, preserve assets, and uphold the confidence of stakeholders. By anticipating potential threats in advance, the company can minimize financial and operational losses while enabling leadership to make well-informed decisions. A proactive approach to risk management strengthens organizational resilience, drives sustainable growth, and helps maintain a competitive advantage in an ever-changing business landscape.

FY 2025-26 was the Companys most profitable year in its history, despite significant macro headwinds, discussed in the Global Economic Overview section of this report, that impacted three of the twelve months of the year.

Gross Margin (Revenue Less Supplier Costs) grew 24.5% YoY to 4,824 million, ahead of the Companys revised guidance of 22.5%. Adjusted EBITDA came in at 917 million, up 37.5% YoY and in line with revised guidance, while EBITDA improved to 855 million, up 53.2% YoY. Profit After Tax improved to468 million, up 28.1% YoY.

Despite disruption from the war-related environment described elsewhere in this report, the Company delivered resilient operating performance in the fourth quarter of FY 2025-26. Gross bookings grew 8.3% YoY, gross margin grew 3.6% year-on-year, and total transactions increased 16.6% year-on-year. Air passengers grew 9.6% YoY, roughly twice the pace of industry growth, reflecting further market share expansion. The Corporate business maintained strong momentum, adding 55 new corporate customers during the fourth quarter, representing an annual billable potential of 2,709 million, an improvement on the 40 closures worth 2,234 million recorded in the third quarter.

The Companys cash and cash equivalents and term deposits stood at 2,230 million as on March 31, 2026. Cash flow from operations for the year came in at 761 million, compared with 73 million in FY 2024-25, an increase of almost tenfold.

Internal Controls & Their Adequacy

The Company maintains a well-structured and appropriate internal financial control framework, proportionate to the scale of its operations. This framework is continuously reviewed and reinforced through updated standard operating procedures (SOPs) and time-bound action plans aimed at driving the organization.

Robust procedures are also in place to facilitate the orderly and effective governance of business activities. The reliability of these internal financial controls is validated through multiple layers of oversight, including management reviews, self-assessment exercises, and independent evaluations conducted by the internal audit function.

During the period under review, no significant operational or accounting deficiencies were identified beyond those already highlighted by the statutory auditors in their Auditors Report on the

Standalone and Consolidated Financial Statements.

Subject to the matters noted above, the Company is adequate internal financialcontrols with respect toitsfinancial statements remain firmly in place.

Cautionary Statement

The Management Discussion and Analysis may containall levels of some statements describing the Companys views of the industry, objectives, projections, estimates or expectations, which may be ‘forward-looking statements within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed or implied due to external and internal factors, various risks, and uncertainties. These risks and uncertainties include demand and supply conditions, changes in government regulations, exchange rates, tax laws, monsoon, natural hazards, national and global economic developments, and other statutes and incidental factors. The Company does not undertake any obligation to publicly amend, modify, or revise these forward-looking statements based on subsequent developments, information, or events.