SOTC Travel's Managing Director Vishal Suri has called for further GST rationalization on domestic hotels to boost tourism. The company is now focusing on an omni-channel growth strategy targeting Tier-II and Tier-III cities to capture rising demand. Despite high travel costs, consumer interest remains strong, with a notable shift toward spiritual tourism and value-conscious planning.
India’s tourism sector faces a pivotal moment as industry leaders look toward policy adjustments to sustain recent momentum. Vishal Suri, Managing Director and CEO of SOTC Travel, recently highlighted that further rationalization of the Goods and Services Tax (GST) for domestic hotels and restaurants could act as a significant catalyst for the industry. While the sector has benefited from previous government initiatives, such as the reduction of Tax Collected at Source (TCS) on overseas packages to a uniform 2%, industry players argue that targeted fiscal support remains essential for long-term expansion.
Infrastructure and Domestic Demand
Domestic tourism is currently supported by substantial investments in infrastructure. The expansion of airport networks, coupled with improved road and rail connectivity, has made travel more accessible than ever before. These developments are critical, as they allow travel companies to reach deeper into the Indian market. While airfares have remained elevated, the industry has observed a shift in consumer behavior. Travelers are becoming increasingly value-conscious, opting for earlier bookings and more flexible travel dates rather than cutting back on the number of trips taken. Within the domestic market, there is a clear trend toward spiritual tourism, which has emerged as a major growth area.
Strategic Growth in Tier-II and Tier-III Markets
SOTC Travel is positioning itself to capitalize on these shifts through an aggressive omni-channel expansion strategy over the next two to three years. The company intends to blend company-owned outlets with franchise partnerships to widen its physical footprint. This strategy is specifically aimed at Tier-II and Tier-III cities, where a combination of rising disposable incomes, higher digital adoption, and increased passport ownership is creating a new base of travelers. By expanding its presence in these regions, the company aims to move closer to an emerging customer base that is increasingly looking for organized travel experiences.
Industry Outlook and Regulatory Environment
For investors, the tourism and hospitality sector remains tied to both discretionary spending power and government policy. The cost of travel, including GST on services, continues to influence profit margins and consumer demand. While the industry has shown resilience, the ability of companies to maintain growth will depend on how effectively they can manage rising operational costs while navigating a competitive landscape. The upcoming quarterly updates and government fiscal announcements regarding service taxes will be important monitorables for the sector. Investors may track whether the push for GST relief gains traction and how effectively companies like SOTC manage the capital spending required for their planned physical expansion.