Union Budget 2026: How TBO Tek Ltd. Benefits from Tourism & Tech Push

The Union Budget 2026, presented against India's 'Viksit Bharat' vision, outlines strategic interventions poised to significantly impact the travel and tourism sector, and by extension, B2B travel technology firms like TBO Tek Ltd. The budget's emphasis on digital infrastructure, service sector growth, and specific tax rationalizations creates a favorable environment for companies operating in this space. TBO Tek, a leading global travel distribution platform, stands to gain from these forward-looking policies, which align with its core business model and strategic expansion plans.

Budgetary Impetus for Tourism and Services

Finance Minister Nirmala Sitharaman highlighted the tourism sector's substantial potential for employment generation, foreign exchange earnings, and local economic expansion. This recognition translates into concrete measures designed to bolster the entire travel ecosystem. The budget proposes setting up a high-powered education-to-employment and enterprise Standing Committee, specifically tasked with recommending measures to position the services sector as a core driver of 'Vikasit Bharat,' aiming for a 10% global share by 2047. This overarching focus on services provides a significant tailwind for TBO Tek, whose business is fundamentally rooted in providing technology-driven travel services.

Furthermore, the budget's commitment to developing infrastructure in Tier 2 and Tier 3 cities, along with temple towns, through an allocation of Rs 5,000 crore per City Economic Region (CER) over five years, is expected to boost domestic tourism. The development of seven high-speed rail corridors between major cities will also enhance connectivity, making travel more accessible and frequent. These initiatives collectively expand the addressable market for TBO Tek's platform, particularly within India, where its domestic base maintains high engagement levels.

TCS Rate Rationalization: A Direct Boost for International Travel

One of the most direct and impactful announcements for TBO Tek and the broader outbound travel industry is the proposed reduction in the Tax Collected at Source (TCS) rate. The budget proposes to reduce the TCS rate on the sale of overseas tour program packages from the current 5% and 20% to a uniform 2%, without any stipulation of amount. This significant reduction lowers the upfront cost for travelers booking international packages, making outbound travel more attractive and affordable. For TBO Tek, which facilitates a substantial volume of international bookings through its platform, this change is expected to stimulate demand, particularly in key markets like Europe, APAC, and MEA, which have shown positive momentum in Q2 FY26. The company's GTV grew 12% year-on-year to Rs 8,901 crore in Q2 FY26, with international MTBs increasing by 23.6% year-on-year. This tax relief is likely to further accelerate this growth.

Digital Transformation and AI Integration

The Union Budget 2026 places a strong emphasis on leveraging cutting-edge technologies, including AI applications, for better governance and economic growth. This aligns perfectly with TBO Tek's strategic focus on technological innovation, including its integration of generative AI across operations to personalize user experiences and optimize travel agent workflows. The budget's proposal to establish a National Destination Digital Knowledge Grid to digitally document all places of significance—cultural, spiritual, and heritage—presents a unique opportunity. This initiative will create a new ecosystem of jobs for local researchers, historians, content creators, and technology partners. TBO Tek could potentially integrate with or leverage this digital grid to enhance its product offerings, provide richer content to its travel buyers, and develop new, immersive travel experiences.

Enhancing the Travel Ecosystem and Talent Pool

Beyond direct financial incentives, the budget includes measures to strengthen the overall travel and hospitality ecosystem. The proposal to set up a National Institute of Hospitality by upgrading the existing National Council for Hotel Management and Catering Technology will ensure a steady supply of skilled professionals for the sector. A pilot scheme for upskilling 10,000 guides in 20 iconic tourist sites through standardized training courses will enhance the quality of tourist experiences. Furthermore, the development of ecologically sustainable mountain trails, turtle trails, bird watching trails, and the transformation of fifteen archaeological sites into vibrant experiential cultural destinations will diversify India's tourism offerings. These initiatives contribute to a more robust and attractive tourism landscape, indirectly benefiting TBO Tek by increasing overall travel demand and providing more diverse inventory for its platform.

IT Sector Reforms: A Broader Benefit

As a travel technology firm, TBO Tek also stands to benefit from broader reforms aimed at supporting India's IT sector. The budget proposes to club various IT-related services under a single category of