Thomas Cook says leisure forward bookings rose 30% in FY27

Thomas Cook (India) Limited said in Q2 FY27 that leisure forward bookings were trending 30% above last year, despite elevated airfares and input costs. The outlook follows a 7% year-on-year decline in quarterly travel revenue to Rs 1,568.3 crore, with management citing improving demand for Europe, Australia, Japan and domestic holidays.

What does Thomas Cook’s 30% booking increase indicate?

Thomas Cook said leisure forward bookings were trending 30% higher than last year, supporting management’s confidence in demand for the current quarter despite higher airfares and other input-cost pressures. Management expects part of this demand to flow into the final quarter of FY27, provided external shocks do not affect travel confidence.

The booking measure is forward-looking rather than a reported revenue result, and it follows a weaker Q2 for the broader travel business. Travel revenue fell 7% year-on-year to Rs 1,568.3 crore, while first-half income from operations declined 11% to Rs 3,278.9 crore. Thomas Cook said India travel momentum improved through July and August and rose more sharply in September 2026, reducing the India business’s volume deficit by about 50% sequentially.

Which destinations are driving Thomas Cook’s leisure bookings?

Thomas Cook identified Europe and Australia as long-haul markets showing a rebound, while Japan continued to trend well after the cherry-blossom season and into the autumn months. Management described the Japan trend as evidence of demand extending beyond the destination’s traditional spring travel period.

Domestic travel grew 8% in Q2 FY27, led by Ladakh, Kerala, Sri Lanka, Bhutan and the Bhakti & Darshan portfolio, particularly Char Dham. Growth was reduced by cancellations of some Kailash Mansarovar Yatra departures after disruption to the China visa process, which Thomas Cook put at Rs 18.5 crore. High China visa rejection rates also affected booking conversions and travel volumes in the business-to-consumer, or B2C, long-haul outbound segment.

Thomas Cook added Northern Lights, Arctic Adventure and Alpine itineraries for the fall and winter season, alongside charter-led departures from Bangalore to Lakshadweep and Mumbai to Bhutan. Its holiday additions also included luxury rail journeys in South Africa, Canada, Australia, New Zealand and Egypt, plus cruises across Antarctica, the Arctic, the Mediterranean and Europe.

How does the booking outlook compare with Q2 travel performance?

Thomas Cook’s 30% forward-booking growth contrasts with a 17% Q2 FY27 decline in B2C business, which management attributed largely to lower long-haul outbound activity. Geopolitical uncertainty reduced flight connectivity on certain routes and increased airfares, affecting travel plans and booking conversions.

Thomas Cook said its India business ended Q2 FY27 only 6% below the prior year, with an earnings before interest and tax, or EBIT, margin of 3.8%. Cost actions reduced the India business’s EBIT deficit to 22% from 31%. The consolidated travel business reported EBIT of Rs 45.5 crore and a 2.9% margin, showing that the forward-booking improvement has yet to translate into a full recovery in quarterly travel income.

How are Thomas Cook’s B2B operations performing?

Thomas Cook’s India destination management services, or DMS, business grew 16% in a seasonally softer Q2 FY27, supported by business inflows from the United Kingdom, Germany, France, Portugal and Japan. Its meetings, incentives, conferences and exhibitions, or MICE, business was stable, with management attributing the quarterly outcome to the timing of execution for certain group engagements.

Corporate travel revenue rose 11% to Rs 44.6 crore and gross turnover increased 19% to about Rs 800 crore. Air transaction volume increased 18%, including 23% growth in India air volumes and 15% growth in international air volumes. Hotel volumes rose 81%, online booking tool adoption reached 32%, and Thomas Cook added accounts in pharmaceuticals, health care, auto components, fintech and digital payments.

The overseas DMS business reported a 7% year-on-year revenue decline because of Middle East geopolitical disruption and softer inbound tourism in the United States. AlliedTPro sales in the United States fell 22%, moderating from a 40% decline in the preceding quarter. Desert Adventures sales in the Middle East declined 67%, improving from an 89% drop in Q1, while Asian Trails grew 9% and private safaris grew 31% in South Africa and 14% in East Africa.

Can Thomas Cook’s technology improve booking conversion?

Thomas Cook said its Agent Assist pilot increased new-agent bookings by 85%, passenger volumes by 70% and revenue by 52% compared with Q1. Its quality-control bot automated audits of 100% of customer calls exceeding two minutes, compared with manual reviews of 3% to 5% previously. Management said offered-call conversion per agent improved to 3.40% from 2.15% after deployment during the quarter.

Digital adoption in leisure holidays was about 20% in Q2 FY27, and Thomas Cook integrated dynamic packaging into its TACY artificial intelligence-powered chatbot and voice platform. The feature is designed to generate personalised itineraries with real-time pricing. Management presented the tools as early operating initiatives and said increased Agent Assist adoption would support frontline productivity.

Conclusion

Thomas Cook’s 30% rise in leisure forward bookings points to improving demand after a quarter in which travel revenue declined 7% and B2C business fell 17%. Domestic travel growth of 8%, India DMS growth of 16% and a 19% increase in corporate travel turnover indicate stronger activity in several India-facing operations, while overseas DMS remained affected by Middle East disruption and lower United States inbound tourism.

The next measure is whether forward bookings convert into current-quarter and final-quarter FY27 revenue, as management expects, while airfares and geopolitical conditions remain unresolved risks. Management’s planned winter holiday range includes Northern Lights, Arctic Adventure and Alpine products, and it expects a 50% recovery in the current quarter for the overseas DMS business.