Budget 2026: EaseMyTrip, ITC Hotels & other travel stocks soar up to 9% as FM Sitharaman unveils big tourism measures

Tourism and hospitality stocks traded with a positive bias on Wednesday after the Union Budget 2026-27 unveiled a fresh set of measures aimed at strengthening India's tourism ecosystem, with a sharp focus on medical tourism, skilling and institutional capacity building.

Hotel stocks were among the early gainers as investors reacted to the government's plan to launch a new scheme to support states in setting up five regional medical hubs in partnership with the private sector. These hubs will house AYUSH centres, medical value tourism facilitation centres and infrastructure for diagnostics, post-care and rehabilitation -- a move seen as supportive for higher-value foreign tourist inflows.

A key announcement that caught investor attention was the proposal to set up a National Institute of Hospitality by upgrading the existing National Council for Hotel Management and Catering Technology. The budget also outlined a pilot scheme to upskill 10,000 tourist guides across 20 iconic destinations through a standardised, 12-week hybrid training programme in collaboration with IIMs. This is expected to improve service quality and enhance India’s positioning as a global tourism destination.


The Budget also outlined plans to develop an integrated East Coast tourism corridor in 5 states with a well-connected node at Durgapur, aimed at improving connectivity and tourist infrastructure across key coastal destinations. The corridor is expected to link heritage sites, beach destinations and emerging tourism hubs through better roads, rail links and last-mile connectivity, helping spread tourist traffic beyond traditional hotspots.

Also read: Catch all the D-Street action on Budget day live here

Shares of Indian Hotels Company rose 1%, while EIH gained 2%. Analysts say medical tourism could be a steady, high-margin segment that can lift room demand in metro and tier-1 cities over time, especially for premium hotels.

Mid-segment hospitality players outperformed, with Lemon Tree Hotels jumping 6% and ITC Hotels 1% as investors bet on broader-based demand from domestic and international travellers. The budget proposals were also read as supportive of long-term capacity expansion in the sector, particularly as private participation is encouraged alongside the states.

On the travel services side, Easy Trip Planners surged 9%, emerging as the top gainer in the pack. Investors appear to be factoring in higher volumes from improved tourist infrastructure and better last-mile services, along with the government's emphasis on branding and global market linkages through initiatives such as ODOP.

Mahindra Holidays rose 3%, aided by expectations that stronger domestic tourism and skilling initiatives could support sustained growth in leisure travel. In contrast, Thomas Cook (India) slipped 2%, reflecting some profit-taking after recent gains, even as the broader policy direction remains supportive for organised travel companies.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)