By Arun Bagaria, CEO & Co-founder, TravClan
“For India’s travel ecosystem to scale sustainably, the Union Budget must facilitate access to institutional credit for the travel sector. Credit remains a challenge that businesses face in expansion, despite the sector’s strong revenue visibility and low default risk. Most travel businesses operate on booking-led cash flows, advance collections and extended settlement cycles, yet these realities are not adequately recognised by traditional lending frameworks. Credit products aligned to travel-specific cash cycles would enable healthier growth and reduce dependence on informal financing.
At the same time, policy support that strengthens international connectivity from non-metro cities, improves cross-border payment infrastructure and simplifies regulatory compliance will be critical as outbound demand expands beyond metros. Together, these measures can create a more predictable, capital-efficient operating environment and help Indian travel businesses compete more effectively on a global stage.”
