Thomas Cook India has indicated that the proposed separation of its hospitality division into Sterling Holiday Resorts is expected to be finalized by the middle of Fiscal Year 2028. Mahesh Iyer, the chief executive, provided this timeline in a statement reported by PTI. The firm has already submitted the necessary application to the National Company Law Tribunal in Mumbai. Iyer emphasized that the process is contingent upon obtaining required approvals from regulators and shareholders. The board initially authorized this structural change and a related capital restructuring in March.
In addition to internal restructuring, the company is actively seeking external growth opportunities. Iyer stated that Thomas Cook India is open to acquiring or partnering with technology-focused platforms. These digital assets are seen as valuable additions to the firm’s current operations in leisure, corporate travel, and foreign exchange. The management plans to evaluate such deals based on their strategic alignment and potential for long-term value. This inorganic approach is intended to complement the company’s organic growth strategies.
The strategic pivot occurs as the travel sector rebounds from geopolitical instability that affected international markets in the first half of Fiscal Year 2027. Iyer noted that the company’s domestic operations have shown significant strength recently. During the July-September period, the India travel segment recovered sharply, finishing only 6 per cent behind the prior year’s performance. This result was underpinned by healthy earnings before interest and taxes margins of 3.8 per cent.
Forward bookings for the third quarter of Fiscal Year 2027 suggest continued robust demand for domestic leisure travel. Iyer projected a 30 per cent increase in bookings for the current quarter. This positive outlook persists even though airfares and other operational costs remain elevated. The company attributes this resilience to sustained customer interest and a preference for destinations with improved connectivity and value.