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. The announcements placed strong emphasis on medical tourism, skilling initiatives, and institutional capacity building, boosting investor confidence across travel and hospitality counters.

Shares of Indian Hotels Company gained 1%, while EIH rose 2%. Market analysts noted that medical tourism is emerging as a steady and high-margin segment, with the potential to increase room demand in metro and tier-1 cities over time, particularly for premium hotel brands.

Mid-segment hospitality players outperformed broader markets, with Lemon Tree Hotels jumping 6% and ITC Hotels rising 1%. Investors appeared optimistic about broader-based demand from both domestic and international travellers. The budget proposals were also seen as supportive of long-term capacity expansion, especially with increased encouragement for private participation alongside state-led initiatives.

On the travel services front, Easy Trip Planners surged 9%, emerging as the top gainer among tourism-related stocks. Investors are factoring in higher booking volumes driven by improved tourist infrastructure, better last-mile connectivity, and the government’s focus on destination branding and global market linkages through initiatives such as ODOP.

Mahindra Holidays also advanced 3%, supported by expectations that stronger domestic tourism and skilling initiatives will drive sustained growth in leisure travel. Meanwhile, Thomas Cook (India) slipped 2%, largely due to profit booking after recent gains, even as the broader policy direction under Budget 2026 remains supportive for organised travel companies.

Overall, the market reaction highlights growing optimism that the Union Budget 2026-27 could usher in a new growth phase for India’s tourism and hospitality sector, benefiting hotels, travel platforms, and allied service providers.