Analysis · Mobility & Logistics

Travel founders react to union budget changes

By Startup Enthusiast · 4 February 2026

What they do

MakeMyTrip is an online travel booking platform that helps customers book flights and hotels

Founders welcomed infrastructure upgrades and noted the tax cut on overseas tour packages reduces cash outgo

The budget proposes structured training for tourist guides and upgrades to hospitality education institutions

The Union Budget 2026 announced several measures aimed at boosting the tourism sector in India.
The tax rate on overseas tour packages was reduced to a flat two percent from previous levels.
Deep Kalra, founder of MakeMyTrip, welcomed the government's focus on infrastructure-first approaches for travel.
Siddhartha Gupta of Yatra Online noted that lowering taxes reduces upfront cash outgo for businesses.
Jitin Bhatia, founder of Explurger, was among the industry leaders commenting on the budget announcements.
Rikant Pittie, CEO of EaseMyTrip, and Mahesh Iyer of Thomas Cook also reacted to the news.
The budget includes plans for new high-speed rail corridors and stronger last-mile connectivity infrastructure.
Baggage clearance reforms were announced to improve efficiency at airports and border crossings.

The tourism sector relies heavily on infrastructure and regulatory ease to attract domestic and international travelers.
Tax reductions directly impact the profitability and pricing strategies of online travel agencies and tour operators.
Investment in hospitality education aims to address skill gaps in the growing service industry workforce.

MakeMyTrip operates as an online travel agency facilitating bookings for flights, hotels, and holiday packages.
The company generates revenue through commissions on bookings and fees charged to travel partners.
It serves millions of customers seeking convenient digital solutions for planning their travel itineraries.
Competitors include other major players like Yatra, EaseMyTrip, and traditional travel agents.
The business model depends on maintaining strong relationships with airlines and hotel chains globally.

The government plans to transform archaeological sites into immersive experiences for tourists.
New thematic tourism circuits focusing on eco-tourism and heritage trails will be developed.
Seaplane viability gap funding aims to enhance connectivity to remote tourist destinations.