Travel and tourism stocks experienced a downturn on Monday following Prime Minister Narendra Modi’s call for citizens to curtail discretionary spending on foreign travel and fuel consumption. This suggestion arises amid worries regarding the potential impact of the ongoing conflict in West Asia on India’s foreign exchange outflows.
In his address, Modi advocated for reduced petrol and diesel consumption by promoting greater use of metros and public transport. He recommended avoiding unnecessary foreign travel, overseas vacations, and destination weddings while also advising a one-year delay on non-essential gold purchases.
InterGlobe Aviation, the parent company of IndiGo, saw its shares fall over 5% to ₹4,287.10, down from the previous close of ₹4,522.70. Market analysts noted concerns that a potential decline in leisure and international travel demand could adversely affect passenger traffic growth.
The hotel and hospitality sector also faced selling pressure. Mahindra Holidays & Resorts India recorded a decline of more than 3% to ₹232.10, while ITC Hotels fell to ₹159.54. Indian Hotels Company dropped 2.5% to ₹755.90, and Chalet Hotels decreased by 2.7% to ₹767.85. Additionally, Leela Palaces, which manages Leela Palaces hotels, saw its shares decline over 3% to ₹410.30.
Online ticket booking platforms were similarly affected, with Le Travenues Technology decreasing by 3% to ₹163.76 and Yatra Online experiencing a 6.5% decline to ₹101.05.
Published on May 11, 2026.
