The travel, tourism, and hospitality industries play a pivotal role in global economic development, job creation, and GDP growth. This study investigates financial distress prediction in this industry, focusing on the comparative analysis of X-score and Z-score models. The analysis uses data from 2018-19 to 2022-23, revealing insights into the financial health of selected companies. Findings suggest that most companies maintain safe zone Z-scores, the X-score model highlights variations in financial health, identifying companies at risk of distress. Companies like Yatra Online Ltd, Asian Hotels (North) Ltd, and Blue Coast Hotels Ltd show financial distress in both models, indicating vulnerabilities. the study emphasizes the importance of continuous monitoring and adaptation to mitigate emerging risks and capitalize on opportunities. Predictive analytics, integrating quantitative and qualitative approaches, offer a comprehensive understanding of industry dynamics. Key factors impacting financial risks, such as geopolitical influences, economic factors, and consumer behaviour, should be considered in strategic decision-making. To navigate financial distress risks, businesses should prioritize operational efficiency, diversification, and stress testing. Collaboration among stakeholders is vital for addressing common challenges, fostering innovation, and developing resilient financial planning and forecasting models.