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India’s travel market reached $53 billion in 2023, with airlines and hotels accounting for 70% of this total, according to a Deloitte report released on Tuesday. The remaining share of the market is driven by railways and other transportation systems. Corporate travel alone contributes $10.6 billion, with airlines and hotels making up 85% of this segment, highlighting their dominant role across both leisure and business travel in India.
Corporate Travel Sector Booming
The report, titled “Decoding India’s Corporate Travel Sector,” emphasizes the expanding corporate travel market, which now represents 20% of the country’s overall travel industry.
“The increasing business outlook in India is reflected in surging demand for domestic and international corporate travel,” the report noted. The corporate travel market is expected to nearly double to $20.8 billion by the financial year 2029-2030.
Environmentally Conscious Travellers
As India’s corporate travel sector continues to grow, an increasing number of business travellers are prioritising sustainable travel practices, with 50% emphasizing the importance of eco-friendly options.
The report also highlights that government reforms aimed at creating manufacturing hubs, enhanced connectivity through airports and rail, and the country’s vibrant start-up ecosystem are key drivers for the growth of the business travel segment.
Top International and Domestic Destinations
Indian travelers are primarily heading to the UAE, Saudi Arabia, the US, Singapore, and Thailand, which together account for 55% of the nation’s international travel. On the domestic front, popular destinations include Uttar Pradesh, Tamil Nadu, Andhra Pradesh, Karnataka, and Gujarat, which represent 60% of visits within India.
Tourism Back to Pre-Pandemic Levels
The report also shows that travel demand has returned to pre-pandemic levels, with 27 million international trips made by Indians in 2023 and 2.3 billion domestic visits to various states and Union Territories.
Between 2013 and 2019, international travel grew at a compound annual growth rate (CAGR) of 8%, while domestic visits surged by 13%.
Key Travel Statistics
- In FY23, 4.7% of railway passengers, or 292 million people, traveled in air-conditioned coaches.
- Domestic air passenger traffic reached 136 million in FY23.
- Indians made 27 million international trips in the same year.
- From 2013 to 2019, air passenger traffic grew at a CAGR of 11%, while domestic air traffic surged by 14%, outpacing the 6% growth in international air traffic.
- By FY30, the Indian travel industry is expected to grow at a 9% CAGR to $97 billion.
India’s travel sector, driven by both leisure and business travel, is poised for continued expansion, with strong contributions from airlines, hotels, and eco-conscious corporate travellers.
