 "Business travel, Travel")
The airline industry and hotels contribute 85 per cent to the corporate travel segment. (Image: Bloomberg)
In 2023, airlines and hotels accounted for 70 per cent of India’s $53 billion travel market, according to a report released by Deloitte on Tuesday. The report noted that the remaining market share came from railways and other transportation systems.
Corporate travel represents 20 per cent of the overall market, valued at $10.6 billion, with the airline and hotel industries contributing 85 per cent to this segment. The report underscores the growing dominance of airlines and hotels in both leisure and corporate travel sectors in India.
“The increasing business outlook in India is reflected in surging demand for domestic and international corporate travel,” the report titled ‘Decoding India’s corporate travel sector’ mentioned.
Other key highlights of the report included an estimate that the Indian corporate travel market is set to double to $20.8 billion by the financial year 2029-2030. It also said that about 50 per cent of business travellers prioritise environment-friendly travel practices.
“While leisure travel currently dominates India’s travel sector, the business travel segment is experiencing rapid growth, fuelled by factors favourable to the government reforms in creating manufacturing hubs, increased airport and rail connectivity, vibrant start-up ecosystem, increasing MICE (Meetings, Incentives, Conferences, and Exhibitions) travel and a robust economic sentiment,” the report noted.
The top five countries attracting over 55 per cent of Indian travellers are the UAE, Saudi Arabia, the US, Singapore, and Thailand. Meanwhile, the top five domestic tourist destinations, accounting for 60 per cent of visits, include Uttar Pradesh, Tamil Nadu, Andhra Pradesh, Karnataka, and Gujarat.
In 2023, Indians took 27 million international trips, while Indian states and Union Territories saw around 2.3 billion domestic tourist visits, returning to pre-pandemic levels.
“From 2013 to 2019, international visits grew at a compound annual growth rate (CAGR) of 8 per cent and domestic visits surged by 13 per cent, highlighting the robust growth in domestic tourism,” The report mentioned.
The big numbers:
1) About 4.7 per cent of railway passengers travelled in air-conditioned coaches at 292 million in FY23.
2) There were 136 million domestic air passengers in FY23.
3) Indians embarked on 27 million international trips in FY23.
4) International visits grew at a CAGR of 8 per cent and domestic visits surged by 13 per cent, between 2013 and 2019.
5) Air passenger traffic grew at a CAGR of 11 per cent, between 2013 and 2019. In the same period, domestic passenger traffic surged at 14 per cent, outpacing international passenger traffic (which grew at 6 per cent).
6) Indian travel industry is expected to grow at 9 per cent CAGR to $97 billion by FY30.
First Published: Sep 24 2024 | 5:29 PM IST
