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The India travel services market size is estimated to grow by USD 13.46 billion at a CAGR of 11.72% between 2022 and 2027. The market's expansion relies on various factors, including the uptick in M&A activities, partnerships, and strategic alliances, the growth of international tourist arrivals, and the increasing use of online payment platforms. These elements collectively influence market dynamics, indicating the evolving nature of business strategies and consumer behaviors. The rise in M&A activities, partnerships, and alliances highlights the industry's focus on collaboration and expansion to capitalize on emerging opportunities. Additionally, the growth in international tourist arrivals signifies a broader trend toward globalization and the increasing importance of the tourism sector in driving economic growth. Furthermore, the adoption of online payment platforms reflects the digital transformation of the industry, driven by the growing preference for cashless transactions and convenience.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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This market report extensively covers market segmentation by mode of booking (online and offline) and service (domestic flight services, hotel accommodation services, rail ticket services, cab services, and others).
The online segment is estimated to witness significant growth during the forecast period. There is an increasing preference among consumers for booking travel services through the online mode due to the convenience offered by these platforms thereby fuelling the sales generated through this segment. Another factor that is fuelling the significant shift is the increasing penetration of and the geographical reach of online travel service providers such as MakeMyTrip, TripAdvisor, IRCTC, and Yatra.
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The online segment was the largest segment and was valued at USD 11.79 billion in 2017. Furthermore, the availability of a strong infrastructure for the penetration of online travel services also positively impacts the growth of this segment. For example, the high Internet penetration and the increasing use of smartphones drive the growth of this format. In 2020, India had over 749 million Internet users across the country. A majority of the consumers in the country make their purchase decisions based on online research on websites, blogs, and social media and through the information offered by some providers. For example, one of the prominent market players in the market, TripAdvisor offers a wide range of blogs and research on its website, which offer detailed information about the various airlines, hotels, travel destinations, activities, and restaurants across India. Hence such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
The market offers a range of options for travel planning, including ticketing, accommodation booking, and transportation arrangements. With services like visa assistance and travel insurance, travelers can enjoy personalized itineraries tailored to their needs. Online travel booking platforms provide access to competitive prices, exclusive deals, and industry knowledge. Both online travel agencies and direct booking options cater to the desire of travelers to explore new destinations and create memorable experiences. As the market grows, businesses focus on enhancing their online brand image to attract a broader clientele seeking pre-planned trips and reliable lodging options, spurred by the rise in both business and leisure travel, increased disposable income, economic growth, and technological advancements. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving the market growth is the increasing international tourist footfall. There has been a rapid increase in inbound tourism in India which is fuelling the demand. Several tourists across the world are traveling to India for international and domestic business, leisure, and sports trips. Additionally, the presence of several multinational companies in the country is significantly influencing the number of business visits of corporations in India from across the globe.
Moreover, the tourism industry in India is growing at an accelerating pace resulting in improving infrastructure for air, rail, and road connectivity to cities in India and the rising number of government initiatives to promote tourism in the country. Some of the countries from which tourists travel to India include North America, Europe, and the Pacific region. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.
A key factor shaping the market growth is the technological advances in mobile-based and website-based travel service platforms. Several providers in the market are offering novel ideas and technologies to retain their market shares and offer customers new and innovative services. In addition, many market players are incorporating several advanced technologies into their services portals including websites and mobile applications to offer features such as advanced search filter options and voice assistance.
Moreover, one of the prominent market players Cleartrip offers its service platform with built-in Alexa (voice assistance by Amazon) skills, which enables users to conveniently voice search air travel options. the company also provides a transformative solution named Cleartrip for work, which enables individual travelers with GST numbers to access unlimited corporate fares on the flight, such as unlimited cashback, complimentary in-flight meals, zero trip modification charges, and reduced cancelation and seat selection fees. Hence, such factors are expected to drive Imarket growth during the forecast period.
Intense competition among players leading to price wars is one of the key challenges hindering the market growth. Even though global market players are dominant in the market, these market players have stiff competition from different global, regional, and local market players. Therefore, it is essential for market players to heavily invest in R&D to innovate a broad range of service offering that caters to different types of occasions and end-users, including holiday packages for young individuals, couples, and family trips.
Moreover, the increase in competition from different players in the market will result in price wars. Additionally, the increasing trend of huge discounts and other offers provided by some market players is another major challenge faced by the market. Hence, such factors are negatively impacting the market. Therefore, it is expected to hinder the market growth during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Airbnb Inc: The company offers travel services which include short-term and long-term stay aggregation services through its Airbnb online platform ranging from Apartment rentals, Villa rentals, and House rentals to monthly stays in India.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2022 for the following segments.
The market is part of the global travel and tourism industry, driven by the desire to explore new destinations and the reliance on travel professionals. It caters to a general clientele seeking reservations and services from various companies. With a rise in both business and leisure travel and an increase in disposable income, the market benefits from technological advancement and serves as an information source for travelers, including backpackers, who use online media and smartphone and tablet applications. India's rich cultural heritage, diverse landscapes, and historical monuments are promoted through social media platforms as a marketing tool, attracting both domestic and international travelers. The government's initiatives to improve infrastructure and facilitate ease of travel contribute to India's appeal as a tourist destination, leading to an increasing influx of foreign tourists and rising demand for customized travel packages and seamless itineraries.
Market Scope |
|
Report Coverage |
Details |
Page number |
136 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 11.72% |
Market growth 2023-2027 |
USD 13.46 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
11.23 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Airbnb Inc., ANI Technologies Pvt. Ltd., Booking Holdings Inc., Cleartrip Pvt. Ltd., Cox and Kings Ltd., Easy Trip Planners Ltd., Expedia Group Inc., Indian Railway Catering and Tourism Corp. Ltd., ITC Ltd., Kesari Tours Pvt. Ltd., Le Travenues Technology Ltd, Mahindra and Mahindra Ltd., MakeMyTrip Ltd., Oravel Stays Ltd., The Travel Corp, Thomas Cook (India) Ltd., Treebo Hotels, TripAdvisor Inc., Uber Technologies Inc., and Yatra Online Inc. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Mode of Booking
7 Market Segmentation by Service
8 Customer Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
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