India Travel Services Market Analysis - Size and Forecast 2025-2029

India Travel Services Market Size 2025-2029

The India travel services market size is forecast to increase by USD 23.62 billion at a CAGR of 15.3% between 2024 and 2029.

• The market is experiencing significant growth, driven by several key trends. The number of mergers, partnerships, and strategic alliances among players is increasing, leading to consolidation and expansion In the industry. Additionally, the introduction of low-cost airlines is making travel more affordable for consumers, thereby boosting demand. However, intense competition among players is leading to price wars, putting pressure on profit margins. To stay competitive, companies are focusing on innovation, such as offering personalized services, smartphone solutions, and car rental services to enhance the customer experience. Overall, these trends are shaping the future of the travel services market and presenting both opportunities and challenges for market participants.

What will be the Size of the market During the Forecast Period?

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• The market encompasses various sectors, including air travel, accommodations, itinerary planning, and booking trips. Air travel continues to dominate the market, with advancements in AI and robotics streamlining operations and enhancing customer experience. The sharing economy, embodied by platforms like home-sharing services and ride-hailing apps, has disrupted traditional travel providers, offering more affordable options for travelers.

• Solo travelers, adventure seekers, and eco-tourists also influence market trends, driving demand for niche offerings. Low-cost airlines and online travel agents cater to budget-conscious travelers, while medical tourism and educational tourism cater to specific needs. Desktop and mobile applications facilitate seamless booking and planning processes, enabling travelers to easily compare prices and customize their trips. Domestic tourism and package travelers also contribute significantly to market growth. Overall, the travel services market is characterized by innovation, competition, and evolving consumer preferences.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

• Mode Of Booking
  • Online
  • Offline
• Service
  • Domestic flight services
  • Hotel accommodation services
  • Rail ticket services
  • Cab services
  • Others
• Geography
  • India

By Mode Of Booking Insights

• The online segment is estimated to witness significant growth during the forecast period.

The convenience offered by online platforms propels the shift in consumer preference for booking travel services through the online mode, subsequently propelling the sales generated through this segment. The sales through the online travel services segment are expected to grow at a rapid pace during the forecast period. The availability of a strong infrastructure for the penetration of online travel services also propels the preference for online platforms.

Additionally, internet penetration and smartphone use help consumers access online travel service platforms. The increasing Internet penetration and the number of smartphone users help online travel service providers expand their customer reach and service portfolio. Additionally, the availability of proper infrastructure and many agents and third-party online platforms ensure streamlined business activities of online travel service providers.

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Market Dynamics

Our market researchers analyzed the data with 2024 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.

What are the key market drivers leading to the rise in adoption of India Travel Services Market?

Increase in number of mergers, partnerships, and strategic alliances is the key driver of the market.

• The market encompasses various sectors including air travel, online travel services, and offline travel services. Air travel dominates the market, with online travel agencies (OTAs) and low-cost airlines driving growth through their user-friendly platforms and competitive pricing. AI and robotics are revolutionizing the industry, offering personalized itinerary planning and seamless booking experiences for individual travelers and corporations. The sharing economy, such as homestays and ride-sharing services, is also gaining traction among solo travelers and adventure travelers. Additionally, niche markets like eco-tourism, medical tourism, and educational tourism are expanding the market's reach. Tour packages, including flight bookings, hotel booking services, cruise bookings, and rail bookings, cater to diverse traveler needs.
• Car Rental Services offer flexibility and convenience, while Corporations rely on Travel Providers for business travel solutions. Mergers and acquisitions and strategic partnerships are common market trends, enabling Travel Providers to expand their offerings and geographic reach. For example, MakeMyTrip, an Indian OTA, partnered with Madhya Pradesh Tourism and redBus to boost regional tourism and promote sustainable development. Travelers can choose from Direct Travel Services or Indirect Travel Services, depending on their preferences. Multi-destination trips, Group Travel, and Corporate Travel are popular segments. Travelers can book trips through various channels, including desktop, Mobile Apps, Online Booking, or In Person Booking.

What are the market trends shaping the India Travel Services Market?

The introduction of low-cost airlines is the upcoming trend In the market.

• Air travel remains the preferred choice for tourists and individual travelers due to its convenience and efficiency. However, the cost of booking flights, particularly for families or large groups, can be substantial. In response to this need, the emergence of low-cost airlines has become a significant trend In the travel services market. These airlines offer affordable flight bookings, making it possible for budget-conscious travelers to plan trips without incurring excessive expenses. Online travel services have also gained popularity, with online travel agencies (OTAs) and direct travel suppliers offering competitive pricing for flight bookings, hotel reservations, cruise bookings, rail bookings, and car rental services.

• AI and robotics are increasingly being used to streamline the travel planning process, from itinerary planning to visa generation and travel document management. Moreover, the sharing economy has disrupted traditional travel services, with solo travelers and adventure travelers opting for eco-tourism, medical tourism, and educational tourism experiences. Corporations and business professionals also rely on travel services for corporate travel and group travel arrangements. Travelers can choose from various booking options, including online booking, phone booking, and in-person booking. The use of mobile apps and desktop platforms has made it easier for travelers to plan multi-destination trips, manage itineraries, and book flights, accommodations, and transportation in advance.

What challenges does India Travel Services Market face during the growth?

Intense competition among players leading to price wars is a key challenge affecting market growth.

• The market encompasses various sectors including air travel, online travel agencies, AI and robotics, sharing economy, solo travelers, adventure travel, low-cost aires, eco-tourism, medical tourism, educational tourism, tour packages, flight bookings, hotel booking services, cruise bookings, rail bookings, and car rental services. Corporations and individual travelers utilize both offline and online travel services for itinerary planning, booking flights, accommodations, transportation, and trip experiences.
• Travel providers offer direct and indirect services through desktop and mobile platforms, as well as phone and in-person booking. The market is characterized by intense competition among global, regional, and local companies, with a focus on innovative service offerings for diverse traveler segments. Price wars and discounts pose challenges to profitability. Solo travelers, adventure seekers, and package travelers all benefit from the wide range of offerings in this dynamic industry.

Exclusive Customer Landscape

The market forecasting 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 market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence In the market.

Airbnb Inc. - The company provides travel services encompassing short-term and long-term stay aggregation via its Airbnb platform.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Airbnb Inc.
• ANI Technologies Pvt. Ltd.
• Booking Holdings Inc.
• Cleartrip Pvt. Ltd.
• Easy Trip Planners Ltd
• Expedia Group Inc.
• Indian Railway Catering and Tourism Corp. Ltd
• ITC Hotels Limited
• Kesari Tours Pvt. Ltd.
• Le Travenues Technology Ltd
• Mahindra Holidays and Resorts India Ltd
• MakeMyTrip Ltd.
• Oravel Stays Ltd.
• The Travel Corp.
• Thomas Cook India Ltd.
• Treebo Hotels
• TripAdvisor Inc.
• Uber Technologies Inc.
• Yatra Online Inc.

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.

Research Analyst Overview

The market encompasses a broad range of offerings designed to facilitate and enhance the experience of traveling. These services cater to various aspects of travel, including flight bookings, accommodations, transportation, itinerary planning, and tour experiences. In the current business landscape, online travel services have gained significant traction, with online travel agencies (OTAs) leading the charge. Artificial intelligence (AI) and robotics have begun to play a pivotal role In the travel industry, streamlining processes and providing personalized recommendations for travelers. The sharing economy, with its focus on peer-to-peer transactions, has also made an impact, particularly In the areas of accommodation and transportation.

Moreover, solo travelers, adventure seekers, and those pursuing eco-tourism, medical tourism, educational tourism, and tour packages all benefit from the diverse offerings In the travel services market. Low-cost airlines have revolutionized air travel, making it more accessible to a wider audience, while corporations and individual travelers alike turn to travel providers for efficient, cost-effective solutions. Offline travel services still maintain a presence, but the trend is undeniably shifting towards direct and indirect travel services offered online. Travelers can now book flights, accommodations, car rentals, cruises, and rail tickets through various channels, including desktop and mobile platforms, as well as through phone booking and in-person services.

Furthermore, domestic and international travelers alike are catered to, with independent travelers, package travelers, and tour groups all finding value In the extensive array of travel services available. Business professionals, too, rely on travel providers for efficient, streamlined travel arrangements. Travel planning and itinerary creation are essential components of the travel services market, with travelers seeking to maximize their experiences while minimizing costs and hassle. Visa generation processes and travel document management are also crucial services that travel providers offer, ensuring a smooth and stress-free journey for their clients. In the realm of transportation, car rental services complement air, rail, and cruise bookings, providing travelers with flexible, self-driven options for exploring their destinations.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2025 and 2029
• Precise estimation of the size of the market and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across India
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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