Enjoy complimentary customisation on priority with our Enterprise License!
The India travel services market size is forecast to increase by USD 21.20 billion at a CAGR of 15.42% between 2023 and 2028. The market is witnessing significant growth, driven by various factors. The increase in mergers and acquisitions, partnerships, and strategic alliances among players is fueling market expansion. Furthermore, the introduction of low-cost airlines and intense competition among players have led to price wars, making travel more affordable for both corporations and individual travelers. The market caters to diverse travel needs, offering online travel bookings, flight bookings, hotel booking services, cruise bookings, rail bookings, and car rental services. Educational tourism is also gaining popularity, providing opportunities for market growth. Overall, the Indian travel services market is poised for strong growth in the coming years.
The market is witnessing significant growth due to various factors such as increasing air travel, adoption of AI and robotics, and the rise of the sharing economy. Air travel is a major contributor to the market, with low-cost airlines driving demand and offering affordable fares to travelers. Solo travelers, adventure tourism, eco-tourism, medical tourism, and educational tourism are also gaining popularity. Travel providers are leveraging IT and mobile technology to offer seamless itinerary planning and booking flights, accommodations, and trips through desktop and mobile apps. The use of online travel agents is also on the rise, making it easier for travelers to compare prices and book their trips.
The adoption of AI and robotics is expected to revolutionize the industry by offering personalized services and recommendations. The market is also witnessing the growth of domestic tourism, with an increasing number of travelers exploring various destinations within the country.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
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. This shift is also led by the wide penetration and geographical reach of online travel services providers such as MakeMyTrip, TripAdvisor, IRCTC, and Yatra. 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. Therefore, consumers in Tier-1 and Tier-2 cities can access online travel service platforms and avail of faster bookings and safe and secured e-transactions 24/7. Many online travel service providers are also gradually expanding their online operations through partnerships and M and A with related service providers.
Get a glance at the market share of various segments Request Free Sample
The online segment accounted for USD 12.96 billion in 2018 and showed a gradual increase during the forecast period.
Our market researchers analyzed the data with 2023 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.
An increase in number of M&A, partnerships, and strategic alliances is the key driver of the market. The market comprises both Direct and Indirect travel services. Direct travel services include itinerary planning, booking flights, accommodations, transportation, and trips directly with travel providers. Indirect travel services, on the other hand, are provided through intermediaries such as travel agents and online travel platforms. Travelers in India increasingly prefer the convenience and wide range of options offered by indirect travel services. Major travel providers in India are actively engaging in M&A activities, partnerships, and strategic alliances to expand their market shares, enhance services, and broaden their geographic reach.
For instance, Thomas Cook India entered into a strategic partnership with the Maldives Marketing and Public Relations Corporation in April 2022. This collaboration leverages Thomas Cook's diverse customer segments, including leisure, MICE, and B-leisure, along with its unique omnichannel/phygital business model, extensive retail presence, digital platforms, and call center services. Many travel companies in India are focusing on collaborations to boost their customer reach and expand their offerings, including tour experiences, to cater to the evolving demands of travelers.
The introduction of low-cost airlines is the upcoming trend in the market. Travel services in India cater to various needs of tourists and travelers, encompassing both direct and indirect offerings. Direct travel services include itinerary planning, booking flights, accommodations, and transportation directly with travel providers. Indirect travel services, on the other hand, are offered through intermediaries such as travel agencies and online platforms. Travelers, particularly those seeking affordable options, prefer indirect travel services for their cost-effectiveness. Air travel, being the most popular mode of transportation for tourists, can be expensive, especially for families or large groups. Low-cost airlines have emerged as a viable solution, intensifying competition in the airline industry and providing relief to travelers and holiday/tour package providers.
Additionally, these airlines offer affordable air tickets, making it possible for travelers to plan trips and tour experiences without incurring excessive costs. Accommodation and transportation are other essential components of travel services. Travelers often seek value-for-money options in these areas, leading to the growth of budget hotels, homestays, and shared transportation services. The travel industry in India continues to evolve, catering to the diverse needs and preferences of travelers while maintaining affordability and convenience.
Intense competition among players leading to price wars is a key challenge affecting market growth. The market is characterized by a diverse range of offerings from both global and domestic companies. Direct travel services, including itinerary planning, booking flights, accommodations, transportation, and trips, are provided by global companies that dominate the market. However, indirect travel services, such as tour experiences, are often offered by regional and local companies, who compete fiercely to provide unique and customized offerings. companies invest significantly in research and development to introduce advanced and innovative services catering to various traveler segments and preferences. The intense competition in the market, coupled with the trend of offering large discounts and promotions, puts pressure on profit margins and necessitates continuous innovation to stay competitive.
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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
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, House rentals to monthly stays in India.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key 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 is a vibrant and dynamic industry, catering to the diverse needs of individual travelers and corporations. The market encompasses various segments, including air travel, online travel services, and offline travel services. Online travel services have gained significant traction in recent years, with online travel agencies (OTAs) offering flight bookings, hotel booking services, cruise bookings, rail bookings, car rental services, and tour packages. AI and robotics are increasingly being integrated into the travel industry, streamlining itinerary planning and booking processes. The sharing economy has also made an impact, with solo travelers opting for budget-friendly options such as homestays and shared accommodations. Adventure travel, eco-tourism, medical tourism, and educational tourism are niche segments that are growing in popularity.
Additionally, travelers can choose from direct travel services, indirect travel services, and package travelers, depending on their preferences and budgets. The market caters to both domestic and international travelers, with the visa generation process and travel documents being crucial aspects of international travel planning. Travelers can book flights, accommodations, transportation, and trips through various channels, including desktop, mobile, phone booking, and in-person booking. Business professionals, independent travelers, package travelers, and tour groups all have unique travel requirements, which are being addressed by travel providers through customized offerings. The market is expected to continue its growth trajectory, driven by increasing disposable income, rising tourism, and technological advancements.
Market Scope |
|
Report Coverage |
Details |
Page number |
139 |
Base year |
2023 |
Historic period |
2017-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 15.42% |
Market growth 2024-2028 |
USD 21.20 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
12.09 |
Key companies profiled |
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 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 growth inducers and obstacles,market forecast , fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
We can help! Our analysts can customize this market research report to meet your requirements Get in touch
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 Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.