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The India - Travel Services Market size is estimated to grow by USD 13.46 billion accelerating at a CAGR of 11.72% between 2022 and 2027. In recent years, India has seen significant growth in its travel services market due to increasing tourism and improved infrastructure. Popular travel services in India include hotel accommodations, transportation, tour packages, and travel agency services. The Indian government has taken initiatives to promote tourism by easing visa regulations and developing tourist-friendly policies.
Our market trends and analysis report offers an in-depth analysis of market drivers, trends, opportunities, challenges, and restraints, with segmentation by Mode Of Booking (online and offline), Service (domestic flight services, hotel accommodation services, rail ticket services, cab services, and others). Additionally, Technavio provides valuable insights through value chain analysis, parent market analysis, Porter’s Five analysis, and vendor analysis. The market growth analysis report also includes a thorough analysis of historical market data from 2017 to 2021.
The market is a dynamic sector within the broader travel industry, encompassing various elements like travel agents, Indian tourism, and emerging trends. India's travel market reflects the ever-evolving landscape of the industry, with a focus on innovative travel agency trends and marketing strategies. The service industry plays a crucial role in shaping the Indian travel market, emphasizing the importance of tailored and efficient travel services. This overview highlights India's position as a key player in the market, showcasing the nation's commitment to excellence and customer satisfaction.
Market Size and Forecast:
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One of the major market trends is the technological advances in mobile-based and website-based travel service platforms. Numerous providers in the market are introducing innovative technologies to maintain market share and offer customers new and advanced services. Market players are integrating advanced technologies into their service portals, including websites and mobile apps, featuring advanced search filters and voice assistance.
For instance, Cleartrip, a leading player in the travel service market in India, incorporates Alexa (Amazon's voice assistance) skills into its service platform, enabling users to easily voice search air travel options. The company also offers Cleartrip for Work, a transformative solution providing individual travelers with GST numbers and access to unlimited corporate fares on flights, including benefits like unlimited cashback, complimentary in-flight meals, zero trip modification charges, and reduced cancellation and seat selection fees. These advancements are expected to drive growth in India travel services marketing throughout the forecast period.
The growth of the market is driven by the rising influx of international tourists. Inbound tourism in India has experienced rapid growth, fueled by travelers visiting for business, leisure, and sports purposes. The presence of multinational companies further contributes to increased corporate visits to India.
Additionally, the tourism industry in India is expanding, leading to enhanced infrastructure for air, rail, and road connectivity to cities. Government initiatives aimed at promoting tourism further boost the industry. Tourists from regions such as North America, Europe, and the Pacific contribute to the positive impact on the market. These factors are anticipated to propel India travel service market growth throughout the forecast period.
Fierce competition leading to price wars poses a significant challenge to the growth of the market. Despite the dominance of global players, they face stiff competition from various global, regional, and local counterparts. To overcome this challenge, market players need substantial investments in research and development to innovate a diverse range of services catering to different occasions and end-users, including holiday packages for young individuals, couples, and family trips.
The heightened competition in the market is likely to trigger price wars and the trend of substantial discounts and offers by certain players, further complicating the market landscape. These factors have a detrimental impact on the growth of the market, hindering its progress throughout the forecast period.
The market is a vibrant sector with immense potential, fueled by the world's demand for diverse travel experiences. The Indian government plays a pivotal role in regulating and shaping this industry through various policies. With a focus on promoting tourism, India has implemented measures to attract visitors from countries like China and other nations worldwide. Travel agencies and operators operating in the Indian market are subject to government regulations that aim to ensure the growth and sustainability of the sector. The hospitality industry also benefits from these policies, enhancing the overall travel experience for tourists. India's tourism industry has witnessed significant developments, reflecting the government's commitment to fostering a robust travel ecosystem. As the travel agencies industry evolves, trends in marketing services and customer experiences become crucial, contributing to India's position as a key player in the market.
The online segment is estimated to witness significant growth during the forecast period. Online platforms and mobile apps have played a crucial role in the growth of the market, making it easier for travelers to book flights, hotels, and other services. 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.
By Mode of Booking
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The online segment, valued at USD 11.79 billion in 2017, is the largest segment in the India travel services market. Its growth is significantly influenced by a robust infrastructure supporting online travel services penetration. Factors such as high Internet penetration and widespread smartphone use contribute to this growth. In 2020, India had over 749 million Internet users, and a considerable number of consumers in the country base their purchase decisions on online research through websites, blogs, and social media.
Prominent India travel service market player TripAdvisor, for example, provides a comprehensive range of blogs and research on its website, offering detailed information about airlines, hotels, travel destinations, activities, and restaurants across India. These factors are expected to drive the growth of the online segment, consequently fueling overall growth in the market throughout the forecast period.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
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., 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.
The market growth and 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 forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
The market analysis and report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Market Report 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 |
Regional analysis |
India |
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 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 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. |
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