Travel Services Market in India to Grow by USD 21.21 Billion from 2024-2028, Driven by M&A, Partnerships, and Strategic Alliances, with AI Powering Market Evolution - Technavio

NEW YORK, Oct. 1, 2024 /PRNewswire/ -- Report on how AI is driving market transformation - The Global Travel Services Market in India  size is estimated to grow by USD 21.21 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  15.42%  during the forecast period. Increase in number of M and A, partnerships, and strategic alliances is driving market growth, with a trend towards introduction of low-cost airlines. However, intense competition among players leading to price wars  poses a challenge - Key market players include 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..

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Key Market Trends Fueling Growth

Travel in India is predominantly done via airlines due to their comfort and efficiency, especially for tourists and frequent travelers. However, the cost of air travel, particularly for families or large groups, is significantly higher than other modes like rail or bus. This cost burden can be alleviated by the emergence of low-cost airlines, a response to the intensifying competition in the aviation industry. These budget carriers have not only made air travel more affordable for individual travelers but also encouraged businesses to opt for air travel for cost-effective business trips. Furthermore, the availability of low-cost air tickets has positively impacted the tourism industry, leading to increased demand and attracting global investment. For instance, Etihad Airways, in partnership with Air Arabia, is planning to launch a low-cost airline in India, further fueling the growth of the travel services market in the country during the forecast period.

The Indian travel services market is witnessing significant growth, with rail bookings and car rental services leading the way. Corporations and individual travelers alike are increasingly relying on travel providers for itinerary planning and booking flights, accommodations, and transportation for trips, both domestic and international. Offline travel services continue to coexist with direct and indirect travel services, catering to various traveler preferences. Travelers can now easily generate visas and travel documents online or in person. Multi-destination trips, group travel, and corporate travel are popular trends. Direct travel suppliers offer packages for independent travelers, while online travel agents provide convenience through desktop and mobile platforms. Car hire services are also on the rise, with phone booking and online booking options. The tourism industry continues to expand, with international tourism driving growth. Overall, the travel services market in India is dynamic and evolving to meet the diverse needs of travelers.

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Market Challenges

• The travel services market in India is characterized by intense competition among global, regional, and local vendors. Global vendors dominate the market but face stiff competition from other players. Vendors invest in R&D to offer advanced services for various occasions and end-users. Regional and local vendors compete on unique offerings. Price wars due to discounts negatively impact profit margins. Lack of awareness and trust issues among rural population, along with limited access to online platforms, restrict their use of travel services. The growing popularity of self-driven vehicles intensifies competition and compels vendors to sell at reduced profit margins, posing challenges to the growth of the travel services market in India.
• The Travel Services Market in India is thriving, with tourism seeing significant growth in both domestic and international sectors. However, challenges persist in areas like visa generation process and travel document requirements. Travel planning and trip planning are essential for individual travelers and group travel, including corporate travel and tour groups. Flights, itineraries, and multi-destination trips are popular choices. Car hire, phone booking, and online booking are preferred methods for many business professionals. Domestic and international travelers opt for hotels, direct travel suppliers, and online travel agents for accommodation. The rise of mobile apps and low-cost airlines caters to solo travelers and adventure seekers. Eco-tourism, medical tourism, and educational tourism are niche markets. AI and robotics, sharing economy, and package travelers continue to impact the industry. Online travel services, including flight bookings and hotel booking services, remain in high demand. Cruise bookings are also gaining popularity.

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Segment Overview 

This travel services market in India report extensively covers market segmentation by

1. Mode Of Booking
• 1.1 Online
• 1.2 Offline
2. Service 
• 2.1 Domestic flight services
• 2.2 Hotel accommodation services
• 2.3 Rail ticket services
• 2.4 Cab services
• 2.5 Others
3. Geography 
• 3.1 APAC

1.1 Online- 

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Research Analysis

The Travel Services Market in India is a vibrant and dynamic industry, catering to the diverse needs of millions of domestic and international travelers. Air travel continues to be a major segment, with the increasing adoption of AI and robotics for seamless check-in and baggage handling. The sharing economy is also making waves, with platforms like Airbnb and Uber providing affordable accommodation and transportation options. Solo travelers, adventure seekers, and eco-tourists are also driving demand for unique and personalized travel experiences. Low-cost airlines and online travel agents are making air travel and itinerary planning more accessible than ever before, while medical and educational tourism are growing niches. Travelers can now easily book flights, accommodations, and trips on desktop or mobile, with the convenience of mobile apps and package travel offers.

Market Research Overview

The Travel Services Market in India is a thriving industry, catering to various segments of travelers, from individual adventurists to corporate professionals. Air travel is a significant part of this market, with both low-cost and full-service airlines offering competitive prices and routes. Online travel services have revolutionized the industry, allowing travelers to book flights, accommodations, transportation, and tour packages with just a few clicks. AI and robotics are being integrated into travel services, providing personalized recommendations and seamless booking processes. The sharing economy, including homestays and car rentals, is also gaining popularity. Solo travelers, adventure seekers, eco-tourists, medical tourists, and educational travelers all find a place in this diverse market. Travelers can choose from direct or indirect travel services, book in person or online, and plan multi-destination trips or group travel. Corporations and business professionals also rely on travel services for corporate travel and accommodation needs. Travel documents, itinerary planning, and visa generation processes are essential services offered by travel providers. Travelers can access these services on desktops and mobile devices, with the convenience of mobile apps and online booking systems. Domestic and international travelers alike can explore various tour experiences, from budget to luxury, using travel services.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Mode Of Booking
• Online
• Offline
• Service
• Domestic Flight Services
• Hotel Accommodation Services
• Rail Ticket Services
• Cab Services
• Others
• Geography
• APAC

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio