India Online Travel Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

India Online Travel Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

India's online travel market is approaching maturity, as more segments transition to digital channels. Online travel gross bookings will grow in double digits and outpace the overall travel market. With the advent of the internet and the emergence of artificial reality (AR), the online travel industry in India is changing rapidly due to which a growing number of Indians have turned to the convenience of the web for better travel prices and accommodations. Most of the growth in the Indian online travel market would come from the increasing penetration of international flight and hotel bookings offered by online portals such as Cleartrip, MakeMyTrip, Yatra, and others. An increase in user demand is also a factor as Indian consumers are expected to devote almost 4% of their wallet spends on travel. The combination of travel and transportation offers, even those which include airport transfers, as well as holiday packages are growing hugely. Air accessibility and affordability is the biggest ongoing development in India, and the government’s regional airport development program is promoting connectivity to smaller cities and towns. The online travel market in India is mainly driven by several factors that include the increasing tourism industry, along with the rising penetration of internet usage and smartphone users across various countries. In addition to this, rapid urbanization, increasing per capita income, economic growth, and changing lifestyle of the customers shifting towards more enhanced services and comfort will have a positive impact on the growth of the market. India’s online travel industry has been hit hard by the COVID-19. However, long-term growth fundamentals are intact. The pandemic is a major challenge, but it is also an acquisition opportunity for stronger players as the industry consolidates. Domestic tourism however is expected to pick up sooner and latest available data suggest plenty of pent-up demand to support a relatively speedy recovery. Indian travel firms have reportedly seen a 25%-30% increase in bookings both for air travel and accommodations for the Christmas and New Year holidays.India Online Travel Market TrendsGrowth of the Tourism Industry in India is Driving the Market India’s travel and tourism industry was the seventh-highest GDP contributor with its share of the country’s GDP. India’s economic growth has been among the highest in the world in the past decade. Positive developments on the economic front should contribute to propelling the country’s tourism industry as an increasing number of Indians with rising disposable incomes make a greater number of domestic and international trips. At the same time, the Indian government’s supportive stance should spur the industry further. India’s UDAN-Regional Connectivity Scheme (UDAN-RCS), launched in 2016, has made air travel accessible to a wider spectrum of economic groups, which has resulted in a significant increase in domestic passenger traffic in India. Players looking to capitalize on growing inbound and outbound international trips from India include MakeMyTrip which announced its plans to expand into the UAE and EaseMyTrip which is expanding its international footprint, particularly in international cities where Indians travel the most. With an expanded international presence, EaseMyTrip expects to provide better service to their customers as well as provide better rates on local hotels and restaurants that are reluctant to work with companies outside their home countries.Disposable Income is Driving the Market The growth of the online travel market in India is driven by the rising disposable income of people. Market players are introducing innovative travel and vacation package deals to assist travelers in making sound travel decisions as per their spending capabilities, such as affordable packages for an international destination, discounts on car rentals, and cashback on international flights. On the international tourism front, with disposable incomes on the rise for millions of Indians, the number of international departures has been growing steadily over the years, and long-term trends suggest a tremendous opportunity for volume growth. Along with increasing departures, Indian travelers’ international tourism expenditures have also been on the rise.India Online Travel Market Competitive Analysis The report covers major international players operating in the India online travel market. In terms of market share, few of the major players currently dominate the market. However, with technological advancement and product innovation, mid-size to smaller companies are increasing their market presence by securing new contracts and by tapping new markets.Additional Benefits: The market estimate (ME) sheet in Excel format 3 months of analyst support Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.