India Travel and Tourism Market Overview
India Travel and Tourism Market Size was estimated at 48.6 (USD Billion) in 2023.The India Travel and Tourism Market Industry is expected to grow from 57.88(USD Billion) in 2024 to 101.08 (USD Billion) by 2035. The India Travel and Tourism Market CAGR (growth rate) is expected to be around 5.199% during the forecast period (2025 - 2035).
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Key India Travel and Tourism Market Trends Highlighted
The India Travel and Tourism Market is experiencing significant growth driven by several key market drivers. Increased disposable income among the growing middle class, urbanization, and greater internet penetration have made travel services accessible to a larger audience. The Indian government has been promoting initiatives such as "Incredible India" and the e-Visa policy to boost tourism by providing ease of access for international travelers and enhancing the overall travel experience within the country. Opportunities in the market are vast, particularly in the niche segments such as eco-tourism, wellness tourism, and adventure tourism. With India's diverse cultural heritage and rich natural resources, there is a strong potential to attract both domestic and international tourists seeking unique experiences.Sustainable tourism practices are gaining traction, driven by a growing awareness of environmental impact, which further emphasizes the need for developing responsible tourism strategies in regions like the Western Ghats and Himalayan hills. In recent times, trends in the India Travel and Tourism Market have been influenced by technology, with the rise of online travel agencies (OTAs) and mobile applications simplifying the booking process. The pandemic has also shifted focus towards offbeat destinations as travelers seek lesser-known places to avoid crowds. Additionally, there is a growing preference for personalized and experiential travel, indicating a shift from traditional itineraries to tailored experiences that align with individual traveler preferences.As the country recovers from health challenges, these trends reflect a changing landscape in the travel and tourism sector, establishing new norms for how experiences and services are delivered to consumers in India.
India Travel and Tourism Market Drivers
Rising Middle-Class Population
The increasing middle-class population in India is a significant driver for the India Travel and Tourism Market Industry. According to the National Sample Survey Office (NSSO), the middle class is expected to rise to over 600 million by 2030. This growing demographic likely means that a larger number of people will have discretionary income to spend on travel and tourism. Organizations like the Federation of Indian Chambers of Commerce and Industry (FICCI) are advocating for policies that enable better infrastructure and services to cater to this burgeoning market.
The increase in people traveling for business and leisure has increased the scope for growth in the travel industry. Thus, the blend of population's growing desire to travel and increase purchasing power is anticipated to fuel the growth of the India Travel and Tourism Market Industry.
Government Initiatives and Policies
The Indian government has played a crucial role in promoting tourism through various initiatives like 'Incredible India' and 'Atithi Devo Bhava.' These campaigns are aimed at raising awareness and boosting travel domestically and internationally. The Ministry of Tourism's financial allocation has increased consistently, reaching nearly 2,000 crore INR in recent budgets, which supports infrastructure development and promotion activities. Moreover, the implementation of e-visa facilities has seen an increase in tourist arrivals, with the Ministry reporting that there has been a 25% rise in foreign tourists due to such facilitative measures.Such comprehensive government support is a driving force for the India Travel and Tourism Market Industry, promoting greater visitor numbers and enhancing the overall customer experience.
Digital Transformation in Travel Industry
Digital transformation has significantly impacted the India Travel and Tourism Market Industry, providing better accessibility and convenience for travelers. A report by the Internet and Mobile Association of India (IAMAI) stated that the number of online travel bookings has surged, with nearly 75% of domestic travelers opting for online platforms for planning trips by 2022. This transformation has attracted new players into the market, including startups focused on technology-driven services.Established players, such as MakeMyTrip and Yatra, have innovatively adopted mobile and internet solutions, considerably enhancing customer engagement. As a result, the travel booking process is streamlined, and this convenience incentivizes more individuals to travel, which ultimately fuels growth in the travel and tourism industry.
Cultural and Heritage Tourism
India's rich cultural history and heritage are primary attractions for both domestic and international tourists. According to the Archaeological Survey of India, there are over 3,600 protected monuments across the country, and this cultural wealth has made India a prominent destination for heritage tourism. The Indian government has recognized this potential and focuses efforts on promoting sites through schemes like 'Swadesh Darshan' aimed at developing theme-based tourist circuits.The increased interest in cultural experiences enhances the growth of the India Travel and Tourism Market Industry as more visitors seek to explore India’s diverse history. It provides avenues for job creation in tourism-related sectors, further solidifying the market's growth.
India Travel and Tourism Market Segment Insights:
Travel and Tourism Market Type Outlook Insights
The 'Type Outlook' segment of the India Travel and Tourism Market showcases a diverse range of travel categories that cater to the varying preferences of both domestic and international tourists. Among these categories, leisure travel stands out as a dominant force, fueled by India's rich cultural heritage, natural landscapes, and historical landmarks, thereby drawing millions of travelers seeking relaxation and exploration. Educational tourism has gained traction as well, with increasing interest in study abroad programs and educational exchanges, promoting cultural understanding and knowledge sharing among students.Meanwhile, the business travel segment remains a significant contributor, as India continues to emerge as a global business hub, attracting corporate travelers for meetings, conferences, and events. Sports tourism is also on the rise, promoting events like the Cricket World Cup and other international sports competitions that encourage fans to travel to witness and participate in thrilling experiences, thereby boosting local economies. Medical tourism has positioned India as a preferred destination for various healthcare services, attracting individuals seeking affordable and high-quality medical treatments.Furthermore, the 'Others' category encompasses event travel and volunteer tourism, which provides opportunities for individuals to participate in unique cultural experiences and community service, resonating with a growing audience focused on responsible travel. This segment captures a wide audience by addressing various interests, making it a multifaceted and vital part of the India Travel and Tourism Market. The growth of this segment is driven by changing consumer preferences, increased internet accessibility, and the rise of social media, which has heightened awareness and interest in travel.Overall, this rich tapestry of type outlook reveals the capacity and potential for sustained growth and diversification within the India Travel and Tourism Market as it continues to adapt to evolving market demands and trends.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Travel and Tourism Market Application Outlook Insights
The Application Outlook for the India Travel and Tourism Market reveals a dynamic landscape, showcasing robust growth trends driven by domestic and international travel demands. Domestic tourism continues to flourish as most Indian travelers explore diverse destinations within the country, fueled by an increase in disposable incomes and a growing middle-class population. Furthermore, the rise of e-commerce and digital platforms has enhanced ease of booking accommodations and travel services, amplifying local tourism experiences. Meanwhile, international tourism reflects significant potential with many travelers seeking unique experiences in India’s rich cultural heritage and natural beauty.Government initiatives to promote tourism and infrastructure development, such as the Incredible India’ campaign, have played a pivotal role in attracting global visitors. The strengthening of bilateral ties with various countries has further contributed to this segment's growth, making it a vital contributor to the overall India Travel and Tourism Market revenue. By understanding these evolving trends, stakeholders can capitalize on emerging opportunities while addressing challenges such as seasonality and competitive pricing strategies in this diversified market landscape.
Travel and Tourism Market Traveler Type Outlook Insights
The Traveler Type Outlook segment within the India Travel and Tourism Market showcases diverse preferences and behaviors of travelers that shape the industry. Solo travelers are increasingly exploring India, driven by the nation's rich cultural tapestry and historical sites, which offer personalized experiences. Meanwhile, couple travelers often seek romantic getaway destinations such as hill stations and beaches, where they can enjoy privacy and scenic views, leading to an increasing demand for tailored services in hospitality. Group travelers, including families and friends, contribute significantly to the market, as they prefer packages that provide value for money and convenient itineraries that cater to larger groups.The trend towards domestic tourism has fostered a greater affinity for organized tours, enhancing the experience for these travelers. With the rise in disposable incomes and an expanding middle class, the potential for growth in this market segment remains substantial. The interplay of cultural significance and social connectivity makes the India Travel and Tourism Market segmentation crucial for targeted marketing, catering to the unique desires and requirements of each traveler type. Overall, this segment plays a pivotal role in shaping travel offerings and experiences across the country.
Travel and Tourism Market Travel Days Outlook Insights
The Travel Days Outlook segment within the India Travel and Tourism Market showcases a diverse array of travel durations that cater to different consumer preferences and needs. The division into categories such as Less than 7 Days, 8-15 Days, 16-30 Days, and More than 30 Days highlights the varying interests in short getaways versus extended experiences. Short trips of less than 7 days are particularly popular among domestic travelers, facilitating quick escapes to nearby locations, while the 8-15 days segment often attracts tourists seeking a balance between travel and leisure, frequently targeting major tourist hot spots.The 16-30 days category is significant for those looking to delve deeper into India's rich culture and heritage, focusing on immersive experiences. On the other hand, the More than 30 Days segment caters to long-term travelers, such as expatriates or digital nomads, who explore the country more comprehensively. This segmentation not only reflects the needs of travelers but also influences industry dynamics, such as hospitality demand, transport services, and overall tourist services in India. With the nation's diverse landscape and cultural offerings, the market growth within these categories indicates a promising future for the India Travel and Tourism Market, driven by evolving consumer behaviors and preferences.
Travel and Tourism Market Travel Mode Outlook Insights
The Travel Mode Outlook segment within the India Travel and Tourism Market has seen a transformative shift driven by changing consumer preferences and increased connectivity. The market showcases various dynamics, with Travel Packages and Self-catered options emerging as significant attractions for travelers. Travel Packages, often providing curated experiences, are favored for their convenience and the ability to explore popular destinations effortlessly, catering particularly to both domestic and international tourists. This convenience is pivotal in promoting tourism in regions like Goa and Rajasthan, which draw a diverse audience.On the other hand, the Self-catered segment resonates with the rising trend of experiential travel, as individuals seek personalized itineraries and unique local experiences. This has been crucial in boosting rural tourism, allowing tourists to engage deeply with local cultures while enjoying the comforts of home. Overall, the India Travel and Tourism Market segmentation reflects a strong inclination towards tailored travel experiences that cater to evolving consumer desires for authenticity and flexibility in their travel endeavors.
Travel and Tourism Market Booking Outlook Insights
The Booking Outlook segment of the India Travel and Tourism Market is an essential component reflecting the evolving preferences of travelers. With the market projected to be valued at 57.88 billion USD in 2024, this segment showcases the trends towards both online and offline booking channels. Online bookings have gained significant traction, driven by technological advancements and the increasing adoption of smartphones, offering convenience and a broader range of options to consumers. On the other hand, offline bookings continue to hold their ground, particularly among travelers seeking personalized services expert advice, or those unfamiliar with digital platforms.This diversity in booking channels caters to a wide demographic, enhancing accessibility within the India Travel and Tourism Market. Furthermore, the growing inclination towards experiential travel and the expansion of travel agencies bolsters the importance of both online and offline channels, allowing for a seamless integration of traditional and modern booking practices. Such dynamics not only reflect the market's adaptability but also underscore the breadth of opportunities for growth within this segment.
India Travel and Tourism Market Key Players and Competitive Insights:
The India Travel and Tourism Market is characterized by a dynamic and diverse landscape, propelled by a growing middle class, increased disposable incomes, and a strong inclination towards leisure and business travel. As tourism emerges as a significant contributor to the Indian economy, numerous companies are vying for market share within this vibrant industry. The competitive insights reveal a blend of established players and emerging startups, each harnessing innovative strategies to cater to the evolving preferences of Indian travelers. The market is also seeing a rise in digital transformation, with many companies adopting technology-driven solutions for booking, marketing, and enhancing the overall travel experience. This competitive environment encourages continuous improvement in service offerings, operational efficiency, and customer engagement, reflecting the sector's potential for robust growth. Club Mahindra Holidays stands out in the India Travel and Tourism Market through its expansive network of resorts and a portfolio tailored for family vacations and leisure travel. The company leverages its unique membership model, allowing customers to enjoy a plethora of holiday experiences across various scenic locations in India. With a strong emphasis on customer satisfaction, Club Mahindra Holidays has built a loyal customer base credited to its wide array of resort offerings that include luxurious services and diverse activities. Additionally, the company places significant emphasis on maintaining high standards of service and facilities, further enhancing its reputation in the industry. This position is strengthened by its strategic partnerships with local tourism operators, allowing for a seamless integration of cultural experiences and community engagement, thereby enriching the customer's journey.SOTC plays a pivotal role in the India Travel and Tourism Market, offering a wide range of travel services, including packaged tours, customized travel experiences, and a host of services to facilitate smooth travel arrangements for clients. The company is well-regarded for its strong distribution network, which encompasses both offline and online platforms, ensuring broad accessibility to its offerings across India. SOTC’s strengths lie in its well-crafted travel packages that cater to both domestic and international travelers, alongside its expertise in corporate travel, which positions it favorably in the corporate sector. Recent initiatives have seen the company expand its service portfolios through strategic mergers and acquisitions, allowing for enhanced customer outreach and service diversification. With a keen focus on customer-centric solutions and experience enhancement, SOTC remains a formidable player in the Indian travel market, continually adapting to meet the dynamic demands of 21st-century travelers.
Key Companies in the India Travel and Tourism Market Include:
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Club Mahindra Holidays
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SOTC
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TravelTriangle
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Cox and Kings
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Goibibo
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Taj Hotels
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Yatra
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OYO Rooms
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EaseMyTrip
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Cleartrip
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Itravel
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MakeMyTrip
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ITC Hotels
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Airbnb
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Thomas Cook
India Travel and Tourism Market Industry Developments
Recent developments in the India Travel and Tourism Market reflect a dynamic landscape as major companies embrace innovative strategies. Club Mahindra Holidays is expanding its offerings to enhance family vacations, while SOTC focuses on tailored travel experiences to attract diverse customer segments. TravelTriangle continues to build on its unique aggregator model, connecting travelers with local travel agents. In mergers and acquisitions, both Goibibo and MakeMyTrip have witnessed consolidation efforts to fortify their market positions, contributing to growing market valuations. The market has seen a significant recovery post-pandemic, with the Ministry of Tourism in India reporting that international tourist arrivals in 2022 had reached 5.26 million, showcasing a promising rebound. Major hotel chains like Taj Hotels and ITC Hotels are investing in luxury experiences in an effort to cater to affluent travelers, which has positively influenced the market valuation. In 2021, OYO Rooms launched an IPO and garnered attention, sparking interest in the budget accommodation segment. Similarly, the rise of platforms like Airbnb is reshaping customer preferences towards unique lodging experiences. Overall, the Indian Travel and Tourism Market is navigating through transformative changes driven by innovation and a focus on customer-centric strategies.
India Travel and Tourism Market Segmentation Insights
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Travel and Tourism MarketType Outlook
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Leisure
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Educational
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Business
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Sports
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Medical Tourism
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Others (Event Travel, Volunteer Travel, etc.)
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Travel and Tourism MarketApplication Outlook
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Domestic
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International
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Travel and Tourism MarketTraveler Type Outlook
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Solo Traveler
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Couple Traveler
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Group Traveler
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Travel and Tourism MarketTravel Days Outlook
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Less than 7 Days
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8- 15 Days
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16-30 Days
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More than 30 Days
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Travel and Tourism MarketTravel Mode Outlook
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Travel Packages
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Self-catered
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Travel and Tourism MarketBooking Outlook
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Online
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Offline
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| Report Attribute/Metric Source: |
Details |
| MARKET SIZE 2018 |
48.6(USD Billion) |
| MARKET SIZE 2024 |
57.88(USD Billion) |
| MARKET SIZE 2035 |
101.08(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) |
5.199% (2025 - 2035) |
| REPORT COVERAGE |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR |
2024 |
| MARKET FORECAST PERIOD |
2025 - 2035 |
| HISTORICAL DATA |
2019 - 2024 |
| MARKET FORECAST UNITS |
USD Billion |
| KEY COMPANIES PROFILED |
Club Mahindra Holidays, SOTC, TravelTriangle, Cox and Kings, Goibibo, Taj Hotels, Yatra, OYO Rooms, EaseMyTrip, Cleartrip, Itravel, MakeMyTrip, ITC Hotels, Airbnb, Thomas Cook |
| SEGMENTS COVERED |
Type Outlook, Application Outlook, Traveler Type Outlook, Travel Days Outlook, Travel Mode Outlook, Booking Outlook |
| KEY MARKET OPPORTUNITIES |
Eco-tourism growth, Adventure tourism expansion, Digital travel services rise, Culinary tourism experiences, Medical tourism potential |
| KEY MARKET DYNAMICS |
Rising domestic travel demand, Increasing international arrivals, Growing digital booking platforms, Government initiatives promoting tourism, Eco-friendly travel trends |
| COUNTRIES COVERED |
India |
Frequently Asked Questions (FAQ) :
The India Travel and Tourism Market is projected to be valued at 57.88 USD Billion in 2024.
In 2035, the India Travel and Tourism Market is expected to reach a value of 101.08 USD Billion.
The expected CAGR for the India Travel and Tourism Market from 2025 to 2035 is 5.199%.
The Leisure segment holds the largest value in the India Travel and Tourism Market at 28.0 USD Billion in 2024.
The Medical Tourism segment is expected to reach 17.48 USD Billion in 2035.
Some major players in the market include Club Mahindra Holidays, SOTC, TravelTriangle, and MakeMyTrip.
The Business Tourism segment is projected to be valued at 11.0 USD Billion in 2024.
The Sports Tourism segment is anticipated to grow to 7.4 USD Billion by 2035.
The Educational Tourism segment is valued at 5.5 USD Billion in 2024.
Rising disposable incomes and an increasing number of domestic and international travelers are primary growth drivers.
