Driven by M&A, partnerships, and strategic alliances, to grow by USD 21.21 billion from 2024-2028
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.
In this background, the Global Travel Services Market in India is estimated to grow by USD 21.21 billion from 2024-2028, according to a leading global technology research and advisory company, 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.
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.
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. (PRNewswire)
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