LONDON: The travel services market in India is expected to post a CAGR of close to 19% during the period 2020-2024, according to the latest market research report by Technavio
The number of international tourists in India has been witnessing a considerable rise in recent years. The growth in inbound tourism can be attributed to the rising number of travelers visiting India for international and domestic businesses, leisure, and sports trips. Also, the Indian business travel spending is anticipated to grow at a CAGR of almost 12% during the forecast period as more and more multinational companies are conducting business visits to India for employees working across the globe. Such augmenting growth of the tourism industry will have a positive impact on the Indian travel service market growth during the forecast period
The #travelservices market in India is expected to post a CAGR of close to 19% during the period 2020-2024, according to the latest #marketresearch report by @TechnavioTweet
Travel Services Market in India: Introduction of Low-cost Airlines
Airlines are one of the most preferred modes of travel among tourists and travelers owing to their comfort and short duration of travel. Bulk booking of airline tickets often turns out to be quite heavy on the customers’ pocket. Hence, travelers are increasingly looking for cheap or economic airfares to fulfill their requirements without needing them to incur the extra cost burden. The introduction of low-cost airlines has been a relief for travelers and holiday and tour package service providers. This has also encouraged companies from the SME business sector to opt for air travel for business trips. Thus, the growing investments in the development and introduction of low-cost airlines are further expected to augment the travel services market in India during the forecast period.
Rising number of marketing and promotional activities and technological advances in mobile- and website-based travel service platforms, will boost the travel services market growth in India during the forecast period,” says a senior analyst at Technavio.
Travel Services Market in India: Segmentation Analysis
Online mode of booking accounted for the largest travel services market share in India during 2019. The segment will continue to dominate the market due to the extensive penetration and geographical reach of online travel providers including MakeMyTrip, IRCTC, Yatra, and TripAdvisor. Also, advantages such as secured transactions, convenient return policies, centralized customer service, multiple payment options, and 24/7 shopping convenience are expected to attract more and more customers to opt for online mode of booking in the upcoming years.