India’s corporate travel sector is poised for a substantial growth trajectory, projected to reach a staggering $20.8 billion by Fiscal Year 2030, according to a recent Deloitte India report. This represents a significant leap from the current $10.6 billion market size. The report pinpoints key industries, including IT services, BFSI (banking, financial services, and insurance), engineering, aviation, oil and gas, pharmaceuticals, FMCG, automotive, metals, and diversified sectors, as the driving forces behind this surge. These industries collectively contribute to 86% of the total travel spend among India’s top 100 companies.
The overall travel market in India is also set for a significant expansion, expected to reach $97 billion by 2030, with a compound annual growth rate (CAGR) of approximately 9%. Currently, airlines and hotels dominate the travel market, accounting for 70% of the $53 billion sector, while the remaining share is attributed to railways and other transportation modes. The report underscores the adaptability of accommodation providers to the evolving business travel landscape, with many offering tailored amenities and services to capitalize on the opportunities emerging in the post-Covid world.
As business travel rebounds, companies are re-evaluating their travel strategies to align with modern traveler expectations. Domestic airlines are reaping the benefits of this resurgence, with approximately 40% of their revenue stemming from coded fares, including those for corporate and SME clients. Around 25% of these bookings are made directly through corporate contracts, while 15% are handled by agents or online travel agencies (OTAs) booking for corporate and SME clients. This positions the domestic corporate air travel market as a substantial $3.4 billion industry. Business and professional travel constitute 17% of Indian departures, with the international corporate air travel market valued at $2.2 billion. Nearly half of all corporate travel spending is directed toward air travel, underscoring its pivotal role in the industry.
The Deloitte report also emphasizes the crucial role of travel management companies (TMCs) in driving the corporate travel industry towards greater innovation, cost-efficiency, and sustainability. These companies have revamped their approaches, leveraging AI-powered chatbots and other digital tools to meet the demands of modern business travelers. As the corporate travel sector continues its expansion, businesses and travel providers alike are adapting to new trends, ensuring that India remains a key player in the global travel market.
