Travel & Tourism - India

India

The Travel & Tourism market in India is expected to generate a revenue of US$22.30bn in 2024.
The projected annual growth rate (CAGR 2024-2029) of 8.87% is expected to result in a market volume of US$34.11bn by 2029.
The largest market in India is the Package Holidays market, which is expected to reach a market volume of US$9.83bn in 2024.
By 2029, the number of users in the Package Holidays market is expected to amount to 118.10m users.
In 2024, user penetration is expected to be 7.4%, which is expected to increase to 11.8% by 2029.
The average revenue per user (ARPU) is expected to be US$209.70.
By 2029, online sales are expected to generate 60% of the total revenue in the Travel & Tourism market in India.
In comparison to other countries, United States is expected to generate the highest revenue of US$214bn in 2024.
India's tourism industry is currently focusing on promoting sustainable and eco-friendly travel options to attract responsible and conscious travelers.

Key regions: Malaysia, Europe, Singapore, Vietnam, United States

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

Structure:

The market consists of five further markets.

The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
The Hotels market includes stays in hotels and professionally run guest houses.
The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

For further information on the data displayed, refer to the info button right next to each box.

Market

Region

Region comparison

Currency

Analyst Opinion

India's Travel & Tourism market has been experiencing significant growth in recent years, attracting both domestic and international travelers.

Customer preferences: Travelers in India are increasingly seeking unique and authentic experiences, driving the demand for off-the-beaten-path destinations and cultural immersion. Additionally, there is a growing preference for sustainable and eco-friendly travel options among Indian tourists.

Trends in the market: One notable trend in the Indian Travel & Tourism market is the rise of digital platforms and online booking services, making travel more accessible and convenient for consumers. Another trend is the increasing popularity of adventure tourism and wellness retreats, catering to the evolving preferences of travelers.

Local special circumstances: India's diverse cultural heritage, rich history, and scenic landscapes make it a popular destination for both domestic and international tourists. The country's vibrant festivals, bustling markets, and mouth-watering cuisine also contribute to its appeal as a travel destination.

Underlying macroeconomic factors: The growing middle class in India, coupled with rising disposable incomes, has fueled the demand for travel and tourism services. Government initiatives to promote tourism, improve infrastructure, and simplify visa processes have also played a crucial role in driving the growth of the industry. Additionally, the increasing connectivity through air, road, and rail networks has made travel within India more convenient and affordable for travelers.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels, vacation rentals, cruises, package holidays, and camping.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.