Press Release

India Travel & Tourism Market to Grow with a CAGR of 8.27% through 2030

The India Travel & Tourism market is experiencing robust growth, driven by rising disposable incomes, a growing middle class, government initiatives, increasing domestic and international travel, and expanding digital platforms

 

According to TechSci Research report, “India Travel & Tourism Market – By Region, Competition, Forecast & Opportunities, 2030F”, the India Travel & Tourism market stood at USD 19.44 billion in 2024 and is anticipated to grow USD 31.21 billion by 2030 with a CAGR 8.27% during forecast period. India’s Travel & Tourism market has experienced significant growth over the last decade, and it continues to be one of the fastest-growing sectors within the economy. With its vast cultural heritage, diverse landscapes, and historical landmarks, India remains an attractive destination for both international and domestic travelers. The market's expansion is supported by several key factors, including an increasing middle class, greater disposable income, improved infrastructure, and digital advancements that make travel easier and more accessible. This dynamic growth is also bolstered by government initiatives aimed at promoting tourism, such as the Dekho Apna Desh campaign and the Incredible India campaign.

One of the key drivers of this market is domestic tourism, which has grown at a remarkable pace in recent years. As more Indian citizens are able to afford travel, the domestic tourism market has surged, especially with the ease of travel during long weekends and festive periods. Additionally, the growing popularity of road trips, short getaways, and exploring offbeat destinations within the country have contributed to this rise. The COVID-19 pandemic also played a role in boosting domestic tourism as travel restrictions prompted Indians to rediscover their own country. The government's initiatives, including the promotion of local destinations and offering incentives to tourists, have been pivotal in fostering this trend.

Experiential travel has also emerged as a significant trend within the Indian market. Indian travelers are increasingly seeking personalized and immersive experiences, shifting away from traditional sightseeing tours. The focus now is on authentic cultural encounters, such as village stays, rural tourism, and engaging with local communities. Moreover, wellness tourism has gained popularity, with travelers looking for holistic experiences that cater to both physical and mental well-being. Yoga retreats, Ayurvedic treatments, and eco-friendly resorts are in high demand, especially among international tourists. The rise of wellness tourism also aligns with a broader global trend towards healthier lifestyles and sustainable tourism practices.

 

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The India Travel & Tourism market is segmented into type, service offering, purpose of visit, booking type, regional distribution, and company.

Based on the booking type, the online segment was the fastest-growing segment in the India Travel & Tourism market, driven by increasing internet penetration, smartphone usage, and the convenience of booking travel through digital platforms. Consumers prefer booking flights, hotels, and activities online due to time efficiency and competitive pricing. The growth of online travel agencies (OTAs) and mobile apps, along with improved digital payment solutions, has further accelerated this trend. The COVID-19 pandemic also played a role in pushing more travelers to adopt online platforms, providing a significant boost to the segment.

Based on region, the South region was the fastest-growing segment in India's Travel & Tourism market, driven by increased regional tourism, higher disposable incomes, and the growing popularity of destinations like Kerala, Tamil Nadu, and Karnataka. The rise of domestic travel, supported by improved infrastructure and government promotions, has further contributed to the region's growth. Additionally, South India’s rich cultural heritage, wellness tourism, and coastal offerings continue to attract both domestic and international tourists, further fueling this expansion.

 

Major companies operating in India Travel & Tourism market is:

  • Thomas Cook (India) Ltd.
  • Country Holidays Inn and Suites Pvt. Ltd
  • Yatra Online Limited
  • Riya Travel and Tours Pvt. Ltd.
  • Cox & Kings Limited
  • Cleartrip Private Limited
  • Indian Railway Catering and Tourism Corporation Ltd.
  • Makemytrip (India) Private Limited
  • Le Travenues Technology Limited (“ixigo”)
  • SOTC Travel Limited

 

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“Infrastructure development has played a pivotal role in the growth of India’s tourism sector. The government’s investments in airports, highways, and rail networks have significantly enhanced the accessibility of remote destinations, making travel more convenient for both domestic and international visitors. In addition to transportation, the hospitality sector has expanded with a surge in the number of hotels, resorts, and other accommodations catering to a wide variety of budgets. The advent of online travel agencies (OTAs) and booking platforms has also simplified the booking process, providing a convenient solution for travelers to plan and book their trips,” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

"India Travel & Tourism Market, By Type (Domestic, Inbound, Outbound), By Service Offering (Ticket Reservation, Hotel Booking, Holiday/Tour Packages, Others), By Purpose of Visit (Business, Leisure & Recreation, Education, Medical, Social Activity, Others), By Booking Type (Travel Companies, Travel Agencies, Online, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of India Travel & Tourism market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the India Travel & Tourism market.

 

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India Travel & Tourism Market By Type (Domestic, Inbound, Outbound), By Service Offering (Ticket Reservation, Hotel Booking, Holiday/Tour Packages, Others), By Purpose of Visit (Business, Leisure & Recreation, Education, Medical, Social Activity, Others), By Booking Type (Travel Companies, Travel Agencies, Online, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F

Consumer Goods and Retail | Feb, 2025

The India Travel & Tourism market is experiencing robust growth, driven by rising disposable incomes, a growing middle class, government initiatives, increasing domestic and international travel, and expanding digital platforms

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