India Corporate Travel Market Outlook to 2030

India Corporate Travel Market Overview

• The India Corporate Travel Market, valued at USD 11 billion, shows significant growth due to the increasing needs of businesses for travel services. This market is driven by rising corporate spending on travel, primarily from sectors like IT, pharmaceuticals, and BFSI. Technological advancements have also enhanced travel efficiency, with Travel Management Companies (TMCs) offering automated booking, expense management, and streamlined workflows to meet corporate demand.

• The primary cities driving Indias corporate travel sector include Mumbai, Delhi NCR, and Bengaluru. These cities are corporate and financial hubs, hosting the headquarters of numerous multinational and domestic corporations. Their infrastructure, global connectivity, and proximity to client bases further contribute to their dominance in corporate travel requirements. Emerging hubs like Ahmedabad and Bhubaneswar are also growing as business destinations due to lower operating costs and government incentives for regional economic development.
• The UDAN (Ude Desh ka Aam Naagrik) scheme has been instrumental in boosting regional connectivity by facilitating affordable flights to smaller cities. By 2024, more than 60 new routes were added under this scheme, directly improving accessibility for corporate travelers and expanding business travel options within the country. This initiative helps bridge connectivity gaps, especially for businesses with clients in less accessible regions.

India Corporate Travel Market Segmentation

By Type of Travel Management: The market is segmented by type of travel management. Managed corporate travel holds a dominant position in the India Corporate Travel Market. Large corporations favor managed travel programs as they provide comprehensive support for booking, expenses, and travel safety, which are critical in todays travel landscape. Travel Management Companies (TMCs) and Online Travel Agencies (OTAs) facilitate end-to-end travel services with tailored solutions that ensure cost-effectiveness and compliance with corporate travel policies.

By Expenditure Category: The market is also segmented by expenditure category. The travel fare segment holds a substantial share within the expenditure category, as transportation costs constitute a major portion of corporate travel expenses. Airline tickets, which often include business class and flexible fare options, are significant for employees attending high-priority meetings and events.

India Corporate Travel Market Competitive Landscape

The market is competitive, with key players such as MakeMyTrip, Yatra, and Thomas Cook India dominating the market. These companies offer comprehensive corporate travel solutions, often integrating artificial intelligence and machine learning to enhance user experience.

India Corporate Travel Market Analysis

Market Growth Drivers

• Increasing Business Activity Across Major Indian Cities: The corporate travel market in India is driven by the heightened level of business activity in major cities like Mumbai, Delhi, and Bengaluru, which account for a significant share of business travel demand. In 2024, around 1.2 million business trips are anticipated from Mumbai alone, with similar figures projected for Delhi and Bengaluru, indicating a steady demand for corporate travel services.
• Rising Foreign Direct Investment (FDI) and Business Collaborations: The inflow of FDI into India, which amounted to nearly USD 50 billion by mid-2024, has led to an increase in business collaboration and partnership opportunities. This growth in FDI has spurred corporate travel as companies seek to enhance networking, joint ventures, and business expansions. With many international companies setting up or expanding their operations, the demand for travel management services, corporate bookings, and meeting spaces has seen a significant increase, benefiting the corporate travel ecosystem.
• Increase in Small and Medium Enterprises (SME) Participation: India hosts over 60 million SMEs, with a growing number engaging in inter-state and international business activities. The governments support for SMEs through subsidies and easier financing options has allowed these enterprises to expand beyond local boundaries, contributing to a substantial rise in corporate travel needs.

Market Challenges

• High Cost of Corporate Travel and Accommodation: With inflationary pressures on transportation and hotel prices, corporate travel expenses have escalated. As of 2024, the average cost for a three-day domestic business trip in India, covering flights, accommodation, and local transport, is estimated to be INR 1 lakh per employee. Many companies are experiencing budget constraints, which limits the frequency and scale of travel.
• Regional Instabilities and Safety Concerns: Several regions across India face varying levels of political and social instability, impacting the ease of travel for corporate entities. In 2024, travel advisories were issued for certain states due to security concerns, limiting business travel to these areas. Corporate travelers may be deterred from traveling to such areas, impacting the volume of travel and limiting the markets growth in affected regions.

India Corporate Travel Market Future Outlook

Over the next five years, the India Corporate Travel industry is anticipated to grow, driven by an expanding corporate sector, increasing emphasis on travel efficiency, and the evolving needs of businesses for specialized travel services.

Future Market Opportunities

• Growing Demand for Customized Corporate Travel Solutions: Over the next five years, companies will increasingly seek customized corporate travel solutions that align with their specific needs, including customizable itineraries and meeting room access in hotels. By 2029, corporate travel service providers are expected to expand personalized packages that cater to diverse corporate sectors, driven by the evolving preferences of business travelers.
• Increased Use of Data Analytics for Optimizing Travel Budgets: Data analytics in corporate travel management is set to gain traction as companies look to optimize travel expenditures by analyzing travel data. By 2029, around 75% of large corporations are projected to employ analytics-driven solutions to reduce travel costs and improve operational efficiency, offering a competitive advantage for companies in managing travel budgets.