Travel Services Market In India To Grow By USD 21.21 Billion From 2024-2028, Driven By M&A, Partnerships, And Strategic Alliances, With AI Powering Market Evolution - Technavio

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Key Market Trends Fueling Growth

Travel in India is predominantly done via airlines due to their comfort and efficiency, especially for tourists and frequent travelers. However, the cost of air travel , particularly for families or large groups, is significantly higher than other modes like rail or bus. This cost burden can be alleviated by the emergence of low-cost airlines, a response to the intensifying competition in the aviation industry. These budget carriers have not only made air travel more affordable for individual travelers but also encouraged businesses to opt for air travel for cost-effective business trips. Furthermore, the availability of low-cost air tickets has positively impacted the tourism industry, leading to increased demand and attracting global investment. For instance, Etihad Airways, in partnership with Air Arabia, is planning to launch a low-cost airline in India, further fueling the growth of the travel services market in the country during the forecast period.

The Indian travel services market is witnessing significant growth, with rail bookings and car rental services leading the way. Corporations and individual travelers alike are increasingly relying on travel providers for itinerary planning and booking flights, accommodations, and transportation for trips, both domestic and international. Offline travel services continue to coexist with direct and indirect travel services, catering to various traveler preferences. Travelers can now easily generate visas and travel documents online or in person. Multi-destination trips, group travel, and corporate travel are popular trends. Direct travel suppliers offer packages for independent travelers, while online travel agents provide convenience through desktop and mobile platforms. Car hire services are also on the rise, with phone booking and online booking options. The tourism industry continues to expand, with international tourism driving growth. Overall, the travel services market in India is dynamic and evolving to meet the diverse needs of travelers.

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Market
Challenges

• The travel services market in India is characterized by intense competition among global, regional, and local vendors. Global vendors dominate the market but face stiff competition from other players. Vendors invest in R&D to offer advanced services for various occasions and end-users. Regional and local vendors compete on unique offerings. Price wars due to discounts negatively impact profit margins. Lack of awareness and trust issues among rural population, along with limited access to online platforms, restrict their use of travel services. The growing popularity of self-driven vehicles intensifies competition and compels vendors to sell at reduced profit margins, posing challenges to the growth of the travel services market in India.
• The Travel Services Market in India is thriving, with tourism seeing significant growth in both domestic and international sectors. However, challenges persist in areas like visa generation process and travel document requirements. Travel planning and trip planning are essential for individual travelers and group travel, including corporate travel and tour groups. Flights, itineraries, and multi-destination trips are popular choices. Car hire , phone booking, and online booking are preferred methods for many business professionals. Domestic and international travelers opt for hotels, direct travel suppliers, and online travel agents for accommodation. The rise of mobile apps and low-cost airlines caters to solo travelers and adventure seekers. Eco-tourism, medical tourism, and educational tourism are niche markets. AI and robotics, sharing economy, and package travelers continue to impact the industry. Online travel services, including flight bookings and hotel booking services, remain in high demand. Cruise bookings are also gaining popularity.

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Segment Overview

This travel services market in India report extensively covers market segmentation by