May 22, 2022

India Travel Market Expected To Reach $ 125 Billion By FY27

The RedSeer report says 80% of international air travel and international pleasure travel is booked through agents in the country amid uncertainties over the pandemic.

India’s travel market is expected to reach $ 125 billion by FY 2027 and as the complexity of travel increases during the pandemic, more than 3 lakh agents are expected to cover over $ 65 billion in size overall market by the same period. period, a new report showed Tuesday.

Amid the uncertainties of the pandemic, customers now prefer to make travel reservations through agents. Eighty percent of international air travel and international pleasure travel are booked through agents in the country.

“Top 750 agents make Rs 3-4 million per month, capturing 12% of the agent travel market. These agents largely focus on air travel and have corporate ties,” the data shows provided by RedCore, an arm of Bengaluru-based market research firm RedSeer.

These are followed by 60,000 agents of medium size and making a turnover of Rs 20 lakh per month. They focus on selling vacation packages. These agents capture more than 50 percent of the agents market share. The remaining 35 percent of the travel agent market is captured by a long chain of 250,000 small agents, the report notes.

“Travel to India is still heavily dependent on agents. Agents not only offer convenience and confidence, but are also competitive with direct bookings. They represent more than 50% of the travel market share and should maintain this share in the years to come. “said Anuj Kumar, director of RedCore.

The overall travel market in India was $ 75 billion in FY20 and is expected to exceed $ 125 billion by FY27. FY21, but the recovery is expected to continue into FY22 and also expects an increase in recent years due to pent-up demand, ”the report notes.

The results showed that there is a lack of actors operating in the package segment, who could organize the package according to the customers’ needs.

“The Indian travel market is dominated by 300,000 travel agents who make up the largest share of the 52% booking channel and the role of agents has grown significantly during the Covid era,” the report adds.