November 24, 2021

India’s travel market to cross $ 125 billion by FY27: RedSeer

NEW DELHI : The covid-19 pandemic may have slowed India’s travel and tourism industry, but a new report expects it to rebound and exceed $ 125 billion by 2026-2027. According to “Travel market in India” by RedCore, the arm of research firm RedSeer, the travel industry in pre-pandemic India was $ 75 billion in fiscal year 2019-2020. This will exceed $ 125 billion by fiscal year 2026-2027, taking into account both domestic travel, inbound and outbound travel by Indians.

The report states that the country’s travel market is dominated by around 300,000 travel agents who account for the highest volume of business in bookings at around 52% and that the role of these agents has increased dramatically after the pandemic.

In fiscal year 2019-20, the majority of those agent bookings came from vacation packages worth $ 17 billion, flights ($ 10 billion), and self-contained hotel bookings of 5 billion. billions of dollars. Taxis, intercity buses and railways contributed the remaining $ 6 billion.

The report states that there are fewer players operating in the organized package segment and those who do typically create packages themselves in partnership with tour operators and destination management companies.

Agents are expected to add more than $ 65 billion to the travel market by FY26-27. “Travel to India still relies heavily on agents who people trust, but who also offer competitive prices. They represent more than half of the travel market share and are expected to maintain this share in the years to come, ”said Anuj Kumar, Director of RedCore.

The report states that the India air travel market was valued at $ 20 billion (both domestic and international) in fiscal year 19-20 and is expected to double by fiscal year 26-27. This growth will be driven by improved airport infrastructure and increased access to passports. So far, 65% of air travel by value is booked through agents while the rest is done through online tour operators or OTAs.

During the covid, travel uncertainties including testing, change of travel date, travel delays due to restrictions motivated travelers to take the agent’s route to book the ticket.

He added that the size of India’s hotel market, including domestic, inbound and outbound, was $ 32 billion in the same year and is expected to grow to $ 52 billion in fiscal years 26-27.

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