India’s corporate travel sector is poised for substantial growth, projected to reach $20.8 billion by FY30, up from the current $10.6 billion, according to a new Deloitte India report released Tuesday. The report identifies key industries, including IT services, BFSI (banking, financial services, and insurance), engineering, aviation, oil and gas, pharmaceuticals, FMCG, automotive, metals, and diversified sectors, as the primary drivers of this surge. These industries contribute to 86% of the total travel spend among the top 100 companies in India.

The overall travel market in India is expected to grow to $97 billion, with a compound annual growth rate (CAGR) of approximately 9%. Currently, airlines and hotels dominate the travel market, comprising 70% of the $53 billion sector, while the remaining share comes from railways and other transportation modes.

The report notes that accommodation providers are increasingly adapting to the evolving business travel landscape by offering tailored amenities and services to capitalize on new opportunities in the post-Covid world. As business travel rebounds, companies are rethinking their travel strategies to align with modern traveler expectations.

Domestic airlines are benefiting significantly from corporate travel, with approximately 40% of their revenue coming from coded fares, including those for corporate and SME clients. Around 25% of these bookings are made directly through corporate contracts, while 15% are handled by agents or online travel agencies (OTAs) booking for corporate and SME clients. This positions the domestic corporate air travel market as a $3.4 billion industry.

Business and professional travel accounts for 17% of Indian departures, with the international corporate air travel market valued at $2.2 billion. Nearly half of all corporate travel spending is directed toward air travel, highlighting its pivotal role in the industry.

The Deloitte report also emphasizes the role of travel management companies (TMCs) in driving the corporate travel industry toward greater innovation, cost-efficiency, and sustainability. These companies have revamped their approaches, leveraging AI-powered chatbots and other digital tools to meet the demands of modern business travelers.

As the corporate travel sector continues to expand, businesses and travel providers alike are adapting to new trends, ensuring that India remains a key player in the global travel market.

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