India’s corporate travel market poised for a transformative few years

India’s corporate travel landscape is poised for a transformative few years, with new ways of working and technology disruptions shaking things up. A new report from Deloitte shows that, despite the ubiquity of video calls and other digital tools, business travel is far from disappearing – it is just changing.

A majority of organisations around the world have by now fully accepted the new hybrid ways of working. After the pandemic, the likes of remote working and even ‘workcations’ are now here to stay.

In 2023, it was estimated that the overall Indian travel market was worth around $53 billion, with the corporate travel market making up around 20% of that, or about $10.6 billion. A total of around 85% of that corporate travel market is related to air travel and hotels.

Mixing business and leisure travel is gaining popularity among corporate travellers in India. Around 29% of respondents extend trips for leisure, with 81% adding 1 or 2 days and 20% adding 3 or 4 days. This changes what travellers look for in their accommodation choices, with remote workers seeking appealing workspaces and convenient amenities.

This trend of mixing business and pleasure shows that work culture in India and around the world is changing, with employers looking to strike the ideal balance between and work and relaxation. New technologies and flexible office setups have helped this along.

The report shows that Indian people travel the most to the UAE, followed by Saudi Arabia and the United States. Other locations in Asia and Europe were also at the top of the list of most visited countries.

The sector has seen an increase in online penetration not unlike the digitalisation trend observed across other industries and sectors. That is thanks to the combination of reliable internet connectivity, widespread smartphone adoption, and new digital payment methods, which has revolutionised how Indians plan their travel.

“If tapped properly, the travel sector in India can reach its potential by significantly contributing about $3 trillion to India’s GDP by 2047,” said Anand Ramanathan, partner at Deloitte. “The industry, on the other hand, will have to play a significant role in adapting to the dynamic needs of business travel and adopt a technology-driven approach to support the growing needs of corporate travel managers and business travellers.”

There is also an important role for the government to play, added Ramanathan. “Challenges such as inadequate infrastructure, rising costs and complex tax structures remain significant barriers to growth. The government’s role in addressing these challenges will be crucial for the sector’s future.”

Meanwhile, the research found that the global travel industry has made a full recovery from the 2020 pandemic lull, with a market value of over $700 billion this year.