The Indian traveller has come of age, spending approximately $94 billion in 2018, on approximately 2 billion domestic and international trips, helping the Indian travel and tourism industry achieve unprecedented scale. The momentum is expected to continue and the industry will grow at a 13 percent CAGR to $136 billion by 2021, according to a new report titled, ‘How Does India Travel’, released by Bain & Company and Google India today.
The report outlines, how India as a market spends on travel, the influence of online channels in their purchasing journey and potential growth opportunities for travel businesses up until 2021.
Deep diving into the $136 billion spending, the report cites a 12 percent growth in transportation ($50 billion), as well as a 13 percent growth in lodging ($21 billion) and consumption. This includes spending on shopping, recreation and food, which are set to grow at 13 percent ($65 billion) over the next three years. Additionally, as more people come online, smartphone penetration will continue to improve and the use of digital payments goes up, with the report estimating that Indian travellers will spend an additional $24 billion on online travel bookings over the next three years, a growth from 25 percent in 2018 to 35 percent in 2021.
