skift take
In the Indian corporate travel landscape, small is big as small and medium enterprises shape the future of this sector. Their growing demand for travel has been a major factor in the market expected to double by 2030.
Peden Doma Bhutia
This episode of the Skift India Travel Podcast sets the stage for an in-depth discussion on India’s evolving corporate travel market. Deloitte India Partner Avinash Chandani talks to Asia Editor Peden Doma Bhutia about the growth potential of India’s corporate travel market. Key topics include growth drivers, industry trends such as blended travel, the impact of technology and data, and the role of travel management companies. This podcast provides insights into how businesses are navigating high travel costs, geopolitical challenges and changing traveler expectations, combining data-driven analysis and expert commentary to Provides a comprehensive understanding of the opportunities and challenges in the corporate travel environment.
Important points
Market size and growth: India’s corporate travel market is valued at $10.6 billion, accounting for 20% of the country’s total travel market. This is expected to increase to $20 billion by 2030 due to infrastructure development and economic growth.
Contribution of SMEs: SMEs account for 30% of corporate travel and demand is increasing, albeit sporadically. With the government’s focus on promoting exports and promoting the Make in India initiative, the travel needs of SMEs will further increase.
Sectoral Growth: IT services and BFSI are driving corporate travel spending due to the nature of their work requiring on-site deployment and domestic market development.
Mixed travel: A notable trend is the blending of business and leisure travel, with approximately 30% of travelers extending their business travel for leisure purposes. This trend is reshaping the hospitality industry to meet work and leisure needs.
Corporate Travel Management Companies (TMC): Travel management companies, including MakeMyTrip’s MyBiz, are evolving to serve small businesses and large corporations. These companies offer technology-enabled tools such as self-booking platforms and offer integrated reporting, reconciliation, and analytics capabilities.
Evolving corporate policies: Corporate travel policies are adapting to suit leisure preferences, with a focus on providing a seamless travel experience that blends work and leisure.
Accommodation Preferences: Business travelers increasingly prefer accommodations that offer both business amenities and leisure experiences. Hotels are responding to this demand by offering wellness packages, local activities, and technology-enabled workspaces.
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Episode summary
India’s corporate travel market is currently valued at $10.6 billion and is expected to double to $20 billion by 2030.
Avinash Chandani, Partner at Deloitte India, highlights the key drivers behind this growth, including significant investments in both land and air infrastructure that have made corporate travel more convenient and accessible. . The rise of small and medium-sized enterprises (SMEs) and India’s emergence as a global talent hub are also key factors.
An important aspect being discussed is the role of SMEs in the corporate travel sector. Chandani explains that while historically underserved due to sporadic travel needs, these companies now contribute about 30% of the total market. Travel management companies (TMCs) are starting to cater more specifically to small businesses by offering self-service tools and bundled travel solutions.
Chandani revealed that the IT services and BFSI (banking, financial services and insurance) sectors are leading the recovery, accounting for 50% of total corporate travel spending.
New travel trends such as blended travel are gaining traction among corporate travelers. Many people are extending their business trips by several days to enjoy leisure activities, changing the way destinations and hospitality providers customize their services.
The conversation will also address the evolving role of travel management companies. Travel management companies, historically associated with large corporations, are now adapting to more dynamic and complex travel requirements. Well-known companies such as MakeMyTrip, Yatra, and AMEX are now catering to both small and medium-sized businesses and large enterprises by offering technology-driven solutions such as chatbots, call centers, and automated workflows.
As companies increasingly focus on the health and mental health of their employees, hotels and travel companies are also offering wellness packages and stress relief services. The corporate travel landscape is becoming more experiential, driven by the evolving preferences of business travelers who seek both productivity and relaxation in work-related travel.
