Skift Take
In Indiaâs corporate travel landscape, small is big as small and medium enterprises shape the future of the sector. Their growing travel demand is a key factor driving the marketâs expected doubling by 2030.
This episode of the Skift India Travel Podcast sets the stage for an in-depth discussion on India’s evolving corporate travel market. Avinash Chandani, partner at Deloitte India, talks to Asia Editor Peden Doma Bhutia about the growth potential of the Indian corporate travel market. Key topics include growth drivers, industry trends like blended travel, the impact of technology and data, and the role of travel management companies. The podcast provides an insight into how businesses are navigating high travel costs, geopolitical challenges, and shifting traveler expectations providing a comprehensive understanding of the opportunities and challenges in Indiaâs corporate travel landscape, with a mix of data-driven analysis and expert commentary.
Key Points
Market Size and Growth: India’s corporate travel market is valued at $10.6 billion, making up 20% of the country’s overall travel market. By 2030, this is projected to grow to $20 billion, driven by improved infrastructure and economic growth.
SME Contributions: SMEs account for 30% of corporate travel, with sporadic yet growing demand. The government’s focus on encouraging exports and driving the Make in India initiative will further boost SME travel needs.
Sector-Specific Growth: IT services and BFSI lead corporate travel spending, driven by the nature of their work requiring on-site deployments and domestic market development.
Blended Travel: A notable trend is the blending of business and leisure travel, with about 30% of travelers extending their business trips for leisure. This trend is reshaping the hospitality sector to cater to work and leisure needs.
Corporate Travel Management Companies (TMCs): Travel management companies, including MyBiz by MakeMyTrip, are evolving to serve SMEs and large corporations. These companies are providing tech-enabled tools like self-booking platforms and offering integrated reporting, reconciliation, and analytics capabilities.
Evolving Corporate Policies: Corporate travel policies are adapting to accommodate bleisure preferences, with a focus on providing seamless travel experiences that blend work and leisure.
Accommodation Preferences: Business travelers increasingly prefer accommodations that offer both business amenities and leisure experiences. Hotels are adjusting to this demand by offering wellness packages, local activities, and tech-enabled workspaces.
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Episode Summary
The Indian corporate travel market, which is currently valued at $10.6 billion, is projected to double to $20 billion by 2030.
Avinash Chandani, partner at Deloitte India, highlights key drivers behind this growth, including significant investments in infrastructure, both surface and air, which have made corporate travel more convenient and accessible. The increasing prominence of small and medium enterprises (SMEs) and Indiaâs emergence as a global talent hub are also key contributors.
A crucial aspect discussed is the role of SMEs in the corporate travel sector. While historically underserved due to sporadic travel needs, Chandani explains that these companies currently contribute around 30% of the total market. Travel management companies (TMCs) are beginning to cater more specifically to SMEs by offering self-service tools and bundled travel solutions.
Chandani reveals that IT services and BFSI (banking, financial services, insurance) sectors are leading the recovery, contributing 50% of the total corporate travel spend.
Emerging travel trends, such as blended travel are gaining traction among corporate travelers. Many are extending their business trips by a few days to enjoy leisure activities, which is transforming how destinations and hospitality providers tailor their services.
The conversation also covers the evolving role of travel management companies. Historically associated with large corporations, travel management companies are now adapting to more dynamic and complex travel requirements. Prominent companies like MakeMyTrip, Yatra, and AMEX are now catering to both SMEs and large enterprises by offering technology-driven solutions, such as chatbots, call centers, and automated workflows.
As companies increasingly prioritize wellness and mental well-being for employees, hotels and travel providers are also offering wellness packages and stress-relief services. The corporate travel landscape is becoming more focused on experiences, driven by the evolving preferences of business travelers who now seek both productivity and relaxation in their work-related trips.
