RBETA recognises India's booming tourism sector and disruptors driving the growth

India’s booming travel industry: India is on its way to emerge as a major player in the global travel market, with projections indicating it will rise to fifth place in outbound travel spending by 2027, reaching $89 billion compared to its current tenth position at $38 billion in 2019. 

The forecasts, outlined in a report by Bernstein aimed at identifying key potential travel markets, highlight India's growing importance in the industry. Furthermore, India is expected to become the third-largest domestic travel market by 2027, with expenditures reaching $174 billion, up from $127 billion in 2019 when it held the fifth position.

India's Ministry of Tourism is also pushing towards infrastructure development within the tourism sector, allocating more than half of its budget to funding various projects. The initiatives include the improvement of destinations, circuits, mega projects, and rural tourism infrastructure, indicating a robust commitment to nurturing the nation's tourism industry.

To celebrate this progress, innovation, and technological breakthroughs in India's travel and hospitality sector, Republic Business is announcing the inaugural edition of the Republic Business Emerging Technology Awards 2024 (RBETA 2024). 

The event will be dedicated to recognising and honouring the pioneers and trailblazers who have propelled the travel and hospitality industry forward through their ingenuity and dedication.

Technology-driven growth 

Technology has changed India's travel and tourism sector, streamlining trip planning and booking processes. The proliferation of mobile apps, online booking platforms, and travel websites offers unparalleled convenience and accessibility, inspiring greater travel engagement. 

The technological upgrades have fundamentally altered the world of travel, promising even more immersive and thrilling experiences ahead. Enterprises set for future success in this industry are those adept at offering both spontaneity and user-friendly mobile experiences. 

Using web analytics and big data, tourism businesses now tailor their marketing approaches, engaging customers effectively on social media platforms. The adoption of digital marketing has transformed the tourism sector, expanding outreach to diverse audiences and crafting personalised experiences for travellers.

Sectoral Growth 

In a recent report, the revenue projection for hotels and accommodation in 2023 stands impressively at $7.66 billion, with a projected Compound Annual Growth Rate (CAGR) of 8.29 per cent between 2023 and 2027. Forecasts suggest a potential customer base of 61.3 million by 2027, underscoring the sector's resilience and growth prospects.

Adventure tourism, a niche yet burgeoning segment, benefits from India's diverse geography, boasting 70 per cent of the Himalayas, a vast coastline exceeding 7,000 kilometres, substantial forest cover, and the distinction of housing both hot and cold deserts. These natural assets position India as a prime destination for adventure seekers worldwide.

Moreover, medical tourism and wellness retreats have come up as major draws for international travellers, capitalising on India's world-class healthcare facilities and traditional healing practices. With 21 per cent of international visitors seeking medical and wellness services, the sector continues to flourish.

Cruise tourism is also on an upward trajectory, with passenger traffic expected to surge from 0.4 million to 4 million by 2032. This surge promises substantial economic growth, with the potential economic value projected to soar from $110 million to an impressive $5.5 billion.

Eco-tourism, characterized by sustainable exploration of wildlife and pristine natural areas, is forecasted to experience robust growth, with an expected CAGR of 15.7% between 2019 and 2027, reaching a valuation of $4.55 billion. India's unique biodiversity and untouched landscapes present unparalleled opportunities for eco-conscious travellers.

Additionally, the Meetings, Incentives, Conferences, and Exhibitions (MICE) segment, although currently holding less than 1 per cent market share, is set for strong expansion. 

Initiatives such as 'Meet in India', the National Advisory Council for MICE, and the India MICE Board aim to double MICE tourism within the next five years, signalling a concerted effort to tap into this lucrative segment.

Space opening for startups

In tandem with these developments, India's tourism sector offers a fertile ground for entrepreneurial ventures, with over 1,300 DPIIT-recognised startups operating within the industry. These startups, driven by innovation and a spirit of enterprise, are set to contribute to the sector's dynamism and growth.

With businesses such as Oyo, Tripotom Eventraveler, MakeMyTrip, SeekSherpa, ScoutMyTrip, TravelTriangle, Trip38, and many others, the tech-driven tourism landscape continues to evolve in the country. 

The travel startup ecosystem is also benefiting from improving infrastructure development, diverse offerings, and entrepreneurial fervour, the stage is set for the sector to emerge as a cornerstone of the nation's economic prosperity and global appeal.

To know more about Republic Business Emerging Technology Awards 2024 click here. 

To be a part of RBETA 2024, click here.