DELHI: India’s business travel market is expected to triple to $93 billion by 2030 from $30 billion 2015 as per a joint report released by travel firm FCM Travel Solutions and KPMG. In 2015, it was the 10th largest business travel market in the world. In 2030, it is expected to be among the top five.
“In 2015, India saw a 15% increase in business travel spending, which will grow by a compound annual growth rate (CAGR) of 12% through 2020 to 6% by 2030. This increase in all possibility will be greater than the increases in business travel growth in the next three largest countries combined, including South Korea, Italy and Brazil,” said the report.
India’s is projected to be the most robust business travel market in APAC over the next five years as well as the next fastest growing market between 2017 and 2020 after China. Asia has become the world’s largest business-travel market, and trends suggest India’s significance within APAC will only grow with time.
Jaideep Ghosh, Partner and Head, Transport, Leisure and Sports, KPMG in India said, “Despite some recent economic speedbumps, the business travel market remains incredibly robust and dynamic with a number of countries such as India, China, Germany and Canada, growing at a remarkable rate. In fact when one looks at India, one sees one of the highest growth rates in business travel in the entire world. If India continues on that trend, in another 15-20 years, it will surpass the U.S. as well and be second only to China.”
World Travel and Tourism Council put the travel industry comprising business and leisure travel at a $7.2 trillion market globally in 2015. It was dominated by leisure spends. But while overall market grew at 3.1%, business travel spends grew faster at 5%.
Rakshit Desai, Managing Director, Flight Centre Travel Group – India said, “For corporates, managing business travel is becoming increasingly complex, with changing traveler preferences, integration with mobile technology, and strategies adopted by travel suppliers. This white paper helps analyse the disruptive changes happening today and forecasts how they will impact managed travel processes, the Indian business traveller experience and their expectations in the near future.”
Musafir Namah Bureau