​​​

State of the Industry – Indian Tourism in 2025

​​​

​​Travel and Tourism continues to be a significant contributor to India’s GDP. The sector supported over 7% of India’s GDP in 2023 and remains a major source of foreign exchange earnings, job creation, and international visibility. Domestic demand, expanding aviation capacity, support the Travel and Tourism sector to an expected growth at 8–9% annually through 2030 in real terms. (Real terms = Revenues - Expenses)

​​​

The sector’s broad linkages—to manufacturing, transport, hospitality, real estate, digital services, handicrafts, agriculture and more—give it the potential not only to act as an economic driver but also as a powerful tool for regional development, job creation, and inclusive growth. Government initiatives such as Dekho Apna Desh, UDAN, digital visa processes, and large-scale infrastructure investments (airports, roads, Gati Shakti corridors) continue to support this expansion.

​​

India generated over USD 210 billion in Travel & Tourism revenues in 2023, driven by robust domestic travel, the resurgence of inbound tourism post-pandemic, and rapid digital adoption.

​​

Classification of the Indian Tourism Industry

​

Inbound Tourism

Inbound travel has rebounded strongly after the pandemic slowdown. India recorded around 9.2 million Foreign Tourist Arrivals (FTAs) in 2023, approaching pre-pandemic highs. Between 2015–2024, inbound tourism grew at a CAGR of ~6%. By 2030, FTAs are projected to reach 15–17 million, supported by rising global interest in wellness and spiritual travel, and improved air connectivity.

​

Outbound Tourism

India remains one of the world's fastest-growing outbound travel markets. More than 27 million Indians traveled abroad in 2023, driven by improved passport power, and expanding international aviation routes. Outbound travel is expected to grow at 10–12% CAGR through 2030, reaching 50+ million outbound travelers—making India one of the largest sources of tourists globally.

​

Domestic Tourism

Domestic tourism continues to be the backbone of the industry. India recorded 1.9 billion domestic visits in 2023, a strong recovery from the pandemic slump. Travel growth has been driven by better connectivity, the boom in affordable hotels, and the rise of new travel motivations - workcations, short breaks, spiritual circuits, adventure tourism, and road trips. Foreign tourists still contribute around 18–20% of total Travel & Tourism revenues, but the domestic segment remains the largest driver by volume.

​​

There is a marked increase expected in the number of outbound tourists from India at an estimated 27 million. The domestic segment continues to be the larger contributor. The interesting fact is that foreign tourists contribution has grown too and continues to be between 18-20% of the total Travel and Tourism industry.​

​​

​​

Online Travel Segment

 

Global Scenario

The global online travel market exceeded USD 950 billion in 2024, representing over 65% of total travel bookings. Mobile-first travel planning and AI-led personalization have become central to how consumers discover, compare, and book travel services. By 2028, over 75% of all global travel transactions are expected to be digital.

​

Indian Scenario

Online travel in India—once held back by limited internet access—has transformed dramatically. With over 820 million internet users, UPI-led digital payments, and widespread smartphone penetration, India is now one of the fastest-growing digital travel markets in the world. India’s online travel industry was valued at USD 28–30 billion in 2024, capturing roughly 40–45% of total travel bookings. OTAs, metasearch platforms, and direct booking channels have grown significantly alongside digital visas, e-boarding passes, and contactless check-ins post-COVID. The category growth is led by flights, intercity buses, hotels, experiential travel, and ancillary services.

​​

OTA Revenue Split (2024 Estimates)

​​

• Domestic Air Tickets – 45%

• Hotel Bookings – 30%

• Bus & Surface Transport – 12%

• Rail Travel (through IRCTC digital) – 7%

• International Air Tickets – 5%

• Packages, Activities, Insurance – 1%

​

The market continues to attract investment, with global players forming partnerships with Indian OTAs, metasearch engines, and fintech platforms to expand reach.

​​​​

Snapshot of Major OTA Players in 2025

​​​​

MakeMyTrip

• Founded in April, 2000. Part of the MMT-Go group.

• Handles millions of air, hotel, bus and holiday transactions monthly.

• Sells over 12000 air tickets, 4000 hotel room nights, and 200 holiday packages, every single day.

• Strong in hotels, buses, homestays, and experiences.

• Revenue for FY 2024 crossed USD 800+ million as compared to the FY 2012 revenues USD 196 million

​

Goibibo

• Integrated into the MMT group. Continues to operate as an independent brand.

• Strong presence in budget hotels and buses.

• Significant user base in Tier 2–4 cities.

​​

Yatra

• A leading OTA with strength in corporate travel services. Was second largest Indian OTA in 2012.

• Strong presence in flights, hotels and holiday packages.

• Listed on Nasdaq through a merger.

​

Cleartrip

• Launched in 2006 and acquired by Flipkart (Walmart group).

• Rapidly growing due to integration with Flipkart’s ecosystem.

• Strong focus on flights, hotels, and events.

​

IRCTC

• India’s largest rail ticketing platform. Incorporated in 1999 as an extended arm of the Indian Railways

• Handles 2–3 million daily bookings during peak seasons.

• Rail tourism, luxury trains, and packages continue to expand.

​

Ixigo

• Launced in 2007, a successful travel meta-search and booking platform.

• Strong in rail, bus, and budget travel.

• IPO-ready with rapid user growth from non-metro India.

​

Others (2025 ecosystem)

• EaseMyTrip – strong profitability focus, growing offline franchise network.

• OYO – major player in budget stays; hybrid OTA-hotel model.

• Airbnb India – growing in homestays, rural experiences, and premium stays.

• Booking.com, Agoda & Expedia – strong in inbound and international bookings.

​​​​​

Some that are no longer around since we last published this report in 2012: Arzoo, Eezego1, Zoomtra and ​Travelguru, and HotelKhoj to mention a few. A challenge faced by companies in all stages of their life-cycle, MarketBuilders provides special interventions to help our partners navigate challenges.

​​

Segment Penetration Insight

 

OTAs today handle an estimated 30–35% of India’s hotel room nights sold. (Compared to only 4–5% in 2012, when we first published a similar article). This reflects massive digital adoption and the scaling of India’s hospitality sector, which now supports nearly 250,000+ branded hotel rooms along with several hundred thousand of homestays and alternative accommodations. 

​

Traditional Travel Agents

​

Traditional travel intermediaries continue to play a notable role, especially in corporate travel, luxury travel, and complex itineraries. Although OTA penetration has grown significantly, travel agents remain competitive through:

• personalized service

• flexible credit for corporates

• expertise in visas, MICE, and group travel

• hybrid offline–online models

The overall market growth allows both OTAs and traditional agents to expand, although the latter face pressure on margins and must adopt digital platforms to remain competitive.

 

Concluding Remarks

 

India’s tourism industry remains a major engine of foreign exchange, employment, and inclusive growth. Rapid digitalization, robust domestic demand, and global visibility are reshaping the sector. Online travel platforms, improved physical infrastructure, and rising consumer aspirations will continue to widen market access—benefiting both consumers and industry players. The industry’s long-term outlook through 2030 remains extremely strong.

​

​​

The information and views presented in this report are prepared by MarketBuilders. Information contained herein is gathered from sources believed to be authentic and reliable. However, its accuracy and completeness is not warranted or guaranteed. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. The users of this report should not act on such information without appropriate professional advice after a thorough examination of the particular situation. Copyright of this document vests exclusively with MarketBuilders. This information can be freely reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose, with written citations for MarketBuilders and a link to this page.

​

​

About Abraham and Partners MarketBuilders LLP

​​

Insight-Led. Execution-Driven. Growth-Focused.

 

MarketBuilders partners with organizations to unlock new markets and scale with precision. Our integrated services—research intelligence, strategic advisory, business facilitation, and operational outsourcing—equip clients to grow confidently across India and global regions.

​

We convert complex opportunities into actionable pathways for sustainable growth.

​

Visit marketbuildersglobal.com/contact and our regional Growth Facilitator will contact you.

​

​

​​

​

​

​

​

​

​

​

​

​

​

​​