Crowd at Chhatrapati Shivaji International Airport.
Bengaluru: India’s corporate travel sector, currently valued at over $10.6 billion, is projected to double to $20.8 billion by financial year 2030 (FY30) at a 10.1% compound annual growth rate (CAGR), as per a report released on Tuesday, by audit, consulting, tax, and advisory services company Deloitte.
Meanwhile, the overall travel market in India is set to reach $97 billion at about 9% CAGR.
Large organisations (250 to 5,000 employees) allocate about Rs 10 crore annually towards travel expenses, while for small and midsize organisations (up to 250 employees), travel expenditure can reach Rs 1 crore per year.
A leading IT major incurred travel expenses of more than Rs 2,600 crore in FY23, the report said.
The top industries driving corporate travel expenditures include Information Technology (IT) services, Banking, Financial Services, and Insurance (BFSI), engineering, aviation, oil and gas, pharma, Fast-Moving Consumer Goods (FMCG) and automobiles. These sectors account for 86% of the travel spend among India's top 100 listed firms.
Anand Ramanathan, Partner and Consumer Industry Leader, Consulting, Deloitte India, said, “As the economy grows, the MICE (Meetings, Incentives, Conventions and Exhibitions) sector will also drive the demand for corporate travel. Tech innovation is especially crucial in catering to the evolving demands of India’s growing SME segment, which constitutes 30% of the corporate travel market.”
While Mumbai, Delhi NCR and Bengaluru remain the most popular business travel destinations, cities such as Ahmedabad, Vadodara, Bhubaneswar and Lucknow are emerging as new corporate hubs.
The report pointed out challenges such as inadequate infrastructure, rising costs and complex tax structures. It also highlighted the role of travel management companies (TMCs) in further steering the industry, which manage 25% of India’s corporate travel market.
Globally, the tourism sector is projected to contribute $15.5 trillion to the GDP by 2033 or 11.6% of the global economy.