India’s corporate travel market, valued at over USD 10.6 billion, is undergoing a significant transformation driven by hybrid work models, technological advancements and shifting traveller expectations, says a report by Deloitte, an accountancy and consultancy services firm.

According to a press statement by Deloitte, the sector is projected to grow at a 10.1 pc compound annual growth rate (CAGR) and is expected to double to USD 20.8 billion by FY2030.

Overall, India’s travel market is set to reach USD 97 billion, growing at around 9 pc CAGR.

The report says that as businesses adapt to post-pandemic realities, the role of Travel Management Companies (TMCs) is becoming increasingly critical in offering innovation, cost efficiency, and sustainability.

The integration of AI-powered tools like chatbots, voice-assisted booking systems, and real-time data analytics is reshaping how business travel is managed, offering tailored solutions that meet the needs of modern corporate travellers.

According to the analysis, corporate travel is a major expense for companies, with 35–40 pc of employees travelling at least once a year.

Among those surveyed, 88 pc travel domestically for less than four days, while 28 pc of international business trips extend beyond one week.

Anand Ramanathan

The Deloitte report says that smaller organisations with up to 250 employees often spend around INR 10 million annually on travel, whereas larger companies with over 5,000 employees incur travel expenses in proportion to their workforce.

Notably, one leading IT company spent more than INR 26 billion on travel in FY23.

There is also a growing demand for auxiliary services, such as taxi bookings for 72 pc of respondents and visa assistance with 63 pc, emphasising the need for comprehensive travel solutions.

“The new-age corporate traveller demands much more than just a ticket and hotel. He noted that the corporate travel experience is now expected to align with both professional and personal values, with an emphasis on seamless, personalised service,” says Anand Ramanathan, Partner and Consumer Industry Leader at Deloitte India.

Role of Hybrid Work & MICE in Driving Growth

The report says that as hybrid work models become more entrenched, in-person meetings remain vital for building strong professional relationships.

The Meetings, Incentives, Conventions, and Exhibitions (MICE) sector is also expected to drive further demand for corporate travel.

The report highlights how TMCs are responding to these evolving needs by leveraging technology and AI to create more efficient, personalised travel experiences.

Sustainability is another key factor shaping the future of corporate travel. Nearly 50 pc of corporate travellers now prioritise eco-friendly practices, reflecting a broader shift towards sustainable business operations.

The report identifies key sectors driving corporate travel, including IT, BFSI, engineering, aviation, oil and gas, pharmaceuticals, FMCG, and automobiles.

According to the report, these industries account for 86 pc of travel expenditures among India’s top 100 companies.

While cities like Mumbai, Delhi NCR, and Bengaluru remain the top destinations for business travel, emerging hubs such as Ahmedabad, Vadodara, Bhubaneswar, and Lucknow are gaining prominence.

A notable trend is the rise of bleisure travel, where 37 pc of respondents extend their business trips for leisure. Among them, 81 pc add 1–2 extra days, while others extend their stay by 3–4 days, showcasing the evolving nature of work-life balance.

Despite the sector’s robust growth, challenges remain, including inadequate infrastructure, rising costs, and complex tax structures.

Addressing these issues will be crucial to unlocking the full potential of India’s corporate travel market. The government’s role in streamlining policies and improving infrastructure will be key to supporting this evolving industry, the report adds.

Globally, the tourism sector is projected to contribute USD 15.5 trillion to GDP by 2033, underscoring the long-term growth potential of travel, especially corporate travel.

The report highlights that India is well-positioned to capitalise on these opportunities, particularly as it adapts to the changing demands of corporate travellers.