India’s corporate travel sector, currently valued at over US$10.6 billion, is undergoing a significant transformation as new ways of working and technological innovations reshape the landscape. According to Deloitte’s latest report, this sector is poised to experience remarkable growth, projected to double to US$20.8 billion by FY2030 at a Compound Annual Growth Rate (CAGR) of 10.1 per cent. Meanwhile, India’s overall travel market is expected to grow at approximately 9 per cent CAGR, reaching US$97 billion during the same period.
The Shift in Corporate Travel Post-Pandemic
As businesses recalibrate their travel strategies in the aftermath of the COVID-19 pandemic, the hybrid work model has become increasingly prevalent. This shift has driven a renewed focus on corporate travel, particularly the role of Travel Management Companies (TMCs), which are now at the forefront of this evolution. TMCs have become instrumental in providing innovative solutions aimed at enhancing the employee travel experience while ensuring cost efficiency and sustainability.
Technological Disruption: The Key to Future Growth
At the heart of the ongoing transformation is the incorporation of cutting-edge technology. The report highlights that TMCs have revamped their strategies to cater to the needs of new-age business travellers, whose demands now extend beyond traditional bookings. AI-powered chatbots, voice-assisted booking systems, and real-time data analytics have become central to the corporate travel experience, offering a more personalised and seamless journey. These innovations simplify complex processes and provide tailored solutions to meet individual traveller preferences.
Survey insights on corporate travel show traveller’s demand value proposition
Cost Efficiency: Corporate travel expenses represent a significant portion of an organisation’s operating budget. On average, 35–40 per cent of employees travel at least once annually, with 88 per cent travelling for less than four days for domestic trips. For international travel, 28 per cent travel for more than one week. Approximately 34 per cent of respondents indicated they travel once or twice a quarter for domestic purposes, while only 33 per cent travel internationally for business more than once a year.
Expenditure by Organisation Size: Small and midsize organisations (up to 250 employees) may spend up to INR 1 crore annually on travel, whereas large organisations (250–5,000 employees) allocate around INR 10 crore per year. For organisations with over 5,000 employees, travel costs scale proportionally with employee count. A leading IT firm, known for its high travel expenditure, reportedly incurred travel expenses of over INR 2,600 crore in FY23.
Rising Demand for Auxiliary Services: There is growing demand for additional services, with 72 per cent of surveyed respondents requesting taxi services and 63 per cent seeking visa assistance through travel platforms. This reflects a shift towards more comprehensive travel solutions.
A Personalised and Sustainable Future
Anand Ramanathan, Partner and Consumer Industry Leader at Deloitte India, emphasised the evolving expectations of today’s corporate traveller. “The new-age corporate traveller demands much more than just a ticket and a hotel room,” he stated. “India’s growing economy has evolved consumer demands, with travellers seeking a seamless, personalised experience that aligns with their professional and personal values.”
As hybrid work culture gains traction, in-person meetings continue to play a vital role in fostering strong professional relationships. The Meetings, Incentives, Conventions, and Exhibitions (MICE) sector is expected to further fuel corporate travel demand. Ramanathan also noted the growing emphasis on sustainability, with nearly 50 per cent of travellers now prioritising eco-friendly practices. TMCs are rising to this challenge by integrating AI-driven solutions to create bespoke travel experiences that cater to the needs of individuals and organisations alike.
SME Growth and the Role of Technology
One of the most notable findings from the report is the growth of the SME segment, which now accounts for 30 per cent of India’s corporate travel market. With their evolving travel demands, SMEs are becoming a key driver of corporate travel growth. The integration of technology is especially crucial in catering to this segment, which seeks efficient, cost-effective, and tech-enabled travel solutions.
Additional trends
- The global tourism sector is projected to contribute US$15.5 trillion to the GDP by 2033, representing 11.6 per cent of the global economy. This underscores the long-term growth potential of the travel industry, particularly in the context of corporate travel. Since the end of the pandemic, the global travel and tourism sector has rebounded significantly to reach its pre-pandemic highs, driven by pent-up travel demand, government support measures and innovative strategies.
- The report identifies the top industries driving corporate travel expenditures, including IT services, BFSI, engineering, aviation, oil and gas, pharma, FMCG and automobiles. These sectors account for 86 per cent of the travel spend among India’s top 100 listed firms. 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 B-leisure trend is gaining momentum, with 37 per cent of respondents extending their business trips for leisure. Among these, 81 per cent add 1–2 extra days, while the rest extend their trips by 3–4 days, showcasing the evolving work culture and personal preferences.
- Despite the positive trends, challenges such as inadequate infrastructure, rising costs and complex tax structures remain significant barriers to growth. The government’s role in addressing these challenges will be crucial for the sector’s future.
