Growth of Online Travel Industry in India

By | April 27, 2011

Online travel industry includes purchasing online traveling services such as domestic and international air tickets, bus tickets, hotel bookings, tour package and traveling etc. In India, the online travel industry has a market share of about 76% and dominates the country’s e-commerce.

The average growth rate of the online travel industry is nearly 60% annually. In the year 2007, the market size of the online travel industry was Rs.6,250 crores and it increased to Rs.10,500 crores in 2008 contributing a growth of 62%. The market size of the industry further increased to Rs. 14,953 crores in 2009 with 42% growth. It was expected to reach Rs. 25,258 crores (69% growth) in 2010 and Rs. 37,890 crores (50% growth) by the end of 2011. With an increased convenience of paying online and the facilitation from the regulators, the growth is expected to grow at a much higher rate in the next few years.

As of 2009, out of total online travel industry market (Rs. 14,953 crores), domestic air travel contributed 63% (Rs. 9,482 crores) followed by railway tickets contributing 28% (Rs. 4,184 crores). The contribution of international air travel was 4% with Rs. 548 crores, hotel bookings was 2% (Rs. 308 crores), tour packages was 1% (Rs. 86 crores), and bus tickets was 1% (Rs. 294 crores).