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India Travel And Tourism Market

ID: MRFR/CG/42621-HCR
200 Pages
Garvit Vyas
February 2026

India Travel and Tourism Market Size, Share, Industry Trend & Analysis Research Report By Type Outlook (Leisure, Educational, Business, Sports, Medical Tourism, Others (Event Travel, Volunteer Travel, etc.)), By Application Outlook (Domestic, International), By Traveler Type Outlook (Solo Traveler, Couple Traveler, Group Traveler), By Travel Days Outlook (Less than 7 Days, 8- 15 Days, 16-30 Days, More than 30 Days), By Travel Mode Outlook (Travel Packages, Self-catered) and By Booking Outlook (Online, Offline) - Forecast to 2035.

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India Travel And Tourism Market Summary

As per analysis, the India travel and tourism market is projected to grow from USD 42.85 Billion in 2024 to USD 75.3 Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 5.26% during the forecast period (2025 - 2035).

Key Market Trends & Highlights

The India travel and tourism market is experiencing a dynamic shift towards sustainable and experiential offerings.

  • Leisure tourism remains the largest segment, driven by a growing interest in family vacations and cultural experiences.
  • Medical tourism is the fastest-growing segment, with increasing numbers of international patients seeking affordable healthcare options.
  • Sustainable tourism initiatives are gaining traction, reflecting a broader global trend towards responsible travel practices.
  • Government initiatives and policies, along with the rise of adventure and experiential tourism, are key drivers propelling market growth.

Market Size & Forecast

2024 Market Size 42.85 (USD Billion)
2035 Market Size 75.3 (USD Billion)
CAGR (2025 - 2035) 5.26%

Major Players

MakeMyTrip (IN), Yatra (IN), Cleartrip (IN), Thomas Cook (IN), Goibibo (IN), Travel Corporation of India (IN), SOTC Travel (IN), Cox & Kings (IN), IRCTC (IN)

Our Impact
Enabled $4.3B Revenue Impact for Fortune 500 and Leading Multinationals
Partnering with 2000+ Global Organizations Each Year
30K+ Citations by Top-Tier Firms in the Industry

India Travel And Tourism Market Trends

The india travel and tourism market is currently experiencing a dynamic transformation, driven by a confluence of factors that enhance its appeal to both domestic and international travelers. The government of India has been actively promoting various initiatives aimed at boosting tourism, such as the 'Incredible India' campaign, which showcases the country's rich cultural heritage, diverse landscapes, and historical landmarks. Additionally, the introduction of e-visa facilities has simplified the travel process for foreign visitors, thereby encouraging an influx of tourists. This evolving landscape suggests a growing recognition of the potential economic benefits associated with tourism, which may lead to increased investments in infrastructure and services. Moreover, the rise of digital platforms has revolutionized how travelers plan and book their journeys. Online travel agencies and mobile applications are becoming increasingly popular, allowing consumers to access a plethora of options at their fingertips. This trend indicates a shift towards personalized travel experiences, as travelers seek unique and tailored itineraries that reflect their individual preferences. As the India travel and tourism market continues to evolve, it appears poised for sustained growth, with an emphasis on sustainability and responsible tourism practices that cater to the changing expectations of modern travelers.

Sustainable Tourism Initiatives

The india travel and tourism market is witnessing a growing emphasis on sustainable practices. Various stakeholders, including government bodies and private enterprises, are increasingly focusing on eco-friendly tourism options. This trend reflects a broader awareness of environmental issues and the need to preserve natural resources for future generations. Efforts to promote responsible travel experiences are likely to resonate with environmentally conscious travelers.

Cultural and Heritage Tourism

Cultural and heritage tourism is gaining traction within the India travel and tourism market. Tourists are increasingly drawn to experiences that allow them to engage with local traditions, festivals, and historical sites. This trend suggests a desire for authentic experiences that foster a deeper understanding of India's diverse cultural landscape. As a result, there is potential for growth in niche markets that cater to this interest.

Technological Advancements in Travel Services

Technological advancements are reshaping the India travel and tourism market, with innovations enhancing the overall travel experience. The integration of artificial intelligence, virtual reality, and mobile applications is streamlining booking processes and providing travelers with personalized recommendations. This trend indicates a shift towards a more tech-savvy consumer base that values convenience and efficiency in their travel planning.

India Travel And Tourism Market Drivers

Culinary Tourism Growth

Culinary tourism is emerging as a significant driver within the India travel and tourism market, as travelers increasingly seek authentic food experiences. The diverse culinary landscape of India, characterized by regional specialties and traditional cooking methods, attracts food enthusiasts from around the globe. In 2025, culinary tourism contributed approximately 20% to the overall tourism revenue, highlighting its importance. Food festivals, cooking classes, and food tours are becoming popular attractions, encouraging tourists to explore local cuisines. This trend not only enhances the travel experience but also supports local businesses and promotes cultural exchange within the India travel and tourism market.

Growing Domestic Tourism

the India travel and tourism market is experiencing a surge in domestic tourism, driven by an increasing middle-class population and rising disposable incomes. In 2025, domestic tourist arrivals reached over 1.8 billion, reflecting a growing preference for local travel experiences. This trend is further supported by the rise of social media, which encourages individuals to explore lesser-known destinations within India. The government has also promoted regional tourism through various initiatives, such as the Swadesh Darshan scheme, which aims to develop theme-based tourist circuits. This growing domestic tourism landscape presents significant opportunities for the India travel and tourism market.

Adventure and Experiential Tourism

the India travel and tourism market is witnessing a notable shift towards adventure and experiential tourism. With an increasing number of travelers seeking unique experiences, activities such as trekking, river rafting, and wildlife safaris are gaining popularity. The adventure tourism segment is projected to grow at a CAGR of around 15% over the next five years, indicating a strong demand for such experiences. Regions like Himachal Pradesh, Uttarakhand, and Rajasthan are becoming hotspots for adventure tourism, attracting both domestic and international tourists. This trend not only diversifies the offerings within the India travel and tourism market but also contributes to local economies.

Government Initiatives and Policies

the India travel and tourism market benefits from various government initiatives aimed at promoting tourism. The Ministry of Tourism has launched campaigns such as 'Incredible India' and 'Atithi Devo Bhava' to enhance the country's image as a tourist destination. Additionally, the introduction of e-Visa facilities for citizens of over 160 countries has simplified the travel process, potentially increasing tourist inflow. In 2025, the industry witnessed a growth rate of approximately 10.5%, indicating a robust recovery and expansion. The government's focus on infrastructure development, including the construction of new airports and highways, further supports the growth of the India travel and tourism market.

Digital Transformation in Travel Services

the India travel and tourism market is undergoing a digital transformation, with technology playing a pivotal role in enhancing customer experiences. The rise of online travel agencies (OTAs) and mobile applications has made it easier for travelers to plan and book their trips. In 2025, it is estimated that over 60% of travel bookings in India are made online, reflecting a shift towards digital platforms. Additionally, advancements in artificial intelligence and data analytics are enabling personalized travel experiences, catering to individual preferences. This digital evolution not only streamlines operations but also positions the India travel and tourism market for future growth.

Market Segment Insights

By Tourism Type: Leisure Tourism (Largest) vs. Medical Tourism (Fastest-Growing)

In the India travel and tourism market, leisure tourism holds the largest share, reflecting the country's rich cultural heritage and diverse attractions. This segment enjoys significant preference due to a growing domestic travel trend, enhanced accessibility to various destinations, and evolving consumer preferences for personalized travel experiences. Following leisure tourism, medical tourism is rapidly gaining traction as more international patients seek quality healthcare services in India, driven by competitive pricing and advanced medical facilities. Growth trends in the tourism type segment are largely influenced by an increasing middle-class population, rising disposable incomes, and a greater inclination towards travel. As digitalization furthers the ease of planning and booking trips, segments like adventure and cultural tourism are also witnessing substantial growth. Notably, the appeal of holistic experiences is enhancing the attractiveness of medical tourism as it intertwines health and wellness travel, thus propelling demand further in this area.

Leisure Tourism: Dominant vs. Medical Tourism: Emerging

Leisure tourism remains the dominant segment in the India travel and tourism market, characterized by family vacations, beach resorts, and cultural explorations. This category benefits from India’s vast and varied landscapes, rich history, and the emergence of experiential travel options appealing to both domestic and international tourists. In contrast, medical tourism is considered an emerging segment, showcasing significant growth potential as India is seen as a prime destination for affordable and quality healthcare. The combination of advanced medical facilities, skilled professionals, and an increasing awareness of India’s health tourism offerings is attracting more foreign travelers seeking medical treatments. Together, these segments highlight the duality of India's tourism landscape, where traditional leisure experiences coalesce with new-age health and wellness tourism.

By Travel Purpose: Family Vacation (Largest) vs. Honeymoon (Fastest-Growing)

In the Indian travel and tourism market, the travel purpose segment is diverse, with family vacation emerging as the largest component, followed closely by honeymoon trips. Family vacations contribute significantly to tourism revenue, driven by the growing middle-class population seeking leisure experiences. Honeymoon trips, while a smaller segment, are gaining traction as more couples opt for unique, personalized experiences, making it an essential area for operators to focus on. Solo travel and corporate travel also hold noteworthy shares, with pilgrimage travel continuing to thrive due to India's rich cultural and spiritual heritage.

Family Vacation: Dominant vs. Honeymoon: Emerging

The family vacation segment is characterized by its broad appeal to various demographics, including multigenerational travel groups. This segment enjoys a dominant position due to the rising trend of leisure travel among families seeking bonding experiences and recreational activities. In contrast, the honeymoon segment, although emerging, has seen a surge in personalized offerings, such as adventure trips and luxury getaways, appealing to younger couples. This shift towards customized experiences is noteworthy, as honeymooners increasingly prioritize uniqueness and emotional connections during their travel, enhancing the segment's market position.

By Accommodation Type: Luxury Hotels (Largest) vs. Homestays (Fastest-Growing)

In the Indian travel and tourism market, the accommodation type segment showcases a diverse landscape. Luxury hotels occupy the largest share of the market, catering to affluent travelers seeking opulence and top-notch services. On the other hand, homestays are rapidly gaining traction, appealing to a younger demographic keen on authentic experiences and local immersion. As budget constraints influence choices, the distribution among budget hotels also remains significant, ensuring affordable options for various segments. The growth of the accommodation sector is driven by shifting consumer preferences and the rise of experiential travel. Luxury hotels are enhancing their offerings with personalized experiences, while homestays are flourishing due to their unique, personalized charm. Resorts, budget hotels, and hostels are also adapting to attract niche markets through targeted marketing strategies, further diversifying the options available to travelers in India.

Luxury Hotels: Dominant vs. Homestays: Emerging

Luxury hotels in India are characterized by their lavish amenities, exceptional service standards, and prime locations. They cater predominantly to affluent tourists, business travelers, and those seeking premium experiences. These establishments typically provide a range of luxury services and facilities, including fine dining, spa services, and personalized concierge experiences. Conversely, homestays are emerging as an appealing alternative, particularly for domestic travelers and millennials. They offer a unique, local experience that fosters cultural exchange and often comes at a lower price point. As the trend towards sustainable and responsible tourism grows, homestays are becoming increasingly popular for their authenticity and charm, connecting visitors with local traditions and lifestyles.

By Transport Mode: Air Travel (Largest) vs. Rail Travel (Fastest-Growing)

In the India travel and tourism market, Air Travel currently holds the largest share among the various transport modes. With a rapidly expanding middle class and increasing disposable income, more consumers are keen to explore domestic and international travel by air. Rail Travel, while historically popular in India, is experiencing rejuvenation with improved services and modernization efforts. A robust network of trains is being complemented with high-speed rails, enhancing the appeal of rail travel to both domestic and international tourists.

Air Travel (Dominant) vs. Rail Travel (Emerging)

Air Travel stands out as the dominant mode of transport in the Indian travel sector, favored for its speed and convenience. The flexibility of multiple airlines operating domestic and international routes enhances accessibility for travelers. While Rail Travel is emerging with improved infrastructure and services, it caters to a different segment of travelers who value experience and scenic routes over speed. The Indian Railways is investing in modern trains, which could significantly elevate its market position. Rail Travel’s appeal lies in its affordability and cultural immersion, positioning it favorably against the rapid growth of air travel options.

By Tour Package Type: All-Inclusive Packages (Largest) vs. Customized Packages (Fastest-Growing)

In the India travel and tourism market, the segment for tour packages is witnessing a diverse distribution among various types. All-Inclusive Packages currently hold the largest market share, appealing to travelers who prefer convenience and value for money. They offer a comprehensive experience encompassing accommodation, meals, and activities, making them popular among families and group travelers. Customized Packages, on the other hand, are emerging rapidly as they cater to the personalized preferences of individual travelers, allowing them to tailor their itineraries. As travel becomes more about unique experiences, the demand for customized options has surged.

All-Inclusive Packages (Dominant) vs. Customized Packages (Emerging)

All-Inclusive Packages dominate the Indian tourism landscape by offering convenience to customers looking for a hassle-free experience. These packages typically cover transportation, accommodations, meals, and excursions, which makes them attractive to both domestic and international tourists. On the other hand, Customized Packages are the emerging trend, especially among millennials and Gen Z travelers who seek unique and personalized experiences. They allow travelers to select their destinations, activities, and accommodations, thus providing flexibility and a sense of ownership over their journey. As preferences shift towards experiential travel, the competition between these two segments is expected to define the future of tour packages in India.

Get more detailed insights about India Travel And Tourism Market

Key Players and Competitive Insights

The travel and tourism market in India is currently characterized by a dynamic competitive landscape, driven by a resurgence in domestic and international travel demand. Key players such as MakeMyTrip (IN), Yatra (IN), and Cleartrip (IN) are actively refining their strategic positioning through digital transformation and enhanced customer engagement. MakeMyTrip (IN) has focused on integrating advanced AI technologies to personalize travel experiences, while Yatra (IN) emphasizes partnerships with local service providers to enhance its offerings. Cleartrip (IN) appears to be leveraging its user-friendly platform to capture a larger share of the online travel booking segment, indicating a collective shift towards technology-driven solutions that shape the competitive environment.

In terms of business tactics, companies are increasingly localizing their services and optimizing supply chains to meet the diverse needs of Indian travelers. The market structure is moderately fragmented, with several players vying for market share, yet the influence of major companies is palpable. This competitive structure fosters innovation and encourages smaller players to adopt unique strategies to differentiate themselves.

In December 2025, MakeMyTrip (IN) launched a new AI-driven travel assistant aimed at enhancing customer service and streamlining the booking process. This strategic move is likely to bolster customer satisfaction and retention, positioning the company favorably against its competitors. The integration of AI not only reflects a commitment to technological advancement but also aligns with the growing consumer preference for personalized travel solutions.

In November 2025, Yatra (IN) announced a strategic partnership with a leading hotel chain to offer exclusive deals and packages. This collaboration is significant as it enhances Yatra's value proposition, allowing it to attract more customers seeking bundled travel experiences. Such partnerships may also enable Yatra to strengthen its market presence and compete more effectively in a crowded marketplace.

In October 2025, Cleartrip (IN) introduced a loyalty program that rewards frequent travelers with discounts and exclusive offers. This initiative is indicative of a broader trend towards customer loyalty strategies, which are becoming essential in retaining clients in a competitive environment. By incentivizing repeat business, Cleartrip (IN) aims to build a loyal customer base that can withstand competitive pressures.

As of January 2026, the competitive trends in the travel and tourism market are increasingly defined by digitalization, sustainability, and the integration of AI technologies. Strategic alliances are shaping the landscape, allowing companies to pool resources and enhance their service offerings. Looking ahead, competitive differentiation is likely to evolve from traditional price-based competition to a focus on innovation, technology, and supply chain reliability. This shift suggests that companies that prioritize these elements will be better positioned to thrive in an ever-evolving market.

Key Companies in the India Travel And Tourism Market include

Industry Developments

Recent developments in the India Travel and Tourism Market reflect a dynamic landscape as major companies embrace innovative strategies. Club Mahindra Holidays is expanding its offerings to enhance family vacations, while SOTC focuses on tailored travel experiences to attract diverse customer segments. TravelTriangle continues to build on its unique aggregator model, connecting travelers with local travel agents. In mergers and acquisitions, both Goibibo and MakeMyTrip have witnessed consolidation efforts to fortify their market positions, contributing to growing market valuations.

The market has seen a significant recovery post-pandemic, with the Ministry of Tourism in India reporting that international tourist arrivals in 2022 had reached 5.26 million, showcasing a promising rebound. Major hotel chains like Taj Hotels and ITC Hotels are investing in luxury experiences in an effort to cater to affluent travelers, which has positively influenced the market valuation. In 2021, OYO Rooms launched an IPO and garnered attention, sparking interest in the budget accommodation segment. Similarly, the rise of platforms like Airbnb is reshaping customer preferences towards unique lodging experiences.

Overall, the Indian Travel and Tourism Market is navigating through transformative changes driven by innovation and a focus on customer-centric strategies.

Future Outlook

India Travel And Tourism Market Future Outlook

The India travel and tourism market is projected to grow at a 5.26% CAGR from 2025 to 2035, driven by digital transformation, increased disposable income, and enhanced infrastructure.

New opportunities lie in:

  • Development of eco-friendly accommodations in rural areas
  • Investment in AI-driven personalized travel planning services
  • Expansion of niche tourism segments like wellness and adventure tourism

By 2035, the market is expected to be robust, reflecting substantial growth and diversification.

Market Segmentation

India Travel And Tourism Market Tourism Type Outlook

  • Leisure Tourism
  • Business Tourism
  • Adventure Tourism
  • Cultural Tourism
  • Medical Tourism

India Travel And Tourism Market Transport Mode Outlook

  • Air Travel
  • Rail Travel
  • Road Travel
  • Water Travel
  • Public Transport

India Travel And Tourism Market Travel Purpose Outlook

  • Family Vacation
  • Honeymoon
  • Solo Travel
  • Corporate Travel
  • Pilgrimage

India Travel And Tourism Market Tour Package Type Outlook

  • All-Inclusive Packages
  • Customized Packages
  • Group Tours
  • Eco-Tourism Packages
  • Luxury Packages

India Travel And Tourism Market Accommodation Type Outlook

  • Luxury Hotels
  • Budget Hotels
  • Homestays
  • Resorts
  • Hostels

Report Scope

MARKET SIZE 202442.85(USD Billion)
MARKET SIZE 202545.34(USD Billion)
MARKET SIZE 203575.3(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)5.26% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledMakeMyTrip (IN), Yatra (IN), Cleartrip (IN), Thomas Cook (IN), Goibibo (IN), Travel Corporation of India (IN), SOTC Travel (IN), Cox & Kings (IN), IRCTC (IN)
Segments CoveredTourism Type, Travel Purpose, Accommodation Type, Transport Mode, Tour Package Type
Key Market OpportunitiesIntegration of digital platforms enhances personalized travel experiences in the India travel and tourism market.
Key Market DynamicsRising domestic tourism and evolving consumer preferences reshape India's travel and tourism landscape.
Countries CoveredIndia
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FAQs

What is the current valuation of the India travel and tourism market?

The India travel and tourism market was valued at 42.85 USD Billion in 2024.

What is the projected market size for the India travel and tourism sector by 2035?

The market is projected to reach 75.3 USD Billion by 2035.

What is the expected CAGR for the India travel and tourism market during the forecast period 2025 - 2035?

The expected CAGR for the market during 2025 - 2035 is 5.26%.

Which segments are driving growth in the India travel and tourism market?

Segments such as Leisure Tourism and Business Tourism are key drivers, with valuations of 27.0 USD Billion and 18.0 USD Billion respectively by 2035.

What types of accommodation are popular in the India travel and tourism market?

Luxury Hotels and Budget Hotels are prominent, with projected valuations of 18.0 USD Billion and 15.0 USD Billion by 2035.

How does the transport mode segment contribute to the market?

Air Travel and Road Travel are significant contributors, expected to reach 25.0 USD Billion and 20.0 USD Billion respectively by 2035.

What are the leading companies in the India travel and tourism market?

Key players include MakeMyTrip, Yatra, and Cleartrip, which are influential in shaping market dynamics.

What is the significance of adventure tourism in the market?

Adventure Tourism is projected to grow to 9.0 USD Billion by 2035, indicating a rising interest in experiential travel.

What role do tour packages play in the India travel and tourism market?

Tour packages, particularly Group Tours and Luxury Packages, are expected to reach valuations of 18.0 USD Billion and 21.0 USD Billion by 2035.

How is the family vacation segment performing in the market?

The Family Vacation segment is anticipated to grow to 22.5 USD Billion by 2035, reflecting a strong trend towards family-oriented travel.

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