Unprecedented growth in the Indian Travel Industry

The global tourism is growing at a rapid pace of around 6% annually. Much of this growth is driven by emerging markets, with India and China leading the way.

According to the World Travel and Tourism Council, travel to emerging economies is expected to increase at twice the rate of travel to advanced economies from now until 2030. It is estimated that more than one billion people will constitute the inbound travelers to the emerging economies annually in the next decade. Again, Emerging markets are also growing as a source of outbound travelers from around the world. Around 49% of the global tourism spending comes from the emerging countries, up from just 25% a decade earlier.

This may be the right time for global Travel companies to expand their footprint to the Indian market. While tie-ups with the local Destination Management Companies could work well during the period of organic market growth, the current growth momentum of tourism industry in India might be a good time to plan for setting up a local representative office in the country to manage the inbound and the outbound growth. This boom may call for expansion in the business of the allied industries as well. This will provide the desired operational efficiencies to companies seeking market expansion in the land of unbounded opportunities.