‘Tech-Enabled, Personalised And Sustainable Solutions To Drive India’s Corporate Travel Landscape’
India’s corporate travel sector, valued at over $10.6 billion, is entering a transformative phase, betting on new ways of working and technological disruption. Deloitte’s latest report highlights corporate travel innovation, which is essential for employee experience management and cost efficiency. The corporate travel sector market is projected to grow at 10.1 per cent CAGR and double to $20.8 billion by FY2030. Meanwhile, the overall travel market in India is set to reach $97 billion at around 9 per cent CAGR.
As businesses recalibrate their travel strategies with hybrid work models after the pandemic, India’s corporate travel sector underlines the critical role of Travel Management Companies (TMCs) in steering the industry into a new era of innovation, cost efficiency and sustainability. The incorporation of cutting-edge technology is at the heart of this shift. TMCs have revamped their strategies to meet the needs of new-age travellers. These travellers need to engage deeper and faster using AI-powered chatbots, voice-assisted booking systems and real-time data analytics. These technologies can be tailored to customers’ needs while simplifying the experience for business travellers, says the Deloitte report.
Travel expenses represent a considerable portion of an organisation’s operating budget. On an average, 35–40 per cent of employees travel at least once annually. Almost 88 per cent of corporate employees travel for more than 4 days for domestic travel, whereas around 28% travel for less than 1 week when travelling internationally for their business purpose and almost 34% surveyed respondents mention they travel once or twice a quarter for domestic purpose. However, only 33 per cent travel once or more than once a year for international business purpose.
As per the report, for small and midsize organisations (up to 250 employees), travel expenditure can reach Rs 1 crore per year. In contrast, large organisations (250–5,000 employees) allocate Rs 10 crore annually towards travel expenses. For large organisations (5,000+ employees), travel expenses are directly proportional to the employee count. An analysis of the top 100 listed firms reveals that a leading IT major, with some of the highest travel spends, incurred travel expenses of more than Rs 2,600 crore in FY23.
There is a rising demand for auxiliary services, with 72 per cent of the respondents requesting taxi services and 63 per cent seeking visa assistance on travel platforms, emphasizing the need for comprehensive travel solutions.
“The new-age corporate traveller demands much more than just a ticket and a hotel room. India’s growing economy has evolved consumer demands, with consumers seeking a seamless, personalised experience that aligns with their professional and personal values. In addition, a hybrid work culture solidifies its place in the modern business landscape, where in-person meetings remain indispensable for fostering strong professional relationships. As the economy grows, the MICE (Meetings, Incentives, Conventions and Exhibitions) sector will also drive the demand for corporate travel,” says Anand Ramanathan, Partner and Consumer Industry Leader, Consulting, Deloitte India.
“Our latest report highlights how TMCs are rising to this challenge by integrating technology and AI-led solutions, ensuring every journey is tailored to individual needs. Furthermore, the growing emphasis on sustainability is reshaping corporate travel, with nearly 50 per cent of travellers prioritising eco-friendly practices. Additionally, tech innovation is especially crucial in catering to the evolving demands of India’s growing SME segment, which constitutes 30 per cent of the corporate travel market, clearly contributing to the travel sector’s growth and evolution in the near future,” adds Ramanathan.
