India Online Travel Market - Growth, Trends, Covid-19 Impact, and Forecasts (2022 - 2027)

The Market is Segmented By Service Type (Transportation, Travel Accommodation, Vacation Packages, and Others), By Booking Type (Online Travel Agencies, Direct Travel Suppliers), and By Platform (Desktop, Mobile). The report offers market size and forecasts for the Europe Online Travel Market in value (USD million) for all the above segments.

Market Snapshot

Online Travel Market in India Summary
Study Period: 2017-2026
Base Year: 2021
CAGR: >10 %
Online Travel Market in India Major Players

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Market Overview

India's online travel market is approaching maturity, as more segments transition to digital channels. Online travel gross bookings will grow in double digits and outpace the overall travel market. With the advent of the internet and the emergence of artificial reality (AR), the online travel industry in India is changing rapidly due to which a growing number of Indians have turned to the convenience of the web for better travel prices and accommodations. Most of the growth in the Indian online travel market would come from the increasing penetration of international flight and hotel bookings offered by online portals such as Cleartrip, MakeMyTrip, Yatra, and others. An increase in user demand is also a factor as Indian consumers are expected to devote almost 4% of their wallet spends on travel. The combination of travel and transportation offers, even those which include airport transfers, as well as holiday packages are growing hugely. Air accessibility and affordability is the biggest ongoing development in India, and the government’s regional airport development program is promoting connectivity to smaller cities and towns. The online travel market in India is mainly driven by several factors that include the increasing tourism industry, along with the rising penetration of internet usage and smartphone users across various countries. In addition to this, rapid urbanization, increasing per capita income, economic growth, and changing lifestyle of the customers shifting towards more enhanced services and comfort will have a positive impact on the growth of the market.

India’s online travel industry has been hit hard by the COVID-19. However, long-term growth fundamentals are intact. The pandemic is a major challenge, but it is also an acquisition opportunity for stronger players as the industry consolidates. Domestic tourism however is expected to pick up sooner and latest available data suggest plenty of pent-up demand to support a relatively speedy recovery. Indian travel firms have reportedly seen a 25%-30% increase in bookings both for air travel and accommodations for the Christmas and New Year holidays.

Scope of the report

A complete background analysis of the market, including the analysis of market size and forecast, market shares, industry trends, growth drivers, and vendors, is provided. Additionally, the report features qualitative and quantitative assessments by analyzing the data gathered from industry analysts and market participants across key points in the industry’s value chain. The Market is Segmented by service type, booking type, and country. By Service Type, the market is segmented into Transportation, Travel Accommodation, Vacation Packages, and Others. By Booking Type, the market is segmented into Online Travel Agencies and Direct Travel Suppliers. By Platform, the market is segmented into Desktop and Mobile. The report offers the market sizes and forecasts in value for the above segments.

Service Type
Travel Accommodation
Vacation Packages
Booking Type
Online Travel Agencies
Direct Travel Suppliers

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Key Market Trends

Growth of the Tourism Industry in India is Driving the Market

India’s travel and tourism industry was the seventh-highest GDP contributor with its share of the country’s GDP. India’s economic growth has been among the highest in the world in the past decade. Positive developments on the economic front should contribute to propelling the country’s tourism industry as an increasing number of Indians with rising disposable incomes make a greater number of domestic and international trips. At the same time, the Indian government’s supportive stance should spur the industry further. India’s UDAN-Regional Connectivity Scheme (UDAN-RCS), launched in 2016, has made air travel accessible to a wider spectrum of economic groups, which has resulted in a significant increase in domestic passenger traffic in India.

Players looking to capitalize on growing inbound and outbound international trips from India include MakeMyTrip which announced its plans to expand into the UAE and EaseMyTrip which is expanding its international footprint, particularly in international cities where Indians travel the most. With an expanded international presence, EaseMyTrip expects to provide better service to their customers as well as provide better rates on local hotels and restaurants that are reluctant to work with companies outside their home countries.

Online Travel Market in India: Number Of Domestic Tourist Visits, By Leading State, India, 2019

Disposable Income is Driving the Market

The growth of the online travel market in India is driven by the rising disposable income of people. Market players are introducing innovative travel and vacation package deals to assist travelers in making sound travel decisions as per their spending capabilities, such as affordable packages for an international destination, discounts on car rentals, and cashback on international flights. On the international tourism front, with disposable incomes on the rise for millions of Indians, the number of international departures has been growing steadily over the years, and long-term trends suggest a tremendous opportunity for volume growth. Along with increasing departures, Indian travelers’ international tourism expenditures have also been on the rise.

Online Travel Market in India: Disposable Personal Income, In INR Million, India, 2015-2019

Competitive Landscape

The report covers major international players operating in the India online travel market. In terms of market share, few of the major players currently dominate the market. However, with technological advancement and product innovation, mid-size to smaller companies are increasing their market presence by securing new contracts and by tapping new markets.

Major Players



  3. MakeMyTrip

  4. Yatra

  5. Expedia

Online Travel Market in India Concentration

Recent Developments

In August 2020 - MakeMyTrip launched myPartner platform to assist travel agents in offering enhanced travel booking experiences to travelers. The platform, myPartner, has been designed to provide local travel agents access to one of the widest selections of online travel inventory. While digitizing the day-to-day booking processes of all offline travel agents alike, myPartner has been conceptualized and built to immensely benefit the local travel market beyond metro cities.

In June 2021 - Oyo along with online travel agencies such as Yatra, AirBnB, and EaseMyTrip have launched an association to look into the issues faced by small hotel owners and promote new formats of tourism in the country trying to recover from the setback of the pandemic. Christened Confederation of Hospitality Technology and Tourism Industry (CHATT), the industry body will help small and medium hotels and homeowners across India to adopt technology to revive their businesses.

Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Industry Value Chain Analysis

    5. 4.5 Porters Five Force Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 Impact of COVID-19 on the Market


    1. 5.1 Service Type

      1. 5.1.1 Transportation

      2. 5.1.2 Travel Accommodation

      3. 5.1.3 Vacation Packages

      4. 5.1.4 Others

    2. 5.2 Booking Type

      1. 5.2.1 Online Travel Agencies

      2. 5.2.2 Direct Travel Suppliers

    3. 5.3 Platform

      1. 5.3.1 Desktop

      2. 5.3.2 Mobile


    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1

      2. 6.2.2

      3. 6.2.3 MakeMyTrip

      4. 6.2.4 Yatra

      5. 6.2.5 Cleartrip

      6. 6.2.6 EaseMyTrip

      7. 6.2.7 Expedia

      8. 6.2.8 Thomas Cook Ltd.

      9. 6.2.9 Cox & Kings Ltd.

      10. 6.2.10 Oyo Rooms

      11. 6.2.11 ixigo

    3. *List Not Exhaustive


**Subject to Availability
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Frequently Asked Questions

The India Online Travel Market market is studied from 2017 - 2026.

The India Online Travel Market is growing at a CAGR of >10% over the next 5 years.,, MakeMyTrip, Yatra, Expedia are the major companies operating in India Online Travel Market.

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