India’s corporate travel market to double to USD 20.8 billion by FY 2030, ET TravelWorld

India’s corporate travel market, valued at over US$10.6 billion, is set to double by FY2030, according to Deloitte‘s latest report, which outlines key trends and innovations shaping the future of the sector. The report projects a 10.1 percent compound annual growth rate (CAGR), with the market expected to reach USD 20.8 billion by the end of the decade. This growth is fueled by the increasing demand for tech-enabled, personalized, and sustainable solutions that cater to the evolving needs of corporate travelers.

As hybrid work models become more entrenched post-pandemic, businesses are recalibrating their travel strategies to improve employee experience and cost efficiency. Deloitte’s report highlights that Travel Management Companies (TMCs) are central to this transformation, leveraging AI-powered chatbots, voice-assisted booking systems, and real-time data analytics to provide tailored, seamless experiences for business travelers.

Anand Ramanathan, Partner and Consumer Industry Leader, Consulting, Deloitte India, commented, “The new-age corporate traveler demands much more than just a ticket and a hotel room. As India’s economy grows, there is a clear shift towards personalized and eco-friendly travel experiences, with nearly 50 percent of travelers prioritizing sustainability. The MICE (Meetings, Incentives, Conventions, and Exhibitions) sector will also play a key role in driving corporate travel demand.”

Rising Corporate Travel Costs and New Trends
Deloitte’s report indicates that 35–40 percent of employees travel at least once annually for business, with domestic trips generally lasting fewer than four days. On the international front, 28 percent of travelers report trips lasting more than one week, highlighting the diverse nature of corporate travel requirements.

Travel costs represent a significant portion of organizational budgets, with small and midsize enterprises (SMEs) spending up to INR 1 crore annually on travel, while large firms (5,000+ employees) incur travel expenses proportionate to employee count. For instance, one major IT company in India spent over INR 2,600 crore on travel in FY23. As SMEs make up 30 percent of India’s corporate travel market, the adoption of tech-driven solutions will be essential for managing these costs and enhancing efficiency.

Growth of Auxiliary Services and Emerging Destinations
The study found that there is growing demand for auxiliary services among corporate travelers, with 72 percent seeking taxi services and 63 percent looking for visa assistance through travel platforms. Additionally, new corporate hubs are emerging beyond traditional business centers like Mumbai, Delhi NCR, Bengaluru, with cities such as Ahmedabad, Vadodara, Bhubaneswar, and Lucknow gaining traction.

The report underscores how B-leisure, the blending of business and leisure travel, is gaining momentum, with 37 percent of respondents extending their business trips for leisure. Among them, 81 percent add 1–2 extra days, while others extend their trips by 3–4 days, showcasing how the evolving work culture is shaping travel behavior.

Despite positive trends, challenges such as inadequate infrastructure, rising costs, and complex tax structures remain barriers to growth. The government’s role in addressing these issues will be pivotal in ensuring the sector’s future success.