India Online Travel Market Overview
According to Mordor Intelligence, the India online travel market size stands at USD 23.1 billion in 2025 and is expected to touch USD 33.9 billion by 2030, reflecting a 7.76% CAGR. This growth is driven by increasing smartphone adoption, digitization initiatives by the government, and the rising preference for mobile-first booking platforms. The market is witnessing a rapid shift from offline to online channels, fueled by the country’s thriving domestic aviation sector and a strong surge in leisure travel. With intensifying competition among Online Travel Agencies (OTAs), the India online travel market is evolving through loyalty programs, dynamic pricing strategies, and vernacular interfaces tailored to local consumers.
Key Trends in the India Online Travel Market
The India online travel market is experiencing several transformative trends:
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Mobile-First Booking Platforms: Mobile bookings accounted for over two-thirds of all online transactions, indicating a clear preference for app-based travel solutions. Mobile-first strategies are driving convenience, instant bookings, and higher customer engagement.
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Digital Wallets and UPI Adoption: UPI and digital wallets contributed nearly half of all transactions, simplifying payments and enabling impulse purchases. The international expansion of UPI further strengthens cross-border transactions for Indian travelers.
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Government Initiatives Supporting Regional Connectivity: Programs like the UDAN scheme are enhancing air connectivity in tier-II and tier-III cities, opening new opportunities for regional travel and increasing market penetration.
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Rise of Millennials and Leisure Travel: Middle-income millennials are increasingly driving discretionary travel spending, focusing on experiences and leisure trips. Bleisure travel (combination of business and leisure) is also growing steadily.
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Dynamic Pricing and Loyalty Programs: OTAs are leveraging advanced pricing algorithms and loyalty programs to attract and retain customers, optimizing conversion rates and revenue generation.
Market Segmentation in the India Online Travel Market
The India online travel market is segmented across multiple dimensions, providing a comprehensive view of consumer behavior and business strategies:
Segmentation by Service Type
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Air Ticket Booking
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Rail Ticket Booking
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Bus Ticket Booking
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Car Rental
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Accommodation Booking
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Holiday Package Booking
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Experiences and Activities
Segmentation by Booking Device
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Desktop / Laptop
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Mobile
Segmentation by Business Model
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Online Travel Agencies
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Direct Supplier Online Platforms
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Meta-search Engines
Segmentation by Traveler Type
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Leisure
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Business
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Bleisure
Segmentation by Age Group
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18–30 Years
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31–45 Years
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46–60 Years
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Greater than 60 Years
Segmentation by Payment Mode
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Credit / Debit Cards
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Net-Banking
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UPI and Digital Wallets
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Buy-Now-Pay-Later (BNPL)
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Other Modes (Gift Cards, Loyalty Points)
Segmentation by City Tier
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Tier-I Cities
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Tier-II Cities
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Tier-III and IV Towns
Segmentation by Region
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North India
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South India
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West India
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East India
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North-East India
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Central India
Key Players in the India Online Travel Market
The India online travel market is highly competitive and concentrated among a few key players who dominate revenue share and market influence:
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MakeMyTrip Ltd.
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Yatra Online Ltd.
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EaseMyTrip
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Cleartrip Pvt. Ltd.
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Ixigo
These players are actively investing in mobile apps, vernacular platforms, dynamic pricing, and loyalty schemes to capture growing consumer demand and expand their market footprint.
Conclusion:
The India online travel market is poised for sustained growth, driven by technological adoption, rising domestic tourism, and evolving consumer preferences. The shift toward mobile-first bookings, combined with digital payment adoption and government initiatives, is reshaping travel behavior across the country. Market players are increasingly adopting innovative strategies, including dynamic pricing, direct supplier platforms, and vernacular user interfaces, to meet diverse traveler needs. The India online travel market size is expected to expand significantly, providing ample opportunities for existing and new entrants to capitalize on this fast-evolving digital landscape. As leisure and regional travel continue to rise, the India online travel market share is anticipated to grow, underscoring its importance in the broader travel and tourism ecosystem.
Get more insights on India Online Travel Market: https://www.mordorintelligence.com/industry-reports/online-travel-market-in-india?utm_source=abnewswire
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