Google and BCG report states that Indian Travel Market is projected to grow at 11-12 per cent and will bring valuation of the market more than $48 billion by FY2020. In this industry it is expected that air travel will develop at 15 per cent and the valuation by 2020 will be around $30 billion.
Abheek Singhi, Senior Partner and Asia Pacific Head of Consumer Practice, BCG said, Travel is a high investment, both monetary and emotional category. Technology has led to a democratisation of travel through better information and price discovery and shall lead to 11-11.5 per cent growth in years ahead. The question is how to address the 17 different touch points of three minutes each over 49 days. The imperative for players is to use technology and advanced analytics capability to understand individual micro journeys and offer personalised and curate travel solutions.
The report further adds that in India Hotels will also nurture at 13 per cent growth rate and the value will raise is up to $13 billion by 2020 and railways growth will remain constant by 2020. Also with the rise in digital payments the online hotel segment is also projected to penetrate at 31 per cent and vale of $4 billion by 2020 with CAGR of 25 per cent.
Vikas Agnihotri, Industry Director, Google India, said, Indias domestic travel market is on an acceleration path. One of the key findings of the report is that by 2020, one in three hotel rooms will be booked online a clear indicator of the growing importance of digital in travel research, planning, and booking. There are several actionable insights for domestic online travel players including the role of mobile and the level of curation and personalisation that Indian travelers are looking for.