What’s Driving India’s Business Travel Recovery? 

Skift Take

Sealing a deal with Indian businesses through a computer screen can be challenging. Indians prioritize face-to-face meetings and real connections, explaining the quicker bounce-back of business travel in India compared to other regions.

Peden Doma Bhutia

India’s business travel spending is expected to reach $38 billion this year and is projected to fully recover to pre-2019 levels by 2025, according to the Global Business Travel Association (GBTA).

One significant factor is that 86% of business travelers believe that travel is essential for achieving their business objectives, as stated by Sunny Sodhi, managing director of FCM Travel India.

Companies prioritize in-person interactions with clients and suppliers to accelerate projects. Professionals also travel for business purposes to attend meetings, events, and seminars,” Sodhi mentioned to Skift.

India witnessed a nearly 25% surge in business travel spending in 2023, reaching 78% of pre-pandemic levels. In 2024, an 18% growth is projected for business travel, meetings, and events.

India holds the ninth position globally in terms of business travel expenditure and ranks fourth in the Asia Pacific region.

Business travel in India is bouncing back faster than in other markets. MakeMyTrip, an online travel agency, has highlighted the traction gained by its corporate travel platform.

To cater to corporate travel, Cleartrip recently launched “Out of Office,” a corporate travel management product.

How And Where Are Corporates Traveling?

There is a growing trend of blending business with leisure among Indian corporates, with almost 79% of travelers extending work trips for leisure. This surpasses Asia Pacific figures and aligns closely with global trends, as noted by FCM.

Notable shifts in demand through FCM Meetings and Events include an increase in wellness activities and curated luxury experiences. FCM recently organized activities like walking tours in Maasai Mara and dinner along the Mara River for its clients.

Emerging destinations for meetings and events for Indian corporates include Central Asia and Vietnam. This is mainly due to simplified visa procedures and improved flight connectivity, according to Sodhi.

“Asia has continued to perform well, with a 44% revenue increase, driven by strong performance in Southeast Asia, India, and the reopening of China,” said Bertrand Saillet, managing director of FCM Travel Asia.

And Now The Challenges…

Despite progress, challenges such as geopolitical uncertainties, economic volatility, flight disruptions, and health concerns still exist.

Sodhi emphasized the need for industry and market diversification to reduce reliance on specific regions or sectors to address these obstacles. “We need to be flexible with our travel policies to navigate such uncertainties.”

Technological advancements are rapidly reshaping business travel in India, noted Sodhi.

There is a growing demand for quality data, prompting FCM Travel to leverage data insights for tailored travel policies and experiences.

The Skift India Summit from March 19-20 in Delhi-NCR will delve into the major trends facing the travel industry. The event will feature leaders from various sectors including tourism, hospitality, aviation, and experiences.

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