A recent report done by Google and Boston consultancy group has pegged the Indian Travel Industry market at 48 billion dollars by the year 2020 and will grow at a rate of 11% for a decade. This is almost double of the rate at which the entire Indian economy will grow at. Air Travel is expected to grow by 15% to around 30 billion dollars and the hotel industry will grow at the rate of 13% to 13 billion dollars by 2020. In return, railways will remain stagnant with a revenue of 5 billion. The number of foreign tourists will grow in the next 5 years to over 11 million by 2020.
The digital boom, the rapid adoption of mobile technology and social media integration has increased the number of internet users in India from 332 million in 2016 to over 650 million by the year 2020. The study says that more than half of the consumers will be influenced by digital online media in their buying decisions irrespective of the fact whether they buy or not. This has been attributed to the fact that online blogs and website content had heavily encouraged Indians to travel. It has made them more adventurous. The aggressive posts done by online blogs have got the glamour back into travel and it has become a thing now. People have the opportunity to post their travel itineraries, post their travel holiday pictures and share their experiences with friends and family.
The women internet usage will surge by 2.5 times and tier 2, 3 and 4 cities will see an increase of 80% in the usage of internet users and that is where there is an opportunity to grow the market. Alternate stays like Airbnb and OYO along with lodges and short rental stays will also increase rapidly and grow to 3 billion dollars in size.
All in all, it’s a two thumbs up for the travel industry and the social media. The resurgence of internet has led to this great digital boom.