India's Tourism Market Set to Hit $38 Billion by 2033: What's Fueling the Surge?

Skift

5 hours ago

India's travel market is no longer a story waiting to be, it is booming now and the strong growth is expected to sustain. Global brands are aware of it as they race to make the most of this opportunity.
The market size of India's travel and tourism industry is expected to reach $38.12 billion by 2033, according to projections by market research company IMARC Group. In 2024, this figure was $22.47 billion, it said.
'India's travel and tourism market is expanding due to strategic government initiatives that enhance domestic tourism and infrastructure,' the research firm said. It highlighted schemes such as Dekho Apna Desh (Explore your country), the PRASHAD scheme (Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive), and Swadesh Darshan initiatives.
'These initiatives collectively enhance tourist experiences, promote local economies, and drive India's travel and tourism market growth. India's tourism sector witnessed remarkable progress, driven by policy reforms and large-scale promotional efforts,' it added.
Factors Driving The Growth: A combination of socio-economic, technological, and policy factors are driving the growth of India's travel story, according to IMARC. Improving disposable incomes and a growing middle class, along with growing aspirations for experiences are leading to a rise in domestic as well as international travel among Indians.
It added that rapid growth in the aviation infrastructure including new airports, regional connectivity schemes, and increasing number of low-cost airlines is improving access to travel in urban and rural areas. Further, the rise of online travel platforms for booking travel, accommodations and experiences is making travel convenient.
There is also an increased awareness around niche segments such as wellness tourism, adventure travel, cultural heritage, and experiential stays, which is creating new sources of demand and lengthening the chain of tourism value, the research added. Social media and influencer advertising is further adding fuel to drive travel inspiration.
India's Potential: India is a key focus for travel players across the globe. In March, Riyadh Air CEO Tony Douglas told Skift that India has long been a crucial part of Riyadh Air's network planning ahead of its operations launch.
Global hotel giant Marriott has repeatedly spoken about India's increasing importance in its global expansion plans. It expects India to become its third-largest market. That's why last month, the hospitality group launched a new global midscale and upscale brand Series by Marriott and made India its debut market. This was accompanied by Marriott's first direct investment in Indian hotel industry with a 'small equity investment' in Concept Hospitality.
Earlier this month, Emirates President Tim Clark once again spoke out about India's bilateral air service agreements, seeking more capacity rights to operate in India.
For global online travel platform Booking.com, India is among the biggest growth opportunities, Laura Houldsworth, managing director and vice president for APAC at Booking.com, told Skift earlier this year. 'All eyes are on India right now for the opportunity size and knowing that travel spend is going to increase exponentially over the next few years,' she said.
After International Routes, Air India Cuts Narrowbody Network
Full-service airline Air India Sunday announced a temporary reduction of close to 5% to its overall narrowbody network. The decision comes days after the carrier temporarily scaled back widebody operations by 15%.
'This voluntary decision leads to the temporary suspension of Air India's services on three routes and reduction of frequency on 19 routes,' the airline said on Sunday, adding that these changes will remain in place at least until July 15.
Daily flights on the Bengaluru-Singapore, Pune-Singapore, and Mumbai-Bagdogra have been paused for now.
The reductions include metro routes such as:
Delhi-Bengaluru down from 116 flights a week to 113
Delhi-Mumbai from 176 weekly flights to 165
Delhi-Kolkata cut from 70 flights a week to 63
Delhi-Hyderabad down from 84 times a week to 76
Mumbai-Bengaluru from 91 weekly flights to 84
Mumbai-Kolkata from 42 flights a week to 30
Mumbai-Hyderabad reduced from 63 times a week to 59
Apart from these, services have also been reduced on Bengaluru-Chandigarh, Delhi-Goa (Dabolim and Mopa), Delhi-Coimbatore, Delhi-Indore, Delhi-Lucknow, Delhi-Pune, Mumbai-Ahmedabad, Mumbai-Coimbatore, Mumbai-Kochi, Mumbai-Goa (Dabolim), and Mumbai-Varanasi routes.
According to Air India, these reductions will allow the carrier to strengthen its operational stability across its network. 'Despite these temporary reductions, Air India will continue to operate close to 600 daily flights with its narrowbody aircraft on 120 domestic and short-haul international routes,' it said.
The airline has been making operational changes after a London Gatwick-bound Air India flight was involved in a fatal crash in Ahmedabad on June 12, killing 241 of 242 passengers and crew members onboard. Disruptions in global airspace due to mounting tensions in the Middle East is also posing a challenge for the airline.
On Saturday, India's aviation regulator Directorate General of Civil Aviation (DGCA) ordered Air India to remove three senior employees from crew scheduling duties. It cited previous violations of pilot rest and licensing rules as the reason for the order. This action was not directly related to the crash, but it brought Air India under additional scrutiny. The DGCA said multiple violations were discovered after Air India switched its internal crew scheduling software last year.
Ixigo Gets $11 Million From Schroder Fund
Asset management company Schroder International Selection Fund has made an investment in online travel agency Ixigo, Skift reported on Friday. Through a block deal investment, the financial institution acquired a 1.38% stake in Ixigo, the online travel agency said in a statement.
On Thursday, Ixigo shareholder Elevation capital sold 7.5 million shares in a block deal for about INR 1.35 billion ($15.7 million). Schroder acquired nearly 5.37 million shares for INR 969 million ($11.2 million). Even with the block deal, Elevation Capital still holds 12.08% in Ixigo.
According to Ixigo, Elevation got a 2500% return on its latest partial exit.
Schroder manages assets worth over US$950 billion, bringing significant institutional heft to ixigo's cap table, the online travel agency said.
In the 2025 fiscal year, Ixigo reported a profit of INR 602.52 million (approximately $7 million), while its total revenue went up 39% to INR 9.14 billion ($105.5 million). Its market capitalization as of Thursday was also up 39% year-on-year to INR 68.85 billion ($794.9 million).
IndiGo Announces Flights From Hindon Airport in Delhi-NCR
Indian airline IndiGo has announced its operations from the Hindon airport in the Delhi national capital region (Delhi-NCR). Starting next month, the airline will commence flights to eight cities from the airport - Ahmedabad, Bengaluru, Chennai, Indore, Kolkata, Mumbai, Patna, and Varanasi.
With this, IndiGo will now operate from two airports in the national capital region. Hindon also marks the airline's 93rd domestic destination. At present, IndiGo operates more than 1,500 weekly departures from Delhi's Indira Gandhi International Airport.
The Hindon airport in Uttar Pradesh is located in Ghaziabad providing connectivity for residents of Ghaziabad, East Delhi, and Western Uttar Pradesh.
'Our expansion into Hindon is a strategic move offering an additional gateway for millions in the wider catchment area,' said Vinay Malhotra, head of global sales at IndiGo. 'With over 70 weekly departures to eight key cities, our endeavor is to increase travel convenience, drive business mobility and foster economic growth,' he added.
The airline is also set to launch operations from the upcoming Jewar airport in Noida in Delhi-NCR. This move will allow IndiGo to manage operations in all three airports in and near the national capital.
Hilton Debuts Hilton Garden Inn Brand in Mumbai
Global hotel chain Hilton has opened Hilton Garden Inn Mumbai International Airport. The 140-key hotel marks the brand's debut in Mumbai.
'Mumbai has long been an important hub for Hilton, and the debut of our focused service brand in Mumbai is designed to cater to the rising expectations of travelers in the city. This opening marks another step in our strategic growth journey,' said Zubin Saxena, senior vice president and regional head, South Asia, Hilton.
Last month, Christopher Nassetta, Hilton president and CEO said that the company plans to grow its presence in India by 10 times over the next 10 years. 'There's no market with more opportunity and higher growth than India,' he said, adding, 'What's been happening in the hospitality market in India over the last 20 years and what will happen in the next 20, there's no other market that has more opportunity.'
Royal Jordanian Launches Ammam-Mumbai Direct Flights
Royal Jordanian Airlines last week launched a new direct route connecting Ammam's Queen Alia International Airport with the Chhatrapati Shivaji Maharaj International Airport in Mumbai. The service, which commenced on Thursday, is set to operate year-round four times a week.
'This strategic addition strengthens connectivity between India and Jordan and offers seamless onward travel to over 50 destinations across the Middle East, Gulf, and North Africa,' the airline said in a statement.
The country is looking to increase the number of visitors from across the world, including India. In 2023, around 80,000 Indians visited Jordan, and by adding direct connectivity, the country is looking to double this figure.