Indian Business Travel Industry Trends 2023: A Look into the Future
The Business travel industry in India, reinvigorated by the influx in foreign investments, global market expansion of Indian companies, and the popularity of bleisure, is expected to undergo some exciting changes in 2023. As a developing nation, India provides an unparalleled sustainable business environment with a strong judiciary system, abundant natural resources, diverse climatic conditions, competitive costs, low labor costs, excellent banking and financial institutions, and straightforward tax structures. These are but a few factors that draw international opportunities to Indian shores and consequently push the business travel industry in India forward. To help prepare for the lucrative future, we felt it is an excellent opportunity to explore the Indian T&E industry trends that will reshape business travel in India in 2023 and beyond.
State Of Indian Business Travel In 2023:
Let us dive into the factors that best describe the current state of the business travel industry in India in 2023.
As India continues to cement itself as a global business hub, the growth trajectory of its business travel industry is projected to go from USD$31.7 billion in 2021 to USD 55.2 billion by 2027. Rest assured, this CAGR of 8.6% is proving with undeniable certainty that there will be exponential growth in both international and domestic business travelers moving forward, which will propel Business travel in India forward.
Region-specific analysis of business travel in India found that Delhi, the nation’s capital, is leading the way with the highest volume of business travel bookings in 2021, followed by Hyderabad and Bangalore. As the country’s most significant economic hotspots, these regions are expected to push the business travel industry in India to new heights in 2023.
An industry-wise analysis of bookings in the business travel industry in India found that the construction industry has the highest volume of business travelers. Besides construction, consulting and Information Technology (IT) industries significantly contribute to the soaring market value of the business travel industry in India. Outsourcing is the primary reason why the IT industry is currently one of the leading Indian T&E industry trends.
Indian Business Travel Industry Trends in 2023:
Without any further delay, here are the top trends of Business travel in 2023:
Globalized Travel Is Becoming The Norm
With fewer travel restrictions in 2023 and international travel bouncing back from the pandemic, business travel in India is no longer limited to a handful of destinations. While innovative technologies, increased connectivity, and disappearing travel restrictions are bringing international markets closer, Indian businesses will extend their global reach on a scale like never before. It is why globalized travel will be one of the prominent Indian T&E industry trends to keep an eye out for in 2023.
Rising Foreign Investment In The Space
As a fast-paced, stable, sustainable, and business-friendly economy, India is drawing in many global investors due to its excellent business policies. In 2022, the Foreign Direct Investment (FDI) equity inflow to India alone was valued at around USD$572 billion, which is expected to substantially increase the frequency of business travel to and from India in 2023.
Travel as a Result of Market Expansion
Indian businesses will continue to expand their markets, forge global partnerships, and thrive off international opportunities in 2023. Enterprises will not solely rely on remote communication tools to achieve this feat but will also likely do so by meeting in person. That is why domestic and international market expansion will be a leading trend in the business travel industry in India to look out for in 2023.
An Increasing Mix of Business and Leisure
Bleisure trips mutually benefit businesses and employees, leading to increased morale and business travel productivity. As the world transitions back to normalcy in 2023, the current Indian economic situation is ripe with opportunities for millennials anxious to resume their business and leisure travels and to get their work-life balance back on track. We can expect a growing number of Indian companies to visibly embrace and facilitate bleisure trips as a leading trend for the business travel industry in India as we move through 2023.
Business-Airline Partnerships Grow Stronger
The re-emergence of the business travel industry in India in 2023 will witness stronger relationships between businesses, their travelers, and airline operators. The airline industry is expected to provide better deals, flexibility, convenience, and travel experiences to suit the unique requirements of business travelers, such as priority check-in, lounge access, and onboard services. These strong relationships will encourage business travel in India, streamline T&E, and enable businesses to implement cost-effective travel in 2023 and beyond.
The Indian hotel industry has been through its fair share of ups and downs over the past few years. As business travel in India is on the rise again, accommodation providers will go beyond simply providing stay for travelers and take it one step further to offer revamped travel experiences. You can expect hotel chains to broaden their offerings to include co-working spaces, conference rooms, business lounges, and other amenities designed specifically to suit the unique needs of the business travel industry in India. In 2023, we foresee that numerous Indian hotel chains will work on establishing their hotels as productive Hubs for Indian business travelers.
IT Industry Travel Driven by Outsourcing
The IT industry, one of the leading contributors to the Indian economy, will be a crucial driver of business travel in 2023. As an industry that engages in a high level of outsourcing, we can expect more and more Indian IT companies to send their employees to work on domestic and international projects. It is why outsourcing and the IT industry will work hand in hand to fast-track the growth of the business travel industry in India.
Stakeholder and Team Meetings
Despite innovations in remote communications that make it dramatically easier for business stakeholders to operate and communicate remotely, on-premise stakeholder and team meetings remain essential to most businesses. As such companies continue to thrive in 2023, we can expect their teams and stakeholders to frequently conduct business travel in India.
Conferences and Events
Conferences and events are an integral part of any thriving business. In 2023, we can expect to see more Indian companies conducting conferences and events to network, showcase their products and services, and stay up-to-date with industry trends. You can also expect many to send their employees overseas and domestically to attend conferences and events that will positively impact the business travel industry in India over the upcoming years.
The business travel industry in India needs the right tools and strategies to derive the best value from every business trip. The right T&E management tools can be instrumental in travel budget optimization such that you ensure your employees have a productive, enjoyable, compliant, and cost-effective travel experience. Find a T&E management partner to help you keep up with the tremendous growth potential of the economy and business travel industry in India in 2023 and beyond.
Tripeur – The Ultimate T&E Experience in India
Tripeur is a travel and expense management platform that offers a range of services designed to prepare for the Indian T&E industry trends and make business travel more efficient and cost-effective.
Tripeur is a stellar automated expense management platform that provides users with a full-scale T&E expense module that addresses, solves, and simplifies all challenges facing your expense management.
Our T&E management platform keeps the CFO, admins, managers, and the finance department in the loop through expense alerts and reports on all stages of the travel booking experience.
Engaging in our platform is an excellent way to maximize trip productivity and ROI like never before. Our user-friendly software can perpetually fix your expense management inefficiencies and dramatically curb costs like never before.
By now, you should understand how the ancient traditional spreadsheet-based processes make it almost impossible to enforce your T&E policy and accurately manage your corporate travel expenditures. Steer away from manual expense management and explore what Tripeurs automated T&E management platform can do for you. Contact us to learn how you can automate and streamline your travel and expense management systems to brace for the promising future of Indian business travel.