India’s business travel sector is on track to reach pre-2019 spending levels by 2025, according to the latest findings from the Global Business Travel Association (GBTA). The GBTA Business Travel Index (BTI) report, presented at a recent industry event, revealed that India’s business travel spending stood at an estimated USD 38.3 billion in 2024, making it the 8th largest market globally and the 4th largest in the Asia-Pacific (APAC) region.
The report highlights India’s strong economic recovery, with corporate earnings and demand for face-to-face meetings driving growth. Domestic travel capacity has increased by nearly 13 per cent compared to pre-pandemic levels, while hotel occupancies in the organised sector have reached record levels of almost 68 per cent, with Average Room Rates (ARRs) hitting USD 100.
The insights were shared at the second edition of the FCM Corporate Travel Summit, held in Bengaluru, where industry leaders gathered to discuss the future of business travel in Asia, the transformative role of technology, and evolving traveller behavior.
India accounts for 6.2 per cent of business travel spending in the APAC region, reflecting its growing importance as a key market. “India is currently in an exciting phase. The economy is robust, corporate earnings are strong, and there’s a growing demand for face-to-face meetings,” said Sunny Sodhi, Managing Director of FCM Travel India. “This positivity is largely driven by strong economic growth and performance across most industries.”
The GBTA report also emphasised the significant growth in India’s national markets and the SME segment, which have been major drivers of regional expansion. Bertrand Saillet, Managing Director of FCM Travel Asia, noted, “The meetings and events sector is also robust in India, showing steady growth and contributing to the overall recovery of business travel.”
Technology, particularly artificial intelligence (AI), was a key discussion point at the summit. A GBTA survey revealed that 63 per cent of APAC buyers consider AI their top priority for 2025, the highest globally. AI is being leveraged to enhance the traveller experience, provide timely and relevant information, and ensure seamless engagement throughout the travel journey.
India is the 9th largest travel market in the world for business travel spending. It is the 4th largest market for the Asia Pacific region, representing 5.7 per cent of business travel spending in the region. In 2023, India’s business travel spending grew 24.7 per cent and we anticipate an 18.3 per cent increase in spending in 2024.
“Our AI initiatives aim to empower employees to deliver superior service and enhance the traveller experience,” said Saillet. “This is crucial in redefining the customer experience and driving scalability in the industry.”
The meetings and events sector is also experiencing steady growth in India, with a focus on delivering personalised experiences through technology. Simone Seiler, Global Leader of FCM Meetings & Events, emphasised the importance of return on engagement (ROE) alongside return on investment (ROI). “Technology and tools can deliver highly personalized experiences, helping attendees stay engaged with the event’s objectives throughout the entire customer journey,” she said.
The GBTA report projects a promising outlook for 2025, with business travel expected to enter its next era of growth. However, economic developments, travel costs, and budgets will remain critical factors. “Technological advancements, particularly in AI, along with the ongoing evolution of sustainability, will continue to shape our industry,” said Elle Ng-Darmawan, GBTA’s Regional Director for APAC.
As India’s business travel sector continues to recover and innovate, the focus on technology, sustainability, and personalised experiences is set to drive the industry forward, ensuring resilience and responsiveness to the needs of modern travellers.
