FCM Travel Solutions and KPMG’s recent whitepaper titled ‘Redefining Corporate Travel Management’ forecasts that the Indian business travel market is highly fragmented, with 70 per cent of corporates spending less than Rs 10 million.
South Asia is expected to be the fastest-growing world region over the next ten by years, with average annual direct T&T GDP growth of 6.9% forecast, driven principally by strong growth in India (7.1%). In China, long term annual average growth of 6.7% is predicted.
IT companies have the highest share amongst those spending more than Rs 10 million followed by engineering and pharmaceutical companies. IT, BPO/ITeS and pharmaceutical industries have higher travel spends as a percentage of their revenue.
The cost incurred while travelling for business is the second highest operational cost for most organisations. Business travel is central to both maintaining business as well as expanding it and due to rising cost of travel, it is becoming imperative for corporates to drive higher levels of efficiency in their managed travel programme.
India business travel is witnessing unprecedented growth due to a stable economy, growing number of SMEs (small and medium enterprises), growth of regional low cost carriers and a policy push for travel and tourism sector.
TECH FIRMS DRIVING OUTBOUND BUSINESS TRAVEL
India has expanded from traditional outsourcing to advanced technology and product development, alongside many other areas of business. Thus, the top international destinations for India’s business travellers are driven largely
by the technology sector, with tech travel flows now stronger than those of financial services.
With an annual growth of more than 11%, FCM Travel Solutions and KPMG are expected that India business travel will be in the top five by 2022, up from being at ten in 2015.