Despite the pandemic-related uncertainty, 80 percent of international air travel and foreign leisure travel is booked through agents in the country, according to the RedSeer research
By the financial year (FY) 2027, India’s travel market is expected to reach $125 billion. According to a new report released on Tuesday, as the complexity of travel increases in the industry, over 3 lakh agents are likely to service to over $65 billion of the whole market size by the same time period. Customers prefer to plan vacations through agents because of the pandemic-related uncertainty. Eighty percent of foreign air travel and international leisure in the country is booked through local agents.
“The top 750 agents generate Rs 3-4 crore in monthly revenue, accounting for 12% of the agent travel market. These agents mostly specialise in air travel and have business affiliations “RedCore, a division of Bengaluru-based market research firm RedSeer, provided the data. These are followed by 60,000 medium-sized agents who handle a monthly transaction of Rs 20 lakh. They specialise in offering vacation packages. These agents control more than half of the agent market.
The remaining 35% travel agent market share is held by a long network of 250,000 small agents, according to the research. “In India, travel is still mainly reliant on agents. Agents are not only more convenient and trustworthy, but they are also less expensive than booking directly. They control more than half of the market and are anticipated to keep this share in the coming years “RedCore’s Director, Anuj Kumar, stated. In FY20, India’s total market was $75 billion, and by FY27, it is predicted to reach $125 billion. “The market shrank severely in FY21, but recovery is likely to continue in FY22, with a jump in later years due to pent-up demand,” according to the research. The research revealed that there are few competitors in the packages category who can customise a package based on the needs of the customer.