India is geographically diverse and offers a variety of cultures that come with its own experiences, making it one of the leading countries in terms of international tourism expenditure. As per IBEF’s report on Growth of Tourism and Hospitality Industry, Travel and tourism are two of the largest industries in India, with a total contribution of about US$ 178 billion to the country’s GDP. The country’s big coastline is dotted with several attractive beaches. With this, the travel market in India is projected to reach US $125 Billion by Financial Year 2027. International Tourist arrival is expected to reach 30.5 million by 2028. As in several other sectors, Indian companies have been leveraging technology as a critical enabler of growth for the sector for over a decade now. From search engines and global distribution system (GDS) services to online travel agencies, the travel industry has witnessed significant innovation, and there is scope for more. A primary driver of tech-oriented growth for travel and hospitality companies is their adoption of cloud solutions and the development of Software as a Service (SaaS) technologies.
India is a large market for travel and tourism. It offers a diverse portfolio of niche tourism products - cruises, adventure, medical, wellness, sports, MICE, eco-tourism, film, rural and religious tourism. India has been recognized as a destination for spiritual tourism for domestic and international tourists. India ranked 34 in the Travel & Tourism Competitiveness Report 2019 published by the World Economic Forum.
As per the Startup India data, the travel and tourism industry has close to 1500 startups that comprise of companies providing platforms that enable planning and booking of travel services or assist travel service providers with technology solutions. This includes companies offering services that enable users to discover and book travel-related services such as transportation, accommodation, facility management, tours, ticketing and activities through online portals.
There are numerous opportunities for in the Travel and Tourism space for the budding entrepreneurs. Few of them have been listed below:
- Virtual Technology - In India, the use of virtual technologies in the tourism and hospitality industry, though increasing, is limited. The Ministry of Tourism through its “Dekho Apna Desh” webinars has started to offer virtual tourism, as well as virtual safaris, tours of museums and art galleries, and exhibitions so far. The next step for virtual tourism could thus be partnering with international universities, particularly departments of history and architecture. India may also tap the live virtual religious tourism avenue for international pilgrims who are unable to travel due to these travel bans. As an example, the Bodh Gaya in Bihar – an important Buddhist pilgrimage site – attracts a vast number of tourists every year. Live streaming the daily rituals of such significant pilgrimage destinations may be considered. Further, this will also lay the foundation for the medium-term when international tourism opens, something like Switzerland’s ‘Dream Now Travel Later’.
- Aggressive Marketing - advertising and disseminating information is critical. Aggressive online and other marketing strategies can be pursued to promote India as a must-visit location. Whether it is broadcasting campaigns like ‘Incredible India’ abroad, holding tourism seminars or offering Indian locations with facilities to promote foreign film productions in the country. Aggressive marketing is critical to be seen and heard well. India may consider having a Swachh Bharat Ranking for its tourists in terms of hygiene standards considering the concerns that arise from the pandemic, taking its annual ‘Swachh Survekshan’ survey a step further.
- Creating experiences – Most tourist destinations around the world are made up of curated experiences. Be it botanical gardens, architectural monuments, backwaters, or the Himalayas, the potential of a place to attract tourists can be improvised than banking on the natural beauty of a place. The public and private players of the industry need to manipulate destinations as experiences and not sightseeing point alone. For instance, steps can be taken to make the tour replete with tour guides, activities for the children, culinary tours, interactivity for the tourist with the culture of the place etc.
- Niche Tourism Areas - With too many points of differentiation available, Indian tourism should focus on how it has something on offer for everyone in every category with all budgets, from selling customized experiences, luxury spa sessions, rare animal sanctuaries, religious pilgrimage tours to extreme Himalaya tours. India on shoestring, India in luxury, the royal India, urban India, the common man’s India, historical India, and much more can be explored.
- Sustainable Solutions - The tourism industry can be transformed by the availability of sites and a policy on building eco-friendly hotels in coastal regions and wildlife parks. An awareness of ‘conscious luxury’ which is personified by a growing breed of small, intimate hotels—palaces, plantation retreats and jungle lodges—where the ethos is defined by transformational travel that educates, enriches, and encourages a digital detox when asked for, but allows connectivity when one needs it. To drive tourism forward sustainably is key and it has now become imperative for all stakeholders to take positive action in this direction.
However, the industry faces some challenges, such as lack of proper infrastructure such as access roads, electricity, water supply, sewerage and telecommunication, Access and connectivity to new destination and exploring niche segments. Other issues include Lack of adequate marketing and promotion, Regulatory issues related to visa and internal permits, Human resources, Service Levels, Taxation and Security.
To address these challenges and after realising the country’s potential in the tourism industry, the Indian Government has taken several steps to make India a global tourism hub. In his Independence speech from Red Fort, Prime Minister Mr. Narendra Modi urged people to visit 15 domestic tourist destinations in India by 2022 to promote tourism. The Draft National Tourism Policy 2022 also focuses on positioning Tourism as a National Priority, enhancing competitiveness as tourist destination and creation of World Class Infrastructure.
There are ~1497 DPIIT recognised startups in the Travel and Tourism Sector as on 17th April 2023. These recognised startups are spread across 262 districts of the country. They employ ~13,919 people. The highest number of recognised startups in this sector are in Delhi ~222. About 58% of the startups in this sector are from Tier 2 & Tier 3 cities.
Startups in the spotlight:
- Param People Infotech Solutions Private Limited: National Startup Awards 2020 winner, Param People Infotech has developed a complete road travel support platform for travelers in collaboration with MakeMyTrip, Zoomcar, Honda, Bosch, Karnataka Tourism Department and Bharat Petroleum. ‘Highway delite’ is a digitally connected highway wayside amenities platform to enable tourists to plan their trips down to the letter.
- Villotale Technologies Private Limited: National Startup Awards 2021 winner, Villotale is a tech startup in destination and experiential tourism in rural space engaging the local community. VilloTale uses technology, partners with rural homestays and rural service providers like homeowners, trekkers, farmers, artisans, guides, village cooks, etc., and helping them improve their product for sales, service quality, customer handling, and customer communication, and delivery standards and help them get business.
- Upcurve Business Services Private Limited: National Startup Awards 2021 winner, udChalo operates travel services for Defence Personnel through the website www.udchalo.com, app platform, and 70 plus offline ticket booking offices catering to more than 2.8 million serving Defence Personnel, Veterans, and their Dependants. udChalo's booking offices are operated by Veterans/Veer Naris/Dependents from the Indian Armed Forces Community.
Apart from government schemes, stakeholders including incubators and accelerators support startups in the travel industry. For instance, CIIE IIMA, NSCREL IIMB are the incubators that support startups in the sector. Additionally, there are schemes such PRASHAD, Swadesh Darshan, SAATHI, Dekho Apna Desh and NIDHI, that are supported by the Government of India.
In conclusion, the Travel and Tourism industry is an important contributor to India's economy, providing employment opportunities to millions of people. With the right support ecosystem, the food processing industry in India has the potential to become a major player in the global market.
If you are a startup making a difference in the Travel and Tourism Sector, apply for the National Startup Awards 2023 under the following categories and more.
To apply for the National Startup Awards 2023, you have to be a DPIIT recognised startup.
Click here to get recognised.
https://www.ibef.org/industry/tourism-hospitality-india/infographic
