India travel market grows 7.6% in FY26 as online penetration tops 42%

VIDEC Consultants released its India Travel Market Opportunity Study (FY23-FY28), estimating India's travel market at ₹5,972 billion ($67.6 billion) in FY26, up 7.6% year on year — the first single-digit growth after three consecutive years of double-digit expansion. Air bore the brunt of disruptions including the India-Pakistan conflict, the Air India crash, IndiGo's scheduling crisis and the West Asia war, with domestic passenger traffic posting virtually no growth. Alternative accommodation led at 30% growth, followed by intercity bus (15%) and hotels (11%). Online penetration rose from 33% in FY20 to 42% in FY26, with OTAs commanding over 80% of the online market in every category excep…