India's Aviation, Hospitality, and Travel Management (AHTM) Sector: A Comprehensive Industry Analysis | Scrolls

by KarNivesh | 14 September, 2025

India's Aviation, Hospitality, and Travel Management (AHTM) Sector A Comprehensive Industr.

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Overview of India’s Aviation, Hospitality, and Travel Management (AHTM) Sector

India’s Aviation, Hospitality, and Travel Management (AHTM) sector has become one of the country’s fastest-growing economic engines, valued at ₹5,434.86 billion (₹61,55,000 crores) in 2024. This dynamic sector spans aviation, hospitality, and tourism, playing a central role in economic transformation. Tourism alone contributed ₹22,013.19 billion (₹2,49,30,000 crores) to GDP in 2024 while generating 46.5 million jobs, positioning AHTM as a key pillar for India’s 2047 development vision.

Market Composition and Growth: The aviation industry, worth ₹1,277.70 billion (₹14,47,000 crores) in 2024, is the fastest-growing segment with a 12.21% CAGR, expected to reach ₹3,603.62 billion (₹40,81,000 crores) by 2033. Hospitality leads the sector with ₹2,173.06 billion (₹24,61,000 crores) in 2024 and is projected to grow at 4.73% CAGR to ₹2,738.18 billion (₹31,01,000 crores) by 2029. Travel and tourism contributed ₹1,984.10 billion (₹22,47,000 crores) in 2024 and is expected to expand to ₹3,366.40 billion (₹38,12,000 crores) by 2033, driven by rising domestic travel and sustainable tourism trends.

Market Share of Major Airlines in India's Domestic Aviation Market (2024)

Resilience and Recovery: Post-pandemic recovery has been remarkable. Tourism’s GDP contribution grew 20% above pre-pandemic levels, rising from ₹16,953.60 billion (₹1,92,00,000 crores) in 2019 to ₹22,013.19 billion in 2024. Foreign tourist arrivals reached 20 million in 2024, surpassing 2019 levels. International visitor spending hit ₹3,249.44 billion (₹36,80,000 crores), with average spending per visitor at ₹2.9 lakh.

Industry Leaders: In aviation, IndiGo dominates with 64.4% domestic market share, operating 93.1 million monthly passengers. The Air India Group, backed by Tata, follows with 26.4%. New entrants like Akasa Air (4.6%) and SpiceJet (3.3%) foster competition. In hospitality, Indian Hotels Company Limited (Taj) leads, with 360 hotels and the Taj brand ranked as the world’s strongest. ITC Hotels, Oberoi (EIH), and Lemon Tree hold strong positions. Occupancy hit 67.5% nationwide in 2024, with ADR at ₹8,055. Hotel transactions surged, with deals worth ₹8,500 crores since 2023.