• AI tools, mobile apps, and fintech solutions are transforming India’s travel industry, making bookings smarter, faster, and more accessible, especially in tier-2/3 cities.
• Simplified slabs (5 Percent /18 Percent) lower taxes on budget hotels and economy flights, increasing domestic travel demand while easing compliance for travel platforms.
• Short trips, staycations, and digital payments are driving a new travel era, with OTAs expanding services to offer end-to-end travel experiences.

India’s travel industry is at the cusp of a tech-driven revolution. In 2025, tech innovations like AI-powered planning tools, UPI payments and personalized mobile apps are transforming how Indians travel. Key market projections reflect this surge, the Indian online travel market was about $23.1 billion in 2025 and is expected to grow over 7.7 Percent annually through 2030, and even reach an estimated $124 billion by 2033.

In this dynamic environment, several travel-tech giants are emerging to shape the future of travel in India. Let’s look at how recent GST reforms are reshaping the travel tech landscape and unlocking new opportunities

The Key Drivers of Travel-Tech

ixigo: A mobile-first OTA known for rail, bus and flight search, ixigo has become India’s fastest-growing travel app. It reported over rs 1.2?billion (≈$155?M) in FY24 GBV and led all players in rail ticketing share. Ixigo’s AI-driven features such as predictive fare alerts and real-time bus info have resonated especially with tier-2/3 users. With its fintech integrations (like wallet and fast-lane payments), ixigo has improved margins even while Indian OTAs often operate on razor-thin profit per booking.

Key Leaders

• Rajnish Kumar, Director & Group Co-CEO
• Aloke Bajpai, Chairman, Managing Director & Group CEO

Yatra: Focused on corporate travel and business segments, Yatra combines B2B and B2C services. It has a strong multinational inventory and multilingual support, serving frequent flyers and travel managers. (Yatra was in news for a pending acquisition by Ebix, but continues to operate its platform.)

Many other ‘travel-tech’ enterprises are emerging. Alternate-stay networks like Zostel are growing (focused on hostels and homestays), and even foreign players (Airbnb, Tripadvisor) have large Indian user bases. Global tech giants view India as a key market, in late 2025 Google launched an AI-powered ‘Flight Deals’ tool in India (alongside the US and Canada) to help flexible travelers find bargains. This move underscores India’s rapid adoption of AI tools for travel planning.

Key Leaders

• Dhruv Shringi, Co-Founder & CEO
• Manish Amin, Co-Founder & CTO

• Sabina Chopra, Co-Founder & COO-Corporate

OTA Success Stories

MakeMyTrip (MMT): Founded in 2000, MMT is India’s oldest and largest OTA. It has evolved into a ‘travel super app’ offering flights, hotels, trains, buses and packages. Today MMT handles over $10+?billion in annual gross bookings and is Nasdaq-listed.

 In FY2023-24 MMT delivered record-breaking results, outpacing the industry by 1.5× and setting new highs in revenue and profits. A 2017 merger with Ibibo (GoIbibo and redBus) gave MMT triple-engine growth across flights, hotels and bus travel.

Even the Covid crisis emerged as a catalyst, MMT revenues fell momentarily by 95%, but the company quickly automated its operations, reduced customer-acquisition expenses and introduced AI-driven customer service, becoming leaner and more digitalized. In short, MMT’s resilience and tech focus have kept it ahead in India’s fiercely competitive OTA market.

Key Leaders

• Deep Kalra, Founder & Chairman
• Rajesh Magow, Co-Founder & Group CEO
• Sanjay Mohan, Group Chief Technology Officer
• Mohit Kabra, Group Chief Financial Officer

EaseMyTrip: This bootstrapped Delhi-based OTA (founded 2008) has also thrived in the post-Covid resurgence. In FY2023-24 it achieved record results, revenue jumped 32% to Rs 591?crore and profit rose 16% to Rs 215?crore.

EaseMyTrip’s business covers flights, hotels, buses and insurance. Its Nishant Pitti notes it now serves 2.6?crore customers. The company is diversifying in 2024 it took a stake in a Jeewani Hospitality hotel project and launched its own insurance broker entity, expanding its all-in-one travel services.

The industry sees EaseMyTrip’s no-convenience-fee model and tier-2/3 focus as key strengths. Its strong FY24 performance the best yet signals robust domestic travel demand and efficient operations.

Key Leaders

• Nishant Pitti, Co-Founder
• Rikant Pittie, Co-Founder and CEO
• Prashant Pitti, Co-Founder

Also Read: How GST 2.0 India 2025 Affects Weekend Travel and Luxury Spending

The GST Effect on Tourism

Recent government tax reforms have significant implications for travel tech. In September 2025 India’s GST Council rationalized rates to just two slabs (5% and 18%). Crucially for travelers, hotel stays up to Rs 7,500 per night (mid-range/budget segment) now attract just 5% GST without input credits (down from 12% with credits). Economy-class air tickets remain at 5%, while premium class fares saw an increase to 18%.

Industry leaders hail these changes.

EaseMyTrip’s Co-founder Rikant Pitti called it an ‘exciting time’ for tourism, noting that simpler slabs ‘will make travel more affordable for people and boost overall demand'.

MakeMyTrip’s Rajesh Magow likewise praised the move, saying lower taxes on budget hotels will make stays more affordable for a large share of Indian travellers, reinforcing demand in the domestic market.

Zostel’s CEO Aviral Gupta pointed out that cutting GST on hospitality to 5% makes travel and accommodation more affordable and will spur long-term growth in the sector.

On the other hand, some segments face a GST hike. Notably, non-economy (business/first class) flight tickets now carry 18% GST, making them costlier. This could dampen premium travel slightly, but most analysts believe the boost to mass tourism outweighs this.

Overall, the simplified GST regime reduces compliance headaches for travel companies and is widely viewed as net positive for tourism growth.

India’s New Travel Era

Mobile/Internet Penetration: Over 70% of OTA bookings come via smartphones. Cheap data and digital literacy have brought even rural users online. Apps leverage voice search and regional languages to widen access.

Digital Payments & Fintech: The ubiquity of UPI, credit/debit cards, and emerging BNPL has boosted consumer confidence in online booking. Seamless payment options shorten the booking funnel.

Weekend Getaways/Staycations: Post-2020, Indians are taking more short trips and workations. Services like OYO and Airbnb style homestays have expanded supply to meet this trend.

The Hidden Hurdles

High Customer Acquisition Costs: Coupled with discounts, marketing expenses are huge. Travel platforms spend heavily on Google Ads, social media and affiliate fees to capture each booking. Payback periods can be long, making it tough for bootstrapped startups (though EaseMyTrip succeeded without venture capital).

Regulatory and Policy Complexity: While recent GST reforms help, the travel sector still navigates complex regulations. Changes in aviation policies, foreign direct investment rules for hospitality, and local tourism levies can abruptly alter costs.

Wrapping it Up!

Travel apps are turning into end-to-end companions and GST changes enhance low-end travel. The combination of technology, policy, and innovation is creating smarter and seamless travels to every Indian traveller.