The bus business in India is projected to attain a price of INR 104,000 crores in 2026, with a compound annual development fee (CAGR) of 6.64%. The CAGR for State Transport Undertakings (STUs) is 6.36% and seven.37% for personal buses.
“Traveltech 2.0: The Subsequent Part of Digitally Empowering the Indian Traveler”, a report collectively produced by the Web and Cellular Affiliation of India (IAMAI) and Grant Thornton Bharat has revealed these numbers. The report was launched on the India Digital Summit (IDS) 2024 in Mumbai on Wednesday.
The floor transportation providers like bus and rail journey has enormous potential for OTA service suppliers who supply worth added providers to their clients along with primary on-line ticketing.
Karnataka, Maharashtra, Tamil Nadu, Andhra Pradesh, Telangana, and Uttar Pradesh emerge because the principal markets in STUs, constituting practically 70% of the market share. The highest 5 states in complete addressable market (TAM) for personal buses are Uttar Pradesh, Maharashtra, Rajasthan, Punjab, and Haryana, that are anticipated to account for round 45% share by 2026.
On-line ticketing amongst bus vacationers is on the rise, regardless that the value delicate class of non-AC buses or intra-city bus ticketing continues to be predominantly offline based mostly. Intra-city bus journey continues to be predominantly served by State Transport Items (STUs) which provides nice scope for personal sector involvement.
Intra-city bus providers are witnessing a plethora of value-added providers like stay bus monitoring and digital ticketing being supplied in metropolis buses. A main survey carried out amongst bus travellers throughout eight cities revealed vital curiosity and uptake for on-line ticketing and value-added providers.
Though many customers nonetheless will not be utilizing on-line ticketing merely as a continuation of outdated habits, there’s a nice curiosity for on-line providers supplied they provide sure options like particulars on seat availability and reservation, low prices, reductions and a number of choices at particular value ranges.
For the Indian railways, the income contribution of reserved passengers stands at 70%, which corresponds to solely 12% passengers carried when it comes to quantity, whereas 88% unreserved passengers contributed to solely 30% of the income to the Indian railways.
On-line ticketing in Indian railways continues to be restricted for many personal gamers, pushed primarily by the web ticketing providers run by Indian Railways itself. Nonetheless, the report estimates that reserved ticketing presents vital for OTAs/Brokers in coming years.
With unreserved passengers constituting a considerable portion of the overall passenger depend, collaboration between CRIS and personal OTAs emerges as a transformative alternative. The shift to digital ticketing not solely reduces operational burdens for the Indian Railways but in addition provides personal OTAs an avenue to innovate tariff constructions and improve person comfort. This synergy holds the potential to raise the passenger expertise, alleviate infrastructure pressure, and foster a symbiotic relationship, yielding effectivity positive aspects for the railway system and expanded market alternatives for the personal sector.
“Know-how is revolutionising journey, making it simpler to make use of than ever earlier than. Chalo is thrilled to assist the publication of the Journey Tech report. I am assured that it’ll spark significant conversations and form constructive insurance policies that may be sure that we leverage expertise in the absolute best method to make metropolis bus journey higher,” stated Dhruv Chopra Co-founder and CMO, Chalo, talking on the launching of the report on the India Digital Summit 2024 on February 28.
Aloke Bajpai, Chairman, Managing Director and Group CEO, ixigo, stated, “Railways and buses are revolutionizing the bottom transport section in India. With infrastructure improvement, elevated web penetration, modernization and enchancment in service high quality with OTA-driven tech upgrades, this section is poised for additional development. By leveraging expertise, OTAs are empowering vacationers to make smarter journey choices, and are taking part in a number one position in driving on-line adoption within the floor journey sector.”
“The following evolution of journey tech will occur as we unlock the complete potential of OTAs within the floor transport enterprise. That is the important thing message from the IAMAI Journey Tech report. You will need to take away tax disparities between e-commerce operators and e-commerce suppliers within the home market. Presently, a buyer pays a 5% GST cost when reserving a non-AC bus via an e-commerce platform. This cost is zero for a direct reserving from a bus operator, regardless of whether or not it’s carried out in on-line or offline mode,” Prakash Sangam, CEO, Redbus, stated
Addressing the identical session Vikash Jalan, Chief Enterprise Officer, PayTM Journey, stated, “The brand new IAMAI Journey Tech Report explores the position of expertise in shaping India’s journey panorama, highlighting the impression of OTAs on floor transportation and calling for collaboration to bridge the digital divide and unlock the complete potential of journey expertise.”
 and Grant Thornton Bharat has revealed this and more numbers. The report was launched at the India Digital Summit (IDS) 2024 in Mumbai on Wednesday.){kind=link}