The travel spend in India is expected to grow at 13 percent to a total of $136 billion by 2021, said a new report by Bain & Company and Google India on Tuesday.

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According to the "How Does India Travel" report, the Indian traveller spent around $94 billion in 2018 on around 2 billion domestic and international trips, thus, helping India's travel and tourism industry achieve unprecedented scale.

"New users perceive that online channels are geared towards more frequent flyers and experience-oriented travellers and existing travellers research online but the lack of trust in payments and booking experience make them end up booking offline.

"If travel players tap these online users through personalised marketing, messaging and travel plans, they can further augment online travel bookings. This can be done by adopting digital technologies to influence customers early in the journey," Vikas Agnihotri, Country Director-Sales, Google India, said in a statement.

The report indicates a 12 percent growth in transportation ($50 billion) and 13 percent growth in lodging ($21 billion) and consumption, which includes spends on shopping, recreation and food, to grow at 13 percent ($65 billion) over the next three years.

"There is a perception amongst consumers that online channels are geared towards premium customers, along with a marked distrust around payment and pricing terms. It is imperative for businesses to address these concerns in order to effectively tap into the growing base of users," Arpan Sheth, Partner, Bain & Company said.

As more people come online, smartphone penetration improves and use of digital payments goes up, the report predicts that Indian travellers would spend an additional $24 billion on online travel bookings over the next three years, a growth from 25 percent in 2018 to 35 per cent in 2021.

First Published:Apr 16, 2019 4:14 PM IST