From Guidebooks to AI Co-Pilots
The way Indians plan their holidays has fundamentally changed. What once required multiple calls, guidebook consultations, and a trusted travel agent can now be done almost entirely on a smartphone. Artificial intelligence is at the heart of this transformation,
acting as a personal travel concierge. Instead of generic packages, AI-powered tools offer hyper-personalised recommendations for flights, hotels, and activities based on your budget, interests, and even your travel style. Several platforms are already popular in India, using AI to build custom itineraries in seconds, complete with restaurant suggestions and cost estimates in Indian rupees. Some apps like TripALAI even function as in-car co-pilots for road trips, offering real-time suggestions and working offline in low-signal areas.
A Unified Digital Ecosystem
The government is also accelerating this digital push. On World Tourism Day 2026, the Ministry of Tourism launched the National Digital Tourism Stack, an initiative in partnership with the Open Network for Digital Commerce (ONDC). The goal isn't to create another standalone booking website, but a shared digital infrastructure. This 'list once, reach multiple platforms' model allows tourism providers, from large hotels to small, local homestays and guides, to make their offerings discoverable across many participating apps. The system aims to streamline everything from discovery and payments to ratings and grievance redressal, making travel in India more seamless and trustworthy for both domestic and international tourists. The project is being designed as an AI-first platform to support these new models of travel planning.
The Rise of the Online Travel Market
The numbers confirm this digital migration. India's online travel market was valued at over USD 25 billion in 2026 and is projected to grow significantly, reaching an estimated USD 38.58 billion by 2031. Mobile bookings are a key driver, accounting for over 65% of all online travel transactions in 2025. This growth is fueled by rising internet penetration in Tier-2 and Tier-3 cities, a young, digitally-native population, and the widespread adoption of UPI for payments. Online Travel Agencies (OTAs) like MakeMyTrip, Goibibo, and Agoda dominate the market, but direct bookings with airlines and hotels are also growing. This intense competition is pushing platforms to innovate further with AI to better understand traveller preferences and simplify the entire booking journey.
Beyond Bookings: New Opportunities
The digital shift is about more than just convenience; it's creating new economic opportunities and changing where people travel. The National Digital Tourism Stack, for example, is expected to bring 23,000 new tourism experiences and homestays online by 2028, giving visibility to smaller operators who previously had little digital presence. This aligns with the 'Dekho Apna Desh 2.0' campaign, which encourages tourists to explore lesser-known destinations. AI can help distribute tourist traffic more evenly by suggesting alternative attractions if a popular spot is crowded. For the industry, this means moving from a volume-based model to one focused on curated, purpose-led journeys, where technology is used to create more enriching and connected experiences.
