OTAs Drive Superapp Growth as India’s Travel Market Soars

India’s travel market is booming, with domestic and international travel reaching all-time highs. According to Phocuswright’s new report, India’s OTAs: Superapps in the Making?, this growth is fueled by a young, tech-savvy middle class, rising disposable incomes, employment gains, and improvements in infrastructure and connectivity.

Online travel agencies (OTAs) are leading the digital travel revolution, accounting for 55% of India’s total online gross bookings in 2024. To stay competitive against supplier-led direct channels and rival platforms, OTAs are investing in AI, loyalty programs, strategic partnerships, and hyper-local outreach to Tier-2 and Tier-3 cities.

A standout trend in India is the rise of travel superapps. These platforms combine multiple services—from destination research and flight bookings to local transportation and activities—within a single user experience. Indian OTAs are embracing this model to capture more market share and deepen customer engagement.

Phocuswright outlines five key strategies OTAs are using to evolve into superapps:

1. Expanding into corporate travel and offline agent markets with user-friendly tools.
2. Offering plug-and-play solutions for non-travel brands like banks and retailers to launch private-label travel services.
3. Investing in travel ancillaries, a growing segment addressing end-to-end traveler needs.
4. Launching franchise stores in smaller cities to serve customers who prefer in-person booking.
5. Creating omnichannel experiences to keep users engaged across digital and physical touchpoints.

As India’s travel industry continues to surge, OTAs are well-positioned to lead through innovation and platform integration, shaping the next phase of digital travel in the region.

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