India's Travel & Hospitality Sector Projects 8.2% Net Employment Growth in FY2025

India's Travel & Hospitality Sector Projects 8.2% Net Employment Growth in FY2025

By Manu Vardhan Kannan

Published on January 29, 2025

India's travel and hospitality sector is poised for significant growth, with a projected Net Employment Change (NEC) of 8.2% for the second half of FY2025 (October-March). According to the Employment Outlook Report by TeamLease Services, 66% of surveyed companies in the sector plan to expand their workforce during this period, signaling robust hiring intent.

The travel and tourism industry remains a critical pillar of India’s economy, contributing 9% to the GDP in 2024, which translates to over USD 11 trillion—a 12% increase compared to the previous year. This growth is fueled by advancements in smart tourism technologies, a resurgence in MICE activities, and a strong focus on sustainable tourism practices, which are reshaping the industry landscape and generating a surge in demand for skilled professionals.

Roles in sustainability coordination, smart travel experience design, and contactless technology deployment are increasingly sought after as companies adapt to modern traveler expectations. Domestic travel is also thriving, with a notable rise in religious tourism and visits to tier-2 and tier-3 cities.

Government initiatives such as the Swadesh Darshan Scheme, PRASHAD Scheme, and significant investments in airport infrastructure and regional connectivity have further catalyzed this growth. These efforts aim to enhance tourist circuit development and pilgrimage tourism, making travel more accessible and appealing across the nation.

The report identifies hiring hotspots across tier-1 cities like Mumbai (58%), Hyderabad (54%), and Ahmedabad (49%), while tier-2 and tier-3 cities such as Coimbatore, Visakhapatnam, and Jaipur emerge as significant employment hubs. New destinations like Pune (18%), Visakhapatnam (15%), and Kochi (13%) are also gaining prominence.

Sales roles lead hiring intentions, with 76% of companies targeting sales talent, followed by marketing (46%), office service roles (35%), and ICT positions (18%). Additionally, there is a growing demand for engineering and blue-collar jobs, reflecting the sector's operational and technological advancements.

Balasubramanian A, Senior VP and Business Head of TeamLease Services, commented, "The positive hiring intent by 66% of the companies we’re seeing in the travel and hospitality sector tells a compelling story about how the industry is evolving. Businesses are gearing up to meet the demands of today’s eco-conscious and experience-driven travelers. Our report highlights how tier-2 and tier-3 cities are stepping up as major employment hubs, alongside metros, creating opportunities for talent in new regions."

As the sector evolves, its commitment to sustainability and innovation is more evident. Companies are prioritizing eco-conscious travel options, seamless digital experiences, and smart tourism infrastructure to align with global trends. This transformation not only cements the travel and hospitality sector's role as a dynamic employment generator but also underscores its contribution to India's economic growth.


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