From MICE to meetings: How tier-2 cities are becoming India’s fastest-growing corporate travel destinations
Introduction: The Rise of Tier-2 Cities in Corporate Travel
India’s tier-2 cities are rapidly emerging as influential players in the country’s corporate travel ecosystem, driven by economic expansion, infrastructure upgrades, and improved connectivity. Traditionally defined as cities with populations ranging from a few hundred thousand to a couple of million, these urban centres are increasingly offering compelling alternatives to long-dominant metros such as Mumbai, Delhi, and Bengaluru.
This shift is closely linked to government-led regional development initiatives, rising private investment, and a growing preference among businesses for cost-efficient, scalable destinations. Cities such as Jaipur, Surat, Vijayawada, Kochi, and Indore have witnessed increased investments in business parks, IT hubs, and industrial clusters, supported by a young and skilled workforce. Affordable office spaces, lower accommodation costs, and improved quality of life are encouraging corporates to explore tier-2 cities for meetings, conferences, and operations.
Advancements in highways, rail networks, and domestic aviation have further reduced access barriers. As a result, companies are no longer dependent solely on tier-1 cities to conduct business efficiently. The rise of tier-2 cities reflects a broader decentralisation trend, redefining corporate travel patterns and expanding India’s economic footprint beyond traditional hubs.
Key Tier-2 Cities Transforming Business Travel in India
India’s corporate travel landscape is undergoing a visible transformation, with several tier-2 cities positioning themselves as viable business destinations.
Kochi, with its strong port connectivity, modern convention centres, and luxury hotels, has become a preferred destination for corporate events and international business travellers. Its blend of infrastructure and lifestyle appeal strengthens its positioning.
Indore, the commercial capital of Madhya Pradesh, benefits from a strategic central location and a growing industrial ecosystem. Its educational institutions ensure steady talent availability, making it attractive for conferences and regional corporate offices.
Trivandrum is gaining traction as a technology-driven yet culturally rich business destination. The presence of IT parks, combined with a calm environment, makes it suitable for corporate retreats, policy meetings, and workshops.
Coimbatore, known as the Manchester of South India, stands out as a manufacturing and industrial hub. With extensive exhibition halls and business facilities, it has become a hotspot for trade fairs and industry-specific conferences.
Jaipur continues to gain favour among corporate travellers by combining heritage hospitality with modern infrastructure. Its accessibility, premium hotels, and MICE-ready venues allow businesses to blend work with experiential travel.
Infrastructure Development Driving Corporate Travel Growth
Infrastructure development is central to the growth of corporate travel in tier-2 cities. Upgraded highways, improved rail connectivity, and modernised airports have significantly enhanced accessibility and reduced travel friction.
Several tier-2 cities have expanded or upgraded airport facilities, increasing flight frequency and improving passenger services. Cities such as Jaipur, Coimbatore, and Lucknow are now better connected to major business centres, supporting both domestic and limited international travel.
The hospitality sector has responded to this demand surge. Leading hotel chains have expanded into tier-2 markets, offering business-centric amenities such as conference rooms, high-speed internet, and dedicated business centres. In parallel, new convention centres and exhibition facilities in cities like Indore and Surat are enabling large-scale corporate events, exhibitions, and trade summits—further reinforcing their status as business travel hubs.
MICE Growth in Tier-2 Cities
The MICE (Meetings, Incentives, Conferences, and Exhibitions) sector is experiencing accelerated growth in tier-2 cities. Cost efficiency, improved infrastructure, and increasing professional services have made these locations attractive alternatives to metro cities.
Tier-2 cities now offer modern venues, technology-enabled event spaces, and reliable transport networks capable of hosting national and international events. Lower venue rentals, accommodation costs, and catering expenses provide businesses with better return on investment—an increasingly important consideration amid tighter corporate budgets.
Government tourism and economic development initiatives have further strengthened the MICE ecosystem, positioning tier-2 cities as future-ready corporate event destinations.
Regional Investments Fueling Corporate Travel Demand
Regional investments have played a catalytic role in driving corporate traffic to tier-2 cities. Government programmes such as Make in India and Skill India have encouraged infrastructure development and employment generation beyond metros.
Private investment has followed, with IT parks, special economic zones, and industrial corridors emerging across cities like Coimbatore, Vadodara, and Jaipur. This influx of businesses has created demand for hospitality, transport, and professional services, reinforcing the corporate travel cycle.
Improved employment prospects and skill development have also fostered a sustainable talent ecosystem, making tier-2 cities increasingly self-sufficient and attractive for long-term corporate engagement.
Corporate Travel Trends: Adapting to New Destinations
Corporate travel strategies are evolving in response to the rise of tier-2 cities. Companies are expanding travel policies to include these destinations, driven by lower costs, operational efficiency, and access to emerging markets.
Business travellers increasingly seek destinations that offer professional efficiency alongside cultural experiences. Tier-2 cities provide opportunities for meaningful engagement beyond boardrooms, contributing to higher employee satisfaction and productivity.
To support this shift, organisations are adopting flexible travel frameworks and digital tools that help employees navigate new destinations effectively.
Challenges and Considerations for Corporate Travel
Despite their advantages, tier-2 cities present challenges. Premium accommodation options may be limited, transport systems less predictable, and local business practices different from metros. Companies must plan logistics carefully, understand local etiquette, and ensure travel readiness to avoid disruptions.
Addressing these challenges proactively is essential for maximising the benefits of corporate travel to emerging cities.
Success Stories: Companies Thriving in Tier-2 Cities
Several companies have demonstrated the viability of tier-2 cities as business destinations. Consulting firms, technology companies, and mobility platforms have successfully expanded operations into cities such as Visakhapatnam, Coimbatore, Nashik, and Rajkot—benefiting from lower costs, skilled talent, and improved quality of life for employees.
These success stories highlight how tier-2 cities can deliver sustainable growth while supporting corporate travel and regional economic development.
Conclusion: The Future of Corporate Travel in India’s Tier-2 Cities
India’s corporate travel landscape is clearly shifting. Tier-2 cities are no longer peripheral options but central to business expansion, MICE growth, and talent retention strategies. With continued infrastructure investment, improved connectivity, and supportive government policies, these cities are poised to become long-term corporate travel hotspots.
As decentralisation accelerates, tier-2 cities will play a critical role in shaping the future of corporate travel in India—balancing efficiency, sustainability, and growth in an evolving business environment.