Indian Outbound Travel Surges, Creating New Opportunities for Hoteliers

Indian travelers are rapidly expanding their footprint across international destinations, with industry experts noting a significant rise in outbound travel. While the U.S. and European markets are not yet the most preferred, Indian tourists are increasingly venturing to both short- and long-haul locations. Analysts highlight that as this segment grows, travelers are willing to spend on accommodations that offer familiar comforts.

Alan Watts, Hilton’s president for the Asia-Pacific region, pointed out that Indian travelers represent the fastest-growing outbound segment and are on track to surpass Chinese travelers in absolute numbers. This trend is reflected in data from India’s Ministry of Tourism, which recorded 28.2 million Indians traveling abroad in 2023, surpassing the 26.9 million recorded in 2019. The Federation of Indian Chambers of Commerce & Industry projected India’s outbound tourism market to reach $55.4 billion by 2034, growing at an annual rate exceeding 11%.

Rising Demand for International Travel

Industry reports suggest that Indian travelers are booking international trips more frequently, with many opting for hotels over staying with family and friends. MakeMyTrip’s 2024 travel report indicated that short-haul destinations like Dubai, Bangkok, and Singapore accounted for 30% of international searches. The availability of direct flights and streamlined visa processes is further attracting travelers to destinations such as Almaty, Hong Kong, and Paro.

Hoteliers have recognised this trend, with experts observing a surge in outbound bookings. Sudeep Jain, managing director for Southwest Asia at IHG Hotels & Resorts, noted a sharp increase in international travel among Indian nationals, attributing this growth to improved accessibility to global destinations. Similarly, Pratima Badhwar, head of commercial for India and South Asia at Accor, acknowledged rising demand, particularly in destinations like Dubai, Southeast Asia, and Europe, where Indian travelers consistently rank among the top visitors.

Hospitality Brands Catering to Indian Travelers

Data from the Reserve Bank of India showed that Indians spent a record $17 billion on foreign travel in 2024 under the liberalised remittances scheme, reflecting a 17% increase from 2023. Industry analysts emphasised that international hotels seeking to attract Indian guests must offer services aligned with their expectations. Hospitality groups with a presence in India are leveraging their brand familiarity to attract these travelers abroad.

Experts note that ensuring cultural sensitivity, offering authentic Indian cuisine, and providing tailored loyalty programs are essential strategies. Jain highlighted that global brands with an Indian footprint are capitalising on this familiarity to strengthen their appeal in international markets. Meanwhile, Badhwar emphasised the need for seamless experiences that align with the personalised service expectations of Indian travelers.

Additionally, destination weddings remain a key driver of international travel, prompting hotels to offer culturally immersive experiences, including curated local itineraries and traditional workshops. Given the trajectory of outbound travel, experts believe Indian tourists could soon become one of the largest global traveler segments, reshaping tourism trends worldwide.