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India's international travel takes off, projected to outpace China's outbound demand

Short-haul Asian destinations top the list, but London and New York are also draws
Passengers queue at check-in counters at Chhatrapati Shivaji Maharaj International Airport in Mumbai on May 22, 2024. (Bloomberg/Getty Images)
Passengers queue at check-in counters at Chhatrapati Shivaji Maharaj International Airport in Mumbai on May 22, 2024. (Bloomberg/Getty Images)

Indians have a new passion — international travel.

U.S. or European destinations are not yet the most popular among Indian travelers. However, hoteliers and analysts say that as this growing cohort of international travelers spreads out to both short- and long-haul destinations, they will spend for the comforts of home.

Alan Watts, Hilton’s president of the company's Asia-Pacific region, told The Times of India that Indians are the fastest-growing cohort of outbound travelers and are slated to overtake the Chinese in absolute number.

Numbers back that up, according to the latest full-year data from India's Ministry of Tourism, which found that Indian nationals traveling abroad in 2023 [numbered] 28.2 million, compared to 26.9 million in 2019.

“India’s outbound tourism market is expected to reach $55.4 billion by 2034, with an approximate annual growth of over 11%," according to 2024 research from the Federation of Indian Chambers of Commerce & Industry.

Indian online travel platform MakeMyTrip's 2024 report on Indian travel trends shows the number of Indians traveling beyond the country's borders is growing. And sources say booking windows are shorter, and more and more Indians are choosing hotel and other lodging accommodations instead of staying with friends and family across the diaspora.

Overseas travel grows

Hoteliers have taken note.

“The trend of Indians traveling overseas for work, leisure and business has witnessed a significant resurgence," said Sudeep Jain, managing director, Southwest Asia, at IHG Hotels & Resorts. "As per recent reports, approximately 15 million Indian nationals traveled internationally in the first half of 2024, reflecting a 12.3% increase compared to the same period in 2019. This rebound is fueled by greater accessibility to international destinations.”

Jain's peer at Accor, Pratima Badhwar, head of commercial, India and South Asia, said she has seen significant growth in bookings from Indian travelers at the French firm’s international properties.

“Particularly in key destinations such as Dubai, Southeast Asia and Europe," she said. "The UAE and Southeast Asia remain standout markets, with Indian travelers consistently ranking among the top contributors to tourism in these regions,” she said.

MakeMyTrip's most recent full-year data, which is from 2023, shows that 30% of international travel searches from India were for short-haul Asian destinations like Dubai, Bangkok and Singapore.

Direct flights and easy visa processes are additional incentives, drawing Indian travelers to places including Almaty, Kazakhstan; Hong Kong; and Paro, Bhutan.

London, Toronto and New York are the most-searched long-haul international destinations among Indian travelers using MakeMyTrip.

"The year-on-year increase in outbound travel from India has been growing at a meaningfully faster pace than the year-on-year increase in inbound arrivals," said Achin Khanna, managing partner at business advisory Hotelivate. "This presents an opportunity to several global brands and destinations that were seeking a large demography with strong ability for discretionary spend.”

Spending big

These travelers are spending, sources agreed.

According to Reserve Bank of India data, Indians spent a record $17 billion in 2024 in foreign exchange for overseas travel under the RBI’s liberalized remittances scheme, a 17% increase over 2023 amounts, according to India Outbound.

To capture some of that share of wallet to their guestrooms, hoteliers need to ensure Indian travelers are wooed with the same set of services and standards they are used to in India itself, hoteliers said.

“Global brands with an India presence have recognized this and are logically drawing a correlation between their presence here with how that may benefit them in other nations," Khanna said. "Showcasing their brands in India allows them the dual opportunity to enhance their India footprint while also attracting these guests to their hotels across the world.”

Accor’s Badhwar said hotels need to provide the personalized services Indian guests demand and to offer them in a “seamless experience wherever they travel.”

“A growing number of regular customers are venturing beyond domestic borders. … This trend translates into a substantial increase in bookings from Indian travelers,” Jain said.

Hoteliers are working out what that red carpet looks like.

International branded hotels in India can be a first step to Indian travelers booking that same brand internationally. Other points of welcome and comfort include sensitivity to Indian culture and food and flexing loyalty points and exclusive membership deals.

Authentic Indian cuisine needs to be offered at every meal, “from breakfast buffets to specialized menus, reflecting the flavors of home,” Jain said.

Indian weddings held internationally continue to be a major demand source.

“Recognizing the unique travel preferences of Indian guests, [we] offer culturally immersive experiences. … These may include local itinerary suggestions such as cultural tours, traditional cooking classes and workshops,” Badhwar said.

Indian guests want to connect meaningfully with destinations while enjoying a familiar sense of hospitality, she said.

“Given the current trajectory, it is entirely conceivable that Indian travelers could emerge as the largest outbound tourism segment for several global markets. … It will be interesting to watch this reverse colonization,” Jain added.

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