· Indian travelers spent $34.2 billion on outbound travel in 2023, according to the World Travel & Tourism Council (WTTC). However, this figure is expected to more than double to $76.8 billion by 2034, making India the seventh-largest outbound travel spender globally, up from its 12th position in 2023.
· Hilton’s Asia-Pacific President, Alan Watts, highlighted India’s growth potential on Squawk Box Asia, stating, “India outbound will be the story of the next decade.” He compared India’s travel market to that of China, noting similarities such as a population of 1.4 billion, a young demographic, and strong GDP growth. Unlike China, however, India’s travel infrastructure is just beginning to take shape, positioning it for a transformative decade.
· Infrastructure Expansion Fuels Growth
· India is heavily investing in infrastructure to support its travel and tourism ambitions. Projects include road enhancements, high-speed rail networks, and airport expansions, aiming to double the economy to $7 trillion by 2030 and achieve developed-nation status by 2047. India is already the world’s third-largest aviation market, trailing only the United States and China, with 960 million new air passengers expected by 2042.
· In 2023, Indian airlines placed record-breaking aircraft orders. Air India confirmed orders for 100 Airbus planes in 2024, adding to its previous order of 470 Airbus and Boeing aircraft. Meanwhile, Indigo, India’s largest low-cost carrier, announced plans to acquire 500 Airbus jets for delivery between 2030 and 2035.
· Hospitality Sector Prepares for an Influx
· The growing middle class in India is projected to drive significant demand for branded hotels and international travel. Global hotel chains are expanding rapidly to cater to this surge. Hilton recently announced plans to launch 150 Spark by Hilton hotels, a premium economy brand, in India.
· Despite its vast population, India currently has a similar number of branded hotels as Las Vegas. This gap represents significant opportunities for growth, with the hospitality sector bullish on India’s future as a global travel powerhouse.
· Outbound travel from India is already growing faster than it did in China during its travel boom, signaling a dynamic decade ahead for the global travel industry.
