‘Outbound travel from India to grow’

New Delhi: India’s outbound travel market is set to grow in the coming years, with an increasing focus on high-spending segments, making it a high-priority market for global hoteliers. This will also be supported by a slow recovery in Chinese outbound travel, which is still recovering from the impact of the covid-19 pandemic, industry experts said.

A firm that represents luxury and high-end hotels worldwide considers outbound Indian travelers among its target segment. Lindsey Ueberroth, managing director of Preferred Hotels and Resorts, who was recently in India to form a partnership for one of its programs with Leela Palaces, Hotels and Resorts, said that the Indian demographic, especially the younger generation, is traveling more frequently, and in many cases, spend generously on hotels, despite shorter trips.

“The domestic travel market has done very well in the last three years. We know that, even internationally, it will be a huge, huge market, and while the hotel companies have focused on India for a long time, it has become even bigger (since the slow recovery of Chinese outbound tourism). Indian travelers have broken into the top five global markets, especially when we look at the average daily rates they pay in destinations like and Paris, London and New York. They are more than $500, or ₹41,000, one night. So it is a highly recognized segment and it is reflected in the sales and marketing strategies of global hotel companies, which target India more frequently,” added Ueberroth.

Preferred’s business model involves partnering with independent luxury hotels around the world and driving revenue through its booking channels and loyalty program when customers book on its platforms.

The company’s portfolio includes 650 hotels, plus another 350 under its Preferred Travel Group brand. About 50% of their business comes from business trips. It is linked with conglomerates at negotiated rates that help hotel owners, in addition to making a significant amount from individual travelers of pleasure.

There is also an increased focus by hotels on wellness trips, and they are not only investing in the spa business, but also in programs on the holistic well-being of travelers, he said.