Hilton executive predicts that Indian outbound travel will be the focus of the next decade.

In 2023, the World Travel & Tourism Council reported that Indian travelers spent a total of $34.2 billion on international travel.

Alan Watts, Hilton's Asia-Pacific president, stated on "Squawk Box Asia" Monday that the current level of Indian travel is "minuscule" compared to what's to come.

""The next decade's story will be about India's outbound journey," he stated."

According to the World Travel & Tourism Council's Economic Impact 2024 report, Indian travelers' outbound spend is projected to more than double to $76.8 billion by 2034, making the country the seventh-largest travel spenders in the world, up from 12th in 2023.

"According to Watts, India shares some similarities with China, which is the world's second largest lodging market. India has a population of 1.4 billion, a young population, and a historically strong GDP growth. However, the infrastructure in India is still being built."

India is investing heavily in infrastructure development to achieve its goal of doubling its economy to $7 trillion by 2030 and transforming into a developed nation by 2047.

According to Airports Council International, India is currently the third country with the most air passengers, following the United States and China. By 2042, it is predicted that India will have an additional 960 million passengers.

In 2023, Air India, the national airline of India, placed a record-breaking order for 470 aircraft, including 100 Airbus aircraft, consisting of 10 A350 and 90 A320neo jets.

Indigo, India's low-cost carrier, has placed a record-breaking order for 500 Airbus jets to be delivered between 2030 and 2035, according to Indigo.

The travel industry is bullish on India becoming the "new China" due to its characteristics.

In India, outbound travel is growing at a faster rate than in China.

Hotel expansion

Indian's middle class is projected to increase in the coming years, leading to an influx of new travelers, which global hospitality companies are preparing for.

In 2023, the United States launched a "premium economy" brand called Spark by Hilton, and on Nov. 19, Hilton announced a deal to open 150 Spark by Hilton hotels in India.

Watts confirmed that India has approximately the same number of branded hotels as Las Vegas when discussing the potential for branded hotel expansion in India.

But now it has more attention from outside investors.

Watts stated that the foreign direct investment in India has changed this time, with some big capital players now present in the country, which is a new development.

The major hotel chains, including Marriott, IHG, Hyatt, and Wyndham, are expanding their presence in India to capitalize on the growing travel interest in the country. Marriott, in particular, aims to have 250 hotels in the subcontinent by 2025.

Courting Indian travelers

New visa-free agreements, direct flights, and ad campaigns are attracting more Indian travelers as outbound travel from China remains subdued.

The "Howzat for a holiday?" campaign, launched during the Australia-India Test cricket series in November, is expected to reach 50 million people, as stated by Australia's trade and tourism minister.

According to a press release, the number of Indian travelers to Australia is predicted to double by 2028 with the launch of a campaign.