India is rapidly becoming a cornerstone of global hotel demand, according to a new report from the Global Hotel Alliance (GHA). The survey of 30 hotel brand CEOs reveals that half expect India to be a primary driver of international travel growth by 2027, placing it just behind the United States, which was cited by 53% of respondents.
The findings, detailed in the GHA Hotel Brand CEO Outlook 2027, titled "Growth, Disruption and the Forces Reshaping Global Hospitality," underscore India's rising influence as rising incomes and a growing outbound travel market open new avenues for hotel groups seeking to diversify their international business. China and the UK followed at 40% each, with the Middle East at 37% and Southeast Asia at 30%.
Regional perspectives on India's potential
India's significance is particularly pronounced in the Asia-Pacific region, where 64% of hotel operators identified India and Southeast Asia as leading sources of international growth, ahead of China at 55%. In the Middle East and Africa, India and the UK jointly topped the list, each cited by 56% of respondents.
Simon Naudi, group chief executive of Corinthia Hotels, highlighted the company's focus on Asia, noting, "We see significant growth opportunities in Asia, particularly India and China, where rising numbers of affluent travellers are looking towards Europe." This sentiment is echoed across the industry, with hotel groups increasingly looking beyond traditional source markets to tap into emerging economies.
International leisure travel to lead growth
The survey points to international travel as a major growth engine for 2027, with 73% of CEOs expecting international demand to outperform domestic travel. A striking 90% anticipate an increase in international leisure travel, while 80% foresee growth in bleisure travel, reflecting the continued appeal of combining business and leisure.
This shift is likely to benefit international hotel groups with established distribution networks, loyalty programmes, and properties in destinations popular with Indian outbound travellers. For instance, Abu Dhabi's Diwali itineraries are a prime example of destinations actively courting this demographic.
Optimism amid geopolitical risks
Despite global uncertainties, hotel executives remain confident about the industry's prospects. The report found that 67% of respondents are optimistic about the global hospitality industry through 2027, with only 3% pessimistic. Four in five CEOs expect like-for-like hotel revenue to increase in 2027, and nearly half anticipate growth of at least 5%.
However, geopolitical instability and conflict remain the industry's biggest external concern, cited by 90% of respondents as a major challenge over the next five years. This is followed by global economic uncertainty at 50% and labour shortages at 43%. The report highlights the Middle East as an example, citing World Travel & Tourism Council forecasts for a 14.5% contraction in the region's travel and tourism economy in 2026, despite its long-term potential.
AI to transform hotel bookings
Artificial intelligence is expected to reshape how travellers discover and book accommodation. Some 90% of surveyed CEOs believe AI will either fundamentally reshape hospitality or have a positive impact. By 2030, 87% expect AI assistants to rank among the most influential hotel-booking channels, compared with 50% for hotel brand websites and apps, 47% for loyalty platforms, and 30% for online travel agencies.
Marketing and personalisation are expected to experience the greatest impact from AI, cited by 73% of respondents, followed by revenue management at 67% and distribution at 60%. Destination and location remain important booking influences, cited by 70% of CEOs, with AI recommendations at 67% and experiences and events at 63%.
For hotel operators targeting India, these developments make digital visibility and personalised recommendations increasingly crucial in reaching travellers before they choose a destination or property. As Bangkok and Delhi leapfrog Beijing in route reach, the competitive landscape for Indian outbound travel is intensifying.
Loyalty as a strategic priority
Hotel groups are also placing greater emphasis on customer loyalty and direct relationships. Some 83% of CEOs described loyalty as critical or very important to revenue growth over the next three years. Looking ahead, 67% identified loyalty and direct customer relationships as major opportunities for independent hotel brands over the next five years.
The report found that recognition of membership and status will be the leading differentiator for successful loyalty programmes by 2030, cited by 70% of respondents, followed by personalisation at 57% and rewards at 47%. For international hotel groups, India's growing outbound market offers opportunities to attract repeat visitors through loyalty programmes, personalised experiences, and a wider choice of destinations.
The findings suggest that the next phase of hotel industry growth will depend not only on attracting more international visitors but also on building stronger relationships with emerging source markets and adapting to changing booking behaviour. As India's outbound travel market expands, hoteliers who invest in these areas will be well-positioned to capitalise on this trend.
