Luxury hotels target Indian outbound travellers

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 be further 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 representing luxury and high-end hotels globally considers Indian outbound travellers among its top target segment. Lindsey Ueberroth, chief executive officer of Preferred Hotels and Resorts, who was recently in India to forge a partnership for one of its programmes with Leela Palaces, Hotels and Resorts, said the Indian demographic, particularly the younger generation, is travelling more frequently, and in a lot of cases, spending generously on hotels, despite taking shorter trips.

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

Preferred’s business model involves partnering with independent luxury hotels globally and driving revenue through their reservation channels and loyalty programme when customers book on its platforms.

The firm’s portfolio comprises 650 hotels, as well as another 350 under its Preferred Travel Group brand. About 50% of its business comes from business travel. It ties up with conglomerates at negotiated rates helping hotel owners, besides making a significant amount from individual leisure travellers.

There is also increased focus by hotels on wellness travel, and they are not only investing in spa business but also in programmes on the holistic well-being of travellers, she said.