AnnaStills / Shutterstock.comIndia is emerging as one of the most important source markets for international hotel demand, with half of global hotel brand CEOs expecting the country to drive travel growth in 2027, according to a new report by Global Hotel Alliance (GHA).
India ranked second only to the United States, cited by 53% of respondents, while 50% identified India as a major source of future international demand. China and the United Kingdom followed at 40% each, ahead of the Middle East at 37% and Southeast Asia at 30%.
The findings highlight India's growing influence on the global hospitality industry as rising incomes and an expanding outbound travel market create opportunities for hotel groups seeking new sources of international business.
The GHA Hotel Brand CEO Outlook 2027, titled Growth, Disruption and the Forces Reshaping Global Hospitality, surveyed 30 chief executives of hotel brands within the alliance in August 2026. It examines the markets, technologies and commercial priorities expected to shape the hotel industry over the coming years.
India's position is particularly strong in the Asia-Pacific outlook. Among hotel operators in the region, 64% identified India and Southeast Asia as leading sources of international growth, followed by China at 55%.
For Middle East and Africa operators, India and the United Kingdom jointly ranked as the leading anticipated source markets, each cited by 56% of respondents.
International leisure travel drives hotel growth
The survey points to international travel as a major growth engine for the hospitality industry in 2027.
Some 73% of hotel CEOs expect international travel demand to outperform domestic travel, while 90% anticipate an increase in international leisure travel. Eight in 10 also expect growth in bleisure travel, reflecting continued demand for trips combining business and leisure.
The findings suggest that hotels are increasingly looking beyond established source markets to attract travellers from emerging economies, particularly India and other Asian markets.
Simon Naudi, group chief executive of Corinthia Hotels, said the company sees significant growth opportunities in Asia, particularly India and China, where rising numbers of affluent travellers are looking towards Europe.
The shift could benefit international hotel groups with established distribution networks, loyalty programmes and properties in destinations popular with Indian outbound travellers.
Hotel leaders remain optimistic despite geopolitical risks
Despite growing uncertainty, 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, while 30% remain neutral and only 3% are pessimistic.
Four in five CEOs expect like-for-like hotel revenue to increase in 2027. Nearly half anticipate growth of at least 5%.
However, geopolitical instability and conflict remain the industry's biggest external concern. Nine in 10 respondents identified them as a major challenge over the next five years, ahead of global economic uncertainty at 50% and labour shortages at 43%.
The report highlights the Middle East as an example of how geopolitical disruption can affect tourism. It cites World Travel & Tourism Council forecasts for a 14.5% contraction in the region's travel and tourism economy in 2026, despite its longer-term growth potential.
AI expected to transform hotel bookings
Alongside emerging source markets, 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 on the industry.
By 2030, 87% expect AI assistants to rank among the most influential hotel-booking channels. This compares 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%.
The report also suggests that destination and location will remain important booking influences, cited by 70% of CEOs, followed by AI recommendations at 67% and experiences and events at 63%.
For hotel operators targeting India, these developments could make digital visibility and personalised recommendations increasingly important in reaching travellers before they choose a destination or property.
Loyalty becomes a strategic growth 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 further 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. Personalisation followed at 57%, ahead of 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.
