NEW DELHI, March 30 -- The West Asia conflict is hitting Gulf and European travel in the short term, but hotel groups are already looking to India for the long term. With millions of young passport holders and outbound trips rising year after year, the country represents a far bigger prize, according to Christopher Hartley, chief executive, Global Hotel Alliance (GHA).

The Dubai-based company runs the world's largest hotel loyalty programme for independent hotels, bringing together over 50 brands and 950 hotels across 100 countries. Hartley said that while the war may weigh on short-term bookings, India's outbound market remains largely untapped.

Travel to West Asia is still disrupted and could shift flows in the near term, he said, but...