U.S. hotels and travel organizations are strategically focusing on the increasing influx of Indian tourists to enhance their revenue streams, particularly as domestic leisure expenditures decline and demand from East Asian nations continues to lag behind pre-pandemic figures. In the first ten months of 2024, approximately 1.9 million Indian tourists traveled to the U.S., marking a significant 48 percent increase compared to 2019, as reported by the U.S. National Trade and Tourism Office. This growth can be attributed to a 50 percent rise in business-related visas and a 43.5 percent increase in leisure travel, according to the data. The burgeoning middle class in India, coupled with higher travel budgets and expanded flight options, is fueling this international travel surge. Conversely, visitor numbers from China, Japan, and South Korea have seen declines of 44.5%, 50.8%, and 23.9%, respectively, when compared to 2019 statistics, as indicated by NTTO data. Affluent travelers from East Asian countries, particularly China, are increasingly opting for regional travel within Southeast Asia, thereby bypassing long-haul journeys to the United States. While European tourists are gradually returning to the U.S., arrivals from nations such as the UK, Germany, and France remain below pre-pandemic levels. The U.S. tourism sector has experienced a sluggish year, with companies like Hilton and Airbnb preparing for reduced revenue as the post-pandemic travel boom stabilizes and ongoing inflation compels Americans to limit their leisure spending.
Indian travelers are increasingly stepping in to compensate for the decline in visitors from China, Japan, and South Korea, according to Laura Lee Blake, CEO of the Asian American Hotel Owners Association, whose members own 60% of the hotels in the United States. She noted that their heightened interest in exploring smaller cities and secondary markets is contributing to a more widespread recovery across various destinations, with a preference for budget and mid-scale accommodations. Additionally, some hotels are adapting to appeal to Indian guests by offering amenities such as chai and samosas in the lobby and featuring popular Indian television channels in guest rooms. Viator, a brand under TripAdvisor, reported that U.S. bookings from Indian travelers surged by over 50% in 2024, marking a threefold increase compared to pre-pandemic figures in 2019. Dave Stephenson, chief business officer at Airbnb, highlighted that there has been a more than 45% rise in nights booked by Indian visitors to the U.S. over the past three years. Furthermore, data from OAG Aviation indicates that scheduled flight capacity between India and the U.S. increased by 42.3% in 2024 compared to 2019. Grzegorz Kowalski, CEO of hotel-booking platform Tripoffice.com, anticipates that occupancy rates and revenue will continue to grow in 2025, driven by a younger, experience-oriented demographic from India.
