1.9 million Indian tourists visited US from Jan to October, 2024: Now Americans are luring them with samosas

As domestic leisure spending slows in the US and demand from East Asian countries remains below pre-pandemic levels, US hotels and travel companies are looking to capitalise on the surge in Indian tourists to boost revenue. In the first ten months of 2024, nearly 1.9 million Indian tourists visited the US, marking a nearly 48% increase compared to 2019, according to the US National Trade and Tourism Office.

This rise was driven by a 50% jump in business visas and a 43.5% increase in leisure travel, data revealed. Several factors are contributing to this boom, including the growing Indian middle class, higher travel budgets, and increased flight availability. Meanwhile, visitor numbers from East Asian nations have dropped — by 44.5%, 50.8%, and 23.9%, respectively, compared to 2019, data showed.

Wealthy consumers from East Asia, particularly from China, have been opting for more regional travel within Southeast Asia, steering clear of long-haul flights to the US.

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While European tourists are returning to the US, travellers from countries like the UK, Germany, and France remain lower than in 2019.

The US tourism industry has faced challenges, with companies such as Hilton and Airbnb forecasting weaker revenue as the post-pandemic travel surge slowed and inflation prompted Americans to reduce leisure spending.

“Indian travellers are stepping up to fill part of the gap left by lower visitation from China, Japan, and South Korea,” Laura Lee Blake, CEO of the Asian American Hotel Owners Association was quoted as saying by Reuters. Her group represents 60% of the US hotels industry. “Their growing interest in exploring smaller cities and secondary markets is helping to spread the recovery across a broader range of destinations,” she added, noting that Indian travellers typically favour budget and mid-range hotels.

To cater to these tourists, some hotels are introducing elements that appeal to Indian visitors, such as chai and samosas in the lobby and offer popular Indian TV channels in guest rooms.

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Travel company Viator, a TripAdvisor brand, reported an over 50% increase in US bookings from Indian travellers in 2024, with bookings having tripled from pre-pandemic levels in 2019.

“We’ve seen a 45% increase in nights booked by Indian travelers to the US over the past three years,” said Dave Stephenson, Chief Business Officer at Airbnb, according to Reuters.

Scheduled flight capacity between India and the US grew by 42.3% in 2024 compared to 2019, according to OAG Aviation data. Looking ahead, Grzegorz Kowalski, CEO of Tripoffice.com, a hotel-booking platform, anticipates growth in occupancy rates and revenue in 2025, driven by a younger, experience-focused audience from India.

(With inputs from Reuters)