Dec 11 (Reuters) - U.S. hotels and travel companies are
aiming to tap a surge in Indian tourists to boost revenue as
domestic leisure spending falters and demand from East Asian
countries remains below pre-pandemic levels.
Nearly 1.9 million Indian tourists visited the U.S. in the
first ten months of 2024, a nearly 48% rise from 2019, according
to data from the U.S. National Trade and Tourism Office (NTTO).
The surge was driven by a 50% jump in visas issued for business
visits and 43.5% increase for leisure, data showed.
The expanding Indian middle-class population, higher travel
budgets and increased flight capacity are also behind the South
Asian country's international travel boom.
In contrast, visitor volumes from China, Japan and South
Korea dropped 44.5%, 50.8% and 23.9% during the same period,
compared with 2019 levels, NTTO data showed.
Wealthy consumers from East Asian countries such as China
have been traveling more within the region, especially to
destinations in Southeast Asia, avoiding long-haul trips to the
United States.
European tourists have been returning to the U.S. but
visitation from countries such as the UK, Germany and France has
remained below 2019 levels.
The U.S. tourism industry has had a slow year, with
companies such as Hilton and Airbnb ( ABNB ) bracing for weaker revenue
as the post-pandemic travel surge normalizes and persistent
inflation forces Americans to cut back on leisure spending.
"Indian travelers are stepping up to fill part of the gap
left by lower visitation from China, Japan, and South Korea,"
said Laura Lee Blake, CEO of the Asian American Hotel Owners
Association, members of which own 60% of the hotels in the
United States.
"Their growing interest in exploring smaller cities and
secondary markets is helping to spread the recovery across a
broader range of destinations," she said, adding that they
generally prefer budget and mid-scale hotels.
Some properties are also introducing details that may
resonate with Indian travelers - from chai and samosas in the
lobby to popular Indian TV channels in the guest rooms, she
said.
Travel firm Viator, a TripAdvisor brand, has said
U.S. bookings made by Indian travelers jumped more than 50% in
2024 and have tripled from pre-pandemic levels in 2019.
"Over the past three years, we've seen over a 45% increase in
nights booked by Indians traveling to the U.S.," said Dave
Stephenson, chief business officer at Airbnb ( ABNB ).
Scheduled flight capacity between India and the U.S. rose
42.3% in 2024 compared with 2019, according to data from OAG
Aviation.
"For 2025, I anticipate growth in occupancy rates and
revenue, driven by a younger, experience-driven audience from
India," said Grzegorz Kowalski, CEO of hotel-booking platform
Tripoffice.com.