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'Chai and samosas': US hotels welcome Indian tourist boom to revive revenue
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'Chai and samosas': US hotels welcome Indian tourist boom to revive revenue
Dec 11, 2024 6:04 AM

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.

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