'Chai and samosas': US hotels welcome Indian tourist boom to revive revenue

By Aishwarya Jain

(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 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 (NASDAQ:TRIP ) 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.



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.

Source: Investing.com