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

NEW YORK – US 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 US in the first 10 months of 2024, an almost 48 per cent rise from 2019, according to data from the US National Trade and Tourism Office (NTTO).

The surge was driven by a 50 per cent jump in visas issued for business visits and a 43.5 per cent increase for leisure, data showed.

The expanding Indian middle-class population, higher travel budgets and increased flight capacity were also behind the South Asian country’s international travel boom.

In contrast, visitor volumes from China, Japan and South Korea dropped 44.5 per cent, 50.8 per cent and 23.9 per cent during the same period, compared with 2019 levels, NTTO data showed.

Wealthy consumers from East Asian countries such as China have been travelling more within the region, especially to destinations in South-east Asia, avoiding long-haul trips to the US.

European tourists have been returning to the US, but visitation from countries such as Britain, Germany and France has remained below 2019 levels.

The US tourism industry has had a slow year, with companies such as Hilton and Airbnb bracing themselves for weaker revenue as the post-pandemic travel surge normalises and persistent inflation forces Americans to cut back on leisure spending.

“Indian travellers are stepping up to fill part of the gap left by lower visitation from China, Japan and South Korea,” said Ms Laura Lee Blake, chief executive of the Asian American Hotel Owners Association – whose members own 60 per cent of the hotels in the US.

“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 travellers – 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 US bookings made by Indian travellers jumped over 50 per cent in 2024 and have tripled from pre-pandemic levels in 2019.

“Over the past three years, we’ve seen an over 45 per cent increase in nights booked by Indians travelling to the US,” said Mr Dave Stephenson, chief business officer at Airbnb.

Scheduled flights between India and the US rose 42.3 per cent 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 Mr Grzegorz Kowalski, CEO of hotel-booking platform Tripoffice.com. REUTERS