Chai, samosas and more: Here’s how Indian travellers are boosting US hotel revenues

As domestic leisure spending falters and East Asian visitation lags, US hotels and travel companies are targeting a record influx of Indian tourists to sustain growth. Between January and October 2024, nearly 1.9 million Indian travellers visited the US, marking a 48 per cent increase from 2019, according to the US National Trade and Tourism Office (NTTO). This spike was fueled by a 50 per cent surge in business visas and a 43.5 per cent rise in leisure travel visas issued to Indian nationals.

Expanding Middle Class and Increased Connectivity Boost Indian Travel

The rapid growth of India’s middle class, coupled with higher travel budgets and increased flight capacity, has significantly contributed to the travel boom. Scheduled flight capacity between India and the US rose 42.3 per cent in 2024 compared to pre-pandemic levels in 2019, data from OAG Aviation reveals.

“Indian travellers 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.

East Asian and European Visitor Numbers Remain Below Pre-Pandemic Levels

While European tourists have started returning to the US, their visitation remains below 2019 figures. Visitor volumes from China, Japan, and South Korea have dropped significantly—by 44.5 per cent, 50.8 per cent, and 23.9 per cent, respectively, compared to pre-pandemic levels. Wealthy East Asian travellers have shown a preference for regional destinations, opting for shorter trips within Southeast Asia rather than long-haul flights to the United States.

Indian Tourists Favor Smaller Cities and Mid-Scale Hotels

Indian tourists are also diversifying their US travel itineraries, exploring smaller cities and secondary markets, which helps spread tourism recovery to a broader range of destinations. Many prefer budget and mid-scale accommodations. Some US hotels have adapted to cater to Indian preferences by offering amenities like chai, samosas, and Indian TV channels.

Strong Growth in Indian Travel Bookings

Travel companies report significant growth in bookings by Indian travellers. Airbnb recorded a 45 per cent increase in nights booked by Indian tourists compared to pre-pandemic levels. TripAdvisor’s Viator platform noted a 50 per cent jump in US bookings by Indian travellers in 2024, with a threefold increase from 2019.

Future Growth Anticipated

Industry leaders predict continued growth driven by younger, experience-focused Indian travellers. “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.

As Indian tourists fill the gap left by other international travellers, the US travel industry is increasingly tailoring its offerings to attract and accommodate this vital demographic.

(With Reuters inputs)