US Hotels Woo Indian Tourists As Domestic Travel Dips

What’s going on here?

As domestic travel slows, US hotels and travel companies like Hilton and Airbnb are wooing Indian tourists to fill vacancies – a response to declining demand from East Asian visitors and a surge in Indian arrivals.

What does this mean?

Nearly 1.9 million Indian tourists visited the US in the first ten months of 2024, marking a 48% jump from 2019. This boost is driven by a 50% increase in business visas and a 43.5% rise in leisure visas, along with a burgeoning Indian middle class eager to explore and expanded flight capacity between India and the US. Meanwhile, arrivals from China, Japan, and South Korea have plummeted, as travelers from these regions opt for Southeast Asian destinations. Europeans are returning, but their numbers haven’t fully recovered. With inflation straining American budgets and post-pandemic travel slowing, US hospitality firms are counting on Indian tourists, who are invigorating smaller cities and occupying spots once filled by East Asian visitors.

Why should I care?

For markets: Riding the wave of global travel shifts.

US travel companies face a pivotal moment as they adapt to shifting tourist patterns. Hilton and Airbnb are focusing on Indian tourists, hoping to replace declining East Asian and European visits. A 42.3% increase in flight capacity between India and the US presents opportunities for budget and mid-scale accommodations in lesser-known destinations.

The bigger picture: India’s growing wanderlust reshapes tourism.

The rise of the Indian tourist underscores global economic shifts, with a burgeoning middle class and more flights driving international travel. Indian visitors are venturing beyond major US cities, boosting local economies. This trend not only fills the gap left by declining visitor groups but also points toward a more diversified and resilient global travel industry.