US hotels and travel companies are looking to capitalize on the growing number of Indian tourists to boost revenue, as domestic leisure spending weakens and demand from East Asian countries remains below pre-pandemic levels.

Nearly 1.9 million Indian tourists traveled to the US in the first ten months of 2024, marking a 48% increase compared to 2019, according to data from the US National Trade and Tourism Office (NTTO). The rise was fueled by a 50% surge in business visas and a 43.5% increase in leisure visas. Factors such as the expanding Indian middle class, higher travel budgets, and increased flight capacity have also contributed to India's booming international travel sector.

In contrast, visitor numbers from China, Japan, and South Korea fell by 44.5%, 50.8%, and 23.9% respectively during the same period, compared to 2019 levels, as per NTTO data. Wealthy East Asian travelers, particularly from China, have been opting for regional destinations in Southeast Asia instead of long-haul trips to the US.

European tourists have started returning to the US, but visits from countries like the UK, Germany, and France are still below 2019 levels. The US tourism industry has faced a challenging year, with companies like Hilton and Airbnb anticipating lower revenue as the post-pandemic travel boom stabilizes and inflation prompts Americans to cut back on leisure spending.

"Indian travelers are helping to fill the void left by reduced visits from China, Japan, and South Korea," said Laura Lee Blake, CEO of the Asian American Hotel Owners Association, whose members own 60% of US hotels. "Their increasing interest in exploring smaller cities and secondary markets is aiding the recovery across a wider range of destinations," she added, noting that Indian tourists typically favor budget and mid-scale hotels.

Some hotels are also tailoring their offerings to appeal to Indian travelers, such as serving chai and samosas in the lobby and providing popular Indian TV channels in guest rooms. Travel firm Viator, a TripAdvisor brand, reported that US bookings by Indian travelers surged by over 50% in 2024 and have more than tripled since 2019.

"Over the past three years, we've seen a 45% increase in nights booked by Indians traveling to the US," said Dave Stephenson, Airbnb's chief business officer. Scheduled flight capacity between India and the US grew by 42.3% in 2024 compared to 2019, according to OAG Aviation data. "For 2025, I expect growth in occupancy rates and revenue, driven by a younger, experience-focused Indian audience," said Grzegorz Kowalski, CEO of hotel-booking platform Tripoffice.com.

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