How the U.S. Is Strengthening Tourism Ties with Its Second-Largest Overseas Market — India Report

The U.S. is increasing its efforts to attract tourism from India. The country’s destination marketing organization Brand USA held its 11th India Sales and Media Mission in Hyderabad this week in its largest mission ever, according to President and CEO of Brand USA Fred Dixon.

CEOs representing U.S. destinations also visited India for the mission, along with 48 U.S. tourism companies and 67 U.S. exhibitors. 

During the event, Brand USA shared that in 2024, 2.2 million Indians visited the country, a 24% increase compared to 2023. India had surpassed pre-Covid numbers by November last year, Skift had earlier reported. It had also become the country’s second-largest overseas source market by May, a position it sustained till the end of the year. 

This surge is despite the long visa wait times, an issue that all destination CEOs agree needs to be addressed. During their visit, the destination heads also visited the U.S. consulate in Hyderabad to understand the processes, Dixon told reporters during the event. 

Visa Waiver a Possibility? “The visa issue is certainly a problem. We cannot skirt that or make that look pretty,” John Percy, CEO of Destination Niagara USA and a member of the U.S. travel association board of directors, told Skift. “I think there have been improvements, but we know that the wait times are a serious problem, not just in India but elsewhere. So we wanted to make it a priority to make that better.”

He added that the U.S. travel association could lobby to waive visas for India. “I would love for India to become a source market that would not need visas. I think that is an opportunity to work towards in the future.”

A Big Opportunity: All destination marketing companies are looking at India as a key source market. When asked, Liz Bittner, president and CEO of Travel South USA, told Skift the very simple reason: “Because there is big money.” Bittner shared that in 2024, 290,000 Indians visited the region and spent $450 million collectively. This year, the forecast is $507 million from 314,000 Indians, an increase of almost 150% compared to the pre-Covid period. 

Utah is similarly bullish. Rachel Bremer, tourism global markets director at Utah Office of Tourism, said the state is expecting over 200% growth in visitor spending in India in the period between 2019-2028, and a visitor growth of over 100%. In 2023, Indian visitors spent $16.7 million in Utah, ranking 12th among all global markets in terms of spending. 

Joe Docal, director of travel industry sales at Greater Miami Convention and Visitors Bureau, is expecting  a steady rise in Indian visitor numbers in the future, driven by improved air connectivity and targeted marketing efforts. 

Air India Launches AI-Driven Booking Feature

Air India has launched an AI-driven feature called “eZ Booking” to make its ticket reservation process simpler. The feature will allow customers to make their bookings on the airline’s website by texting or talking to the AI Agent. 

The feature is currently available exclusively to the members of Air India’s Maharaja Club loyalty program. Skift tried the feature and here’s how it works: 

• The eZ Booking tab has a simple search bar where a simple prompt detailing the origin and destination cities and the dates of travel can be fed, including the preferred travel times and cabin class.
• The AI then self selects the flights and directly takes the customer to the additional services segment, with seats pre-selected as well. 
• Customers can then either verify the booking details according to their preferences or make modifications to the selections before making the payment. 

In a statement, Air India said that the tool aims to simulate the role of a travel agent by listening to the customer’s requirements and generating a customized itinerary. The feature will be launched on the mobile website and mobile app in the coming weeks, it said. 

DreamSetGo Doubles Growth in Bookings

Sports travel and experiences platform DreamSetGo has reported a 200% growth year-on-year in bookings in 2024. In a statement, the platform said that it facilitated travel for more than 15,000 Indian sports fans to more than 30 global sporting events. It added that there was a rise in demand in both Tier-1 and Tier-2 cities. 

Skift had earlier reported that Indian online travel agencies were witnessing a demand surge of 20-40% for sporting events around the world. DreamSetGo alone witnessed over 2,500 fans traveling for the Paris Olympics with packages that included meet-and-greet opportunities with the athletes. It also noted that 80% of the travelers opted for customized packages. 

Karnataka’s Islands to get Tourism Upgrade

Karnataka is planning to develop its coastal and riverine islands to boost tourism and employment under its new maritime policy. It is also looking to rope in players in the private sector. 

The state has a total of 106 islands, of which only one island is currently accessible and inhabited. Another 46 are accessible and not yet inhabited. The state government is planning to develop its islands and prepare an Island Master Plan of Karnataka under the maritime policy. 

According to the policy, a roadmap will be prepared to develop island infrastructure including transportation, utilities and facilities. 

International Temples Convention to Improve Religious Tourism

The International Temples Convention and Expo set to be held in Tirupati next month will work to improve temple tourism facilities, a release stated. The discussions would cover topics such as temple safety, security and surveillance protocols, fund management, and comprehensive disaster management. 

As part of the agenda, crowd and queue management and infrastructure development will also be discussed. It will also look at integration of technology to improve the travel ecosystem. 

According to a report by real estate services firm Colliers last year, spiritual tourism holds a 30% market share in the country's travel and tourism sector and accounts for 60% of the domestic tourism market. Data from India's ministry of tourism showed that in 2022, over 1.4 billion tourists visited religious sites across the country. Colliers expects spiritual tourism to grow 9-10% annually to reach $130 billion by 2032.

Vietjet Launches Two New Direct Flights to India

Vietjet has announced two new direct routes to Hyderabad and Bengaluru from Ho Chi Minh City in March starting March. The new routes aim to capitalize on the growing number of Indian travelers to Vietnam. 

According to Vietnam tourism, India was the sixth-largest source market for the country last year, up two places as compared to 2023. Last year, over 500,000 Indian tourists visited the country, over 260% more than the number of tourists in 2022.