U.S. Tourism Faces Global Retreat, But India Remains a Surging Outlier

While global demand for U.S. travel softens amid economic concerns, Indian travelers are bucking the trend with record-level enthusiasm, signaling a strategic opening for hospitality providers and destination marketers.

Despite growing global reluctance toward U.S. travel, a new wave of demand is emerging from India—reshaping the trajectory of inbound tourism. According to exclusive Skift Research data, international intent to travel to the U.S. has dropped by more than 10% year-over-year as travelers reconsider plans in the face of a strong dollar, visa delays, and geopolitical noise. Yet, India is moving in the opposite direction, with flight bookings and travel searches to the U.S. rising sharply. This divergence is not a fluke. India’s expanding middle class, surging passport issuances, and increasing education and business travel are powering this growth. In the first quarter of 2025, Indian-origin bookings to the U.S. grew 7.4%, in stark contrast to declining figures from traditional markets like Germany, Brazil, and even parts of Southeast Asia.

The implications for the U.S. travel and hospitality sector are clear: Indian outbound travelers present an under-tapped yet rapidly maturing opportunity. Airports, hotels, and destination management companies that realign their strategies to cater to Indian consumer preferences—such as group-friendly itineraries, vegetarian cuisine options, and multilingual support—stand to benefit.

Automation in travel booking, visa processing, and personalized itinerary curation could serve as force multipliers for those looking to optimize conversion from this market. While others retreat, businesses attuned to Indian demand can gain long-term market share, particularly in sectors like premium leisure, education-focused travel, and medical tourism. The American tourism industry must now recalibrate—not merely to sustain visitor flows but to recognize India as a rising cornerstone in the post-pandemic global travel order.