The first Indo-U.S. Tourism and Hospitality Summit, held by the Indo-American Chamber of Commerce in Delhi on Friday, highlighted two major strategies to enhance tourism between India and the United States: expedited visa processes and increased direct flight options.
Suman Billa, Additional Secretary at India’s Tourism Ministry, emphasized the need for more direct flights between the two countries. Currently, many travelers are routed through third countries, such as those in the Middle East or Europe. “Direct flights would not only reduce travel costs but also make traveling to the U.S. more convenient,” Billa said. Despite this, progress in this area has been slow.
Presently, Air India, American Airlines, and United Airlines offer non-stop flights between India and the U.S. Billa also pointed out that although U.S. visas are valid for 10 years, the application process remains cumbersome.
Recent improvements have been noted, however. In January, the U.S. Embassy reported a 75% reduction in visa appointment wait times in India over the past year. This came despite a 60% increase in visa applications. Process enhancements and additional staff have cut wait times for visitor visas from an average of 1,000 days to 250 days.
U.S. Ambassador to India, Eric Garcetti, mentioned at the Skift India Summit in March that President Joe Biden had tasked him with addressing the visa backlog. “It may be the first time a U.S. president has asked an ambassador to focus on visa issues,” Garcetti remarked.
At the Chamber of Commerce event, Jonathan M. Heimer from the U.S. Commercial Service reported that visa processing has gained efficiency. “We processed 60% more visas with nearly the same resources and issued over 1.1 million visas last year, setting a new record,” Heimer said.
Proposing Short-Term Visas
Rajesh Magow, co-founder and group CEO of MakeMyTrip, proposed the introduction of short-term tourist visas. “Many countries have adopted such visas successfully. A short-term visa could be a valuable innovation,” he suggested.
Data from the U.S. National Travel and Tourism Office (NTTO) reveals that India was the second-largest source market for U.S. tourism between January and May 2024, excluding Canada and Mexico. In 2023, 1.7 million Indian tourists visited the U.S., with expectations of reaching 2 million by 2027.
India’s Tourism Potential
Billa acknowledged the strong bilateral relationship and growing travel between India and the U.S., but he believes there is significant room for growth. “India has not fully tapped into its tourism potential,” he said.
Garcetti also noted at the Skift India Summit that while there is substantial demand from Indian tourists for U.S. travel, the reverse is less pronounced. “Americans are less familiar with India, but this is changing. There is a growing interest in India, which should create a more balanced flow of tourism,” he said.
Indian Gen-Z Travelers Embrace Technology
Indian Gen-Z travelers, born between 1995 and 2010, are increasingly using technology to enhance their travel experiences, according to Booking.com. About 70% of surveyed Gen-Z travelers in India are open to incorporating more technology into their travel plans, including AI suggestions for less-explored destinations.
This group seeks value for money, prefers off-peak travel to reduce costs, and enjoys unique experiences like skydiving or hot air ballooning. They also look for travel discounts through loyalty programs. More than 70% of them are willing to repeat enjoyable accommodations.
“With 65% of India’s population under 35, understanding Gen-Z travel preferences is crucial. Their demand for unique experiences and tech-driven solutions is shaping the travel industry,” said Santosh Kumar, country manager at Booking.com for India, Sri Lanka, Maldives, and Indonesia.
Hong Kong Targets Indian Tourists
Indian travelers are significant spenders in Hong Kong, averaging INR 100,000 ($1,200) per person, according to Puneet Kumar of the Hong Kong Tourism Board. In the first half of 2024, 181,000 Indians visited Hong Kong. The city aims to attract 560,000 Indian tourists by year-end, doubling the figure from 2023.
Hong Kong is promoting itself as a year-round destination with major events and festivals, focusing on Gen-Z and Millennials who are likely to visit frequently for concerts and festivals. The tourism board is also targeting leisure and MICE (meetings, incentives, conferences, and exhibitions) segments.
Japan Airlines Expands Tokyo-Bangalore Flights
Japan Airlines will increase its Tokyo-Bangalore flights to five per week starting in October, up from three flights per week. Bangalore is currently the only South Indian airport with direct flights to Tokyo, and Japan Airlines is the sole operator on this route. The frequency increase responds to rising demand, with Japan Airlines reporting a 168% increase in passengers between Bangalore and Japan in 2023 compared to 2022.
Thomas Cook Introduces Self-Service App
Thomas Cook India and SOTC Travel have launched a customer self-service (CSS) holiday app to enhance post-booking experiences. The app offers features such as sightseeing schedules, hotel reservations, flight tickets, insurance details, visa status tracking, and weather updates. The CSS app, piloted in April, has seen a 50% adoption rate.
This launch follows Thomas Cook’s introduction of an AI-powered platform for quicker holiday planning and bookings.
Air India Adds Festival Season Flights
Air India has announced additional flights from four cities to Kolkata for the Durga Puja festival. Daily extra flights from Delhi have already started, with additional flights from Bangalore, Mumbai, and Hyderabad set to begin next month. These services will run through October to accommodate increased travel demand during the festivities.