The travel industry in India and the US has experienced a remarkable surge this year, with online travel agencies (OTAs) reporting a more than 50 per cent increase in travel bookings to the US.

This growth can be largely attributed to a substantial rise in student travel, which has witnessed an impressive increase of over 130 per cent year-on-year. The deepening bilateral ties and Prime Minister Modi’s visit to the US have further fuelled this upward trend, leading to predictions of continued growth in the future.

According to the United States National Travel and Tourism Office (NTTO), India has emerged as the second-largest international source market for tourist arrivals to the US, excluding Canada and Mexico.

In May 2023, there were 199,364 Indian visitors to the US. Between January and May 2023, Indian arrivals stood third after the UK and Germany, with a total of 643,270 arrivals, marking a notable 6 per cent increase compared to the pre-Covid period in 2019.

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According to industry players, this number is likely to rise. The coming months are also the peak summer travel season in the US. Earlier this month, Emirates also issued an advisory to its Indian customers.

“Emirates is highlighting a busy travel period between India and the US and advises passengers to allow ample time in advance of their flight, as well as taking advantage of multiple services that enhance seamless travel. Book early as travel demand is high,” it told its customers.

Student travel and bilateral relations

Student travel is another major reason for the uptick.

Cleartrip CFO Aditya Agarwal noted, “We have seen a large bounce-back in bookings to the US this year... Covid restrictions and vaccine mandates have finally been lifted. As we approach the university season, the flow of bookings from students has picked up. This year, fares to the US are on average 10 per cent lower, which is further boosting demand.”

Industry leaders have also highlighted the influence of Prime Minister Modi’s visit to the US and the strengthening of bilateral relations on the surge in travel between the two nations.

According to Indiver Rastogi, President & Group Head, Global Business Travel, Thomas Cook (India) and SOTC Travel, “We have witnessed a 130 per cent uptick in travel to the US compared to last year across customer segments holding valid visas, including families, couples, seniors, and corporates; also VFR movements.”

Boost to the travel industry

The travel industry as a whole has shown a strong recovery, with travel restrictions easing and visa processing resuming. People are actively planning and booking their trips, reflecting their growing confidence in travel.

According to a spokesperson from EaseMyTrip, they have witnessed a remarkable 40 per cent increase in searches for India-US travel. 

Meanwhile, Aloke Bajpai, Group CEO and Co-founder of ixigo, stated, “India’s outbound travel is on an exponential rise... The majority of the bookings are being made by families visiting friends and relatives and by students traveling for the fall intake.”

The removal of Covid restrictions and vaccine mandates in the US, coupled with universities transitioning back to physical classes, has further propelled the flow of student bookings.

Forex Boost

The surge has also had a positive impact on forex. Thomas Cook India’s Executive Vice President, Foreign Exchange, stated, “The USA continues to be the most favored destination for Indian students... witnessing a significant growth of over 150 per cent YoY.”

Players believe that this number is only likely to rise with a host of deals signed between the two countries. 

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