US luxury travel to India surges but infrastructure challenges hinder full potential | TTG Asia

While the luxury inbound business from the US to India is growing strongly, there is a need to address challenges restricting the growth of demand, according to industry stakeholders.

Vikram Madhok, managing director of Abercrombie & Kent India, noted that the American outbound travellers have shown strong resilience, even amid concerns about the US economy.

A panel session during the Indo-US Tourism & Hospitality Summit (Photo: Rohit Kaul)

“The market is buoyant post the pandemic and travellers are not averse to spending top dollar when they travel. As a company, we are seeing a large number of luxury travellers from the US visiting India. In terms of overall luxury outbound business from the US, India features in third position for us as a company. It’s all looking good,” shared Madhok while talking to TTG Asia on the sidelines of the Indo-US Tourism & Hospitality Summit organised by Indo-American Chamber of Commerce in New Delhi last week.

Ventours International Travel, which specialises in private plane charter tours to India, also reported strong demand from the US, with about 75 per cent of its business originating from American travellers. However, Vivian Peres, director of Ventours, pointed out operational issues at Indian airports that are impeding further growth in the charter segment. For instance, limited parking space at airports like Agra has led to complex logistical challenges.

She explained: “For example, we have a charter coming to Jaipur, where guests stay for two nights. They also need to visit Agra to see the Taj Mahal. Now there is no parking space available at Agra airport because IndiGo is also operating in the city. So, we have to rework our timing to drop the passengers in Agra and the aircraft goes back to Jaipur and comes back again when the IndiGo flight leaves in the afternoon.

“While there is an e-visa facility for travellers visiting India, if someone is coming on a charter flight to Agra, we have to land the aircraft in Lucknow or Varanasi for customs and immigration – (this) takes about three hours. After that, you leave for Agra. Such challenges are restricting much more charter business for the country,” added Peres.

Ragini Chopra, executive vice president of corporate affairs at InterGlobe Enterprises, added that India could benefit from a more aggressive marketing approach in the US. She suggested: “The Indian government needs to hire a local destination marketing agency in the US to drive up the numbers of inbound arrivals.”

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