Indian arrivals to U.S. fall for first time in millennium
It is the fourth-largest source of international visitors to the U.S.
Indian visitors to the U.S. fell 8 percent in June 2025 to 210,000, the first drop this millennium excluding the Covid period, according to the U.S. Commerce Department.
Vishnu Rageev R is a journalist with more than 15 years of experience in business journalism. Before joining Asian Media Group in 2022, he worked with BW Businessworld, IMAGES Group, exchange4media Group, DC Books, and Dhanam Publications in India. His coverage includes industry analysis, market trends and corporate developments, focusing on retail, real estate and hospitality. As a senior journalist with Asian Hospitality, he covers the U.S. hospitality industry. He is from Kerala, a state in South India.
Indian visitors to the U.S. fell 8 percent to 210,000 in June 2025, according to NTTO.
President Trump’s 50 percent tariff on Indian goods took effect on August 27.
The U.S. has seen a decline in international visitors in recent months.
INDIAN VISITORS TO the U.S. fell in June 2025 for the first time this millennium, excluding the Covid period, according to the U.S. Commerce Department’s National Travel and Tourism Office. About 210,00 Indians visited the U.S. in June, down 8 percent from 230,000 in the same month last year.
The provisional figure for July shows a 5.5 percent drop from the same month last year, Economic Times reported, citing NTTO data. Meanwhile, President Donald Trump’s 50 percent tariff on Indian goods took effect on August 27, while Prime Minister Narendra Modi urged citizens to follow the “Vocal for Local” policy in his Aug. 15 Independence Day address. Beyond exports like textiles, the measure is likely to affect travel, tourism and hospitality in both countries.
The U.S. has seen a decline in international visitors in recent months, the Times said.
NTTO reported that total non-U.S. resident arrivals fell 6.2 percent in June 2025 from June 2024; 7 percent in May; 8 percent in March and 1.9 percent in February. January rose 4.7 percent and April 1.3 percent over the same months last year.
India is the fourth-largest source of international visitors to the U.S. Excluding Mexico and Canada, which share a land border, India is the second-largest overseas source after the UK.
“Combined, these top five markets, with Brazil fifth, accounted for 59.4 percent of total international arrivals in June,” NTTO said.
Travel industry leaders say it is too early to blame the drop in Indian visitors on stricter visa rules under Trump’s second term, which coincided with strained India-U.S. ties; the impact could rise if the policy continues. The U.S. mostly issues 10-year multiple-entry visitor and B1 and B2 visas, allowing holders to continue traveling, but new delays or stricter issuance norms could affect arrivals after a time lag.
“We are seeing a visible impact on the student segment this year due to delays in visa issuance, even after people have secured college admission,” a travel agent was quoted as saying in the report. “Historically, the biggest categories of visitors from India to the U.S. have been those visiting friends and relatives, business and students. The U.S. has never been a top leisure destination for Indians; that space is led by Southeast Asia, the Middle East and Europe, with North America following. Right now, apart from students, we are not seeing a significant impact on other segments, but if new visa issuances are affected, they will also be hit after a time lag.”
With an Indian diaspora of more than 5 million, the U.S. sees strong travel demand from India. NTTO data shows that every June since 2000 had recorded a year-on-year increase until 2025 broke the trend.
April saw high outbound travel from India. According to the tourism ministry, 2.9 million Indians traveled abroad, with the most going to the UAE, followed by Saudi Arabia, Thailand, Singapore and the U.S.
“But after May and June, travel was hit by the Pehelgam terror attack, closure of Pakistan airspace (which continues for Indian carriers and vice versa) and the Air India Ahmedabad crash,” a travel industry leader told the Times. “Every destination, especially in the west, was affected. The drop to the U.S. may not be in isolation, given how quickly western destinations were impacted.”
India’s Ministry of Tourism reports that 9.95 million foreign tourists visited in 2024, with the U.S. leading arrivals.
Global business travel spending is projected to reach $1.57 trillion in 2025, up 6.6 percent but below an earlier 10.4 percent forecast.
The U.S. and China lead spending; India, South Korea and Turkey show fastest growth.
Travelers are spending more per trip and adopting digital tools like AI booking and mobile wallets.
GLOBAL BUSINESS TRAVEL is projected to reach $1.57 trillion in 2025, a 6.6 percent year-over-year increase, according to the Global Business Travel Association. The rate marks a slowdown from the previous two years and falls short of an earlier 10.4 percent projection.
“As we anticipate reaching a new high in business travel spending this year, the outlook is steady—but the road ahead is more complex,” said Suzanne Neufang, GBTA CEO. “Trade policy uncertainty, inflationary pressures and shifting global supply chains are reshaping how and where companies travel. This forecast reflects the resiliency of business travel while acknowledging the risks ahead.”
The GBTA BTI report, now in its 17th edition with Visa, forecasts five years of business travel spending across 72 countries and 44 industries. It is based on input from more than 7,300 travelers and shows nominal recovery alongside rising pressure from trade tensions and economic uncertainty.
The latest forecast confirms a slowdown from the double-digit growth of the past two years. Trade policy uncertainty has led to downward revisions, with 2025 growth now at 6.6 percent, down from 10.4 percent, and 2026 at 8.1 percent, down from 9.2 percent.
A GBTA BTI survey of more than 7,300 travelers across 33 countries found 86 percent viewed their trips as worthwhile. About 74 percent took one to five trips in the past year and over 80 percent are traveling as much or more than before 2019. Average trip spending rose to $1,128, up from $834 in the 2024 survey.
Growth varies by market
Spending in 2024 reached $1.47 trillion, just below the earlier $1.48 trillion estimate, GBTA said. While this set a new nominal high, inflation-adjusted spending remains 14 percent below pre-pandemic levels, indicating a slower recovery in travel volume.
The top 15 business travel markets are projected to reach $1.31 trillion in 2025. The U.S. and China account for 58 percent of that total, with spending at $395.4 billion and $373.1 billion, respectively. The U.S. is expected to reclaim the top spot, followed by China, Germany, Japan and the UK.
India, South Korea and Turkey are among the fastest growing within the top 15, while Spain and the Netherlands are projected to see minimal or no growth, the report said.
The report also noted a shift toward digital travel management, with increased use of AI booking tools, mobile wallets and corporate cards. Expense system usage reached 67 percent and corporate card access 69 percent, led by 73 percent in North America. Mobile wallet adoption stood at 64 percent globally and 72 percent in Asia Pacific.
A separate GBTA report found U.S. companies are missing over $2.4 trillion in potential sales due to underinvestment in business travel, with spending still $66 billion below 2019 levels.
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Approximately 75 percent of travel managers expect business travel to rise in 2025, according to Cvent, but travel spend is expected to remain flat, while 71 percent anticipate higher costs.
Cost reduction is a key reason for consolidating travel and meetings management, with 83 percent of dual managers reporting savings.
Only 9 percent plan to cut tech budgets, while 30 percent are spending more time using technology to research hotel partners.
APPROXIMATELY 75 PERCENT of travel managers globally expect business travel volume to rise in 2025, according to Cvent. However, travel spend is expected to remain flat, while 71 percent anticipate higher costs, putting pressure on travel programs.
Cvent’s 2025 Global Travel Managers Report found that North American travel managers continue to prioritize in-person meetings despite hybrid work models and economic pressures.
“In the face of economic uncertainty and shifting workplace dynamics, North American travel managers are demonstrating resilience and adaptability,” said Janine Alsalam, vice president of sales at Cvent. “They are finding new ways to balance cost consciousness with corporate goals, ensuring that business travel and face-to-face meetings continue to deliver value. It’s also encouraging to see companies bringing together travel and meetings, with 83 percent reporting cost savings of up to 20 percent.”
The report, based on a survey of more than 1,600 business travel professionals across six regions and 18 countries, examines expectations and behaviors around corporate travel.
North America insights
North American travel managers continue to prioritize in-person meetings despite hybrid work models and economic pressures, the report said. Conferences and trainings are the most sourced meeting types, even as event and conference travel faces budget cuts, reflecting tension between business goals and cost control. Centralized sourcing is increasing and technology investment remains steady, supporting more integrated travel strategies.
Around 69 percent of respondents cite event and conference travel as a primary reason for travel, the highest globally, followed by networking at 52 percent. Top event types facing budget cuts include event and conference travel and trade shows, in contrast to the global trend targeting internal meetings, incentive trips and retreats.
Globally, travel managers plan to reduce costs by negotiating lower hotel rates for convenience at 25 percent, sending fewer travelers at 23 percent and sourcing across different brand scales at 23 percent, the study found. Sourcing is becoming more centralized, with cost savings cited by 58 percent and operational efficiency by 48 percent as the main reasons for combining business travel with meetings and events.
Rate strategies are also shifting; 57 percent say lack of flexibility is the biggest challenge in travel negotiations. Around percent of North American travel managers prefer a mix of fixed and dynamic pricing, while 25 percent still rely on fixed rates—the highest among all regions.
Technology use remains strong: only 9 percent plan to reduce tech budgets, while 30 percent are spending more time using technology to research hotel partners.
Coping with travel costs
As travel costs rise, travel and meetings management has become more centralized. Ninety-one percent of travel managers are now responsible for sourcing hotels and venues for meetings and events, up from 64 percent in 2017.
According to respondents, a top reason for consolidating travel and meetings management is cost reduction, with 83 percent of those managing both reporting savings.
A recent Global Business Travel Association report found that U.S. companies are missing more than $2.4 trillion in potential sales due to underinvestment in business travel, with spending still $66 billion below 2019 levels.
This year’s forecast is up 1.7 million from 2024 and 7 million from 2019.
This Independence Day is expected to see 1.3 million more road travelers than in 2024.
Top U.S. spots: Orlando, Seattle, New York, Anchorage, Fort Lauderdale, Honolulu, Denver, Miami, Boston and Atlanta.
APPROXIMATELY 72.2 MILLION Americans are expected to travel at least 50 miles from home during the Independence Day period from June 28 to July 6, according to AAA. The forecast is 1.7 million higher than last year and 7 million more than in 2019.
“Summertime is one of the busiest travel seasons of the year, and July 4th is one of the most popular times to get away,” said Stacey Barber, AAA Travel’s vice president. “Following Memorial Day’s record forecast, AAA is seeing strong demand for road trips and air travel over Independence Day week. With the holiday falling on a Friday, travelers have the option of making it a long weekend or taking the entire week to make memories with family and friends.”
Car travel leads
About 61.6 million people will travel by car, a 2.2 percent increase over last year and the highest on record, the report said. This Independence Day period is expected to have 1.3 million more road travelers than in 2024.
Drivers are seeing some increases at the pump, but summer gas prices remain lower than in recent years, AAA said. Crude oil prices have kept costs down overall. The Israel-Iran conflict has pushed oil prices up slightly, with escalation and duration being key factors to watch. Weather also remains a variable.
The Atlantic hurricane season has begun and NOAA predicts a 60 percent chance of an above-normal season. Storms along the Gulf Coast can impact refineries and disrupt fuel deliveries, causing temporary gas price increases.
AAA expects 5.84 million travelers to fly, accounting for 8 percent of all Independence Day travel. This is a 1.4 percent increase over last year’s record of 5.76 million.
Travel by other modes is expected to grow 7.4 percent over last year, AAA said. About 4.78 million people are projected to travel by bus, train or cruise, just below the 2019 record of 4.79 million. Cruise travel is the main driver, especially during Alaska cruise season.
Top destinations
The top holiday destinations are based on AAA booking data for the Independence Day travel period. Cruises, beaches, and fireworks are key reasons travelers are visiting these cities. Alaska cruises are in peak season; Florida and Hawaii see strong demand for resorts and attractions; New York and Boston draw crowds for their fireworks shows. Internationally, Vancouver leads, followed by major European cities.
Top domestic destinations include Orlando, Seattle, New York, Anchorage, Fort Lauderdale, Honolulu, Denver, Miami, Boston and Atlanta. Key international destinations include Vancouver, Rome, Paris, London, Barcelona, Dublin, Amsterdam, Calgary, Athens and Lisbon.
In May, AAA said 45.1 million Americans would travel 50 miles or more over Memorial Day weekend, the highest on record.
How are Americans booking hotels in 2025 summer travel season?
AMERICANS ARE STILL prioritizing travel despite inflation and economic uncertainty, but with greater financial caution and planning, according to TravelBoom Hotel Marketing. About 74.5 percent of U.S. respondents plan to take a summer vacation, and another 17.5 percent are considering it—indicating strong demand tied to careful budgeting.
TravelBoom’s 2025 Booking Trends Study, based on a survey of 200 U.S. travelers, analyzes shifting booking behavior and how independent hoteliers can convert intent into direct bookings.
“We’re seeing travelers crave spontaneity but behave with precision,” said Pete DiMaio, TravelBoom’s hotel marketing expert. “They want the freedom to travel but need the assurance that they’re making the right financial decisions.”
About 65 percent of respondents start planning trips 1 to 3 months out, and 68 percent book accommodations one to two months in advance—giving hoteliers a clear window for campaign targeting and remarketing, the report said. While intent remains strong, economic pressures have led 78 percent of respondents to change their travel behavior, and nearly half cite the broader economy as a key factor.
In this environment, confidence drives action. Guaranteed best rates, free cancellations, and early booking discounts are the top incentives, the report said. Urgency also plays a role and 47 percent book immediately when prices drop while 38.5 percent act quickly when availability is limited.
When choosing destinations, travelers prioritize value and experience—such as travel costs, dining options, and weather—over family-oriented features, signaling a shift toward more adult-focused trips.
A separate survey by Mews Systems found that about 70 percent of American travelers are likely to check into a hotel using an app or self-service kiosk rather than the front desk.
How does GBTA support hospitality and business travel in 2025?
MORE THAN 100 members and constituents of the Global Business Travel Association gathered in Washington, D.C., for the GBTA U.S. Legislative Summit 2025 to advocate for the role of business travel. Members from GBTA’s 38 U.S. chapters met with senators, representatives and congressional staff to advance business travel’s economic impact and improve the travel ecosystem.
The summit, held June 10 to 12, gave industry professionals an opportunity to network, learn and meet with legislators to highlight business travel’s role in the U.S. economy, GBTA said in a statement.
“For more than two decades, GBTA has hosted legislative fly-ins to connect business travel experts with U.S. policymakers to foster understanding, advocate for priority issues and facilitate a better experience for business travelers,” said Suzanne Neufang, GBTA’s CEO. “By promoting the strategic role of business travel in driving economies, innovation, jobs and strategic collaboration, we foster a more resilient future for business travelers and those who support them.”
The association advocated for streamlined international travel, including policies to improve traveler experience and restore confidence in U.S. entry processes. Participants also addressed the need to modernize the U.S. air traffic system, support sustainable aviation fuel and expand passenger rail as a travel alternative.
Attendees heard directly from members of Congress, including Sen. Jacky Rosen of Nevada and Rep. Rick Larsen of Washington, and from experts on topics such as air traffic system modernization, the evolution of SAF and U.S. passenger rail travel, the statement said.
In nearly 150 meetings with legislators, attendees shared GBTA’s policy priorities for U.S. business travel. They called on lawmakers to support modernization of the air traffic system; improve travel at U.S. borders; fund the hiring of 5,000 additional Customs and Border Protection officers; reject any extension of the diversion of the 9/11 Passenger Security Fee; provide resources for CBP’s implementation of the Entry and Exit Program to accelerate processing at points of entry; extend the Clean Fuel Production Credit (45Z) through 2031; and fund improvements to the U.S. rail system.
Attendees also shared findings from the “GBTA U.S. Economic Impact Study: Business Travel’s Impact on Jobs and the U.S. Economy,” which shows business travel contributes $484.4 billion annually, or 1.9 percent of the U.S. gross domestic product. They also presented GBTA poll results reflecting industry concern about the impact of U.S. government actions on business travel.
Last July, a GBTA study projected global business travel spending would reach $1.48 trillion by the end of 2024, surpassing the 2019 record of $1.43 trillion.