The US tourism sector faces a significant downturn, projected to lose USD12.5 billion in revenue in 2025, a 22 per cent drop from 2019 peaks. Lingering Covid-era travel rules, a strong dollar, and perceived unwelcoming policies are deterring international visitors. This decline disproportionately affects major gateways and border regions, potentially delaying recovery to pre-pandemic levels until 2030.
The inaugural India edition of the global index reveals that about 47% of Indians who are planning to travel in 2025 have saved up to INR 126k or more for their next trip. To decode these trends and chart the road ahead, ETTravelWorld sat down with Charu Kaushal, Managing Director, Allianz Partners India. An insurance veteran who steered the company’s India growth since 2014, Kaushal reflected on how travel has evolved—and how protection must keep pace.
Expedia Group reported weaker-than-expected revenue due to reduced travel demand in the U.S., mirroring trends noted by Airbnb and Hilton. Economic uncertainty, anxiety over tariffs, and concerns about tourist detentions are contributing factors. Bookings to the U.S. have declined, particularly from Canada, while travel to other destinations like Latin America is increasing. The U.S.
Booking.com’s 10th Sustainable Travel Report finds a growing number of Indian travellers prioritising tourism that benefits local communities. With 96 per cent viewing sustainable travel as important, 63 per cent now seek to leave destinations better than they found them, while 77 per cent want authentic cultural experiences that support local economies.
A new report by FINN Partners reveals a major shift among Indian international travellers, with 81% preferring luxury travel experiences over extravagant weddings. Gen Z leads the trend, redefining travel as emotional expression and cultural connection. This evolving mindset is driving a global tourism rethink, as destinations and brands look to engage India’s emerging class of experience-driven consumers.
Weakening travel demand, fueled by trade war uncertainties and anti-American sentiment, threatens to erase billions from the US economy. Airlines are retracting forecasts, and analysts project a significant hit to GDP from reduced foreign travel spending. Domestic spending is also declining amid recession worries, further impacting the US travel and tourism industry.
The AI-driven pricing analytics firm revealed that outbound airfares from Srinagar surged by an average of 46%. In comparison, inbound fares plummeted by 53%, indicating how pricing algorithms react to real-time demand shifts without factoring in a humanitarian context. The data showed that some travellers trying to exit Srinagar during the crisis faced fare increases as steep as 213%.
Agoda’s latest accommodation search data shows a surge in spiritual tourism across India, with cities like Allahabad, Ayodhya, and Varanasi climbing search rankings in early 2025.
Indian travellers are increasingly seeking distinctive, meaningful travel experiences while balancing value and local engagement, according to American Express India’s 2025 Global Travel Trends Report. The study highlights that 92 per cent of Indian tourists prefer one-of-a-kind souvenirs, while 84 per cent actively support small local businesses on trips. The report also shows tech-savvy planning and reward-point optimisation are shaping modern Indian travel habits.
Fine Acers projects significant growth in India's branded residences and resorts market. The market is expected to reach USD 1 billion by 2027. Domestic travel and the MICE segment will drive demand. Room additions are increasing to meet this demand. Major cities like Mumbai and Bengaluru are key markets. India's share of the global supply is expected to rise significantly.
The World Travel & Tourism Council (WTTC) projects international visitor spending will hit a record USD2.1 trillion in 2025, signalling continued global growth despite economic headwinds. The sector is expected to contribute USD11.7 trillion to global GDP and support 371 million jobs. However, recovery remains uneven across regions, with markets like the US and China showing slower growth compared to surging destinations such as Saudi Arabia, France, and Spain.
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