Surge in U.S. Luxury Travel to India Faces Infrastructure Hurdles

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While luxury travel from the U.S. to India is experiencing robust growth, infrastructure challenges are limiting the sector’s full potential, according to industry experts.

Vikram Madhok, Managing Director of Abercrombie & Kent India, highlighted that despite economic concerns in the U.S., American travelers remain resilient and willing to spend significantly. At the Indo-US Tourism & Hospitality Summit in New Delhi, Madhok noted that luxury travel from the U.S. has surged, positioning India as the third-largest destination in terms of luxury outbound business for his company.

Similarly, Ventours International Travel, which specializes in private jet charters to India, reported strong demand from U.S. clients, with about 75% of its business originating from American travelers. However, Director Vivian Peres pointed out that operational issues at Indian airports, such as limited parking at Agra and logistical complications, are impeding further growth.

Peres described a typical challenge: “For example, a charter flight arriving in Jaipur for a two-night stay must also visit Agra. Due to limited parking at Agra airport, we often need to adjust our schedule, with the aircraft flying back to Jaipur and returning later to pick up passengers after the IndiGo flight departs.”

Additionally, Peres noted that despite the availability of e-visas, charter flights to Agra must first land in Lucknow or Varanasi for customs and immigration, adding significant delays. These infrastructure issues are constraining the growth of the charter segment in India.

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