18 Jan 2023

Hotel, Hospitality Sector Bouncing Back After Covid, Occupancy Of Hotels, Tariff Increase

Mumbai: The hotel and hospitality sector is bouncing back after Covid. According to KB Kachru, Vice President of the Hotel Association of India, occupancy rates and average rents have increased since last few months. 

The revenue per available room has also increased. This trend is expected to continue this year as well, said Kachru.

Business and leisure travel increases

Mandeep S. Lamba, President, South Asia, HVS Global Hospitality, said that this year, a mix of business and leisure travel i.e. "blazer" travel will increase. 

This will help in increasing the income. Hiring of gig workers (gig worker is a person who works temporary jobs typically in the service sector as an independent contractor or freelancer) will also increase. Recruitment will increase.

Occupancy of hotels estimated to reach 70%

India Lodging Report issued by investment banking company Jefferies Room estimates that occupancy of hotels in the country is estimated to reach 70% by March this year. Tairiff may also increase by 8-10% this year as compared to pre-Covid due to the gap between demand and supply. 

Hotel tariff increased at a very fast pace 

According to Jefferies, the country's hotel and hospitality sector has emerged very strongly in the last year 2022. It is expected to reach new heights in 2023. It has also been said in the report that after Covid-19, the past year was very good for the hotel and hospitality sector. 

Hotel tariff increased at a very fast pace i.e. at the rate of 20-30% on an annual basis, but now this rate may slow down a bit.

Industry to benefit from many international events 

According to the Jefferies report and hotel industry sources, many international events are being held in the country this year, due to which foreign tourists will continue to arrive and the hotel industry will benefit from it. 

After the G-20 Summit and the Hockey World Cup, the Cricket World Cup will be held in November-December, as well as the Shanghai Cooperation Organization conference. The hotel industry will get the benefit of many such domestic and foreign events.

No comments:

Post a Comment