Hotel industry sees good times continuing this year

THE HOTEL INDUSTRY will continue to have a good run in 2024 as the stellar growth of the previous year is expected to spill over.Much like 2023, growth would come from meetings, incentives, conferences and exhibitions (MICE), and leisure travel. Key metro cities and resort locations would be the major beneficiaries.

- RAJESH KURUP

The industry's recovery began in the second half of FY22, after the dark era following the impact of the Covid-19-lasted nearly 2-2.5 years.

"The outlook for 2024 looks upbeat with average room rates expected to ₹6,000-6,500 and 1315% rise in revenue growth, with cities such as Mumbai, Delhi and Bengaluru, leading the price surge with a 12-15% rise. This will be followed by Rishikesh, Udaipur and cities in Rajasthan, traditional hill station locations and Goa,"Amit Razdan, -chief operating officer-South Asia at Saraca Hotels & Resorts, said.

India hosting the G20 summit, the cricket fever, the festive and marriage seasons and the Christmas and New Year holiday periods helped the industry last year.

"We see continued momentum in 2024. The segments that will continue to drive demand will be MICE and weddings, while arrival of foreign travellers will see an upward movement, given the government's focus on India as a travel destination. We see leisure continuing to drive demand," Sunjae Sharma, MD, India and Southwest Asia at Hyatt, said.