BUSINESS TRAVEL 2.0

As corporate travel makes a comeback, we take a look at the emerging trends and new segments in the hospitality industry.

- RIAAN JACOB GEORGE

WITH THE AUSTERITY measures put into place by corporates both Indian and international-for almost three years, the business travel segment took a major hit. On the other end of the spectrum, leisure travel saw a major boom. As we move into 2023, let us look at the state of business travel across India and some of the major trends that will prevail.

INCREASED ADRS (AVERAGE DAILY RATE) 

In Bengaluru, one of India's most thriving business travel markets, hotels have witnessed a minimum of 80 per cent in traffic in 2022 as compared to 2021. "A major upswing in hotel occupancies was supported by leisure individual movement, MICE, and wedding segments. Through 2022, corporate travel was the most promising driver, uplifting the ADRS for the market overall and providing sustainability to business," says Rajani Nair Deb, commercial director of Hilton and Hilton Garden Inn Bengaluru Embassy Manyata Park. Deb also anticipates 2023 to be fuelled further through a resurgence of inbound foreign travel and medium and large industry events, similar to pre-COVID levels. We also got some perspective from Lemon Tree Hotels' president Vikramjit Singh. "We have witnessed an increase in the 'rooms per day' demand by approximately 23 per cent and an ADR increase by approximately 36 per cent in December 2022 versus December 2021. With almost 70 per cent of corporate recovery, MICE/group business has generated incremental demand," he says.

NEW EXPECTATIONS