India is widely regarded as one of the most sought-after tourist destinations across the globe. Indian Hotel Industry Is available in Wide Range, catering to various budgets and preferences. From luxurious hotels to affordable ones, these accommodations serve as a helpful guide for people seeking suitable lodging options.
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Indian Hotel Industry is characterized by volatility and cyclical fluctuations. The environment and locations are interconnected and depend on the market and level of industry. Visitors typically visit beaches in India during summer due to favorable temperatures and holiday schedules. Indian Hotel Industry growth is driven by several factors, including location, company reputation, environmental factors, leisure activities, and both leisure and business travelers.
The hotel industry in India is highly fragmented, with most small and medium-sized hotels owned by individual proprietors. So, let’s understand more about the Indian hotel industry and its future.
What is the future of the hotel industry in India?
The beginning of 2023 has shown promise, and the outlook for the Indian hospitality industry remains positive. Despite the potential challenges posed by a recession in the United States and Europe, global geopolitical issues, and an uptick in Covid-19 cases in certain regions, domestic demand is expected to remain robust and international travel will continue to rise. In addition, the upcoming G20 presidency of India and the hosting of various international events, such as the ICC Men’s World Cup 2023, will lead to a surge in demand for hotels in the cities where these events are scheduled.
According to Mandeep Singh Lamba, President (South Asia) of HVS ANAROCK, the occupancy rate in Indian Hotel Industry is expected to increase to 66% in 2023. This increase and a 16-17% rise in ARR will result in a RevPAR of 4,690 during that year. This figure is almost 18% higher than the RevPAR recorded in 2019 before the pandemic.
What is the size of the Indian hotel industry?
The Indian Hotel Industry is expected to achieve a value of INR 1,210.87 Bn by the conclusion of 2023. This growth will be driven by a compound annual growth rate (CAGR) of approximately 13% between 2018 and 2023. The high influx of foreign tourists and business delegates is the primary factor contributing to this growth.
What are the different types of Indian Hotel Industry?
The Indian Hotel Industry has distinguished itself in various ways due to recent advancements in catering to the needs of individual customers. Hotels are categorised based on their location or venue. It primarily has the following definitions.
The hotel styles available in India represent the country’s ancient glory and magnificence. These styles mainly consist of old Havelis and mansions converted into Heritage Hotels. These hotels offer tourists the opportunity to experience royal pleasure in a traditional atmosphere. They are mainly located in Rajasthan, Delhi, and Madhya Pradesh.
These hotels offer world-class infrastructure facilities and offer visitors an exceptional accommodation and dining experience. The establishment extends a warm and cordial reception to its clientele, who are predominantly senior-level executives.
These styles of hotels cater to high-class and medium-sized buyers, providing a home away from home experience. Budget hotels, also known as economy-class, corporate, and bargain hotels, offer modern infrastructure to ensure a comfortable and enjoyable stay.
Most hotel hotels in India are in hill resorts and popular tourist destinations along the seaside. These locations are situated amidst picturesque natural surroundings, making them ideal spots to spend quality time with loved ones or enjoy solitude.
How has the Indian hotel industry evolved in recent years?
The pandemic has severely impacted the hospitality industry, which is a widely recognised fact globally. The pandemic, unparalleled in recent history, has compelled the industry to alter its operational methods. Hotels have undergone significant changes in their operations, with many adopting contactless service delivery through technological advancements. These changes have been long-lasting, and some may even be permanent.
During the pandemic, hotels had to find new ways to generate revenue in order to survive. Some successful strategies have become permanent fixtures, while others were abandoned once traditional business resumed.
India’s significant domestic market was primary in driving the industry’s recovery. Interestingly, tier II and tier III cities recovered more quickly, which is not entirely unexpected. Larger cities typically have more hotel rooms, serving as important gateway cities for international, interstate, and MICE (Meetings, Incentives, Conferences, and Exhibitions) travellers.
Unfortunately, this travel industry segment has been particularly affected by pandemic-related lockdowns and restrictions. Another noteworthy observation regarding the revival pertains to hotels’ Average Daily Rate (ADR). Hotels in smaller cities can maintain their room rates better than hotels in metropolitan areas. As business volumes decreased, the competition in big cities became more intense. Hotels have supported the government’s relief measures by accommodating doctors, health workers, and sanitation workers at highly subsidised rates.
Due to the pent-up demand caused by the pandemic, there has been a noticeable trend of people taking quick weekend getaways. Business travel has taken on a new aspect of “leisure”. An increasing number of business travellers are incorporating personal leisure activities into their official business trips, and this trend is expected to continue for the foreseeable future.
“From survival to revival” is a concise and effective phrase that suggests a transition from a state of merely surviving to one of thriving and flourishing. The Indian tourism and hospitality industry is thriving. Thanks to its resilience, this sector is poised to achieve even greater heights in the near and foreseeable future.
Are there any unique cultural experiences one can have while staying in an Indian hotel?
Indian hotels offer various experiences that give you a top-of-the-world feeling. A private dinner at The Oberoi Udaivilas, Udaipur lakeside dome lets you feast on expertly prepared local delicacies and views of the City Palace and Jagmandir.
A specially planned heritage walk conducted by the palace historian will transport you back in time and provide you with information on everything from the architecture and intricate design features to stories about the lives of the former maharajas who once called this Rambagh Palace, Jaipur, their home.
Over 200 different bird species, both migratory and permanent, are drawn to RAAS Chhatrasagar, including pelicans, snipes, golden orioles, and green-winged teals. So, if you are a bird lover, this Indian hotel is best for that experience.
Like this, various Indian hotels offer unique cultural experiences that will make your trip memorable.
What amenities can one expect to find in an average Indian hotel room?
Here are a few of the amenities you can expect to find in an average Indian hotel room:
- Comfortable beds
- Kitchen facilities, like fridge, coffee maker and microwave.
- Complimentary water.
- TV with cable.
- Ironing capabilities.
- Luggage storage.
- Air conditioning.
India is one of the most popular places to visit around the world. Because of this, India’s tourism and hospitality business has become one of the primary growth drivers in the services sector.
Staycations are a new trend in which people stay at friendly hotels to escape their busy lives and relax. To meet these needs, big hotel groups like Marriott International, IHG Hotels & Resorts, and Oberoi hotels are putting together staycation packages where guests can choose from various planned activities inside the hotel.
The tourism industry not only helps the economy grow but also raises people’s living standards by giving them a lot of different job possibilities. It works to protect the climate, preserve different cultural heritages, and keep the peace between countries. Tourism and hospitality in India are expected to bring in US$ 50.9 billion in tourist exports by 2028, up from US$ 28.9 billion in 2018.