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Last Updated : Jun 19, 2018 10:33 PM IST | Source: Moneycontrol.com

Domestic tourists give luxury hotels in India the big business boost

Domestic leisure travellers are spending a good amount of money within the hotel during the period of their stay.

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Indians are now travelling across India in style, thereby giving luxury hotels a much-needed shot in the arm. Once known to spend big during international travel, Indian travellers are now also contributing to the revenue of domestic luxury and branded hotels. It’s not just the stay, the domestic leisure travellers are spending a good amount of money within the hotel during the period of their stay too.

As per a report by Business Standard, Chinmai Sharma, the Chief Revenue Officer at Taj Hotels asserted that the domestic leisure segment is one of the fastest growing categories in the hospitality chain. She added, “Not more than three years ago, the international leisure travellers accounted for as much as seventy per cent of our leisure business and rest came from domestic tourists. The share is now equally split between these two categories.”

EIH Limited - the flagship company of the Oberoi Group - confirms this trend in their annual report for FY 2017 where it states that the hospitality industry is experiencing increased dependence on domestic leisure and corporate traveller. EIH also expects this trend to continue in the coming years.

Radisson Hotel Group’s CEO (South-Asia), Raj Rana said that since most international travellers take longer vacations, the average spend per day is lower than a domestic traveller who takes shorter but frequent breaks.

Lemon Tree Hotels’ spokesperson attributes the increase in Indian leisure travellers to an increase in disposable incomes in Indian families and the online agents’ aggressive marketing offers.

The Ministry of Tourism also confirmed that the number of visits by domestic tourists increased by 13% in 2016 due to better connectivity and lower airfares. They expect this trend to continue in the coming years too.
First Published on Jun 19, 2018 10:33 pm
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