To meet the demand of increasing number of tourists in India, hotels have increased their capacity significantly, the economic survey 2023-24 showed.
In 2023, the highest amount of new supply was created with the addition of 14,000 rooms, bringing the total inventory of chain-affiliated rooms to 183,000 in India.
In FY24, the average daily rate increased from Rs 6,704 to Rs 7,616, a 13.6 percent year-on-year (YoY) growth.
The Federation of Hotel and Restaurant Associations of India (FHRAI), however, said the country need 3-4x of the rooms it has at present.
Despite bundling the unorganised hotel rooms, which are around 100,000, there is a huge gap and India remains underserved compared to major lodging markets worldwide. China has 16.6 million rooms, FHRAI said.
The Economic Survey also said hoteliers are increasingly leveraging technology to personalise guest experiences and improve operational efficiencies.
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They are also adopting innovative operational strategies such as leasing or managing external restaurant, spa, and lounge brands to capitalise on established concepts that attract hotel residents, thereby boosting revenue.
The tourism sector has embraced the digital revolution, the pre-Budget document said. One such initiative is E-Marketplace, designed to facilitate interactions between tourists and certified tourist facilitators and guides through web and mobile applications. The Centre in collaboration with state governments and union territory administrations is working on registering accommodation units nationwide in the National Integrated Database of Hospitality Industry (NIDHI) portal. This database will aid in formulating effective policies and strategies for promoting tourism, the survey said.
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Another initiative is SAATHI (System for Assessment, Awareness and Training for Hospitality Industry), which aims to prevent further transmission of viruses by educating the hospitality industry on government Covid regulations.
Hotel companies have thrived post-pandemic, driven by strong demand boosting occupancies across all segments. Travel players have also seen strong growth, as Indians have increased the number of trips they take in a year from one long trip earlier to multiple shorter trips in the post-Covid phase.
Rating agency ICRA expects robust revenue growth of 11-13 percent for the Indian hotel industry in FY25. Overall, the tourism sector is anticipated to sustain its momentum and grow significantly in FY25.
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