Travel demand, hotel bookings surge in Ayodhya ahead of Ram temple inauguration

Also read: Ram Mandir consecration: Preparations underway to welcome 2 crore visitors in Ayodhya in next 3 months

Online travel aggregator (OTA) Ixigo's data shows more than a 100 percent increase in domestic flight searches week on week for Ayodhya since the launch of the new airport and more than a 60 percent week-on-week increase in train travel searches. "In 2023, we saw a surge in demand for cultural and spiritual hubs like Varanasi and Prayagraj, which were the most searched spiritual hubs for travel last year and we expect to see a similar surge in travel demand close to the Ayodhya temple inauguration," said Aloke Bajpai, Co-founder & Group CEO, Ixigo.

There has been 6x increase in searches for Ayodhya airport compared to the first half of December, noted Gaurav Patwari, VP - Air Category, Cleartrip.

SOTC Travel's demand trends indicate increased interest for the destination from customers across segments with an uptick of 150 percent versus pre-pandemic, said the company's President & Country Head - Holidays, Daniel D’Souza.

Another travel platform Travomint has seen a 2.8x surge in search for Ayodhya. "Hotels are 50 percent booked for VIPs and rooms, which were available for Rs 2,000 are now available for Rs 8,000 to 10,000," said Alok K Singh, Co-founder and CEO, Travomint.

Uptick in hotel bookings

The Ram temple inauguration is expecting an initial attendance of nearly 7,000 guests projecting a daily footfall between three to five lakh visitors post-inauguration, noted Nishant Pitti, CEO of EaseMyTrip. "Leading up to the inauguration, Ayodhya's hotels are fully booked and occupancy rates have risen from 80 to 100 percent, resulting in substantial price hikes, reaching up to Rs 70,000 per night in select hotels," he said.

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Occupancy levels will remain 80-90 percent post-January 22 for quite a significant period, said Atul Thakkar, Director – Investment Banking, Anand Rathi Advisors.

Pitti pointed out that Ayodhya is undergoing significant infrastructural growth and there is a plan for 73 new properties, including 40 currently under construction. "OYO's plans encompass the addition of 50 hotels and homes with 1,000 rooms before the grand opening of the Ram Mandir, totalling 10,000 rooms. This accommodation setup includes 150 economy hotels, 30 dharmshalas, and 20 luxury hotels."

Hotel aggregator OYO recorded an 80 percent increase in searches for accommodations in the city. The company's founder and CEO Ritesh Agarwal said that he saw the highest spike in searches on December 31 for Ayodhya.

"There is a significant surge in bus reservation searches, particularly from northern and central India. There is a substantial increase in railway journey searches to and from Ayodhya. Despite limited airline options, the expectation of a diverse influx after the temple consecration has driven searches for travel and accommodation alternatives. This surge is promising for small-sized travel agencies and budget hotels, signalling a noteworthy upswing in business. Ayodhya-based patrons are seeing a significant uptick in engagement and interest from travellers," said founder and Director, Gautam Mehra, Myatithi.global, a platform for small businesses in hospitality, tourism and travel.

Ayodhya is witnessing an uptick in inquiries for budget hotels, lodges, and homestays, particularly from locations requiring an overnight journey, Mehra said.

Need for infrastructure development

Thakkar pointed out that currently there are not enough hotels in Ayodhya and people will have to stay in places which are far from the main temple or do daily visits from nearby cities and this will go on for the next 6-8 months.

Also read: Ram Mandir Inauguration: Ayodha turns into fortress with tight security, alternate routes

"Given the limited hotel inventory, customers are inclined to look at day trips to Ayodhya and are booking accommodations in Lucknow and Prayagraj," Thomas Cook's Kale said.

Thakkar noted that a search for hotels in Ayodhya on a travel platform even in March shows no listing of a 5-star rating hotel. "This tells you what is the infrastructure requirement needed in the city."

While top hotel brands are planning to add inventory in Ayodhya, including Indian Hotels Company Limited (IHCL), Marriott International, Sarovar Hotels & Resorts and Wyndham Hotels & Resorts, it is expected that the supply of rooms from organised players will come after 2024.

There are five branded hotels that have around 520 rooms under various stages of development in the city, according to an estimate by JLL, a real estate services firm.

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Thakkar said that an increase in tourist arrivals in Ayodhya will expedite the infrastructure development in the city.

While Ayodhya primarily receives a demand from domestic travellers, there is growth in foreign tourism expected in the coming years, said Nandivardhan Jain, Chief Executive Officer, Noesis Hotel Advisory Redefined. But the contingent is the establishment of comprehensive infrastructure, encompassing enhanced connectivity and convenience measures, he added.

"Will Ayodhya become the next Tirupati? The probability is high. Ayodhya will accelerate the growth of spiritual tourism in India," Thakkar said.