TNN | Posted July 20, 2023 11:54 AM
Job opportunities for the hotel management graduates might soon get a boost post Covid, as pan Indian premium hotel occupancy estimated to be 70-72% in the Financial Year (FY) 2024.
According to a report released by ICRA, a full-service credit rating agency, India’s premium hotel occupancy might stand at 70-72% in the financial year 2024. The agency’s report also stated that Average Room Rates (ARRs) at premium hotels are expected to touch Rs 6,000 to 6,200 in 2024, while the occupancy will continue to remain at a decade-long high.
Sustenance of domestic leisure travel, higher bookings from meetings, incentives, conferences, and exhibitions (MICE), and business travel, along with an increase in foreign tourist arrivals (FTAs), would support demand. The industry is also likely to benefit from specific events like the G20 summit and the ICC World Cup 2023.
Consistent improvement in consumer sentiments despite the inflationary environment, stable corporate performance, and domestic air passenger traffic inching above pre-Covid levels augur well for travel and hotel demand. The report further claimed that the demand recovery in the hospitality industry has remained strong in the past year, and that ICRA anticipates it to continue in 2024 as well.
“Gateway cities like Delhi and Mumbai are likely to top the occupancy chart at 75% plus in 2024. Demand is expected to remain healthy across markets, although Bengaluru and Pune are likely to be laggards compared to other key cities. While the G20 summit would support occupancy across cities in FY2024, improved economic activity and business associations stemming from these meetings are likely to translate into incremental demand for hotels over the medium term,” said Vinutaa S, vice president, Corporate Ratings, ICRA.
ICRA expects an improving trend in ARRs as well across markets in FY2024, driven by healthy occupancy. “Further, mid-scale hotels have also witnessed traction across cities and are likely to continue reporting healthy ARRs and occupancy in FY2024,” adds Vinutaa.