Indian hotels profit from demand surge |
Indian hospitality industry has been ever expanding, moving hand in hand with the domestic tourism. The main reason for the increase is the arrival of foreign tourist, forex earnings growth, high airline passenger numbers and muted supply growth which has put the Indian industries on an upswing. According to the market reports Indian hotel industry was able to overthrow the 65% occupancy rates threshold last year (2017). Branded hotels in India touched the occupancy rate of 65.6 percent in financial year 2017, as against 63.3 percent in the previous year. Supply was more than demand for more than seven years until end¬ Fiscal Year 2017. But business has improved recently. The ever expanding growth of the Indian travel and tourism industry has a cascading effect on the hotel industry, boosting the occupancy rate and the average room rate. In the past three years, besides stable growth in foreign tourist arrivals, domestic travellers have contributed meaningfully to the growth in revenues at luxury hotels. The share of domestic travellers in business generated in the luxury segment has climbed to 50 per cent from 30 per cent three years ago.
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