Hospitality sector is in high demand ahead of festival season

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Ahead of the festival season, hotels across the country are in high demand. Industry experts said there was a steady 20-30% increase in occupancies from last year, and hotels were optimistic that they could soon be at the level of bookings. ‘before Covid.

Manoj Agarwal, Head of Asset Management at InterGlobe Hotels, said: “If this momentum continues, we should be able to close at around 60% higher revenue than last year. Other hotel chains such as Chalet Hotels and Sterling are also forecasting revenue to exceed pre-Covid levels.

“Hotels have seen a monthly improvement in bookings since the end of the second wave of Covid, and the general mood is optimistic. The December quarter was strong and we expect similar traction this year as well. Even in 2020, hotels saw an increase in activity during the December quarter, ”said Rajneesh Malhotra, COO, Chalet Hotels Ltd.

“We have started to see an increase in requests for reservations for long weekends and upcoming festival days. We expect a 200 percent increase in the number. While last year people were leaving for longer stays, this time shorter stays are popular, ”said Devendra Parulekar, founder of SaffronStays.

Most affected sector

The hospitality sector has been one of the most affected by the pandemic. In FY21, the Indian hotel industry recorded its lowest revenue per available room (RevPAR) of 1,582 in the past 22 years, according to a report from Hotelivate. This is a decrease of 60.8% compared to last year.

But, now, according to a report by HVS Anarock, occupancy rates have been at least 50-52% higher month-over-month and 25% higher year-over-year. .

“Chandigarh, Mumbai and Delhi are the market leaders with occupancy rates of over 60% during the month, exceeding industry expectations. Average daily rates are also improving in all markets, with Goa and Chennai leading the way, ”he said.

Occupancy levels

According to Nishant Pitti, CEO and co-founder of EaseMyTrip, overall the occupancy rate for leisure properties such as five-star hotels and resorts is 80% and subways such as Delhi, Mumbai and Bengaluru are operating. at 50%.

“In addition, the number of reservations for four and five star hotels has doubled compared to last year. The average stay also fell from 3.2 days to 4.7 days, ”he added.

There has been an improvement in the average revenue per room (ARR). Saffron Stays’ ARRs are 15% higher than last year, while Interglobe Hotels is seeing ARRs 20-30% higher than last year. On the other hand, ARRs for Sterling vary from destination to destination. It has grown 30 to 35 percent on average.

Overall, hotels are optimistic that more people will be getting the full vaccine and with the festival cheering around the corner, demand will pick up and provide the opportunity for further tariff corrections.

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