India’s hospitality sector will witness better growth than the rest of the world over the next seven years said Sunjae Sharma, MD, India, at Hyatt India.
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“These are indeed promising times, and I foresee substantial growth over the next five to seven years, with India emerging as a global player in the hospitality industry,” Mr. Sharma told The Hindu.
The country’s economic growth has been fuelling expansion of its luxury hospitality market. Unique destinations in the country were increasingly drawing international luxury leisure travelers, and a fast-growing domestic market with the rise in high-net-worth individuals, he said.
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Mr. Sharma said government initiatives like Swadesh Darshan, PRASAD, and campaigns like Dekho Apna Desh have enhanced infrastructure and spotlighted lesser-known destinations.
Bleisure (business and leisure) travel remains prominent, as professionals blend work trips with leisure, extending stays for exploration. Shorter getaways during long weekends are rising, along with a demand for immersive experiences that connect travelers with local culture. Slow travel and spiritual tourism are also gaining traction, reflecting a shift towards personal growth and Gen Zs are prioritising experiences over possessions, he said.
Sharma said, India’s hospitality industry witnessed a historic year marked by double-digit revenue growth in 2023. Premium hotels recorded impressive occupancy rates and increased room rates during the year. This was fuelled by factors like the G20 Summit, ICC World Cup and increased domestic leisure travel, a resurgence in Meetings Incentives Conferences and Exhibitions (MICE) events.
Hyatt India witnessed 33% year-on-year growth in RevPAR (revenue per available room) in 2023, while this year it rose by 14% driven by strong occupancy and a rise in average daily rates.