TBM Staff - Mumbai
The Indian hospitality sector anticipates substantial revenue growth of 7-9% in the upcoming financial year 2024-25, according to a report published by Investment Information and Credit Rating Agency (ICRA).
Domestic leisure travel, Meetings, Incentives, Conferences, and Exhibitions (MICE), spiritual tourism, and expanding markets in Tier 2 cities are identified as key drivers behind this projected surge in demand. Despite a brief dip anticipated during the forthcoming general election period, the hotel industry remains optimistic about maintaining healthy occupancy levels.
As reported by ICRA, pan-Indian hotel occupancy achieved record highs of 70-72% in the present fiscal year, surpassing the 68-70% recorded in the prior year.
Average Room Rates (ARRs) are forecasted to remain steady at INR 7,200 to INR 7,400 in the current fiscal, potentially rising to INR 7,800 to INR 8,000 in the subsequent financial year. These estimations reflect the positive outlook for the future of the Indian hotel industry.
