Tag Archives: hotels

Indian hospitality industry to see revenue growth of 7-9% YoY in FY2025: ICRA

 

ICRA projects the Indian hospitality industry to achieve revenue growth of 7-9% YoY in FY2025 and 6-8% YoY in FY2026, on the strong foundation of FY2024. Pan-India premium hotel occupancy is expected to rise to ~72-74% in FY2026 from ~70-72% in FY2025, while average room rates (ARRs) for premium hotels are projected to increase to INR. 7,800-8,000 in FY2025 (up 8% YoY) and further to INR. 8,000-8,400 in FY2026. ICRA’s sample set of 13 large hotel companies is likely to maintain robust operating margins of 31-33% in FY2025 and FY2026, compared to 33% in FY2024 and 20-22% pre-Covid.

The sector’s growth is driven by sustained domestic leisure travel, demand from meetings, incentives, conferences, and exhibitions (MICE), including weddings, and business travel, despite a temporary dip during General Elections. Spiritual tourism and tier-II cities are also expected to contribute significantly by FY2026. Domestic tourism remains the primary demand driver, while foreign tourist arrivals (FTA) are yet to recover to pre-Covid levels, with improvements linked to global economic factors. Gateway cities like Mumbai and NCR are projected to report occupancy rates exceeding 75% in FY2025 and FY2026, benefiting from transient passengers, business travellers, and MICE events, alongside healthy ARRs that may spill over demand to mid-scale hotels.

The medium-term outlook remains strong, supported by improved infrastructure, enhanced air connectivity, favorable demographics, and growth in large-scale MICE events due to new convention centers. However, supply growth, expected at a CAGR of 4.5-5% until FY2026, will lag demand, with limited premium inventory additions in metro cities due to land constraints. New supply is primarily driven by rebranding, property upgrades, and suburban greenfield projects. Renovations, refurbishments, and upgradation of properties in recent quarters are also expected to support ARRs.

Margins have expanded significantly due to cost rationalisation measures adopted during Covid, operating leverage benefits, and increased efficiency, with staff-to-room ratios remaining ~15-20% lower than pre-Covid levels. Asset-light expansions through management contracts and operating leases have also boosted profitability for larger hotel chains. Despite an uptick in supply announcements and revived deferred projects over the last two years, the relatively low inventory growth is expected to sustain the ongoing upcycle, as demand strengthens over the medium term.

Russia is keen to promote tourism.

Russia hikes tourist tax while lifting export duties on coal

A new tourist tax has come into effect across Russia on Wednesday, replacing the previous resort fee, local media on Wednesday.

From January 1, 2025, travellers staying in hotels and other accommodations will contribute an additional 1 per cent of their lodging costs, marking the start of a phased plan to bolster regional tourism infrastructure, reports Xinhua, quoting RIA Novosti news agency.

The tax was introduced as part of amendments to the Russian Tax Code in July 2024, which added a new chapter titled “Tourist Tax,” granting regional authorities discretion to implement the tax as a local levy. Many regions, particularly those with established or emerging tourism industries, have already embraced the initiative.

Under the current framework, the tourist tax will begin at a rate of 1 per cent in 2025 and gradually rise to 3 per cent by 2027. To ensure a baseline contribution, a minimum daily charge of 100 rubles (0.9 US dollars) has been established.

While hotels and other lodging providers are technically taxpayers, the cost will be incorporated into the price of accommodations, thus being passed on to tourists.

Additionally, Russia has also officially dropped export duties on anthracite, coking coal, and thermal coal starting January 1, 2025, local media reported on Wednesday.

Introduced on October 1, 2023, flexible export duties were in place until the end of 2024. However, duties on anthracite and thermal coal were temporarily suspended between May 1 and November 30, 2024.

In November 2024, the Russian government decided to lift the export duty on coking coal ahead of schedule and extended the suspension of duties on anthracite and thermal coal to support the coal industry.

Suman Billa is on old hand at tourism promotion.

Additional Tourism Secretary emphaises on supply shortages to meet growing demand

Suman Billa, Additional Secretary of the Ministry of Tourism, emphasised on the critical need to address supply shortages in order to keep up with the increasing demand in the tourism sector.

At the 18th CII Annual Tourism Summit 2024 in New Delhi, Billa acknowledged that economic growth, rising incomes, and broader aspirations have driven this demand, but cited an imbalance with the current supply of hotels and tourist infrastructure.

In his address during the ‘Ease of Doing Business’ session, Billa proposed a three-pronged strategy aimed at enhancing supply and leveraging the sector’s opportunities. He advocated for the Ministry of Finance and the Reserve Bank of India to bestow infrastructure status upon the tourism sector, enabling access to affordable credit and extended repayment periods while calling for the harmonisation of development norms across states.

Billa also stressed the importance of simplifying business operations by making clearances less cumbersome and ensuring they are processed within set timeframe. He noted the need to boost international tourism, particularly among business, leisure, and shopping travellers, as a focal point. To support these efforts, he revealed a plan for infrastructure projects in states, contingent on investment-based incentives, and highlighted the emerging role of Indian embassies in promoting India as a key travel destination.

VFS Global has expanded its footprint across the world and is a name to reckon with in visa processing.

VFS Global parnters with Vietnam’s VinUniversity to support its environment-friendly and sustainable ‘Dynapath’ initiative

VFS Global has joined hands with not-for-profit VinUniversity in Hanoi, Vietnam, to support its innovative Dynapath project and empower youth through skilling programmes, thereby enhancing employability in Vietnam.

As part of this initiative, VFS Global will support VinUniversity in implementing a proof of concept at its Visa Application Centre in Hanoi. To ensure the success of this endeavour, VFS Global will provide funding to implement and subsequently scale the initiative to other locations, thereby promoting sustainability and raising awareness for future environment friendly and sustainable initiatives.

The Dynapath project by Nguyen Thao Van, Tran Dinh Le Hoang and Pham Gia Khuyen, was developed as part of the Sustainable Hospitality Challenge (SHC), by Hotelschool The Hague, the world’s largest global student competition, which promotes collaboration with the next generation and empowers them to lead the way in driving sustainable change.

The project transforms plastic waste into high-performance kinetic tiles that generate electricity from foot traffic using piezoelectric technology, offering a sustainable, energy-efficient flooring solution that reduces plastic pollution and provides renewable energy in high-traffic areas like hotels and airports. This environmentally friendly project was developed as part of SHC, where it reached the finals and earned “The Most Sustainable Impact Award” at FHS World Dubai in October 2024. Following this success, the project also won the inaugural Investors’ Nest competition at the World Travel & Tourism Council (WTTC)’s 24th Global Summit in Perth, Western Australia, later that same month.

Zubin Karkaria, Founder and Chief Executive Officer, VFS Global Group, said, “Creating value for society through continuous innovation, sustainability, development of human capital are deeply imbedded in the cultural fabric of VFS Global. In line with which we are very proud and committed to be associated with this project, encouraging young entrepreneurs through business incubation programmes and upskilling students while simultaneously aligning with Vietnam’s national goals of empowering youth through skilling and vocational training.”

Julia Simpson, President and Chief Executive Officer, WTTC, said, “The Dynapath project is a testament to the power of innovation in driving sustainable practices within our industry. Initiatives like this not only address critical environmental challenges but also empower the next generation to lead with purpose. We are proud to see one of our Global Summit winners making such a significant impact, and we commend VFS Global and VinUniversity for their collaboration in advancing sustainability and youth empowerment in Vietnam.”

John Evans, Dean of College of Business Management, VinUniversity, said, “On behalf of our college, I extend heartfelt gratitude to VFS Global for their invaluable support in fostering our students’ innovative sustainable green solutions for the travel and hospitality industries. Your partnership empowers the next generation of entrepreneurs to create a more sustainable future, blending creativity with responsibility to address global challenges.”

Paul Griep and Stella Van Toor, Directors of The Sustainable Hospitality Challenge by Hotelschool The Hague, said, “We sincerely thank VFS Global for their unwavering support in championing students’ innovative and sustainable solutions. Your commitment to nurturing these bright minds and promoting sustainability inspires meaningful change and paves the way for a greener, more responsible future in the industry. This perfectly reflects our vision for the Sustainable Hospitality Challenge as a platform where students from technology, hospitality, and design collaborate to create market-ready solutions that drive real-world impact.”

‘We are committed to providing a welcoming environment for Indian visitors’

As a leading shopping destination for international visitors, including organized travel groups, what sets Outletcity Metzingen apart from other factory outlet centres in Europe? How has it maintained its appeal as a top choice for travellers seeking a unique shopping experience?
Outletcity Metzingen distinguishes itself through its unique blend of luxury brands, attractive discounts, and a captivating shopping experience. Our carefully curated brand portfolio, stunning blend of historic and modern architecture, and exceptional customer service make us a premier shopping destination. The convenient location in Southern Germany, just a 2-hour drive from major cities like Munich, Frankfurt and Zurich, makes us an ideal destination for international travelers, including organized travel groups.

Angela Rieger, Senior International Partnership Manager at Outletcity Metzingen

With the festive season approaching, what special promotions, events, or Christmas-themed activities can visitors expect at Outletcity Metzingen this year, and how can travel agents leverage these to attract group bookings?
In November, Outletcity Metzingen will become enchanted with a festive flair as magical lights illuminate the storefronts with Christmas fairy tales. Additionally, from November 18th to December 2nd the Black Weeks provide exceptional discounts and are the perfect way to start your Christmas Shopping. During the month of December, a small Christmas market with traditional delicacies awaits visitors on our main square. These events and promotions can be a major draw for both group and FIT travelers, offering a unique and memorable shopping experience. Additionally, Metzingen is the perfect base to explore the numerous historic Christmas Markets in the region such as Stuttgart, Tübingen, Esslingen and Ludwigsburg.

In addition to its extensive shopping options, Outletcity Metzingen provides a range of hospitality services. Could you share how the hotels, restaurants, and other amenities on offer enhance the overall visitor experience, particularly for group travellers?
The city of Metzingen offers a variety of accommodation options, from holiday apartments to boutique hotels and of course the stylish Moxy Outletcity Metzingen hotel, providing a convenient and comfortable stay. With 203 rooms, the Moxy Outletcity Metzingen is particularly suitable for groups but will also offer a stylish stay for every fashionista. Our diverse range of restaurants and cafes includes not only the world’s only BOSS Café but also a choice from European to Asian cuisine and caters to various dietary preferences. For our Indian guests we can also recommend the Indian restaurant that is located in the historic town center of Metzingen and just a 5-minute-walk from the Outletcity. Furthermore, our Customer Service in the Welcome Center is glad to help with any request visitors may have. For individual guests our new VIP Lounge is an additional attraction that offers a luxurious shopping break and can be booked by travel agents in advance.

For travel agents organising first-time group visits during the Christmas season, what are the top attractions or events at Outletcity Metzingen that they should highlight in their itineraries?
For first-time group visits during the upcoming season we would recommend to highlight the special offers of the upcoming Black Weeks and include some of the regional Christmas markets in the itinerary. At Outletcity Metzingen we have also created special packages for groups that can be requested via our website.

Given the growing interest from Indian travellers, what strategies does Outletcity Metzingen have in place to engage with this market? Are there any incentives, commissions, or exclusive offers for travel agents and tour operators who plan group visits from India?
We are committed to providing a welcoming environment for Indian visitors with dedicated services targeted to their needs. We are also exploring additional incentives and exclusive offers for travel agents and tour operators who plan group visits from India. For any details on such incentives we look forward to hearing from interested agencies.

Sabre launches SynXis insights for Hoteliers’ success

 

Sabre Hospitality, a division of Sabre Corporation, has launched SynXis Insights, a powerful data and analytics tool designed to enhance decision-making for hoteliers. SynXis Insights provides a unified view of reservation data with built-in visualisations and daily updates, enabling hotels to access performance metrics directly, without depending on central chains for insights. This self-service approach is expected to empower hoteliers to make faster, data-driven decisions that optimise their revenue and operational strategies.

SynXis Insights offers over 15 filtering options, allowing users to examine and compare data across multiple years and various metrics, such as bookings, revenue, and average daily rate (ADR). This customisation enables hoteliers to align data analysis with their specific goals. Early adopters like HotelREZ have praised the tool’s clarity and usability, noting how it simplifies strategic planning by presenting data in an easy-to-understand format that enhances operational efficiency.

Developed in partnership with Google Cloud, SynXis Insights draws on advanced analytics to provide six dynamic dashboards covering aspects like channel performance, booking times, and travel agent metrics. Integrated with SynXis Booking Engine, Voice Agent, GDS, and OTA data, the tool enables hoteliers to monitor customer trends across various channels, improving their distribution strategies. Sabre’s Director of Product Management, Hannah Garcia, highlighted that user feedback from prominent hotel brands was instrumental in refining the tool’s functionality, security, and scalability.

Looking ahead, Sabre plans to extend SynXis Insights’ capabilities by incorporating additional reporting for its GDS Media and Digital Marketing services, along with expanded analytics for the SynXis Booking Engine. These future developments are part of Sabre’s broader vision to provide innovative, comprehensive analytics that allow hotels to track business trends, refine distribution strategies, and ultimately drive revenue growth.