After 2 Years Occupancy, Hospitality Sector Expects 20% Occupancy Spike

The resumption of international flights from India is expected to boost the hospitality sector

The resumption of India’s international flights starting today (March 27) at 100 per cent capacity after a two -year suspension due to the Coronavirus outbreak, will most likely boost the country’s hospitality industry.

The hospitality industry saw its worst financial crisis since 2008 due to sanctions imposed around the world following the country’s closure caused by a pandemic in March 2020. It is now expected that occupancy and income levels will eventually increase.

Sonavi Kaicker, CEO, Hotel in Neemrana said “aAfter two difficult years, today is finally a day of celebration for the tourism and hospitality industry. While the industry has shown its resilience, the resumption of international flights will ensure a stable flow of incoming travelers. We expect occupancy levels to improve by at least 15 to 20 percent across the industry over the next fiscal. This will also help self -heritage hotels that rely on incoming businesses and do not have the infrastructure to adapt to the situation. ”

While some industry experts believe tourists from European countries may still be cautious and airlines may also start European routes in a calibrated way, others feel that an increase in inbound tourism by summer will certainly boost revenue for flights and bloody hospitality. industry.

Gaurav Bhatia, Executive Director, Bird Group said, “the resumption of international flights has come at the right time as the busy summer travel season begins and airlines are handling summer schedules. The increase in inbound tourism ahead of the summer will definitely drive up revenue streams the country’s aviation industry. The hospitality industry will also get a big boost from this move which could drive inbound tourism in a big way. “

He further noted that the decision would also give a respite to passengers planning their international travel ahead of the next peak season, by cooling fares that have been skyrocketing due to the lack of interstate flights in a bubble arrangement.

“However, India must implement precautionary measures, such as mandatory closures during travel, even though many countries have decided to go free and live with the virus,” Mr Bhatia added.

The expected surge in inbound tourism is also likely to increase average room rates and revenue for the hotel sector.

Rahul Rai, Executive Director, Renest Hotels said, “Our Bangalore and Kolkata hotels which rely on expatriate business tourism and Jaipur which rely on inbound travel, will eventually see a consolidation of average room rates. We expect occupancy to improve by 20 to 25 per cent for hotels this. ”

Paritosh Ladhani, Executive Director, Ladhani Group, said, “We hope to capitalize on Dubai’s way during its international travel revival expo. We see revenue improving by at least 20 per cent this quarter.”

India resumed regular international flights starting Sunday. An order issued by the Directorate General of Civil Aviation (DGCA) states that scheduled foreign airlines have applied for approval of their international schedules. The 2022 summer schedule is effective from March 27, 2022, to October 29 this year.

A total of 60 foreign airlines from 40 countries including Mauritius, Malaysia, Thailand, Turkey, the United States, Iraq and others have been given approval to operate 1783 frequencies to/from India on the 2022 summer schedule.


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