The hospitality sector aims to capitalize on untapped markets in India in the year 2024.

The hospitality sector is gearing up for a promising year ahead in 2024, fueled by the rebound in domestic travel and the anticipation of major global events such as India’s G20 Presidency and the men’s cricket World Cup. After experiencing record-high occupancy rates and room tariffs in both metro cities and smaller towns, the industry remains cautiously optimistic, aware of potential challenges that could dampen the party atmosphere.

According to Puneet Chhatwal, President of the Hotel Association of India (HAI) and Managing Director of Indian Hotels Company Ltd (IHCL), listed hotel companies witnessed double-digit revenue growth in 2023, thanks to increased domestic demand, recovery in foreign tourist arrivals, and the hosting of significant global events. Analysts estimate that the sector’s Revenue Per Available Room (RevPar) grew by 14% in the first half of the current fiscal year and is expected to further increase by 15-20% in the second half of FY24.

Looking ahead to 2024, Chhatwal highlights the immense opportunity that India’s underserved hospitality sector presents, considering its potential for sustainable economic growth and employment generation. However, Pradeep Shetty, President-elect of the Federation of Hotel & Restaurant Associations of India (FHRAI), urges caution, emphasizing the need to address persistent challenges such as online booking frauds, brand reputation issues due to misleading social media content, and the demand for sustainable business practices. Long-term funding accessibility, high GST rates, talent acquisition, and complex business processes also continue to be concerns that require attention.

Despite these challenges, Samir MC, Managing Director of Fortune Hotels, expresses enthusiasm for the year ahead, expecting consolidation, exploration, and a shift towards sustainable practices. Smaller towns and cities are seen as untapped markets with significant potential. Kavinder Singh, Managing Director and CEO of Mahindra Holidays & Resorts India Ltd, notes the current trend towards staycations, leisurely exploration, and environmentally conscious journeys, along with a strong desire to spend quality time with loved ones. Singh aims to double the room count by FY30 and has ongoing projects worth Rs 835 crore.

Davinder Juj, General Manager of Eros Hotel in New Delhi, shares the company’s optimism for 2024, building on the success of 2023. Projections indicate a conservative yet promising 8-9% growth in room occupancy and Average Daily Rate (ADR) compared to the previous year. This outlook is supported by continued investment in guest-centric initiatives, innovative marketing campaigns, and adaptability to emerging travel trends.

As the year comes to a close, India’s hospitality sector hopes that 2024 will mark a new beginning, capitalizing on the opportunities that lie ahead.,

In 2024, the hospitality sector in India is set to explore untapped opportunities in underserved markets. With a focus on expanding its reach beyond major cities, the industry aims to cater to the growing demand for quality accommodation and services in smaller towns and rural areas. This move is driven by the recognition of the immense potential for growth in these untapped markets, thanks to increasing disposable incomes and improved connectivity. By tapping into these underserved Indian markets, the hospitality sector aims to not only boost revenue but also contribute to the overall development of these regions, creating employment opportunities and driving economic growth.

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