Skift Take
In the July-September quarter, the occupancy remained consistent as last year, and the growth in revenue was driven by higher room rates: A positive sign indicating travelers’ willingness to spend more on tourism.
The Indian hospitality sector recorded 10.8% year-on-year growth in revenue per available room (RevPAR) in the July-September quarter this year, according to real estate services firm JLL. The surge was driven by a rise in average daily rates (ADR) of hotels, as the occupancy levels remained similar to the year before.
The statement said that apart from a slight decrease in the ADR of hotels in Delhi and Goa, all other major markets, including Bengaluru, Chennai, Delhi, Hyderabad, and Mumbai, showed considerable growth. Hyderabad leads the list.
“Backed by strong performance of hotels across India, we continue to see investors moving money in this asset class. There is strong momentum on both greenfield developments as well as operating assets across business and leisure markets,” said Jaideep Dang, Managing Director, Hotels and Hospitality Group, India, JLL.
During the quarter, 96 branded hotels comprising over 10,600 keys were signed. Nearly 2,000 rooms across 30 branded hotels were opened. About 80% of the inventory opened during the quarter was located in Tier-2 and 3 cities, the firm noted.
JLL is expecting the next quarter to perform well, driven by corporate travel, festivals, and Meetings, Incentives, Conferences, and Exhibitions (MICE), and other social gatherings, Dang said.
Global Hotel Companies: Global hotel companies, including Accor, Hyatt, Marriott, and Hilton are looking to expand in India.
In an earnings call earlier this year, IHG CEO Elie Wajih Maalouf reported signing nine hotels in the country during the quarter, speaking about the strategic importance of India to the company’s growth.
Last year, Marriott introduced its 17th brand in India: Moxy.
Air Charter Company Sirius India Airlines to Raise $100 Million
Air charter services operator Sirius India Airlines is looking to raise $100 million. It aims to use the money to expand its fleet as well as services. The development comes months after it started its operations in August in partnership with Dubai-based Transworld Group.
Sirius India Airlines’ aim is to have 50 private jets in its fleet by the 2028 fiscal. It is looking to expand to regions such as far east, Southeast Asia, and East Africa in the long-term.
It currently has three luxury jets in its fleet and operates domestically as well as in the Middle East. Founder Arun Kashyap said that the company was witnessing high demand for charter travel from corporates as well as lifestyle travelers. Sirius is also strengthening its presence in western and southern Indian markets to cater to this demand.
Domestic Air Traffic in India
On Sunday, Indian airports catered to more than 500,000 domestic passengers, recording its highest ever single-day passenger footfall. The civil aviation ministry said that the passenger traffic has been consistently increasing over the past two weeks. Before this, 490,000 passengers traveled on November 8, and this figure increased to 499,000 on November 15, before dipping to 498,000.
Earlier this year, aviation analytics firm OAG had said that India has become the third-largest domestic aviation market, after the U.S. and China. It noted that in April 2024, India’s domestic airline capacity was about 15.6 million, up from 8 million in April 2014.
Over the past decade, the Indian domestic market grew at an annual rate of 6.9%. The firm studied India, China, U.S., Indonesia, and Brazil, and India is the fastest-growing market, it said.
Ahmedabad Introduces Luxury River Cruise
The city of Ahmedabad in Gujarat is launching a luxury banquet cruise on the Sabarmati River. The project has been built with an investment of INR 250 million (nearly $3 million) and is meant to boost the tourism and hospitality sector in the city.
The cruise is expected to include a banquet hall, an AC waiting lounge, a mocktail bar, and a VIP lounge. For this, the city has partnered with a private player in order to attract domestic and international tourists.
Cruise tourism is gaining popularity among Indian travelers. In 2023-24 fiscal year, India recorded its highest-ever cruise tourism footfall: 470,000. Domestic tourists accounted for nearly 80% of this. The government of India wants to double cruise passenger traffic by 2029 and recently launched the ‘Cruise Bharat Mission’ to boost cruise tourism in the country.
IndiGo Announces Mauritius as its 35th International Destination
Budget carrier IndiGo on Tuesday commenced direct flight operations to Mauritius, making the East African nation its 35th international destination. With this, IndiGo has become the first airline to commence direct service between Bengaluru and Mauritius. The carrier is operating four weekly flights.
Also on Tuesday, IndiGo announced exclusive direct daily flights between Chennai and Malaysia’s Penang. The operations on the route will commence in December. The budget airline will also resume its Bengaluru-Kuala Lumpur flights in December.
