INDIA’S HOTEL PERFORMANCE POST PANDEMIC AS PER ANALYTICS!

A new study from hospitality data analytics firm STR Inc. suggests that leisure markets continue to lead the hospitality industry's recovery, but business travel is also on the rise. A division of CoStar Group, STR Inc. provides market data on the hotel industry worldwide, including supply and demand, market share, and more.

In the most popular leisure markets in India, such as Himachal Pradesh, Goa, and Uttarakhand, occupancy levels have been high throughout 2022, often exceeding pre-pandemic levels, however, after the peak of Omicron, demand rose significantly as traveller confidence improved and interstate travel restrictions were loosened.

Following the Delta wave, business demand improved significantly with momentum accelerating in late April and early May; not only have companies resumed travel, but MICE demand is also resuming.

While Bengaluru and Pune, historically reliant on this segment, have suffered from the lack of business demand throughout the pandemic, they are now among the markets showing the fastest growth in demand, and Mumbai recorded 80% occupancy almost on all days in April 2022.

In addition to leisure markets, business travel is also back in the country post-Omicron, and forward bookings also appear healthy for the remainder of the month, with most pickup being short-term.

In India, business markets are maintaining ADR levels amid growing occupancy, while leisure markets are leveraging incremental demand to drive premiums. There has been at least a two-fold increase in rates at hotels in Himachal Pradesh and Uttarakhand in relation to 2019. During the first half of April, the India running 7-day ADR had risen above pre-pandemic levels.

India's hotel industry recovered early in 2022, but the country outperformed pre-pandemic comparables in occupancy and average daily rate (ADR) for three consecutive weeks in April.