Tuesday, October 1, 2024 The HVS ANAROCK report reveals key trends in India’s hospitality sector, spotlighting strong growth in demand, occupancy, and market recovery post-pandemic. The latest edition of the HVS ANAROCK Monthly Industry Update, Hotels & Hospitality Overview (H2O), sheds light on key trends emerging in the Indian hospitality industry. This update provides valuable insights into the performance of the sector, highlighting shifts in demand, occupancy rates, and market dynamics as the industry continues its post-pandemic recovery.
A major highlight from the report is the sustained growth in domestic air passenger traffic. In August 2024 alone, passenger numbers surpassed 13.1 million, representing an impressive year-on-year (y-o-y) growth of over 5.
7%. This steady increase in air travel has fueled greater demand for hotel stays, bolstering the recovery of the hospitality industry nationwide. Hotel occupancy rates have also remained stable, closely aligning with pre-pandemic levels.
Cities like Kochi and Hyderabad led the way with the highest y-o-y growth in occupancy rates, showcasing their rising popularity among travelers. These markets have benefited from a combination of business and leisure travel demand, contributing to the overall stability of the hotel sector. In addition to occupancy gains, average room rates increased across most markets.
This rise was driven by strong demand recovery and enhanced pricing power within the hospitality sector. Hotels we.