hospitality | IST

Hotel industry sees signs of recovery but lack of corporate travel hurts

The hotel industry is trying to limp back. As the holiday season is approaching and as India is getting unlocked, Sanjay Sethi, Managing Director & CEO at Chalet Hotels and Rattan Keswani, Deputy Managing Director at Lemon Tree Hotels discussed if people are scared or is there revenge travel. They also shared their outlook on how one of the worst-hit sectors is recovering.

The hotel industry is trying to limp back. As the holiday season is approaching and as India is getting unlocked, Sanjay Sethi, Managing Director & CEO at Chalet Hotels and Rattan Keswani, Deputy Managing Director at Lemon Tree Hotels discussed if people are scared or is there revenge travel. They also shared their outlook on how one of the worst-hit sectors is recovering.
“Corporate travel is not happening in any of the tier-I, tier-II cities. Tier-II and tier-III cities are seeing corporate travel from SME and MSME. The resorts started off well. It is a bit of an ever-changing story as confidence builds up,” said Keswani.
“City hotels are facing little or no growth,” he added.
Keswani is reasonably optimistic about the last quarter of the year. “November has shown a reasonable uptick. I am reasonably optimist about the last quarter (of the year) and I think by summer things would start to get a little better,” he mentioned.
“We have seen some new segments evolved over the last few months, some of them include film shooting units which has become a big thing in Mumbai for our Mumbai hotels. I think this trend could stay for some time,” said Sethi.
In terms of staycations, Sethi mentioned, “When people talk about drivable distance staycations, city hotels have also managed to draw in a lot of crowd from there.”
“The best part of the last few weeks has been the growth on the F&B side. Whilst banquets stay subdued on account of the cap on the number of people that you can have, restaurants and bars are doing significantly better than a month or so back. That is positive,” Sethi said.
For entire discussion, watch the video