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    New high expected in hospitality due to festivities & long weekends

    New high expected in hospitality due to festivities & long weekends

    New high expected in hospitality due to festivities & long weekends
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    By Jescilia Karayamparambil   IST (Published)

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    Starting September, the hospitality sector is expected to witness a new peak in business which will be driven largely by the festival season and other social functions.

    It’s just August and already the hospitality sector has seen a surge in occupancy and rise in revenue per available room (which has reached pre-COVID levels). Post September — which is the usual peak season — the hospitality sector is expecting a new high.
    “August has witnessed an influx of demand from across the country as it presents as an opportune time for consumers to head out for short and budget travel,” Aditya Gupta, Senior Vice President, Hotels and Holidays, Yatra.com said.
    According to the JLL report, the Revenue Per Available Room (RevPAR) witnessed an exponential growth of 339.3 percent year-on-year (YoY) in the second quarter of 2022 as against the same period in the corresponding year.
    Pradeep Shetty, Senior Vice President, Hotel and Restaurant Association of Western India (HRAWI), said, “The surge in occupancy in the last four-five months is on the back of wedding and meetings, incentives, conferences and exhibitions (MICE); and other social events.”
    Starting September, the hospitality sector is expected to witness a new peak in business which will be driven largely by the festival season and other social functions.
    “As business travel and corporate off-sites continued to grow, summer holidays offered a further impetus to the overall demand resulting in a renewed confidence in the sector. We expect this momentum to continue over the next few quarters on the back of long weekends, festivals, weddings, events, and business travel evenly contributing to this growth story” said Jaideep Dang, Managing Director, Hotels and Hospitality Group, South Asia, JLL.
    The report by JLL highlighted the next two quarters are expected to remain busy on the back of domestic leisure amid long weekends and festivals. “Long weekend travel as a trend has picked up significantly in the last couple of years and we are optimistic that this will help keep the momentum going for the industry,” added Gupta.
    Nevertheless, business travel will continue to grow and will remain the main demand driver for the sector, the report highlighted.
    The demand in the hospitality sector is driven largely by domestic tourists who were unable to travel within India or outside India due to the COVID-19 pandemic. Meanwhile, Nilesh Shah, President, Travel and Tourism Association of Goa (TTAG), said, “Demand has picked up across all verticals of tourism. However, in Goa, the medium and small hotel owners are struggling as they are not on par with large hotels as they were able to slash prices initially to attract tourists.”
    Shah added that at present, the average room rates have improved at least for the large hotels. Goa recorded the highest average rate in the country, followed by Mumbai.
    According to recent data by JLL, Goa remains the RevPAR leader in absolute terms in the second quarter of 2022 compared to the same quarter in 2021 due to a 53 percent rise in occupancy levels. Meanwhile, Goa became the go-to holiday destination for domestic tourists as well as outbound Indians due to the limitations on overseas travel. The occupancy for hotels in Goa improved steadily month-after-month since December 2021, stated an Anarock report on Indian hospitality.
    The rates have reached (or have increased) pre-COVID levels. Meanwhile, Nilesh Shah said, “Goa was able to attract more tourists even during monsoon compared to other states or cities, mainly because Goa received decent rain (with no floods).”
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