Hospitality Industry Thrives on Robust Travel and Events Demand

The hospitality industry is poised for robust near-term performance fueled by a resurgence in corporate travel, MICE events, live concerts, and weddings, according to a report by Antique Stock Broking Limited. This growth trajectory is expected to continue, supported by demand-supply imbalances and an expanding slate of new hotel launches.

The Meetings, Incentives, Conferences, and Exhibitions (MICE) sector has notably driven this upsurge, with the report emphasizing that strong corporate demand, coupled with MICE and events, will sustain the industry's momentum. Consequently, this has propelled a rise in Average Room Rates (ARRs) and occupancy, indicating a favorable long-term upcycle bolstered by shifting consumer preferences and increased travel expenditure.

As large hotels report enduring strong demand, especially in the wake of mega-events and conferences, industry leaders expect this rate growth to persist. Further, forecasts suggest a compound annual growth rate of 10.4% for the sector between FY24 and FY29, surpassing supply growth. Moreover, the Indian tourism sector, bolstered by the government's Rs 2541.06 crore investment, aims to enhance infrastructure, foster skill development, and develop key tourist destinations.

(With inputs from agencies.)