As Indian travellers pack their bags to escape the scorching heat, there has been a 40 per cent on-year increase in summer travel this year, with hospitality and travel services providers noticing buoyant demand.
Although the ongoing general elections have had a minor impact on corporate and meetings, incentives, conferences, and exhibitions (MICE) business, hotels are finding increased retail business with beach destinations still fighting it out with hill stations for the favoured holiday site.
“Those in the northern part of the country head to the hills to escape the heat. There is also movement from the cities to nearby tourist or leisure destinations. Industry sources estimate a 30 to 40 per cent increase in the summer travel this year as compared to last year,” Hotel Association of India, president and Radisson Hotel Group chairman, south Asia, KB Kachru said. MakeMyTrip group CEO Rajesh Magow said, “Summer is always one of the biggest quarters of the year in terms of travel intent, and this year too, the buoyancy in the sector continues. We are observing a healthy growth in searches over those recorded last year at this time.”
As the year progresses, the Indian hospitality sector is expected to maintain its growth trajectory, leveraging strong demand parameters and consumer confidence. The continued expansion into Tier II and III cities will play a crucial role in accommodating the rising travel demands across the country. Chennai recorded the strongest RevPAR growth at 21.7 per cent in Q1 2024, surpassing Q1 2023 figures.
According to MakeMyTrip’s summer travel trends, the family travel segment has grown by 20 per cent this year, as compared to the summer of 2023, while solo travel grew by 10 per cent over last year’s numbers.In terms of most booked holiday packages this summer, destinations with cool mountain terrains are the top picks with Himachal Pradesh, Kashmir, Goa, Kerala and the North East emerging as most sought after places.
“While elections might have a minor impact on corporate and MICE business, retail business has increased by 20 per cent compared to the same time last year at the group level,” Royal Orchid Hotels Ltd managing director Chander K Baljee said. The major locations benefiting from increased occupancy are hill hotels, resorts, and other leisure destinations, he added. Baljee further said, “Mashobra’s (in Himachal Pradesh) retail business has increased almost five-fold with slight price rationalisation, and Mussoorie’s retail occupancy has doubled. Goa witnessed a 50 per cent increase in retail occupancy compared to last year.”
