Indian hospitality expects robust growth in 2024

The Indian hotel industry is gearing up for a robust fiscal year in 2024, with various segments poised to drive demand, according to key stakeholders in the Indian hospitality sector. Notable contributors to this growth are expected to be experiential travel, the domestic market, and corporate travel, marking a positive outlook for the New Year.

Following the setbacks caused by the pandemic, the tourism industry has witnessed a gradual recovery, with a significant surge in the importance of the domestic market. Hoteliers are optimistic about the sustained demand for domestic leisure travel in 2024, coupled with the revival of meetings, incentives, conferences, and exhibitions (MICE) and business travel.

While international market demand is not expected to return to pre-pandemic levels until 2025, there is a positive outlook for the inbound season starting in October, anticipated to fare better than observed trends in 2023.

The evolving preferences of modern travelers have shifted towards experiential holidays, where the emphasis is on forging human connections and gaining a deeper understanding of the destination’s essence, people, and culture. George Joseph, V.P. Operations at CGH Earth, foresees a continued surge in the popularity of immersive holidays that offer authentic experiences, reflecting a meaningful connection with the surroundings.

Recognizing the challenges brought about by industry growth, Indian hospitality companies are focusing strongly on sustainability in 2024. Rajesh Chakraborty, General Manager of Taj Hotel and Convention Centre Agra, noted that green initiatives will persist as consumers increasingly prioritize sustainability. Restaurants and hotels are actively addressing this concern through innovative green initiatives, ranging from responsibly sourced ingredients to implementing energy-efficient practices.

Despite the strong growth in domestic tourism, the recovery of the inbound tourism market has been slower. However, some hoteliers expect 2024 to witness a strong recovery in international tourism in the country. Abinash Manghani, CEO of WelcomHeritage Hotels, highlighted the role of experiential travel in driving the industry and the emerging interest in group travel with experiential incentives. Wildlife tourism is also expected to attract discerning international and domestic clientele.

Vishal Lonkar, General Manager and Business Head of Renest Hotels & Resorts predicts that technology will play a crucial role in redefining guest interactions in 2024, ensuring seamless and deeply personalized services. Inspired by the prevailing trends of 2023, where wellness and domestic tourism took precedence, Renest Hotels & Resorts aims to amplify these themes for an enriched guest experience, blending luxury and health in bespoke experiences that encapsulate the unique essence of their destinations.