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What are your expectations for the hospitality industry in terms of RevPAR, ARR, and occupancy rates in 2025?As we approach 2025, I am optimistic about the direction the hospitality industry is headed. RevPAR is expected to see steady growth, driven by both higher occupancy rates and ARR. Domestic tourism will continue to be a key growth driver, with travelers increasingly opting for weekend getaways, staycations, and longer vacations. We are witnessing an increasing shift towards secondary cities and off-thebeaten-path destinations, and I believe these markets will experience the most significant occupancy growth. MICE and weddings will play an increasingly important role in driving demand. As businesses resumes face-to-face events, MICE tourism will provide a significant boost to occupancy rates in major cities. Weddings, especially destination weddings, are also contributing to higher occupancy and ARR, with couples opting for premium experiences in luxury and leisurefocused locations. These events tend to drive higher spend per guest, contributing directly to RevPAR growth.In terms of ARR, I foresee a robust increase as travelers increasingly HOSPITALITY BIZ n JANUARY, 2025WWW.HOSPITALITYBIZINDIA.COMCOVER STORY 15QWhat are your expectations for the hospitality industry in terms of RevPAR, ARR, and occupancy rates in 2025?The hospitality industry may lack a crystal ball for precise forecasting, but current indicators suggest a nuanced yet optimistic outlook. We also feel that major urban markets such as Mumbai, Delhi, Bengaluru etc. to see higher occupancies than nation-wide average performance while occupancy in other cities are expected to remain relatively stable, with minor fluctuations across various segments. Meanwhile, Average Room Rates (ARR) are anticipated to grow at a modest single-digit percentage, reflecting cautious yet steady market confidence. Leisure markets are expected to experience a meaningful revival by next winter, building on gradually improving travel sentiment. This winter has been relatively subdued, with muted activity across many leisure destinations. What is your perspective on the growth trajectory of domestic and international travel in 2025? Do you foresee domestic travel continuing to dominate over international travel in shaping the hospitality landscape?Yes, we observe that domestic travel continues to dominate over international travel, a trend that has firmly established itself in recent years. In 2023, inbound travel struggled to regain its footing, and while 2024 saw slight improvements, the recovery was far from robust. Even now, the pace and trajectory of international travel%u2019s return remain uncertain, leaving many industry stakeholders perplexed. Global geopolitical tensions and fluctuating health guidelines in certain parts of the world have created an environment where inbound travel remains unpredictable. For the hospitality industry, this presents both challenges and opportunities as now the focus has shifted toward catering to the domestic traveller.What trends or innovations do you foresee shaping the hospitality landscape in the New Year?Alternate accommodations will continue to attract domestic tourists. Major hospitality players are increasingly launching lifestyle brands like Tribute (Marriott), Voco (IHG) and Storii (ITC Hotels) catering to evolving guest preferences. Leisure and getaway destinations look promising and will mostly see a surge in popularity, offering intimate properties with smaller inventories but rich, immersive experiences. This trend underscores the shift toward personalization and highquality stay experiences.. nQQQ%u2018Leisure and getaway destinations look promising and will mostly see a surge in popularity%u2019As the hospitality industry navigates an ever-evolving landscape, Manav Thadani, Co-founder , Hotelivate, shares his nuanced yet optimistic outlook for 2025. With a focus on performance metrics like RevPAR, ARR, and occupancy rates, Thadani explores how urban and leisure markets are poised to evolve. He also delves into the continued dominance of domestic travel over international travel, highlighting its impact on the industry.%u2018We are witnessing an increasing shift towards secondary cities and off-the-beaten-path destinations%u2019Suhil Kannampilly, CEO, The Fern Hotels & Resorts, shares an optimistic outlook on the sector%u2019s growth trajectory. With a focus on RevPAR, ARR, and occupancy rates, Kannampilly highlights how rising domestic tourism and experiential travel are reshaping the industry. Kannampilly also underscores the importance of government policy reforms and infrastructure development to unlock the full potential of tier-II and tier-III markets.