HBI Staff | Hyderabad 
In the latest edition of the HVS ANAROCK monthly industry update, Hotels & Hospitality Overview (H2O), several key trends in the Indian hospitality industry for June 2024 have come to light.
One of the most significant developments was a nearly 6% year-on-year growth in domestic air passenger traffic. This growth indicates a robust demand for travel within the country, which is often a precursor to increased hotel occupancy and revenue.
Nationwide, the occupancy rates remained stable, showing no significant change from both the previous month and on a year-on-year basis. However, this overarching stability masks notable regional variations.
Kochi stood out with a remarkable 7 percentage point (pp) year-on-year increase in its occupancy rate, the highest among Indian cities. This surge highlights Kochi’s growing appeal as a travel destination, possibly driven by enhanced tourism infrastructure and promotional efforts.
Contrastingly, both Hyderabad and Mumbai saw declines in their year-on-year occupancy rates, ranging from 1 to 3 pp. Despite these declines, both cities experienced substantial increases in their average rates, with Hyderabad leading with a more than 9% year-on-year increase and Mumbai following with a 7% rise. These figures suggest that while fewer rooms were occupied, higher pricing strategies may have compensated for the lower occupancy.
Goa and Kolkata were the only markets to see declines in average rates compared to June 2023. Particularly noteworthy was Kolkata’s performance, with rates dropping nearly 6% from May 2024, indicating potential challenges in maintaining demand or pricing power in these markets.
These insights from the HVS ANAROCK report provide a nuanced understanding of the current state of the Indian hospitality industry, highlighting areas of growth as well as markets facing challenges.
