Leisure markets continue to lead recovery in the hospitality business, but business travel is also back, finds new data from hospitality data analytics firm STR Inc.
India’s most popular leisure markets, such as Himachal Pradesh, Goa and Uttarakhand have seen significant occupancy levels throughout 2022, most times exceeding pre-pandemic levels. However, the months following the Omicron peak produced significant demand with improved traveller confidence and easing of inter-state travel restrictions.
Business demand, which was limited after the Delta wave, has shown significant improvement post-Omicron with momentum accelerating in late April and early May. Not only have companies resumed travel, but MICE demand is coming back too. Bengaluru and Pune, cities that are reliant on this segment historically, were some of the most impacted by the lack of business demand throughout the pandemic but are now among the markets showing the fastest demand growth. Mumbai recorded upwards of 80% occupancy on almost all days in April 2022.
India’s hotel performance recovery resumed early in 2022, but April seemed to be the turning point with the country outpacing pre-pandemic comparable in occupancy and average daily rate (ADR) for three consecutive weeks. Leisure markets have continued to lead recovery, but business travel is also back in the country post-Omicron. Forward bookings also appear to be healthy for the remainder of May with most pickup remaining short-term.
While business markets in India are maintaining ADR levels amid growing occupancy, leisure markets are leveraging incremental demand to drive premiums. Himachal Pradesh & Uttarakhand hotels have managed to at least double rates when compared with 2019. The running 7-day ADR for India has been above pre-pandemic levels since mid-April and continues to grow gradually.