Sep 12, 2024
By: Prerna Tyagi
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From soaring domestic air passenger traffic to fluctuating occupancy rates across major cities, here’s a snapshot of the latest trends shaping the industry, according to ANAROCK’s Hotels and Hospitality Overview, August 2024.
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In July 2024, India’s domestic air passenger traffic experienced a robust year-on-year growth of over 7%. This surge highlights a strong rebound in travel demand, reflecting increased consumer confidence and a busy summer travel season.
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Occupancy rates across the country have seen a notable uptick, rising by 3-5 percentage points compared to the same period last year. However, despite this improvement, rates are still slightly trailing behind pre-pandemic levels, indicating a gradual recovery.
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Pune and Chennai boasted of the highest occupancy rates. Both cities recorded impressive occupancy figures, ranging between 76-79%.
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Kolkata, New Delhi, and Chandigarh have shown significant progress in recovery, with occupancy rates increasing by 6-8 percentage points compared to last year. This growth underscores a steady recovery and growing popularity of these metro cities among travellers.
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While the national trend shows an upward trajectory in average rates, Goa presented a unique case. Despite a drop of 3-5% in average rates compared to the previous year, rates in Goa remain robust, staying above INR 8,500. This may indicate a shift in market dynamics for the mass favourite.
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Mumbai continued to lead with the highest average rates, surpassing INR 10,500 in July 2024. This represents a substantial 21-23% increase from the previous year, highlighting the city’s premium positioning in the hospitality market despite a relatively moderate rise in occupancy rates.
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Looking ahead, the trends suggest a continued recovery in both air travel and hotel occupancy, with certain cities showing stronger rebounds than others. As travel patterns evolve, these insights will be crucial for industry stakeholders to adapt and strategize.