The Hindu Business Line : Travel, hospitality sectors bullish for the next 6 months

TRAVEL and hospitality industry players are upbeat about business prospects in the next six months. Growth would be driven by an increase in the air traffic capacity in the country, they said.

Domestic air travel is expected to maintain a 20-25 per cent growth during the next six months, while international travel is seen growing to a lesser extent. Holiday travel ahead of Dusshera and Diwali will be driving air traffic in September and October.

At the same time, a slew of meetings and conferences scheduled during this period are expected to bolster business travel, said Mr Ankur Bhatia, Managing Director, Indian Sub-continent, Amadeus. The global distribution system (GDS), accounts for a 50 per cent share of the Indian market, estimated at 25-30 million segments annually.

The outbound honeymoon season is also expected to spur a 35 per cent growth in outbound travel during these months, according to Mr Bhatia. Abacus, another GDS provider, has predicted a 20-25 per cent growth in traffic over the next six months. Mr Viiveck Verma, Managing Director, said, "Based on the trends over the past few months and the arrival of more carriers in the country, business is expected to remain on an upswing during the next six months."

Abacus has been expanding its presence in the country and expects to close the year with a 20 per cent share of the Indian market, up from 9 per cent last year.

The hotel industry is equally rosy about the outlook for the next six months.

With demand expected to grow, the hotel industry could see occupancy increase by 5-6 basis points to close the financial year at 72-73 per cent, according to Mr Manav Thadani, Managing Director, HVS India, a consultancy for the hospitality industry.

Average room rates (ARRs) are also expected to increase by 15-20 per cent, closing the financial year at around Rs 4,800 per room night, he added. Crisinfac, the research and information services subsidiary of Crisil, expects occupancy, currently around 75 per cent, to increase by five basis points from September. ARRs will also increase by 10-15 per cent during this period, the research firm said.

Mr Sanjoy Pasricha, Corporate Head, Sales and Marketing, Leela group, estimates occupancies post-October to top 85 per cent. ARRs, driven by the increased demand, would also grow by 20 per cent, he said.

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