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As more and more Indians continue to get vaccinated, leisure travel is seeing strong uptake. While business travel is still muted, according to industry experts, leisure travel is giving a boost to the Indian hospitality and travel industry.
The country has started easing travel restrictions across states in India because of the declining COVID-19 cases. In June, domestic air traffic picked up by over 47 per cent compared to May.
According to HVS Anarock’s recent report, hotel occupancy in all the major cities witnessed a month-on-month increase of at least 12-14 per cent. The consultancy firm related this uptick to the revival in leisure travel.
“Whilst traditional demand was significantly impacted during mid-April to mid-June amid lockdown restrictions, the leisure segment started to witness healthy recovery (mid-June onwards), with MSMEs picking up momentum,” Karan Khanna, Vice President, Ambit Capital explained.
HVS Anarock said that on average, the room rates per night were tapped at ₹3,600 to ₹3,800. This was a 14 to 16 per cent rise on a month on month basis.
The uptick in leisure travel is also boosting hotel stocks. Stock prices for listed hotels such as Indian Hotels, Oberoi, Mahindra Holidays, Chalet and Lemon tree are seeing an upward trend due to the increasing positivity towards the sector. IHCL has outperformed the market in recent months, Anarock added.
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