The Indian hospitality trade is prone to witness a powerful progress trajectory, regardless of renewed tensions within the subcontinent and broader geopolitical uncertainty, says a report by Rubix Knowledge Sciences mentioned.
The report initiatives a strong progress for India’s hospitality sector, with the market anticipated to surpass Rs1.1 trillion in income by FY2027, rising at a CAGR of 10.5 per cent.
This surge is primarily attributed to the resurgence of home tourism, the rising inflow of International Vacationer Arrivals (FTAs), and the fast growth of the Conferences, Incentives, Conferences, and Exhibitions (MICE) section.” FTAs, being a key driver of premium lodge efficiency, are projected to succeed in 30.5 million by 2028.
“Rubix additionally highlights a shift in demand drivers, with home travellers contributing 50 per cent of incremental income progress, adopted by international vacationer arrivals at 30 per cent and the MICE section at 20 per cent.”
India’s hospitality sector witnessed a exceptional restoration from the pandemic’s affect, with occupancy charges rebounding from a low of 35 per cent to 68 per cent in FY2024. Branded and arranged motels have notably excelled, reaching decade-high figures with an Common Each day Price (ADR) of Rs7,500 and a Income Per Out there Room (RevPAR) of Rs5,439.
The western a part of India noticed the very best RevPAR and most occupancy charge of 69.5 per cent. Whereas locations like Rishikesh, Udaipur, and Varanasi are rising as high-yield markets.
“India’s hospitality sector is now not metro-centric; it’s thriving in new routes pushed by native demand, non secular tourism, and mid-range experiences. With the trade set to cross $1 trillion by FY2027, the dimensions of the chance is big, however so is the necessity for risk-aware progress,” mentioned Mohan Ramaswamy, CEO and Co-Founder, Rubix Knowledge Sciences.
“Supported by sturdy infrastructure spending, state-level tourism pushes, and digital-first journey habits, India’s hospitality trade is coming into a structurally stronger section,” the report added.
