Hospitality Industry Expected to Boom by 2023 - News

The domestic hotel industry is hoping to 'fly' in 2023, capitalizing on India's G20 Presidency, after receiving the 'oxygen' to run in 2022 after being debilitated by the pandemic for the past two years. Domestic travel, particularly leisure travel, boosted the business this year and is likely to do so in the coming year. Industry leaders believe that because overseas arrivals are expected to increase even more, the forecast for 2023 is positive.

As the hotel sector continues to endure a demand-supply imbalance, travelers may expect high room tariffs. The hospitality industry had recovered from COVID-19 by the third quarter of 2022-23, with occupancy at 70 percent and average daily rates at '7,260, up from '6,540 in FY20. Per-room revenue rose to '5,085 from '4,499 in Q3 FY20. Inbound travel, MICE, and in-person meetings, which have been muted this year, are projected to expand, strengthening the path to ADR (average daily rate) recovery.