Due to the proliferation of Omicron cases and travel restrictions across states, the Indian hospitality sector was hit hard earlier this year. Apart from critical and urgent travel, all leisure and business travel plans were forced to be postponed in January, found a new study by HVS Anarock, a hospitality consultancy firm.
The hotel sector was also reported to have experienced a massive drop in performance, with occupancy declining significantly to an all-time low since June 2021.
According to the report, average daily room rates in January 2022 decreased by 15 to 17 percent, while average hotel occupancies decreased by 23 to 25 percent. Revenue per available room was also down a shocking 49 to 51 percent in January compared to December 2021.
Goa, a state on the southwestern coast of India, was met with the most considerable reduction in hotel occupancy of around 20 to 30 percent. Chandigarh, Hyderabad, Mumbai, Bengaluru, and Pune saw a much lower decline of up to 10 percent. Meanwhile, Delhi and Kolkata dropped by 10 to 20 percent.
In contrast to the earlier waves of covid, the current downturn will be short, given that travel demand has been making a comeback at a much faster rate. According to Mandeep S. Lamba, President, South Asia, HVS, although 2022 started on a difficult note and hotel demand severely declined, hotels can expect a substantial return in domestic travel as soon as cases start subsiding and travel restrictions are relaxed.
