The Indian hospitality sector is gearing up for an extraordinary summer season in 2023, surpassing even pre-pandemic levels. Despite increased airfares and room rates, tourists are flocking to popular destinations, resulting in a flourishing travel market.

Aashish Gupta, Consulting CEO of the Federation of Associations in Indian Tourism & Hospitality (FAITH), highlighted the significant boom across various destinations and tourism markets. This year, travel activities are expected to be 20-30% higher compared to pre-pandemic levels, indicating a strong recovery.

Experts predict a remarkable improvement in all aspects of the hospitality industry compared to both 2022 and 2019. The summer season plays a pivotal role in driving this growth, and the latest GDP numbers support the positive trend, with a 9.1% real growth in trade, hotels, transport, communication, and related services.

In CY22, occupancy rates reached 59-61%, a substantial increase of 15-17% compared to the previous year and only slightly lower than in 2019. Projections indicate that occupancy will further rise to 66% in CY23, accompanied by a 16-17% increase in average room rates (ARRs), leading to higher revenue per available room (RevPAR).

Rajesh Magow, Group CEO of MakeMyTrip, observed encouraging early trends in leisure travel, with a preference for relaxed itineraries and longer stays. Domestic and outbound packages have seen a significant increase in average room nights booked, reflecting a growing appetite for experience-driven travel and pre-booked activities.

Radisson Hotel Group also experienced a positive start to the summer season, with travellers seeking solace in hill stations to escape the heat and city bustle. The spokesperson expressed optimism for continued momentum in June and July before the onset of the monsoon season, which traditionally experiences lower demand.

While rising airfares have impacted budget-conscious travellers, premium consumers are indulging in luxurious leisure travel this season. The grounding of Go First has led to a supply-demand imbalance, resulting in soaring airfares.

Popular destinations, both international and domestic, continue to allure travellers. Short-haul international destinations like Thailand, Singapore, Malaysia, Maldives, and UAE are in high demand. Within India, Goa, Kochi, Srinagar, Dehradun, and Leh top the list of preferred flight destinations.

A recent survey by Oyo revealed mountains as the preferred choice for summer travel, closely followed by beaches. Manali, Kashmir, Mcleod Ganj, Ooty, and Coorg emerged as the most sought-after mountain destinations. To meet the surging demand, Oyo plans to open 300 new hotels by August 2023 in popular mountainous locations.

Shreerang Godbole, Chief Service Officer at Oyo, expressed enthusiasm for the surge in travel demand, viewing it as a promising sign for the growth and development of the Indian travel and hospitality industry. The summer season holds immense potential for the industry's resurgence and recovery.