FHRAI Calls for Regulatory Reforms to Boost India's Tourism and Hospitality Sector in Pre-Budget Meeting Chaired by FM Sitharaman

FHRAI Calls for Regulatory Reforms to Boost India's Tourism and Hospitality Sector in Pre-Budget Meeting Chaired by FM Sitharaman

By Nishang Narayan

Published on June 27, 2024

The Finance Minister, Nirmala Sitharaman, chaired a crucial pre-budget conference at North Block in New Delhi on June 25, 2024. The meeting was attended by the Federation of Hotel and Restaurant Associations of India (FHRAI) and other apex associations from the trade and service sectors ahead of Budget 2024-25. During the meeting, FHRAI presented critical suggestions aimed at boosting the tourism and hospitality industry and enhancing India’s tourism potential on the global stage.

Representing the hospitality sector in the country, FHRAI expressed optimism about India’s future as a global tourism powerhouse by 2047. The association proposed essential regulatory changes to support industry growth, emphasizing strategic reforms to address current challenges and unlock growth opportunities aligned with sector targets.

One of the key requests put forward by FHRAI was to grant Infrastructure Status for hotels across all categories and convention centres built at a project cost of Rs.10 crore and above. This move aims to boost the budget segment in the hotel industry.

GST rationalisation was another significant concern highlighted by Mr. Pradeep Shetty, President of FHRAI. The Federation requested a uniform 12% GST rate across all hotels and the delinking of restaurant tariffs from room tariffs. The current system of GST shifting to different slabs in the same hotel on different dates, depending on room rates, creates compliance issues and confusion among the public. Although there is no tax evasion, this confusion has become a major issue for hotels across the country due to notices and demands from the GST department.

Pradeep Shetty remarked, “Granting infrastructure status to hotels and convention centres across all cities is crucial for attracting investments and accelerating growth in the hospitality sector. This aligns with the Prime Minister's vision of tourism having the same potential as agriculture and real estate. We are encouraged by the Finance Minister's assurance of support in addressing these crucial needs of the industry.”

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He added, “We are confident in the Ministry's commitment to implementing GST rationalization for the hospitality sector. FHRAI remains dedicated to fostering a robust hospitality sector that supports India’s flourishing tourism industry, which has a multiplier effect on the economy and employment generation.”

FHRAI highlighted the significance of efforts under the “Incredible India” campaign and recommended enhancing the budget for tourism branding. They also requested specific measures to promote MICE tourism in the country.

The Finance Ministry acknowledged the concerns of the industry and promised to provide the necessary support to help the sector. The outcome of these discussions is anticipated to be reflected in the next budget, which will strive to expand India’s thriving tourist and hospitality industries.

About the Federation of Hotel and Restaurant Associations of India (FHRAI):

Founded in 1955, the Federation of Hotel and Restaurant Associations of India (FHRAI) is the apex body of the Indian hospitality industry and the third-largest hospitality association in the world. FHRAI serves as the leading voice of the hotel and restaurant industry and plays a pivotal role in supporting the growth trajectory of India’s hospitality and tourism sectors. The association provides a vibrant interface between the hospitality industry, government, regulatory bodies, academia, international organizations, civil society, and the media.


Spalba Eyes ₹100 Cr Turnover by FY26, Expands into 6 Asian Markets

Spalba Eyes ₹100 Cr Turnover by FY26, Expands into 6 Asian Markets

By Nishang Narayan

Published on May 30, 2025

Spalba, a SaaS-enabled B2B venue marketplace, has set its sights on a ₹100 crore turnover by FY 2026. The company recently closed FY 2025 with a consolidated turnover of ₹60 crore, marking an impressive 3000% year-on-year growth since its inception just five years ago. What makes this journey even more remarkable? Spalba remains fully bootstrapped and profitable, a rarity in today’s startup ecosystem.

Driven by innovation, Spalba is expanding rapidly across Asia. The platform has entered six new markets—Malaysia, Vietnam, Sri Lanka, Myanmar, Bhutan, and Nepal—taking its VenueTech vision global. Back home, the company plans to grow its venue inventory from 11,000 to 13,000 and expand property listings from 2,067 to 4,500 by FY26, effectively doubling its offering and increasing its presence in over 80 Indian cities.

“Our journey from a bootstrapped startup to a ₹60 crore revenue run-rate has been driven by continuous innovation and an unwavering commitment to customer success,” said Vishal Puri, Co-Founder of Spalba. “With our tech-first approach—combining AR-powered Virtual Property Tours, an Event Mockup Builder, AI-driven sales tools, and more—we expect to cross ₹100 crore by FY 2026 and continue modernizing India’s ₹200 billion events industry.”

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Over 250 marquee properties including The Leela, Radisson Hotel Group, Accor, and The Oberoi have partnered with Spalba to streamline venue sales and boost cross-selling opportunities. The platform not only simplifies the venue booking process with immersive digital walkthroughs but also reduces the need for paperwork and physical site visits—supporting both revenue growth and sustainability for its clients.

Founded in 2020, Spalba is redefining event planning by making venue discovery and booking faster, smarter, and more collaborative. Its roadmap to ₹100 crore highlights a focus on scalable innovation, customer-centric solutions, and long-term value creation—all without raising external funding.


Starbucks India Faces 65% Surge in Losses in FY25 Despite Modest Sales Growth

Starbucks India Faces 65% Surge in Losses in FY25 Despite Modest Sales Growth

By Nishang Narayan

Published on May 27, 2025

Starbucks India posted a 5% rise in revenue to ₹1,277 crore in FY25, but the good news ended there. Losses widened significantly by 65% to ₹135.7 crore, up from ₹82 crore in the previous year, reflecting the growing strain on profitability amid soft demand in the quick service restaurant (QSR) segment.

Operating under a 50:50 joint venture with Tata Consumer Products as Tata Starbucks Pvt Ltd, the company noted that almost half of the losses—₹67.6 crore—were borne by Tata Consumer. According to the brand’s annual report, demand across the QSR space remained muted through most of the year, though a rebound was noted in the latter half. Still, profitability remained under pressure.

Despite the headwinds, Starbucks continued to expand, opening 58 new outlets and entering 19 new cities, including several in tier-2 markets. However, this was a notable slowdown compared to the 95 new outlets launched in the previous year. As of now, Starbucks operates 479 stores across 80 Indian cities.

The company remains optimistic about long-term growth in India. “We remain committed to increasing our store base in India and get to 1,000 outlets by FY28, despite a more moderate number of store openings in the short term,” Starbucks said in a statement.

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Tata Consumer Products Chairman N Chandrasekaran addressed the broader economic landscape, noting that India remains a stronghold of economic growth amid global uncertainty. “India’s long-term growth is underpinned by strong demographic and economic fundamentals and ongoing structural reforms,” he told shareholders.

However, rising competition from both international and domestic brands continues to challenge Starbucks’ market share. Rivals like Tim Hortons and Pret A Manger have entered the Indian market with aggressive expansion plans, while homegrown brands like Third Wave Coffee and Blue Tokai already operate more than 250 outlets combined.

A senior QSR official highlighted a key operational challenge: “Starbucks’ revenue per square foot is about 35% lower compared to metros. Also, city stores seem to be cannibalising heavily after it opened stores at a record pace in cities such as Mumbai and Delhi.”

While a strong takeaway culture offers a margin boost, uneven store performance continues to drag the bottom line. Some stores thrive, but others suffer from low footfalls and declining revenue per square foot, affecting overall profitability.

With the coffee wars heating up and Indian consumers spoilt for choice, Starbucks will need more than just store count to brew up sustained success in the coming years.


OYO Adds 3500 Corporate Clients in FY25, Sees 20% YoY Growth

OYO Adds 3500 Corporate Clients in FY25, Sees 20% YoY Growth

By Nishang Narayan

Published on May 18, 2025

OYO is riding high on its corporate wave. The global hospitality tech brand has added over 3500 new corporate clients in FY25 through its business accelerator division, marking a 20% year-on-year growth in this segment. With this, OYO’s corporate network now exceeds 6500 clients, ranging from large enterprises to traditional business houses and startups.

Mumbai emerged as the top-performing city, onboarding over 700 clients, followed by Hyderabad (400) and Pune (350). Other metros such as Chennai and Bangalore also contributed significantly to the growth.

Some of the key additions to OYO’s client roster include SBI Life, Cult Fit, and Sun TV Direct, further strengthening its footprint among large, pan-India brands.

The growth momentum picked up following the launch of Oravel Travel Solutions in October 2024—a dedicated vertical to meet the end-to-end needs of corporate travellers. From smooth check-ins at over 1100 serviced hotels across 300+ cities, curated meal options and conference support, to tailor-made event and holiday packages, OYO has positioned itself as a comprehensive solution for business travel.

Manish Kashyap, Head of OYO Business Accelerator, noted:

“The growth has been driven not just by large corporations but also by a diverse mix of SMEs, traditional business houses, startups, travel management companies, and even film production houses. These clients are increasingly leveraging OYO’s expansive network, flexible bookings, and tech-enabled tools to meet their evolving travel needs.”

OYO also witnessed a rise in long-term and event-based stays, signaling a shift in how businesses engage with hospitality solutions.

With a strong pipeline ahead, OYO aims to double down on its premium brand offerings like SUNDAY, Palette, Clubhouse Townhouse, Townhouse O, and Collection O.

According to the Global Business Travel Association, India has become the 4th largest business travel market in Asia-Pacific, with rising SME activity playing a major role. These trends have set the stage for OYO to scale faster and meet the evolving demands of modern corporate travel.

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