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By Hariharan U
Published on October 15, 2026
Radisson Hotel Group wants to reach 500 hotels in India by 2030. For the company, the target represents an ambitious expansion strategy. For the hotel owners expected to finance and operate many of these properties, however, the more important question is whether joining the brand creates a profitable investment.
According to Mint, Radisson operates 146 hotels in India, with another 86 properties in its development pipeline. Its expansion strategy increasingly relies on an asset-light approach, allowing the group to grow its presence without owning every hotel it operates.
The model makes strategic sense for a hotel group seeking faster growth. But the success of the brand and the profitability of an individual hotel owner are two different measures.
Under a hotel management agreement, the property owner typically provides the real estate and funds the development, while the operator contributes its brand, distribution network, operating systems and management expertise. The precise division of responsibilities depends on the contract.
For owners, this can mean committing substantial capital to land, construction, financing and future property upgrades while also paying fees for the operator’s services. The brand, meanwhile, can expand its portfolio without necessarily carrying the full investment burden of each property.
That arrangement is not inherently unfair. A recognised brand can attract customers, strengthen corporate and travel-agent relationships, support room rates and generate bookings through its distribution network. These advantages can be valuable, particularly in competitive markets.
But how much additional business must the brand generate for the owner to recover these costs and earn an attractive return?
A hotel can report rising revenue and healthy operating performance without delivering equally attractive returns to its investor. Debt repayments, management fees, maintenance expenditure, renovation requirements and other property-level costs can significantly affect the final outcome.
This is where the asset-light model deserves closer scrutiny. An operator may benefit from expanding its portfolio and increasing management-fee income, but the property owner needs to evaluate the investment on a different basis: the cash flow and returns left after meeting the hotel’s financial obligations.
The question is not simply whether a branded hotel performs well. It is whether it performs sufficiently better than a comparable independent property to justify the additional costs and contractual commitments.
Hotelivate’s 2024 Hotel Management Contract Survey – South Asia reported a median initial management-contract term of 21.5 years, with terms ranging from seven to 40 years. Such agreements can shape an owner’s financial flexibility for decades, making contract terms and performance protections critical considerations.
Indian Hotels Company Limited (IHCL), the operator behind the Taj portfolio, offers a useful comparison. Its capital-light strategy demonstrates how a hospitality group can expand its presence and grow management-fee income without owning every property in its portfolio.
As discussed in an earlier HospitalityNews analysis, IHCL’s capital-light portfolio mix and management-fee growth illustrate the commercial appeal of this approach for hotel operators.
However, the operator’s success does not automatically establish the returns earned by each property owner. Those returns depend on the hotel’s location, investment cost, operating performance, financing structure and contractual terms.
The same distinction matters as Radisson pursues its Indian expansion target.
India’s hotel market offers opportunities across metropolitan centres, business destinations and emerging markets. A strong hotel brand can help owners access demand and compete more effectively. Yet brand recognition alone cannot guarantee that a property will generate adequate returns.
For prospective and existing owners, the decision should go beyond the promise of higher occupancy or access to a global network. It should involve realistic financial projections, a clear understanding of all fees, the cost of maintaining brand standards and contract provisions that protect the owner if performance falls short.
Radisson’s ambition to reach 500 hotels is a measure of its growth strategy. Whether that expansion also creates attractive investments for the owners behind those properties is a separate question, one that cannot be answered by counting hotels alone.
Ultimately, the asset-light model may help hotel brands grow faster. For owners, its real value must be measured by what remains after the costs, commitments and risks are accounted for.
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Published on November 4, 2026
Diwali is a festival of lights, family gatherings, childhood excitement and traditions passed down through generations. Yet, every year, its celebrations increasingly find themselves at the centre of a familiar debate: how much of the festive experience should society give up in the name of environmental protection?
This year, the Supreme Court's decision to permit certified green firecrackers in Delhi-NCR for two days, November 7 and 8, has brought that conversation back into focus. The court has allowed their use between 6 am and 7 am and 8 pm and 10 pm on both days, subject to strict conditions. The complete ban is scheduled to return from November 9. Fireworks are also prohibited within 300 metres of hospitals, nursing homes, old-age homes, educational institutions and notified silence zones. Only approved green crackers certified by CSIR-NEERI and PESO are permitted.
The decision attempts to find a middle ground between public health concerns and the social and emotional significance of Diwali. But perhaps the bigger question is not simply whether crackers should be permitted or prohibited. It is whether we have begun to mistake restrictions for environmental responsibility.
For many children, Diwali is not just another holiday. It is the excitement of choosing crackers, celebrating with friends, watching the night sky light up and participating in traditions they may remember for years. Completely removing these experiences from the conversation risks turning environmental awareness into something children associate with denial rather than understanding.
This does not mean celebrations should be unrestricted. Safety, moderation, supervision and consideration for people with health concerns must remain non-negotiable. Certified products should be used where permitted, and local regulations must be respected.
But the responsibility of creating a more sustainable festival should not rest entirely on restricting what children can enjoy. Adults have a much larger opportunity to demonstrate what responsible celebration actually looks like.
Air pollution is not a problem that begins with Diwali and disappears when the celebrations end. It is influenced by several sources, including transport emissions, industrial activity, construction dust, waste burning and other everyday activities.
Yet, much of the public conversation around sustainability becomes particularly intense during festivals. We debate firecrackers, impose restrictions and expect a seasonal intervention to address an environmental problem that requires attention throughout the year.
Consider our everyday choices. How often do we choose public transport instead of taking our personal vehicles? Can families travelling to celebrations share a ride? Can offices encourage employees to use buses, metro services or other shared transport? Can we reduce unnecessary electricity consumption, avoid excessive packaging and manage festive waste responsibly?
These may appear to be small decisions, but they represent something more substantial: a willingness to take responsibility beyond the occasions when environmental concerns dominate the headlines.
Choosing public transport will not cancel out the pollution caused by firecrackers, and it should not be presented as a justification for excessive bursting. However, reducing unnecessary private vehicle usage can help address transport-related emissions throughout the year. Both issues deserve attention in their own right.
Regulations have a role in protecting public health. Restrictions around hospitals, educational institutions and vulnerable communities are important. Enforcement against illegal and unauthorised products is equally necessary.
However, regulation alone cannot create an environmentally conscious society. If people follow sustainable practices only because they fear penalties, the change may remain temporary. Awareness, participation and individual accountability are what make responsible behaviour sustainable.
Instead of making children feel that celebrating Diwali is inherently irresponsible, families can use the occasion to teach them about moderation, safety, pollution and consideration for others. Adults can lead by example by choosing shared transport, avoiding unnecessary consumption, cleaning up after celebrations and making more conscious everyday decisions.
The Supreme Court has also called for a broader change in public perception, alongside regulatory measures. That is an important reminder that environmental protection cannot be achieved through enforcement alone.
A sustainable Diwali should not be measured solely by how many restrictions are imposed or how many crackers are avoided. It should also be measured by the habits we develop, the choices we make and the values we pass on to the next generation.
Children should be allowed to experience the joy of festivals within reasonable safety and environmental boundaries. Adults, meanwhile, must recognise that their responsibility does not end with asking others to change their behaviour.
We cannot celebrate sustainability for two days and forget about it for the remaining 363.
Perhaps the real spirit of a greener Diwali lies in finding that balance: preserving the joy of celebration while becoming more conscious citizens. Because the change we expect from society must first find a place in our own lives.
By Manu Vardhan Kannan
The global aviation industry is entering a period of tighter cost control as rising jet fuel prices, geopolitical tensions and increasing operational expenses put pressure on airline margins. From reducing flight capacity to reviewing routes and increasing ticket prices, carriers are adjusting their operations to manage expenses. While these decisions may help airlines protect their financial position, passengers could face higher fares and fewer flight options in the months ahead.
Recent developments at Ryanair and Fiji Airways highlight the growing pressure. Ryanair is planning cost-cutting measures and fare increases in response to soaring jet fuel costs. The airline reported a six per cent fall in second-quarter profit, prompting it to review expenses. Its Chief Executive, Michael O'Leary, has also indicated that fares are likely to increase next year across European airlines. The ongoing conflict in the Middle East is adding to the pressure, with the airline expecting a significant rise in its fuel bill.
Fiji Airways has also introduced a series of cost-cutting measures amid rising global aviation costs. The airline reported approximately US$150 million in additional fuel expenses over the past three months compared with the same period last year. These developments reflect a wider challenge for airlines, where fuel costs are rising faster than carriers can comfortably pass them on to passengers.
The pressure is not limited to these airlines. Across the United States and Europe, carriers are reviewing less profitable routes, reducing capacity and taking a closer look at labour and operating expenses. Some airlines are choosing to protect ticket prices rather than offer heavy discounts, while others are reconsidering fleet expansion and aircraft retirement plans. Aircraft delivery delays have also forced some carriers to operate older planes for longer, adding to fuel and maintenance expenses.
In India, the impact is visible through higher fares, fuel surcharges and changes to flight schedules. IndiGo has indicated that it may increase fares after reporting a significant rise in its fuel bill. Indian airlines have also reduced scheduled domestic capacity for November 2026 compared with the same festival period last year. Air India and IndiGo have both cut weekly domestic flights, while weaker passenger numbers have added to the pressure on airline revenues.
These changes could affect passengers differently. Leisure travellers may find fewer low-fare options, while last-minute bookings could become more expensive as available seats decline. Passengers travelling to smaller cities may also face reduced frequencies or fewer direct connections as airlines prioritise routes with stronger demand. Business travellers, meanwhile, could have fewer convenient flight timings and higher travel budgets.
However, cost control does not necessarily mean that airlines should pass every increase directly to passengers. A balanced approach can help reduce fare pressure without forcing airlines to absorb losses they cannot sustain. In India, measures have already been introduced to address some of these challenges.
Reducing aviation turbine fuel (ATF) taxes and airport charges can lower operating expenses at the source. Tamil Nadu, for instance, reduced ATF VAT at Chennai to 16 per cent and to one per cent at other state airports. Maharashtra and Delhi have also reduced VAT. During the recent fuel-price shock, India capped domestic ATF price increases at 25 per cent above the March 2026 base for April and May, alongside support of up to ₹10,000 crore for oil marketing companies to help stabilise fuel prices.
Airport charges have also been part of the relief measures, with a 25 per cent reduction in landing and parking charges at major airports for three months. The move reportedly helped airlines save around ₹400 crore. Such temporary measures can ease immediate pressure, although they cannot completely offset the impact of elevated global fuel prices.
The government's role also extends beyond reducing costs. Protecting regional connectivity, improving airport capacity, encouraging competition and ensuring transparent fare disclosures can help passengers make informed decisions. India is not moving towards routine airfare caps. From January 1, 2027, the Bharatiya Vayuyan Niyam will largely allow market forces to determine fares, while retaining the Centre's power to intervene in extraordinary circumstances in the public interest. Airlines will also be required to submit tariff details to the DGCA and publish fares, including applicable charges, on their websites.
For airlines, the immediate priority is to protect margins while keeping essential routes operational. For governments, the challenge is to maintain a competitive market without allowing sudden fare increases to place an unreasonable burden on passengers. Wider ATF tax relief, temporary airport-charge support, stronger fare monitoring and investment in regional connectivity can all contribute to this balance.
The aviation industry is not simply facing a cost-cutting phase; it is reassessing how it operates in an increasingly expensive and uncertain environment. While airlines need to control costs to remain financially sustainable, passengers should not be left with fewer choices and increasingly expensive journeys. The way forward lies in a balanced approach that supports airline viability, protects connectivity and keeps air travel accessible.
Published on November 3, 2026
India's hospitality industry is increasingly shaped by a workforce that operates beyond conventional employment structures. From food delivery executives and cloud kitchen personnel to workers engaged through digital platforms, flexible labour has become an important part of how hospitality businesses deliver services. However, as the industry expands its reliance on these employment models, questions surrounding worker protection and social security remain significant.
Against this backdrop, the Ministry of Labour and Employment has notified the constitution of the National Social Security Board for Unorganised Workers and Gig and Platform Workers, marking another institutional step towards extending social protection to India's informal and platform-based workforce.
Presided over by the Union Minister for Labour and Employment, the Board includes representatives from Central and State Governments, aggregator companies, employers, civil society organisations, workers' unions and gig and platform worker associations. It is mandated to recommend suitable welfare schemes, advise the Central Government on matters concerning the administration of the Code on Social Security, 2020, and monitor the implementation of centrally administered social welfare schemes. The Board is also required to meet at least three times a year.
The growth of food delivery platforms, cloud kitchens and technology-enabled hospitality services has transformed the relationship between businesses and their workforce. Delivery partners, for instance, have become an essential link between restaurants and consumers, while platform-based services have introduced new ways of accessing work and managing demand.
Yet, flexibility does not necessarily translate into financial security. Workers operating outside conventional employer-employee relationships may face uncertainties relating to income continuity, accident protection, healthcare and retirement benefits.
It is important, however, to distinguish gig and platform workers from contractual employees. A housekeeping professional employed through a staffing agency or a temporary banquet employee may fall under a different employment arrangement and legal framework. The implications of the new Board therefore need to be understood in the context of the specific categories of workers it is mandated to address.
The Code on Social Security, 2020 provides for social security schemes covering life and disability protection, accident insurance, health and maternity benefits, old-age protection and crèche facilities for gig and platform workers.
For the hospitality ecosystem, particularly restaurants and food delivery aggregators, the evolving framework could bring greater attention to how workforce welfare is funded, administered and monitored.
Section 114 of the Code provides for aggregator contributions towards specified social security schemes, subject to prescribed rates and conditions. The contribution framework envisages a rate between 1% and 2% of an aggregator's annual turnover, subject to a ceiling of 5% of the amount paid or payable to gig and platform workers. However, the applicable commencement and implementation provisions must be considered before assessing the actual financial implications for businesses.
For smaller restaurants and hospitality operators, the wider question is how these evolving welfare mechanisms will interact with existing operating costs and the growing dependence on platform-based services.
Beyond regulatory compliance, improving workforce protection could also have wider implications for the hospitality industry. Employee well-being, workforce retention, service consistency and operational stability are closely connected.
An industry that depends heavily on human interaction cannot overlook the conditions under which its workforce operates. While flexible employment models offer businesses the ability to respond to changing demand, the sustainability of these models also depends on whether workers have access to adequate protection.
The challenge lies in developing a framework that balances the operational requirements of businesses with the social and financial security of workers.
The constitution of the National Social Security Board establishes an institutional mechanism for recommending and monitoring welfare measures. However, its effectiveness will ultimately depend on the schemes that follow, the accessibility of benefits, funding arrangements and coordination between the Centre, States and industry stakeholders.
For India's hospitality sector, the development presents an opportunity to look beyond service delivery and business expansion towards the people who sustain the industry.
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