With the Union Budget 2025-26 on the horizon, ICRA Limited sheds light on the critical expectations for the Indian hospitality sector, emphasizing its pivotal role in economic growth.

According to Mr. Shamsher Dewan, Senior Vice President and Group Head, Corporate Ratings, ICRA Limited, “Post Covid, the Indian hospitality industry recovered, and the demand rebounded sharply in recent years. Factors like increasing domestic tourism, business travel, growing demand from MICE (Meetings, Incentives, Conferences, Exhibitions) and weddings, and enhanced connectivity to tier-2/3 cities supported the growth for hoteliers.”

ICRA underscores the importance of targeted measures in the upcoming budget to sustain and accelerate this growth trajectory. Key focus areas include:

• Tourism and Infrastructure Investments: Enhanced support for tourism initiatives and infrastructure development to cater to growing demand.

• Ease of Doing Business: Simplified processes and policies to encourage industry growth.

• Enhanced Connectivity and Accessibility: Strengthening transportation networks, especially to tier-2 and tier-3 cities.

• Tax Rationalization: A more balanced tax structure to improve the industry's operational efficiency.

• Favorable Financing Policies: Policy frameworks that facilitate favorable financing terms, aiding inventory addition to meet rising demand.

With supply growth struggling to match the increasing demand, ICRA stresses the need for innovative and supportive policy initiatives. These measures can bolster the sector’s ability to cater to the surging interest in domestic and international tourism, ultimately contributing to India’s economic development.

As stakeholders eagerly await the Union Budget 2025-26, the hospitality industry remains optimistic about policies that will further drive its robust recovery and expansion.

Air India is set to take full control of line maintenance operations across its 55 domestic stations by April as part of its transformation under the Tata Group. Currently, 42 of these stations are managed in-house, with the remaining 13 stations scheduled for in-sourcing within the next three months, according to CEO Campbell Wilson.

In a message to employees, Wilson emphasized the benefits of this initiative: “Taking control of line maintenance provides greater oversight on quality and timeliness, enabling us to conduct a broader range of maintenance tasks, including lighter checks during extended transits and overnight stops.”

A Key Move in Air India's Transformation Journey

This initiative is part of Air India's ambitious restructuring plan, which includes significant milestones like the merger with Vistara and the integration of AIX Connect (formerly AirAsia India) with Air India Express. These moves aim to streamline operations and enhance the airline's competitiveness.

Reflecting on Vistara's journey, Wilson noted that January 9 marked what would have been the airline's 10th anniversary. “It’s remarkable how much has evolved in 10 years. Vistara reached incredible heights and is now an integral part of a privatised, revitalised, and rising Air India. The next decade promises even greater progress,” he said.

Fleet Expansion and Operational Efficiency

The decision to in-source maintenance comes amid Air India’s ongoing fleet expansion. By handling these activities directly, the airline aims to ensure higher operational efficiency, reduced turnaround times, and improved quality of services, aligning with its vision for a strengthened aviation presence.

With the Tata Group at the helm, Air India is poised for significant advancements in its operational and service capabilities, setting the stage for a brighter future in Indian aviation.

As wildfires rage across regions like Los Angeles, hotels have stepped into an unexpected role: sanctuaries for those displaced by disaster. These spaces, traditionally symbols of leisure and luxury, are now serving as crucial shelters, providing safety, comfort, and a sense of normalcy to evacuees.

Hotels across the affected areas have rapidly adapted to the crisis, transforming their services to meet urgent needs. Families arrive with pets, valuables, and, often, only the clothes they were wearing when they fled. Properties like Shutters on the Beach and the Beverly Hills Hotel have risen to the occasion, accommodating pets and ensuring evacuees feel at home despite the chaos. Staff members are working tirelessly, providing everything from extra linens to comforting meals, ensuring displaced guests regain some semblance of stability.

Beyond physical shelter, hotels are offering emotional solace. At venues like the iconic Sunset Tower, evacuees find not just a room but a community. A source described the atmosphere as "Titanic-like," with live music and fine dining juxtaposed against the heartbreak of loss. Such gestures underscore the hospitality industry's unique ability to provide not just services but human connection during crises.

The crisis has spurred innovation within the industry. Hotels are leveraging their resources to address housing shortages, with many offering flexible room arrangements to accommodate larger parties. Real estate professionals like Jason Oppenheim have even pledged free services to help displaced residents find long-term housing solutions, showcasing how the industry can collaborate to provide comprehensive support.

The ongoing wildfires highlight the need for preparedness and adaptability within hospitality. As climate-related disasters become more frequent, hotels are uniquely positioned to serve as community anchors. Investments in infrastructure, training, and partnerships with local authorities can ensure the industry continues to play a pivotal role in disaster response.

Ultimately, the transformation of hotels into shelters reflects the core of hospitality: care for people. Whether it’s a five-star suite or a modest room, these spaces provide more than just a roof—they offer hope. As the industry evolves, this commitment to human-centered service will remain its greatest strength. In times of crisis, the hospitality industry’s response reminds us that its true essence goes beyond luxury; it’s about providing refuge when it’s needed most.