News India Live, Digital Desk: India Hospitality Sector: A report by Rubix Data Sciences stated that the Indian hospitality industry is likely to grow strong in the subcontinent and a strong growth despite widespread geopolitical uncertainty. The report estimates a strong growth for India’s hospitality sector, according to which the revenue of the market will exceed the 1.1 trillion rupee by the financial year 2027, which will grow from a CAGR of 10.5 percent.
The boom is mainly due to the revival of domestic tourism, the increasing arrival of foreign tourists (FTAs) and rapid expansion of meetings, incentives, conferences and exhibitions (MICE) segment. The FTA is expected to reach 30.5 million by 2028 as a major driver of the premium hotel performance.
Rubix has also highlighted the change in demand drivers, in which domestic passengers have contributed 50 percent to the incremental revenue growth, followed by 30 percent of the arrival of foreign tourists and 20 percent of the MICE segment.
The hospitality region of India saw a significant improvement with the influence of epidemic, in which the occupancy rate increased from a low level of 35 percent to 68 percent in FY 2024. Branded and organized hotels have specially excelled, who have achieved the highest figures of the decade with an average daily rate (ADR) of ₹ 7,500 and a room available per ₹ 5,439.
The western part of India saw the highest revpar and a maximum occupational rate of 69.5 percent, while destinations such as Rishikesh, Udaipur and Varanasi are emerging as high-produce markets.
Mohan Ramaswamy, CEO and co-founder of Rubics Data Sciences, said, “India’s hospitality is no longer metro-centric; it is flourishing on new routes inspired by local demand, spiritual tourism and middle-intensity experiences. By financial year 2027, the size of the opportunity is very large, but also a big-raised development.
The report stated that India’s hospitality industry is entering a structurally strong phase, supported by spending on strong infrastructure, state level tourism initiative and digital-traveling behavior.
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