According to a risk management platform, the Indian hotel industry is expected to reach INR 1.1 billion ($13 billion) in 2026-27 and INR 1 trillion ($11.7billion) by the end the current financial period. Rubix Data Sciences. The figure for 2024 was INR820 billion (9.6 billion dollars).
The firm’s recent industry report projected that the country’s hospitality sector would grow 10.5% per year until March 2027. The growth will be driven by domestic travelers, international arrivals, as well as the MICE (meetings incentive, conferences, exhibitions) segment.
Rubix projects that domestic tourists will account for 50% of incremental revenue growth, whereas foreign tourists are expected to make up 30%. According to the report, the MICE segment will account for the rest of the 20% revenue increase.
It said that “these drivers will continue to be significant in the expansion of the sector over the next three-year period.”
In the report, it was stated that the foreign arrivals of tourists (FTAs) had a positive correlation with the average daily rate (ADRs). This was in the segment of premium hotels. FTAs play a major role in the performance of ADRs for businesses such as Chalet Hotels that derive 35-40% of their revenues from foreign guests. Foreign tourists with their higher spending power, and preference for luxurious services, are a vital contributor to the demand for premium hotels.
The Indian government also stated that foreign tourists are expected to arrive in India in excess of 30.5 millions by 2028. This is up from 9.6million in 2024.
However, India is still struggling with low inbound numbers A low global tourism promotion budget.
Growing Occupancy The occupancy rate of hotels will reach 73% in 2026-27 according to the report. This is an increase from 68% for the financial year 2024 and the historic low of only 35% during pandemic. It is to be expected, as the demand for hotels is predicted to continue to outstrip supply.
The demand is expected to grow by 10.5% annually, but the supply will only increase by 8%. As hotels try to meet demand, this imbalance in supply and consumption will likely reduce vacancy levels.
The higher demand for hotels is driving more companies to India. In April, six international hotel brands announced deals in India within a span of four days. The Ascott Limited in Singapore announced its plans for expansion, with an eye on Tier-2 and 3-city areas. Its Chief Operating Officer for EMEA & South Asia, Lee Ngor Houai said that there is a “significant under-penetration of branded hotels” in smaller cities.
For Accor’s chairman and CEO Sébastien Bazin, India is “one of the world’s most exciting travel markets.” India is also a cornerstone in Marriott International’s growth plans, as the company projects the country to become its third largest market.
Radisson Expansion plans, marketing strategy
The portfolio of Radisson Hotel Group in India now includes 200 properties that are operational or under development. The chain is present in the country since 26 years. Radisson is a brand that Indians associate with. Nikhil Sharma, managing director and chief operating officer for South Asia at Radisson Hotel Group told Skift. As an international brand, our approach is very local and nationalistic. Our portfolio includes more than 50 percent of smaller cities.
He predicted that India would go from 185,000 brand-name hotel rooms to one million operating rooms over the next five years.
The company is developing a program aimed at preparing its properties in India for Indian travellers. He said that the program, Welcome India, was currently being developed.
India is experiencing a fiercer competition as brands increase their inventory in India and new brands enter the market. He said that Radisson relies on word-of-mouth and loyalty to distinguish itself from an increasing number of discerning customers. Radisson has also increased its experiential offerings to attract sports fans, readers and couples who are planning a wedding.
Indian Railways unveiled its SuperApp
Indian Railway Catering and Tourism Corporation has launched its new mobile app SwaRail. The app was designed to provide a single platform for all services related to railways.
SwaRail lets users check their reservation status, reserve meals, access tourist services, and explore the facilities at stations. The system also offers real-time tracker service, eliminating the need to login frequently.
In November last year, Accenture released a report that revealed Indians were dissatisfied by the current travel planning options. are seeking a travel superapp. Travelers feel that booking is the most complex part of a trip. Indian online travel agency MakeMyTrip is eventually planning to launch a travel superappWhile Skyscanner is also preparing to launch a new marketplace within its app offering a range of additional services.
U.S. imposes restrictions on Indian travel agents
On Monday, the U.S. announced that it would impose restrictions on owners, executives and senior officials at travel agencies based in India for knowingly facilitating the entry of illegal immigrants into the North American nation. It also said that the India Mission worked “actively” in order to identify and target agencies and individuals involved in illegal immigration.
Our immigration policy is designed to not only inform foreign nationals on the dangers associated with illegal immigration into the United States, but also hold individuals accountable who violate our laws. This includes facilitators of illicit immigration. U.S. Mission in India said in a statement.
Just a few days ago, the U.S. warned Indian citizens against overstaying in the country. The U.S. mission in India said that if you stay in the United States after your period of authorized stay is over, you may be deported or face a ban on future travel to the United States.
Delhi Airport Operator divests in Aviation Services Company worth $1.5 Million
Delhi Airport Operator DIAL has sold all of its 50% stake in Delhi Aviation Services to DASPL for INR130 million ($1.5million). Bird Flight Services purchased the entire stake in Delhi Aviation Services (DASPL) for INR 130 million ($1.5 million).
Delhi Aviation Services received the concession for the operation of bridge mounted equipment including ground power units (GPUs), pre-conditioned air units (PCAUs) and potable water supply to aircraft in Terminal 3 at the Delhi Airport. A regulatory filing indicates that the company currently does not have any operations.
Evoke experiences announces new experiential hotels
Evoke Experiences, a company that offers experiential hotels, is expanding its business to become more prominent in the hospitality industry. The company stated Monday that this expansion will mark a shift from its current operating model which focuses on immersive glamping resorts and cultural Tent Cities.
The company is now looking to expand its portfolio of experiential properties and collaborate with asset leasing and management companies. The company currently has 750 keys. By the end of this year, they plan to increase that number to 1,000. It said it will be opening a new property in Gir in Gujarat, while also preparing for a project in Ayodhya.
