Sustainability challenges for India’s Hotel Industry

As India emerges as a key market for hospitality brandsBoth globally and locally, sustainability is becoming a more pressing concern. Leaders in the industry agree that, despite increasing awareness, the sector is only in its early stages when it comes to integrating sustainable practices.

Ajay Bakaya, the chairman of Sarovar Hotels emphasized that sustainability is often a vague concept. “There’s good intention, but there are a lot more lip services, and these lip services don’t help the situation.” We must use common sense,” said he, adding that there is still a long road ahead for the hospitality industry to “get its act together.”

Bakaya spoke about the importance of deadlines, accountability and sustainability goals in order to meet the industry’s goals. He suggested that the industry was just beginning its journey towards meaningful change.

Gaurav Pokhriyal (executive vice president, human resources) at Indian Hotels Company noted that Indian hospitality faces several constraints.

“We do not have mainstream conversations about sustainability because 90% is the industry unorganized.” The organized sector has a limited impact.”

Nevertheless, he admitted that regulatory requirements regarding data disclosure led large players to adopt structured sustainability strategies, which included specific resource allocations. Pokhriyal emphasized the importance of internal culture and social sustainability.

Sustainability cannot be achieved in isolation. It requires a culture change within the organization.

Suman Bhalla, Additional Secretary at the Indian Ministry of Tourism says the gap between the demand and the supply is a major challenge.

In the last decade, people began earning more money and traveling more frequently,” he said at a recent conference.

In spite of this demand growth, the development of destinations has stagnated, leading to overcrowded tourism spots. Billa said that local government is not effective enough to ensure sustainable management. He did note that the current budget allocates funds for developing new destinations Introduces a reward system based on performance for those already in place.

All stakeholders must be involved in the focus on sustainability, he said.

Patu Keswani is the chairman and managing director at Lemon Tree Hotels. He said that there was a gap in terms of planning, but not execution.

The problem in India, however, is not strategy. It’s execution. He said, “Nobody wants change.”
To bring about a change, either current conditions must become more painful or incentives must be implemented.

Prestige Group Plans $470 Million IPO for Hospitality Business

Prestige Group of Bengaluru, India plans to make its hotels public through an INR40 billion ($470 million), IPO. Prestige Group has reportedly approved its IPO plans and is preparing a red herring prospectus. 

The proceeds of the IPO will be used to build new properties and reduce the debt load for the company. Prestige owns several flagship properties in Bengaluru including Sheraton Grand Hotel & Convention Centre in Whitefield, JW Marriott Bengaluru Prestige Golfshire Resort and Spa, and Moxy Bengaluru Airport, as well as a Conrad-branded property. 

In India, the hospitality industry is experiencing a growing positive investor attitude. Indian conglomerate ITC Limited split off its hotel division earlier this year. ITC Hotels. Jeffries, a company that provides investment banking services, also stated that the number of hotels listed on public exchanges in India is expected to increase as more companies seek to take advantage of the positive outlook for the hotel industry.

The luxury hospitality group Schloss Bangalore behind India’s The Leela Palaces filed for bankruptcy last year. $599 million (INR 50 billion) IPOIt is the largest investment ever made in India’s hospitality industry. Its goal is to capitalize the growing demand in India for high-end accommodation while also paying off debt. 

Owner and Developer Brigade Hotel Ventures Ventive Hospitality, the asset owner, is also making its way to the stock exchange. Samhi Hotels, Apeejay Surrendra Park Hotels and Juniper Hotels raised INR 40 billion (US $466 million) in the past. 

India’s air passenger traffic to increase by 80% within 5 years

India’s air passenger traffic is expected to grow by 80% in the next five year. According to new data from the government, traffic will increase from 222 millions passenger journeys in 2020-21 to almost 400 million by 2028-30.

In this period, it is estimated that the number of commercial aircraft across all airlines will rise from 800 to 1,300. At the same time, airport capacity will go from 550 millions passengers to 800 million.

In 10 years time, the modified regional air-connectivity scheme of the Indian government aims to connect 120 new destinations and reach 40 millions passengers. This is part of India’s infrastructure plan to meet the increasing demand for air travel, especially in smaller markets.

Jammu Tourism Gets New Adventure Trails and Paragliding Project

The Jammu division in India’s Jammu & Kashmir is likely to get a paragliding facility at Aithem, as proposed by the department of tourism. The INR40 million facility (about $470,000) will include lounges, cafés, sunset spots, and public utilities. 

This is a component of the roadmap for the development of tourism in Jammu. According to the roadmap five major tourism routes will be introduced in the region, alongside other initiatives to encourage multi-day stays, ecotourism, and adventure sports. The circuits will offer trekking, white-water-rafting, water tourism, alpine hikes, off-beat adventure routes, religious and heritage tours, as well other initiatives to promote multi-day tourist stays, eco-tourism, and adventure activities. 

IndiGo’s Loyalty Game Gets Better

IndiGo and boutique hotel The Postcard Hotel have partnered to offer members exclusive benefits. its BluChip loyalty program. The Postcard Hotel in India, Sri Lanka and Bhutan is a partner of IndiGo, allowing its BluChip members to earn up 60,000 BluChips per year from their stay. 

IndiGo, Accor and Accor have all announced their plans to launch flights in the near future. linked their loyalty programs. 

The budget airline, in order to increase the value of its newly launched loyalty program, has also partnered up with food delivery service Swiggy. BluChip members will be able to earn rewards points by spending on Swiggy in the Food, Instamart and Swiggy Dineout segments. 

Growing Interest in Spiritual Destinations

Agoda, an online travel platform, has seen a rise in interest for cultural and spiritual destinations within India in the first three month of 2025. This increased interest was driven by both inbound and domestic travelers, the company noted. 

Allahabad, now known as Prayagraj, has long been a popular destination. The company stated that the city would not have been in Agoda’s top 50 ranking for accommodation searches in early 2024. In the first quarter of this year it was ranked 11th in domestic searches and 15th in inbound travel, largely due to the Mahakumbh festival. Ayodhya and Rishikesh are also popular amongst domestic travelers.

Skift recently published an article that highlighted the importance of a good travel insurance policy. religious tourism has surged in India Recent years have seen a rise in the use of cellular phones.

AirKerala To Commence Flight Operations In June

AirKerala from Kerala is likely to start operations this June, making it perhaps the first airline in the state. Another airline Alhind was scheduled to start operations The airline has yet to fly.

Afi Afi, the chairman of AirKerala said that their first flight would depart from Kochi. AirKerala aims to be a low-cost airline connecting smaller cities in central and south India with major cities. 

The ATR economy-class 72-seater aircraft is operated by a fully private equity venture. It will lease five aircraft from an Irish company initially, and the first aircraft is expected to arrive in the first weeks of May. It plans to buy its own fleet, and will begin international flights to Gulf countries when it has 20 aircraft in its fleet.