Tag Archives: growth

Amruda Nair, Founder and Director, Araiya Hotels & Resorts, said, “India’s hotel industry is currently experiencing robust growth with increased disposable income and infrastructure development. The industry is expanding into tier II and III cities, with big players revisiting their strategy to capture the market. The sector is poised to grow at a faster rate than the economy.”

Vikram Cotah, CEO, GRT Hotels & Resorts, said, “Our travel trade partners have been integral to our growth journey. Events like these allow us to reconnect, exchange ideas, and explore new possibilities together. At GRT Hotels & Resorts, we believe in creating not just stays but stories – and our partners help us take those stories far and wide.”

Nikhil Sharma, MD & COO– South Asia, Radisson Hotel Group, said, “In terms of rate dynamics, I foresee continued growth in Average Daily Rates (ADRs) across metros and leisure destinations, despite a possible short-term dip in occupancy during Q2 of FY2025. But other than that, I don’t see any drop in ADRs in India.”

As per HVS Anarock’s recent report, the nationwide ARR of hotels has seen a growth of 10 to 12% while the ARRs remained in the range of ₹9,100 to ₹9,300. This growth in ARRs reflected positively on the RevPARs of hotels resulting in a growth of 15 to 17%. The RevPAR of hotels crossed the ₹6,000 threshold whereas the RevPAR of hotels in January 2025 was in the range of ₹6006 and ₹6,324.

The luxury travel sector has shown remarkable resilience. According to McKinsey, the industry is projected to grow from $1.4 trillion in 2024 to $2.2 trillion by 2030 globally. The Asia-Pacific region is leading the surge at a compound annual growth rate of 8.6% from 2024 to 2030. This growth is driven not just by affluence among the wealthy but by younger travellers.

According to RBI, “40 scheduled banks have cumulatively doubled their lending to the aviation sector in January at ₹45,076 crore, as against ₹23,407 crore three years ago. Investments from other sources stood at ₹27,824 crore in January 2023, up 62% year-on-year, and continued to rise gradually during FY24. Industry analysts attribute this surge in investments to the following factors, among others.”

UNWTO has identified investments as one of the key priorities for tourism’s recovery and future growth and development. For World Tourism Day 2023, UNWTO highlights the need for more and better-targeted investments for people, for planet and for prosperity.

According to the analysis of Asian Development Bank report, India is predicted to overtake China in terms of outbound travel growth over the next ten years, despite the lack of airports restricting air connectivity.

Sandeep Nanduri, IAS, Director of Tourism and MD, Tamil Nadu Tourism Development Corporation disclosed, “According to 63rd edition of the Indian Tourism Statistics Report,  Tamil Nadu was ranked 1st in domestic tourists visit”. The state has witnessed a remarkable influx of tourists, he added.