The threat of corona epidemic is not completely over yet. However, despite this, in the current financial year 2022-23, the revenue and margins of the hotel industry are likely to reach the level before Corona.
The threat of corona epidemic is not completely over yet. However, despite this, in the current financial year 2022-23, the revenue and margins of the hotel industry are likely to reach the level before Corona. Rating agency Icra has estimated this. Icra Ratings today said on Tuesday 12 July that fun and short travel will play a major role in increasing the demand for the hotel industry in the current financial year. However, there will be a gradual improvement in business trips and foreign travelers coming to India.
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Chances of booking up to 70% in premium hotels
According to the rating agency, bookings in premium hotels across the country can be 68-70 percent in the current financial year. Along with this, the average rent of hotel rooms can be around Rs 5600-5800. Vinuta S, Vice President and Sector Head, ICRA says that the hotel industry has had a good start to this financial year with 56-58 per cent of premium rooms booked in the first quarter. In the first quarter of the last financial year 2021-22, this ratio was 40-42 percent. It was 60-62 per cent in the first quarter of the financial year 2019-20.
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Recovery in demand due to these reasons
According to Icra Ratings, the demand was supported by the return of fun, nearby trips and mess/weddings as well as business trips and foreign travelers’ return to India. Apart from this, the hotel industry also got support due to special celebrations in some cities. MICE means meetings, incentives, conferences and exhibitions. According to Icra Ratings, the hotel industry did better in the resort and gateway cities, but the hotel industry in cities like Bangalore and Pune, which is largely dependent on business travel, will take some more time to get back on track.