The hospitality industry in India witnessed a growth of 169.4% in Revenue Per Available Room (RevPAR) during Q3 2021 (July – Sep) as compared to Q3 2020, according to JLL’s Hotel Momentum India (HMI) Q3 2021, a quarterly hospitality sector monitor. Furthermore, at a pan India level, there has been a 122.9% growth in RevPAR in Q3 2021 as compared to Q2 2021, due to strong recovery in leisure demand as travel restrictions were eased post the second wave of the pandemic.
The Year on Year (Y-o-Y) growth witnessed in the sector during Q3 2021 is primarily due to the low base effect of Q3 2020 as the nation began to cautiously ease travel restrictions. Post the full and partial lockdowns witnessed in many states during April and May of 2021, the sector witnessed a sharp recovery in leisure travel towards the end of Q2 2021. This trend continued into Q3 2021 as inter-state travel restrictions were further eased and an improvement in travelers’ confidence was seen with the large-scale vaccination drive across the nation.
For the next two quarters (Q4 2021 and Q1 2022), growth in travel is expected to continue as India further ramps up its vaccination rate resulting in improved sentiment towards domestic travel, especially business travel. IT / ITeS companies have indicated that their travel expenditure will increase in the coming quarters as they foresee employees returning to the office/campus as well as resuming travel for work. However, there is a lag between returning to work and subsequent business-related travel. Leisure locations are expected to see a further increase in occupancy and average rates supported mainly by transient leisure and social gatherings.