India's Travel Sector Is Creating Jobs; Risk of a Worker Shortage

22.05.2024 - 14:21 / skift.com / Bulbul Dhawan / London

The hotel, restaurant, and tourism sectors in India are estimated to generate about 200,000 jobs within the next 12 to 18 months, according to recruitment company TeamLease Services. About 50% of these jobs are expected to be created by the hotel industry, Economic Times reported.

As more hotels are opening across different markets, companies are recruiting for permanent, temporary, and gig positions, said TeamLease vice president Balasubramanian A. 

According to the Hotel Association of India (HAI), the hotel industry has had a 271% increase in hirings over the past two years.

Challenges in the industry: But a report by the Tourism and Hospitality Skill Council said that young workers are leaving the industry due to low wages and extended hours.

Dilip Puri, founder of the Indian School of Hospitality, said that these challenges are leading to young professionals being poached by different sectors. A large number of students graduating from hospitality schools are finding better opportunities in retail, real estate, e-commerce, and start ups.

“The sector should also emphasize offering opportunities for career advancement via training and development programs. Employees should also be recognized and rewarded,” Puri said. 

Industry leaders agree that competitive salaries, and incentives such as health insurance and work-life balance, are necessary to retain talent. 

“There is a need for better collaboration between educational institutions and industry players to fill the gap between hospitality education and the real requirements of the industry,” said Hotel Association of India President KB Kachru.

In an interview with Skift, Sarovar Hotels and Resorts managing director Ajay Bakaya said, “We need to match the demands of the new generation of workers, who have different needs from the workers we had in the last 15 to 20 years. The organizations that evolve faster will grow faster.”

According to the data released by the Directorate General of Civil Aviation, Indian airlines carried 13.2 million passengers in April this year. This marked 2.42% growth compared to passengers carried in April 2023. 

Between January and April this year, domestic carriers served nearly 52.35 million passengers, up from 50.4 million passengers during the same period last year. IndiGo continued to hold a lion’s share of the market, accounting for 60.6% in April. 

Notably, despite the delays and cancellations by Vistara due to mass leave by pilots, there have been close to no complaints from passengers. 

Akasa Air continued to deliver the best on-time performance among domestic airlines, according to the data. 

India and the UK have revised their air service agreement to enhance connectivity between London and Delhi and Mumbai.