What IHCL's 4th Hotel in Varanasi Says About India's Religious Tourism Boom

The Indian hotel sector delivered a strong first quarter due to an increase in corporate travel and weddings, real estate services company JLL shared in its Hotel Momentum India report. 

India has experienced a significant drop in the World Economic Forum’s travel and tourism rankings since 2019, falling 10 places to the 39th position. This decline has come despite the sector’s overall growth and the nation’s natural and cultural assets.

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.

The revenue of Indian airport operators is expected to increase by 15% to 17% in the 2024-25 financial year, according to credit rating agency ICRA. The agency added that the overall air passenger traffic in India in 2024-25 will grow by 8% to 11%, with 407 million to 418 million air passengers.

As the merger of Air India and Vistara airlines picks up steam, the process of merging their loyalty programs has also begun.

Travel distribution platform TBO Tek made a strong debut on the Indian stock market on Wednesday. Its shares were listed at 50% premium over its IPO issue price on the Bombay Stock Exchange (BSE) in the morning and at 55% premium on the National Stock Exchange (NSE). 

The merging of Air India and Vistara seems ahead of schedule, according to reports in Indian media that cite Air India CEO Campbell Wilson’s comments at a town hall meeting with the employees.

In theory, Pimalai Resort and Spa in Thailand’s Krabi province checks all the boxes for Indian tourists. But the majority of the travelers limit their visit to Bangkok and Phuket, owner Charintip Tiyaphorn told Skift. 

Air India’s low-cost subsidiary Air India Express canceled 85 flights on Thursday amid mass sick leave by cabin crew. The cancellations affected almost one-quarter of its entire flying program. In a statement, the airline said that it would operate 283 flights on Thursday. 

India is a key source market for the neighboring countries of Nepal, Bhutan, and Sri Lanka. In February, India was the biggest source market for Nepal, accounting for more than 25% of foreign tourist arrivals in the country.

Some 12 international and regional airlines, including carriers flying from over 200 gateways out of the US alone into Jamaica, have contributed to “impressive growth” in activities at the Sangster and Norman Manley International airports. Collectively they generated US$200.28 million or J$30 billion in revenue from a record-breaking 6.96 million passengers traversing them in 2023.

Indian airlines will account for half of the country’s international passenger traffic by the 2027-28 financial year, according to a report by credit rating agency CRISIL Ratings. That’s up from 43% this fiscal year, with India’s international passenger traffic at around 70 million.