BY ROBIN GHOSH
ECONOMIST AND BUSINESS MENTOR
KOLKATA, 7 JANUARY 2024:
Forcasting how the industry will grow in 2024 is a daunting task. This is because inadequate availability of current data and absense of consulting agencies specializing in travel data analysis and forecasting.
The only recourse available is views expressed by industry spokesperson and rating agencies.
While going through the interviews of CEOs of travel industry and rating agencies one feels that 2024 looks like a year of sustainable growth.
The business outlook for travel industry can be observed from twin perspectives of demand and supply.
2 G20 presidency and World Cup provided a surge in domestic demand while the international demand continued 10 percent below par.
3 Next Year 2024-2025, the industry is expected to log 10 to12 percent growth rate propelled by higher domestic demand,gradual uplift of international demand and increase in MICE activities.
4 Strong demand will allow ARRs to grow 8 to10 percent remaining above Rs 10000 while the occupancy rate hovering around 74 to 75 percent.
On the supply side,room additions continues to remain on low trajectory having a growth rate of 5 percent.
Addition rate of new rooms continues to be on slow track because of rising land and construction costs.
Given this scenario, hotel operators are adopting new business models like aggressive branding,asset light expansion strategies, franchise opreation and management contracts.
The outlook for Travel industry appears to be bright and sunny for the next to 4 to 5 years .
However much depends on industry captions as to how they convret weakness to stregth and threats to opportunities.