According to JLL's Hotel Momentum India (HMI) Q2 2021, a quarterly hospitality sector monitor, the hospitality industry in India grew by 84.7% in Revenue Per Available Room (RevPAR) from Q2 2020 to Q2 2021 (April-June).
However, because of the limitations enforced due to the second wave of the pandemic, there was a 53.9% decrease in RevPAR in Q2 2021 compared to Q1 2021 across India.
The low base impact of the total nationwide lockdown in Q2 2020 is largely responsible for the sector's Y-o-Y increase in Q2 2021. In several states, complete and partial lockdowns, as well as travel restrictions, were imposed throughout April and May this year. Compared to the same period last year, we witnessed a stronger rebound in leisure demand when limitations were relaxed towards the end of May and the beginning of June. The sector's revival has been fueled largely by branded leisure chains that have performed exceptionally well. People are opting to stay in remote low-density residences, which has changed guest preferences substantially.
In the near to medium term, we expect the leisure and weddings segments to continue to drive the industry. Corporate travel is likely to pick up steam near the end of the year when offices open and travel restrictions loosen more, along with an increase in the rate of immunisation.
In the second quarter of 2021, there were 20 hotel signings, totalling 2,100 keys, which is three times the number of rooms signed in the second quarter of 2020. Furthermore, with a 60:40 inventory volume ratio, local operators dominated signings over overseas operators. (Source: STR)
In absolute terms, Goa was once again the RevPAR leader in Q2 2021, with an increase of 360.1% over the extremely low base of Q2 2020. In addition, Mumbai saw the largest rise in occupancy, with a 17.7% increase in Q2 2021 over the same time the previous year. When compared to the same period last year, Chennai's RevPAR increased by 99.6%, while Hyderabad's increased by 89.6%.
In the second quarter of 2021, demand for operating inventory grew by 186% and supply increased by 14% in six major cities, respectively, compared to the same period last year.
“While the hospitality industry has been hit particularly hard in Q2 2021 as a result of the second wave, we are encouraged by the way business has restarted. Flights are selling out, vacation spots are completely booked, and wedding bookings have increased as well. F&B dining, on the other hand, remains sluggish and is still dominated by home delivery orders. Given unexpected demand changes, managing personnel and costs has become a very difficult task,” said Jaideep Dang, Managing Director, JLL Hotels & Hospitality Group, South Asia.
Source: Travel Trends Today