Source: Hotelivate

There are various events and factors that will help the sector to maintain its favourable position in 2023:

1. G20 Presidency: After two years of stagnation, hosting the G20 members and guests represents a fantastic opportunity for the Indian tourism and hospitality industries. The country is expected to host more than 200 meetings at 56 locations, including not only famous heritage sites, but also other less well-known locations.

2. MICE: Global in scope, countries with superior infrastructure, adequate convention facilities, safety and effective branding are required to host MICE events. Domestic MICE has begun to improve since September 2022, with Delhi, Mumbai and Gurgaon reviving this sector. Indian MICE accounts for less than 1% of the estimated global MICE market, despite the country's natural and cultural advantages and rapid economic growth.

Indian cities have a golden opportunity to increase their MICE business with the help of government initiatives, the G20 summit, improved connectivity and upskilling people. The nation continually identifies cities showing potential to develop and become leading MICE destinations.

3. Wedding season: The wedding business is almost back to pre-COVID-19 levels. Even though weddings since the pandemic typically have fewer guests, the costs are comparable to those before the outbreak.

4. Sports tourism: Sports tourism in India is also on the rise, proving to be a significant demand driver for travel as higher disposable incomes and increasing social media awareness gives Indian sports fans the opportunity to fly to watch matches. With India hosting the upcoming Cricket World Cup 2023, it is anticipated that inbound tourism will increase.

5. Increasing urbanisation: India's urban population share increased from 27% in 2001 to 34% in financial year 2018, according to the World Urbanisation Prospectus Report and is projected to reach 38% by 2036. India's urbanisation expansion has been a demand driver for the industry.

6. Boosting long-term profit margins: Due to high inflation, supply chain disruptions and the rising exchange rate, the operational costs of hotels have increased post-pandemic and hoteliers have made bold changes to regulate expenditure. Switching staff from restaurants to reception to housekeeping, automating check-in, controlling electricity and water costs, implementing online booking and optimising overheads spending have helped hoteliers cut costs sustainably.

7. Shifting online: The internet has transformed the hotel industry, from advertising to bookings. Convenience, personalisation, and alternatives to offline media channels have attracted a wider customer base.

Travel, tourism and hospitality were the last to recover from the pandemic. Though the lockdown restricted visitors, the pandemic has significantly altered the customer experience, incorporating improved hygiene and caution in public health — a trend likely to continue.

Despite operating in separate sectors, the hospitality and travel and tourism industries are complementary. As economic expansion gains traction, companies have raised their expenditure on business travel, while leisure travel has also grown due to an emphasis on discretionary income spending. This two-pronged increase in travel has benefited the industry's demand levels and the outlook, both globally and in India, is optimistic. With the increasing trend of travel and leisure, the Economic Times highlights the interesting trends of staycations and workcations which it says are not only encouraging expansion in metropolitan areas but also in tier 2 and 3 cities. The robust rail, road and air infrastructure is further encouraging a growing number of consumers to travel, thereby helping the sector to grow further.