After almost six quarters of forgettable quarters, the holiday season has brought some of the shine back to the hotel industry. This was the sector that had remained one of the worst-hit sectors due to pandemic. The sector, which employs large number of population and contributes a significant portion of India's annual GDP, has been hit hard by the restrictions and curfews imposed by Indian government as well as state governments. Many of these businesses had been brought to a standstill as they were merely allowed to deliver food that qualifies as an essential service. The complete closure of operations, led to humungous revenue loss for the sector.
Deep Fall
Extended lockdown, restrictions on travel, closure of international flights and curtailed cost for business travelled to unprecedented fall in hotel occupancy. The industry's average occupancy hit rock bottom of single-digit in April 2020. Marginal recovery was seen in subsequent months, aided by quarantine stay provided at subsidized rates by key hoteliers. The Indian hotel industry has taken a hit of over Rs 1.30 lakh crore in revenue for the fiscal year 2020-21 due to the impact of the COVID-19 pandemic. Industry total revenue in FY2019-20 stood at Rs 1.82 lakh crore so approximately 75 per cent of the industry's revenues got wiped off. The Indian hospitality industry recorded revenue per available room (RevPAR) of Rs 1,582 during FY21, the lowest in the last 22 years, according to a report by Hotelivate. This, according to the hospitality industry consulting firm, is a 60.8 per cent decline over the last year (FY20).
Cost Measures Helped To Remain Afloat
This story is from the April 2022 edition of Indian Economy & Market.
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This story is from the April 2022 edition of Indian Economy & Market.
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