India’s trillion-dollar wedding industry is back, larger and grander than ever before. Fueled by rising income levels, a growing number of high-net-worth individuals, and the charm of celebrity weddings, destination weddings, both domestic and international, are on the rise, which is expected to gain further momentum driven by India’s favorable demographics. Read on to know more.
“The problem is serious.” And when it’s the head economist at the International Monetary Fund who says so, eyebrows are indeed raised. The comments made by Pierre-Olivier Gourinchas in early October at an IMF meeting in Morocco underscored the gravity of China’s current economic balancing act. The world’s second-biggest economy is staring down an unprecedented real estate crisis that could drag the country down with it.
In the dynamic landscape of India's travel and tourism industry, 2023 marks a year recovery. This is the key finding of the inaugural Indian Accommodation Barometer – a joint project between Booking.com and Statista.
Extended-stay hotels are one of the fastest growing segments globally, but it remains a relatively niche offering in India. Read on to know more.
Where else could you catch a hyperfast train from an ancient royal palace to a coastal paradise, lose yourself in a night of karaoke and stay in a hotel with 600-year-old underfloor heating? From the irresistible appeal of K-pop to the majesty of Joseon dynasty architecture and the stunning scenery of Jeju Island, South Korea is a unique destination on the bucket list of travelers from around the world.
Efforts to promote gender equality have become a global priority, with organizations like the United Nations embedding this goal within their Sustainable Development Goals. Notably, an increasing number of women are pursuing higher education in countries like the US, the UK, and India, and are entering the workforce as the corporate sector is offering a more flexible work environment. As a result, women have made significant strides in multiple sectors, including the dynamic world of hospitality.Recent research conducted by the World Travel & Tourism Council (WTTC) reveals that women accounted for 54% of the total employment in the global travel and tourism (T&T) industry. With their inherently higher levels of emotional intelligence, the hospitality sector is a perfect ground for women to succeed.
A growing affinity towards experiential travel in India has given rise to the concept of experiential hotels, which offer guests stays that transcend the cookie-cutter hotel experience. Read on to know more.
Tech hubs have globally been a catalyst for the hospitality sector’s expansion. Bengaluru and Hyderabad are prime examples of this trend in India, witnessing unprecedented growth in hotel supply in sync with their booming IT sectors. Read on to know more.
India's outbound travel sector is witnessing a resurgence, mirroring a trend akin to the pent-up demand that fueled domestic tourism in the last two years. Read on to know more.
The Republic of Singapore is a metropolitan city-state and island country in Southeast Asia with a total land area of approximately 714.3 square kilometres. It is situated at the southern tip of the Malayan Peninsula, between Malaysia and Indonesia. With an economy supported by its growing population of approximately 5.6 million people, Singapore has witnessed a remarkable record of sustained economic growth throughout the years and bolstered its role as a global commerce, finance and transportation hub.
Artificial Intelligence (AI) is transforming industries across the world and as per a recent IBM report, global AI adoption is increasing steadily, reaching 35% in 2022, up four points from the previous year. The food and beverage (F&B) industry is also gradually catching up with this trend. From streamlining processes and assisting with waste management to improving guest experiences, AI is emerging as a key facilitator for the industry’s growth. With the addition of Machine Learning (ML) and Big Data, this could become a game-changer for the F&B industry, with endless potential. The global market for AI in the F&B industry is expected to grow from over USD 4 bn in 2022 to nearly USD 28 bn in 2027 at a CAGR of ~44%.
Demand patterns in the Indian Hotel sector are normalizing after the severe fluctuations of the past three years. Even though revenge travel is gradually declining, demand in the leisure segment remains strong. Meanwhile, the MICE segment and corporate travel segment are continuing to recover, despite the hybrid work culture, online meetings, and higher airfares slowing the turnaround rate. As a result, the sector witnessed an average nationwide occupancy rate of 63-65% in the first half of the calendar year 2023 (H1 2023), showcasing an increase of 6-8 percentage points (pp) from the same period in 2022. India’s average hotel rates saw a strong increase of 30-32% in H1 2023 compared to H1 2022 and were 21-23% higher than in H1 2019. The steady rise in average rates helped the nationwide RevPAR to reach INR4,650-4,850, reflecting a growth of 46-48% compared to H1 2022.
Check out the June 2023 edition of the HVS ANAROCK monthly industry update, Hotels & Hospitality Overview (H2O), for the key trends in the Indian hospitality industry.
Australia is a land like no other. Renowned for its breathtaking beaches, vast landscapes, fascinating wildlife and cosmopolitan cities, Australia is a gem of the Asia-Pacific (APAC) tourism market and a dream destination for travelers around the globe. We take a look at what makes the Australian tourism sector so unique, and how online travel agencies (OTAs) do their part to help support local hospitality entrepreneurs big and small. A land down under Australia occupies a special place in the hearts and minds of travelers. If you want evidence of its enduring popularity, just look at the numbers. Australia generated AU$122 billion in tourism revenue in the 2018–19 fiscal year (the benchmark year for the travel industry before the coronavirus pandemic struck). Almost 10 million international visitors traveled to Australia from 2018 to 2019 and they spent AU$44.6 billion, a 5% increase on the previous year. 44% of visitor spend was in regional areas, and regional tourism accounted for over 4% of GDP and 8% of regional employment. The Australian travel and tourism sector is diverse, but there are two key features that define it: seasonality and domestic travel. Australia is one of the biggest tourism markets in the southern hemisphere and an important winter sun destination for those living in the Global North. The summer months, unsurprisingly, attract the most visitors; over 2.7 million international travelers touched down in Australia from December 2018 to February 2019. Of the top six countries of origin for international visitors to Australia, four are in the northern hemisphere. “Australian travel is largely concentrated around school holidays. British holidays in September really help us stay occupied during low season for Australians.” (Source: EY Parthenon OTA Impact Report APAC 2021) A key pillar of the travel economy in Australia is domestic tourism. Three quarters of total tourism spend comes from domestic travelers who make an average of five trips a year. Australians are consummate travelers and clearly enthusiastic about the diversity in their country — in 2019, they spent over AU$80 billion on overnight trips and a further AU$26 billion on day trips. Supporting Australian tourism Research from Oxford Economics finds that, in 2019, OTAs generated AU$1.6 billion in incremental GDP and helped create around 12,000 incremental jobs. How does that happen? As trusted intermediaries, digital platforms like Booking.com provide transparency, convenience and choice for consumers. This, in turn, expands the market as more people book stays in a destination, more stays equals more room nights booked, and more room nights booked generates more money and supports more jobs. On average, online platforms helped providers generate 4.1 additional room nights, which equals 4 million heads on Australian beds. Accommodation managers had this to say about working with OTAs: “The biggest advantage of working with OTAs is that our property is having visibility all over the world. When people search for our location on OTAs, we are one of the first properties to show up. This has really benefited us.” Small accommodation provider at tourist destination, Australia (Source: EY Parthenon OTA Impact Report APAC 2021) While it may feel like a very common experience — to book accommodation on a digital platform like Booking.com — actually only 18% of the 259 million nights sold by Australian accommodations in 2019 were processed through OTAs. Perhaps one of the key ways OTAs affect consumer choice is the competition it introduces to other channels of booking accommodation. Ultimately, this improves affordability of travel and helps consumers discover smaller, regional accommodations, who may not have the budgets to market in competition with the larger chains. Guests are more strongly oriented towards small & independent accommodations when booking through online platforms — 67% of sales in 2019 went to these providers compared to 49% in the whole market. Sustainability agenda in travel One of the most notable developments that OTAs, travelers, and hoteliers alike have come to recognize is the importance of preserving our environment. Our research shows that the majority of people want to travel sustainably in the next year. Globally, travelers are becoming agents of change by taking their sustainable habits abroad and Australian travelers are leading the charge. 70% of Australians reuse the same towel, 65% use their own water bottle and 46% shop at local, independent stores (compared to global averages of 60%, 55% and 43% respectively). Travelers want to be sustainable but they’re increasingly concerned about the cost of doing so — over half (58%) are worried about the cost of sustainable travel options. And yet, just over a third (36%) said that they would be willing to pay more for certified sustainable options. Consumers are caught in a balancing act between traveling sustainably and managing their costs. When it comes to the sustainability agenda, Australian tourism authorities, hospitality entrepreneurs, and other players in the ecosystem are not sitting idly by. They are placing sustainability at the heart of the industry. Australia ranks 7th in the world for sustainable and resilient tourism and sustainability is a crucial pillar of the country’s national tourism strategy. This approach mirrors our view that sustainable practices are an investment in the future of travel, and demonstrates that both travelers and providers can be changemakers. In it for the long haul Among many OTAs operating in Australia, Booking.com provides tourists with the freedom to choose from a wide range of options, while offering peace of mind and affordable room rates. Meanwhile, independent accommodations remain competitive and benefit from tailored marketing and distribution resources for a small fee, without any risk or upfront costs. By serving as trustworthy intermediaries, digital platforms are helping Australian accommodations rebound from the 3 years of travel restrictions and forge a special bond between global travelers and hospitality businesses who host them. Australia is a unique destination in the Asia Pacific travel and tourism market. From the tropical paradise of Queensland to the epic landscapes of the Outback, from the cosmopolitan hubs of Sydney and Melbourne to boutique stays in a myriad of different locales, Australia really has it all.
Diversity and Inclusion (D&I) have now become a business priority for most organizations across industries, as multiple research studies have shown that it not only boosts creativity, innovation, and employee morale but also productivity and bottom line while helping the world to move towards a more equalized economy. Organizations are taking active steps to make their workplaces more diverse and inclusive by focusing on recruiting people of different genders, ethnicity, cultures, nationalities, sexual orientation, and identities. Empowering differently-abled people through employment opportunities has also become one of the top priorities for organizations, including those in the hospitality industry, where guests often perceive an inclusive hotel property or workspace as more accommodative, comfortable, warm, and welcoming.
The entry of ONDC (Open Network for Digital Commerce), which is a government initiative, is challenging the current duopoly in the food delivery market in India, providing more choices both to sellers and buyers. This can bring better price parity and disrupt the existing status quo. Read on to know more.
Leisure travel is growing relentlessly, with a paradigm shift that more and more tourists are looking to explore lesser-known, uncharted regions. Read on to know more.
India's amusement & theme parks industry is still nascent, accounting for only a minuscule global market share, however, demand in this segment is expected to increase in the future. Read on to know more.
The year 2022 painted a mixed picture for the global hospitality sector. It was the year that travel finally made a comeback after a majority of countries lifted their travel restrictions and most people resumed their pre-pandemic way of life. As a result, travel demand increased significantly across the globe with people trying to make up for the lost time. However, inflation, the Russia-Ukraine war, and the “great resignation” negatively impacted the hospitality business in a few countries. The Indian hospitality sector also witnessed similar trends during the year but was more resilient than some of its global counterparts.
Driven by the strong recovery in demand, hotel companies accelerated their growth plans in 2022, resulting in an over 33% rise in brand signings by keys compared to the previous year. During the year, 166 new hotels with 14,885 rooms were signed, while 90 hotels with 5,702 rooms were rebranded.