Hotels, airlines, and travel and tour companies have always been most important verticals of the travel & tourism industry. The sixth edition of India State Ranking Survey by Hotelivate in association with the World Travel and Tourism Council – India Initiative (WTTC – II), took place focuses on the first vertical and aims to identify the best performing states in the country from the hospitality industry’s viewpoint.
Presence of branded rooms
The report by India State Ranking Survey states that branded hotel rooms in India have grown by 12%, i.e. increase of approximately 14,000 rooms in 2016-17. Karnataka and Tamil Nadu added around 3,000 rooms each, whereas Goa, Maharashtra, West Bengal, Gujarat, Rajasthan and Uttar Pradesh added close to 1,000 rooms each.
Maharashtra, Karnataka, Delhi, Tamil Nadu and Rajasthan are the top five states that lead in terms of the absolute number of branded hotel rooms. However, Delhi ranks first when it comes to the density of branded hotel rooms per 100 sq km, followed by Goa, Haryana, Tamil Nadu and Kerala. Bengaluru and Mumbai are expected to house more branded hotel rooms than Delhi. However, by virtue of being the smallest state, the nation’s capital is likely to retain its top position in the ranking for this parameter in the coming years as well. Karnataka, since 2017, has got the maximum number of branded rooms openings. Out of which 87% hotel rooms were opened in Bengaluru, the ‘Silicon Valley of India’, itself.
While many states have shifted places over the years on account of a change in the number of branded rooms, Odisha, Bihar, Arunachal Pradesh, Manipur, Meghalaya, Mizoram and Nagaland though has unique tourist attractions, still is at the bottom of the list. Challenges such as limited connectivity, lack of promotion, safety and security concerns and few to nil branded hotel rooms make them the least competitive in this parameter.
By and large, both domestic as well as international travellers are price sensitive and seek quality accommodation at affordable rates. However, only 14% of the total branded hotel rooms in India are positioned in the economy or budget category. The majority have an upper mid market positioning (24%), while the remaining inventory is distributed between mid market (20%) and hotels belonging to upscale, upper upscale and luxury positioning (42%). At the state level, the ones with sizeable number of rooms in the economy and budget space are Gujarat, Maharashtra, Karnataka and Tamil Nadu.
States (especially those that retain the lowest ranking in this parameter) should encourage owners and operators to develop branded hotel rooms, especially in the economy and budget segment. These types of hotels have no-frills and require lower investment in comparison to the higher positioned hotels. Such development will not only add to the existing tourism infrastructure but also help the state in creating direct and indirect benefits.
