Revenue per room up over 150% from FY21, says Economic Survey

Occupancy rates are over 60 per cent for the third year in a row

The hospitality industry is making more money from every available room with each passing year after the pandemic.

The revenue per available room has increased by between 160 and 180 per cent to over Rs 5,000 in the financial year 2023-24 (FY24) compared to levels seen in FY21.

Data was consolidated using monthly reports of HVS Anarock Hotels & Hospitality Overview from April 2020 to March 2024. The annual averages were calculated using monthly data from the respective months’ reports.

A look at the March-end quarter of each year showed that the revenue per available room at the lower end rose from Rs 1,880 in FY21 to Rs 5,103 in FY24. It grew from Rs 2,060 to Rs 5,395 over the same period at the higher end.

 

A reason for this growth could be the increased services provided by the industry. Hotels are partnering with well-known restaurant, spa, and lounge brands to draw in guests and enhance profitability, the report noted.

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“In 2023, the highest amount of new supply was created with the addition of 14,000 rooms, bringing the total inventory of chain-affiliated rooms to 183,000 in India,” the report released on Monday noted.

There have been efforts to streamline operations using technology. The tourism sector has launched E-Marketplace to facilitate interactions between tourists and certified tourist facilitators and guides through web and mobile applications. The Union Government, with State Governments and Union Territory administrations, has registered accommodation units nationwide in the National Integrated Database of Hospitality Industry (NIDHI) portal. The industry has also launched the SAATHI (System for Assessment, Awareness, and Training for Hospitality Industry) to educate the sector on government COVID regulations, helping to prevent the further spread of viruses.

Occupancy rates increased to 65 per cent in FY24 from 49 per cent in FY21 at the upper end of the occupancy range.