The festive month of October 2024 witnessed a nationwide decline in occupancy rates but reported an overall surge in both average room rates (ARR) and hotel signings when compared year-on-year and with the previous month.
For the month, average room rates soared by 10 per cent from the previous month and rose nearly 6 per cent from October 2023. Year-to-date hotel signings for October 2024 grew a robust 45 per cent year-on-year, with 33,407 keys signed across 333 properties.
The hotel industry also gained momentum with openings. Overall, 8,073 keys across 119 properties opened by October from the start of this year, with most openings concentrated in tier-3 and tier-4 markets, as per the latest report by HVS ANAROCK.
The report also found that multiple cities witnessed a decline in occupancy rates in October. However, Ahmedabad was the only city to record a significant increase in occupancy, with a 4-6 percentage point (pp) rise, driven by the Navratri festive season demand.
On the other hand, Bengaluru and Kochi maintained stable occupancy rates with minimal changes. Chennai, Kolkata, and Mumbai recorded the steepest declines in occupancy rates, ranging from 3 to 5 percentage points.
In the same month, nearly all major markets, except Ahmedabad, recorded an increase in average room rates compared to the previous year. Out of the cities, Hyderabad led the growth with an impressive 21-23 per cent year-on-year rise in average rates, reflecting robust demand. Jaipur and New Delhi showcased a contrasting trend, with average rates increasing by 13-15 per cent year-on-year, even as both cities experienced a decline in occupancy during the month.
As per the report, Ahmedabad was the only market to experience a substantial decline in ARR, dropping by more than 30 per cent compared to October last year, primarily due to the exceptionally high rates recorded during the 2023 ICC Cricket World Cup matches hosted in the city.
Report highlights more achievements in the tourism sector
The report also noted that in a significant boost to tourism and the hotel industry, Indian aviation made history, recording 5 lakh passengers in a single day on November 17, 2024, with airlines carrying over 5 lakh domestic passengers in a single day, for the first time in the history. All airlines together carried 5,05,412 domestic passengers across 3173 domestic departures.
Another interesting development in Ahmedabad was the introduction of a Rs 25 crore luxury river cruise to boost tourism with India's first luxury banquet cruise on the Sabarmati River. The massive project features a 49-metre vessel with a banquet hall, restaurant, and open-air deck, offering a unique experience for residents and tourists.
At the same time, Russia will also offer visa-free entry to Indian passport holders from 2025. By spring 2025, Indian tourists can visit Moscow without visas, enhancing Russia-India tourism ties. Currently, over 60,000 Indians visit Moscow annually. Visa-free entry would simplify travel to Russia, like existing programmes with China and Iran.
