Spiritual Travel and Live Events Fuel Hospitality Growth in India

Indian hotel sector continued its upward momentum last year. The main drivers? Spiritualism, weddings, and concerts.

In 2024, the hotel industry’s room rates stabilized in India, increasing 7-9% from 2023 after sharp rate hikes in 2022-23, noted hospitality consultant HVS Anarock in its latest report. The room rates and revenue per available room (RevPAR) increased even as the overall nationwide occupancy remained around 63-65%. This was marginally higher than 2023, but still not at pre-Covid occupancy rates.

“A year ago, the question was if the bull run that we were witnessing is likely to continue as we moved into the next financial year,” said Mandeep S. Lamba, president and CEO (South Asia) at HVS Anarock. There were fears of a slowdown due to the general elections in India and the global impact of U.S. elections. “Notwithstanding the concerns, the Indian hospitality sector continued its upward performance trajectory with a healthy double digit RevPAR growth,” he noted.

The consultancy firm noted that major trends such as spiritual travel, live events, weddings, and corporate travel impacted the travel and tourism industry in India. On live events, it said, “Annual spending on concerts and live entertainment was estimated at INR 16-20 billion ($190-236 million), with 25% directed toward hotels and transport—directly benefiting th