According to a recent survey, Indian hoteliers should hope for more profit this year as one among six Indian travellers is expected to take at least seven domestic holidays
For those in the hospitality sector, this year seems like a year of fortune. A recent survey reveals that one among six Indian travellers plans to take at least seven domestic holidays this year, more than any other nationality. And this will surely ensure good business to the hospitality sector.
TripBarometer study by TripAdvisor is the analysis of more than 44,000 global responses from travellers and the hotel sector, with 1,037 respondents from India. Commenting on the findings of the survey, Nikhil Ganju, country manager, TripAdvisor India, said, “Against the conducive backdrop of general optimism about the prospects of the Indian economy, both travellers and hoteliers are expressing clear intentions that paint a positive picture for the Indian travel sector in 2015. Significantly, this optimism will translate into a sharp spike in the number of Indians travelling abroad this year.”
The other findings of the survey are:
An increase in travel budget
Globally, two in five travellers are planning to spend more on travel in 2015 than they did last year, with travellers twice as likely to increase rather than decrease their travel budgets. Forty one percent of travellers globally plan to up their travel budgets. According to the study, more than half (53 per cent) Indians will increase their travel budget in 2015. Of those planning to increase their travel spend, 52 per cent indicate that they plan to do so because they feel vacations are something they or their family deserve and 46 per cent say it is because they are going somewhere on their ‘wish list’ this year.
On the other hand, only 23 per cent Indians say they are decreasing their travel spend this year and that is largely driven by financial factors. Thirty seven per cent of those cutting expenditure this year say they do not have enough money saved, while 33 per cent are planning a shorter trip and 27 per cent plan to visit less expensive countries. Travellers from India reported spending an average of Rs2,02,500 on their holidays in 2013. This number increased by eight per cent last year. However, the current study reports a more positive trend.
International trips are on rise
Indians have their sight set on foreign shores with the average number of international trips set to increase by 45 per cent.
Domestic tourism is a hit
Domestic tourism sector will get the biggest piece of the travel spend pie. The TripBarometer looked at the correlation between the type of trips travellers plan to take in 2015 and how they will spend their travel budgets. The study reveals the estimated portion of each nationality’s travel budget that will be spent in their country of residence. For Indian travellers, the average estimated travel budget for 2015 is Rs2,55,100. Considering that 67 per cent of their planned trips will be taken domestically, this could amount to an estimated Rs1,70,917 average spend per traveller in India this year.
The ‘dream holiday’
Australia, Switzerland, New Zealand and France are the top dream destinations for Indian travellers in the next 24 months. Sixty one per cent Indian travellers say they are saving money to go on their dream holiday, 37 per cent are waiting until they have more time to explore the destination properly and 27 per cent are waiting for prices of flights to improve. Only 11 per cent Indians say currency exchange rates are a barrier for hoping to visit their dream destination.
Win-win situation
More hoteliers are feeling ‘optimistic’ about their profitability this year. Half of all businesses globally (50 per cent) and in India (49 per cent) intend to increase their room rates in 2015 — often a strong sign of health in the sector.
According to the study, two-thirds of Indian hoteliers (67 per cent) say the national economy will have a positive impact on their profitability. With business optimism on the rise, India hoteliers are also planning to spend more in revamping their properties. Nearly seven in 10 Indian hoteliers (67 per cent) plan to invest more in small scale renovations such as refurbishments, compared to nearly half (47 per cent) planning to spend more on large scale makeovers such as remodelling.