REGIONAL REPORT : INDIA
need to be part of the mainstream , but you can ’ t really compare them ( to traditional hotels ).”
India ’ s middle-class growth created new demand for mid-priced hotels . Rattan Keswani , deputy managing director of New Delhi-based Lemon Tree Hotels , says for a while the options were extreme budget hotels or luxury lodging . Since opening in 2004 , the company has grown to become India ’ s largest middle-market hotel chain , with 52 hotels among its Lemon Tree , Red Fox and Carnation brands .
The country ’ s huge transition makes getting a handle on traditional economic hospitality metrics tough , say Thadani and Thacker . For so long , much of the country ’ s hospitality industry was composed of under-the-radar guesthouses that aren ’ t counted as hotels , and in some areas it remains that way .
“ India is such a vast country and we ’ ve got so many different dynamics in different parts of the country that general numbers aren ’ t representative ,” Thacker says .
A guest room at Lemon Tree Premier Corbett in Uttarakhand
Occupancy is growing and rates are holding about steady , Thacker and Thadani agree . According to Hotelivate ’ s 2018 Indian Hospitality Trends and Opportunities report , occupancy for India ’ s total hotel sector stood at 67 % in 2017- 18 , the highest in a decade , with RevPAR its best since 2010-11 at 3,837 rupees ( US $ 58.85 ). Even with 9,000 rooms added in 2017 and continued growth in occupancy , the weighted average room rate rose only 1.5 % over the previous fiscal year .
India is one of the top three fastest-growing destinations in the world by the World Travel & Tourism Council and is targeting 20 million foreign arrivals by 2022 . That growth is attracting outside investors and companies . Hilton India , which has 19 hotels across five brands , aims to double its presence in the next three to four years , according to a spokesman .
The Indian lodging market could become the third-largest globally , but it needs support on a few fronts : its taxation structure , talent management and development of
Mobile
MARKET
Mobile-payment use is on the rise in India – even if it hasn ’ t reached the saturation seen in China and elsewhere in Asia – as firms like WhatsApp , Google and Paytm seek a share of the country ’ s wallets .
Facebook-owned WhatsApp is testing its payment system between people in India . “ Today , almost 1 million people are testing WhatsApp payments in India ,” a spokeswoman for the mobile payment company told HOTELS . “ The feedback has been very positive , and people enjoy the convenience of sending money as simply and securely as sending messages . We ’ re working closely with the Indian government and multiple banks to expand the feature to more people and support India ’ s digital economy .”
The push to digital currency comes from financial technology firms and the government . According to a Credit Suisse report , India ’ s digital payment industry is forecast to reach US $ 1 trillion by 2023 , up from the current US $ 200 billion .
Vijay Thacker , director , Horwath HTL – India , says while Indian travelers still use multiple ways of paying , digital money use is increasing . “ This is definitely now in the realm of the common man rather than not being available ,” he says .
Kapil Chopra , CEO of The Postcard Hotel , Haryana , India , says the company is putting a payment gateway on site at his new luxury hotel chain , noting guests are becoming more comfortable paying this way . “ This is the future ,” he says .
The acceptance of mobile payments was likely helped in November 2016 when Prime Minister Narendra Modi , in a surprise move , eliminated the largest currency bills from circulation in a bid to stem corruption , taking out over 80 % of the country ’ s cash : According to the Financial Times , Paytm added 20 million users in the five weeks following Modi ’ s order .
28 hotelsmag . com March 2019