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India's Hotel Industry Shifts Focus to Domestic Travellers

The Indian hotel industry appears to be undergoing a significant transformation. On the surface, not much seems to have changed. Guests continue to check in as usual, wedding crowds remain a staple, and the weekend rush in popular destinations like Goa and Jaipur persists. However, a closer examination reveals that the industry is quietly shifting its focus towards catering to domestic travellers.

According to recent trends, the number of domestic tourists visiting hotels in India has been steadily increasing. In the past year, the hotel industry has seen a rise in bookings from domestic travellers, who now account for a significant portion of total bookings. This shift is evident in the growth of bookings from regional cities, where domestic tourists are increasingly opting for weekend getaways.

Domestic Traveller Bookings: A Growing Trend

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

QuarterDomestic BookingsInternational Bookings
Q1 202255%45%
Q2 202258%42%
Q3 202260%40%
Q4 202262%38%

The growth in domestic bookings is a welcome relief for the hotel industry, which has been grappling with declining international tourist numbers in recent years. As the Indian economy continues to grow, and disposable incomes rise, domestic travellers are increasingly looking for leisure options within the country. This shift presents an opportunity for hotels to cater to a growing market and increase revenue.

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