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Forbes
10 hours ago
- Business
- Forbes
India's Hotel Dream: Why Tech And Demand Are Driving The Story
Sanjay Ghare, Founder & CEO, Vervotech (A Constellation Inc. company), Investor in Travel startups. From my experience, having observed the global travel industry for decades, I can say that India's hospitality sector is not just experiencing growth—it is demonstrating an upward trajectory whose base was prepared by many stakeholders. This story has many heroes; I'll discuss each in greater detail. Before I move to that, the reality of the day is that India's accommodation industry is expected to reach an INR 1 trillion valuation ($11.7 billion) by the end of this financial year, with projections extending to INR 1.1 trillion ($13 billion) by 2026-27, supported by a CAGR of 10.5%. This trajectory is not accidental. It is a cumulative outcome of growing domestic demand, conscious effort from the government and an obvious tech ecosystem in the country that has fundamentally changed the dynamics of the industry. The Demand Story: A Multichannel Push What often remains under the radar in most external analyses is the significant impact of the "New Indian Traveler." Domestic tourism is no longer merely a contributor; it has become the primary contributor, accounting for a substantial 50% of incremental revenue in the hospitality sector. This internal demand base provides a strong resilience, protecting the industry from the volatility of global economic or geopolitical upheavals (wars, sanctions, pandemics, etc.). While international tourist arrivals have also shown a strong recovery, reaching 9.24 million in 2023 (per the latest government data available), the sheer scale of domestic engagement has been the key highlight. Also, the industry's thoughtful diversification into other high-value segments—meetings, incentives, conferences, and exhibitions (MICE), spiritual tourism, and medical travel—has also played a critical role. The MICE sector alone is projected to more than double from $49.4 billion in 2024 to $103.7 billion by 2030. Additionally, India's Medical Value Travel sector, valued at $7.69 billion in 2024, is also attracting millions of foreign patients, with projections indicating a market size of $16.21 billion by 2030. This multi-segment approach ensures the market remains attractive for investments and revenue channels remain fairly stable. 'Ease Of Doing Business' Dividend: The Sovereign Push As I mentioned earlier, the government has consciously tried to create favorable policies. From an investor's perspective, the Indian government's role is no longer just limited to regulation; the industry now sees it as a proactive strategic partner. Over the years, they have cultivated an environment conducive to investment and growth. The policy permitting 100% foreign direct investment (FDI) under the automatic route in the hotel and tourism sector is a clear signal of intent to create a conducive environment for businesses in the industry. The move eases the investment process by removing the requirement for prior government approval, given investments adhere to established regulatory norms. It has been instrumental in attracting capital for infrastructure development and improving service standards to meet global expectations. The Digital Backdrop: The Role Of B2B Solutions And OTAs One part of this growth story that cannot be undermined is the country's sophisticated digital ecosystem that supports the operational efficiency and expansive market reach of India's hotel industry. B2B solutions—including global distribution systems (GDSs), bedbanks, central reservation systems (CRSs), channel managers and mapping solutions—all have played a significant role. These technology players support travel agents, aggregators and tour operators with the centralization of travel content distribution, management of real-time pricing, and automation of complex domestic and cross-border transactions. This digital infrastructure is critical for hotels to manage complex distribution networks and revenue streams. Online travel agencies (OTAs), while often seen through the lens of commission structures, play an undeniable and extremely crucial role in distribution. Without them, this demand can't be realized. Platforms like MakeMyTrip, EaseMyTrip, Cleartrip and Yatra dominate the Indian OTA market. They function as primary "discovery engines" within the travel ecosystem. Obviously, their substantial marketing budgets, which are usually much larger than those of individual hotels, ensure exceptional visibility for hotels on major search engines. The Next Phase: AI, LLMs And Depth The current growth trajectory is definitely impressive, but in my opinion, it is merely a warmup to the next phase, which will be bigger and better and will be defined by intelligent automation and a prominent shift toward conscious travel. While the adoption of advanced AI in the Indian hotel industry remains limited to foundational systems, its transformative potential is yet to emerge. Over the next five years, as I see it today, the industry is poised for a significant deepening of technological integration, with large language models (LLMs) at the center of everything. You can foresee LLM-powered concierge services that predict guest needs, customizing everything from room temperature to dining recommendations based on deeper analysis of past preferences and their real-time behavior. Generative AI will facilitate dynamic content creation at scale for marketing and guest communication, enabling highly customized, personalized guest interactions. All of it together will lay the foundation for the next generation of growth, which will be massive. Conclusion India's hotel industry's growth story thus far is more than a numerical milestone; it is rooted in execution and a well-thought-out strategy to generate sustainable demand. The INR 1 trillion valuation is a telling testament to the effort that has gone into generating robust domestic demand, a strategically enabling and supporting government, and a rapidly evolving technological ecosystem in the country, along with the technology entrepreneurs who have dared to see the big picture. As AI, particularly LLMs, becomes more deeply embedded in the ecosystem, the industry will be open to the next levels of personalization, operational efficiency and sustainability. India is not just a market; it is a compelling case study of how strategic foresight, policy alignment and technological adoption can come together to create magic in terms of demand and growth in any industry. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
Times of Oman
15-06-2025
- Times of Oman
Oman's airports handle over 4.7 million passengers till April
Muscat: The total number of passengers traveling through Oman's airports by the end of April 2025 reached 4,701,055, marking a 4.1% decline compared to the same period in 2024, which recorded 4,901,855 passengers. Preliminary data released by the National Centre for Statistics and Information (NCSI) indicated that Muscat International Airport handled 4,222,789 passengers by the end of April 2025, down 4.7% from 4,428,726 passengers during the same period in 2024. The number of flights also decreased by 8.6%, totaling 29,731 flights compared to 32,520 flights in the previous year. Meanwhile, Salalah Airport saw a 6.8% increase in passenger traffic, reaching 458,394 passengers by the end of April 2025, up from 429,181 passengers in the same period last year. However, total flights at the airport experienced a marginal decline of 0.2%, with 2,974 flights compared to 2,980 flights in April 2024. Sohar Airport recorded a sharp drop in flight operations, with a 62.5% decrease in flights (72 flights compared to 192 in April 2024). Passenger numbers plummeted by 98.7%, with only 307 passengers, down from 23,842 in the same period last year. Similarly, Duqm Airport witnessed a 1.9% reduction in flights, totaling 204 flights by the end of April 2025 versus 208 flights in April 2024. Passenger traffic also declined by 2.7%, reaching 19,565 passengers compared to 20,106 in the previous year. As for the most active nationalities at Muscat International Airport, Indian travelers topped the list for both arrivals and departures, with a total of 182,628 passengers in April 2025 (99,163 arrivals and 83,465 departures). Omani nationals followed with 101,087 passengers (45,072 arrivals and 56,015 departures), while Pakistani travelers ranked third with 47,078 passengers (25,426 arrivals and 21,652 departures).
Skift
29-05-2025
- Business
- Skift
Now, Philippines Becomes Visa-Free for Indian Tourists
The impact of visa waivers on Indian travelers' destination preference is well documented. As the Philippines struggles with the loss of Chinese tourists, it seems to be taking a page from Thailand's notebook to attract outbound surge from India. The Philippines has introduced visa-free entry for Indian tourists. The archipelago is offering two different types of visa waivers to Indians. Indian passport holders can enter the Philippines without a visa for a period of 14 days for tourism only. Tourists entering the Southeast Asian country through this program can neither extend their stay beyond the 14 days nor convert it into any other type of visa. Apart from this, Indian nationals can also get a 30-day non-extendable visa-free entry for tourism purposes if they hold valid visas or residency permits for Australia, Japan, America, Canada, Schengen nations, Singapore, or the United Kingdom. The country's e-visa facility will also be available. The policy came into effect this month itself. India's Importance for Philippines: Last year, while the Philippines recorded its highest-ever tourism receipts at about $13 billion, it also lost out significantly on tourists from China: Only 300,000 Chinese tourists visited as against the target of 2 million. At the Skift Asia Forum earlier this month, Christina Garcia Frasco, tourism secretary of the Republic of the Philippines said, 'The lesson that we learned from that is to really diversify our dependency into other markets as well.' India has now become one of the focus markets for the Philippines. She is also hopeful that direct flights between India and the Philippines will commence 'very soon.' On the development, Gaurav Malik, country director - India, Sri Lanka, and Nepal at online travel platform Agoda, said, "The Philippines' decision to grant visa-free entry to Indian travelers recognizes India as a key market for tourism. The move also reflects Indian travelers' growing interest in Southeast Asia as a whole.' He added that the move is likely to further boost the demand for the Philippines as a preferred travel destination among Indians, as also seen in other destination countries and highlighted by Skift in a feature last September. Philippines Tourism Secretary at the Skift Asia Forum ITC's Welcomhotel Brand Enters Bihar ITC Hotels has signed a Welcomhotel-branded property in Bihar's Bodhgaya. The 98-key hotel marks the brand's debut in the state of Bihar. Bodhgaya is a key destination for Buddhist pilgrims. This came just days after ITC signed a Welcomhotel in Vrindavan in Uttar Pradesh, which is a major religious destination for Hindus. The company has recognized this segment as a growth driver in the country's tourism landscape. At the signing of Welcomhotel in Vrindavan, ITC Hotels Managing Director Anil Chadha said, 'India's pilgrimage tourism has witnessed a big upswing. As the country witnesses a surge in domestic travel, spiritual destinations have become vibrant tourism hubs, driving footfall and economic opportunity across various cities and heritage sites.' IndiGo Promoter Sells 6% Stake in Airline IndiGo-parent Interglobe Aviation's promoter Rakesh Gangwal and his family trust on Tuesday sold a 5.72% stake in the low-cost airline, according to exchange filings. Of this, Gangwal sold 0.57% out of his total 5.3% stake in IndiGo, while the family trust sold 5.15% out of a total 8.23% stake in the airline. The shares were offloaded for about INR 113.8 billion ($1.35 billion) through a block deal. A total of 220 million shares were sold in the deal. Last August as well, Gangwal's family trust sold a 5.2% stake in the airline. In March 2024, Gangwal also sold some shares in IndiGo. The stake sale is due to a February 2022 decision by Gangwal to reduce his stake in the budget airline after his alleged fall out with co-founder Rahul Bhatia over corporate governance issues. Last year, Southwest Airlines announced adding Gangwal to its board of directors. Manipur's Move to Boost Homestays The Northeastern state of Manipur has launched a dedicated portal for registration of homestays in the state. The digital initiative is aimed to encourage local communities through tourism. Residents across the state will be able to register their properties as certified homestays using this portal, which will strengthen rural economies while also providing travelers with authentic travel experiences. The state's new homestay policy came into effect this month, in which the government detailed the infrastructure and service benchmarks required from homestays. These looked at guest safety, comfort, and transparency. The policy also standardized room tariffs. Cruise-Focused OTA Int2Cruises Enters India Cruise-focused online travel company Int2Cruises has entered the Indian market. The OTA is headquartered in India, but was first introduced in Singapore and is expanding its presence into other markets such as the United Arab Emirates. In a statement, the company said that the platform aims to make cruise bookings convenient, transparent, and affordable. 'Indian travelers today are confident, digitally savvy, and looking for memorable experiences. But cruise booking remains fragmented and often overwhelming,' said Akansha Agarwal, chief marketing officer at the OTA. Cruise vacations are quickly gaining momentum among Indian travelers, for leisure as well as corporate travel. The government is also looking to ramp up this segment, targeting 1 million cruise tourists by 2029. According to the Indian government, 'The cruise market in India has the potential to grow by 800% over the next decade, driven by rising demand and disposable incomes.' IHG Now Has 50 Operational Hotels in India IHG Hotels & Resorts on Tuesday opened its 50th operational hotel in India - Crowne Plaza Lucknow. The 110-key hotel has been equipped with meeting and event spaces across 40,000 square feet in order to target leisure and business travelers. The hotel chain is continuing to expand its presence across the country. Last year, IHG signed 18 new hotels in India, with around 30% of the signings being in the premium and luxury segments. Currently, the company has almost 70 hotels in its pipeline as it looks to more than double its portfolio in India over the next five years.
