India’s hospitality industry faced a pronounced slowdown in the June quarter (Q2 CY2025), impacted not only by seasonal trends but also by a series of disruptive external events — including rising Indo-Pak tensions, the Pahalgam terror attack, and an Air India crash in Ahmedabad. These developments triggered a sharp pullback in travel demand across key metros and leisure destinations. Consulting firm HVS Anarock, in its latest hospitality monitor, pointed to multiple simultaneous disruptions that dented both business and leisure travel in Q2. “The dip in performance was largely driven by early monsoon impacts and seasonal slowdown — but this year, it was compounded by geopolitical and aviation-related shocks that suppressed traveler sentiment,” the firm noted. Average Room Rates (ARR) and occupancy levels declined across all major hospitality markets: Jaipur: ARR down 37–39%, Occupancy down 20–22%; New Delhi: ARR down 27–29%, Occupancy down 11–13%; Goa, Mumbai, Gurugram: ARR declined by 20–22%. Domestic air travel reflected the same pattern, with Q2 passenger traffic falling 2.8% sequentially to 41.9 million travelers.

Indian Hotels Company Ltd. (IHCL), which owns the Taj Hotels brand, reported a 3% revenue impact due to northern tensions but still recorded a 32% YoY rise in operational revenue. IHCL’s RevPAR at domestic properties climbed 11% YoY, signaling underlying resilience. ITC Hotels also flagged disruptions during May but confirmed recovery in June. “While geopolitical developments in May had temporarily affected business in some locations, the hospitality sector bounced back progressively thereafter,” an ITC Hotels spokesperson stated. Despite the Q2 challenges, sentiment remains optimistic heading into the festive and monsoon-heavy September quarter. Travel platforms are reporting early spikes in bookings for the Independence Day long weekend and Ganesh Chaturthi. “With festivals, improved weather, and a stabilizing geopolitical landscape, we’re seeing strong signals of rebound,” said a senior industry executive. IHCL’s CEO, Puneet Chhatwal, echoed the industry’s optimism: “Notwithstanding tensions, we anticipate a strong performance in August and September.”

Hotel Room

Hotel Corridor

Share:-

Latest News:

Beyond Spas and Schedules: The Rise of Stealth Wellness in India’s Hospitality Sector

Five Indian sommeliers represent the nation for the first time at one of the world’s most prestigious wine training bootcamps.

India Makes Its Mark at ASI Bootcamp 2025 in Singapore

From forest bungalows to mountain retreats, hotels are quietly weaving well-being into architecture, food, and the rhythm of time without branding it as 'wellness'