The ICC Cricket World Cup has triggered a remarkable surge in hotel and homestay reservations, particularly in cities scheduled to host matches featuring the Indian cricket team, exclusive data shared with CNBC-TV18 by Make My Trip reveals.
In an interview with CNBC-TV18 Puneet Chhatwal, MD & CEO of Indian Hotels Company, shared his readings on the current and future prospects of the hotel and hospitality sector.
Chhatwal expressed optimism for the hotel sector across various timelines, emphasising its potential for short-, medium-, and long-term gains.
One key factor contributing to the sector's performance is the strong demand that has consistently outpaced supply. This dynamic has played a pivotal role in driving the hotel industry's growth and profitability.
Talking about the World Cup, he said, “There is a big benefit in all the cities that the World Cup is being played, especially on the dates when you have favourite teams playing, there is a big increase in occupancy and in rates.”
On business, he said that Indian Hotels is setting ambitious targets for itself. Chhatwal expressed confidence in achieving a 33% margin by 2025, demonstrating the company's commitment to financial excellence.
Chhatwal said the company plans to establish 15 exclusive Chambers, which are invitation-only clubs. Currently, the Chambers boast a membership exceeding 3,000, with expectations of continued growth in the exclusive club.
He also shared positive news about the industry's performance, highlighting an expected double-digit rate increase at the industry level during the second quarter.
“With the wedding season around the corner, the festival season coupled with the World Cup, we see no reason why this trend that we witnessed in the last year should not continue in this year. There is nothing that makes us believe, including business on the books that we share within our fraternity,” said Chhatwal.
According to the data provided by Make My Trip, there has been an expansion in the advance booking window for homestays in cities hosting the ICC Cricket World Cup. The percentage of bookings made well in advance (30+ days prior to check-in) has increased to 22% from 13% for this cricketing event. In comparison, for other periods, only 13% of bookings were made well in advance.
There is also a clear trend of longer stays during check-ins, particularly in hostels and homestays. The average duration of stay in hostels has risen from 1.6 nights to 2.3 nights, and for homestays, it has extended from 2.1 nights to 2.4 nights.
India is hosting the ICC Cricket World Cup after a hiatus of more than a decade. The nation is set to welcome 48 matches across 10 different venues, where the world's top 10 cricketing nations will compete for the highly sought-after championship.
For more details, watch the accompanying video
(Edited by : Shweta Mungre)
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