4.5 million weddings are expected across India.
With 4.5 million weddings expected in November and December, alongside an uptick in business and meetings, incentives, conferences and exhibitions (MICE) travel, the hospitality industry is gearing for another strong year-end this year in terms of room rates and occupancy.
Several hospitality executives expect this year to witness another record, after hotel room rates hit new highs in 2024.
Rikant Pittie, CEO and cofounder, EaseMyTrip, said that it is nearly 14 per cent ahead of last year's numbers, with most destinations witnessing high advance bookings for group and long-stay itineraries.
Meanwhile, travel tied to the wedding season, honeymoons, mini-moons, bachelor and bachelorette trips, and guest leisure add-ons are up by about 29 per cent year-on-year (Y-o-Y) on Thrillophilia, a travel company.
"The ongoing wedding season is driving one of the strongest travel phases of the year. Between November and December, more than 4.5 million weddings are expected across India, creating a sharp rise in demand for flights, hotels, and local transfers," said Pittie.
The recent GST rate revision, Pittie added, has played a major role in strengthening travel sentiment and making accommodation more cost-effective.
Abhishek Daga, cofounder, Thrillophilia, said the average spends are up by about 21 per cent as couples pick luxury resorts or private villas and layer on curated experiences.
Destination-wise, Goa, Rajasthan, and Kerala lead domestically, while Thailand, Bali, and the UAE are the top international picks.
Meanwhile, Hilton Hotels has observed that weddings and wedding-related stays contribute nearly 12 per cent of its room revenue. This represents almost half of its total group business.
"Weddings obviously play a big role during this period, but we're also seeing strong leisure travel and corporate gatherings as the year wraps up," said Manish Tolani, vice-president and commercial director, South Asia, Hilton Hotels.
This year, Tolani added, will be a record-breaking one from a rate standpoint, as across almost every market, Q1 of 2025 set the tone with exceptional rate growth.
When room revenue is combined with the food and beverage component from weddings and social events, Tolani explained the overall contribution rises to over 25 per cent of total hotel revenues.
Tolani highlighted that for the hotel, wedding revenue has been compounding at around 15 to 16 per cent compound annual growth rate (CAGR) over the past few years.
"November-December is tracking as one of our strongest periods, with the booking pace broadly in line with last year but average daily rates (ADR) up by about 10 to 12 per cent across the portfolio," said Nikhil Sharma, managing director and chief operating officer, South Asia, Radisson Hotel Group.
"Occupancies remain steady, similar to last year, but with higher ADRs driving stronger yield, we're seeing the sharpest rate traction in the National Capital Region, Mumbai, Bengaluru, Pune, Udaipur, the wider Rajasthan circuit, and Karjat," Sharma added
Similar to Hilton Hotels, Indian hotel companies are also optimistic about the uptick in weddings and MICE segments.
Earlier, a spokesperson from ITC Hotels had said that the October-December quarter is shaping up to be a strong season with robust travel demand across its portfolio.
It is driven by the festival period, weddings, corporate events, and leisure travel.
Parent company of the Taj Hotels, Indian Hotels Company (IHCL) also expects to clock a growth of 10 to 12 per cent in the third quarter of FY26.
This is on a strong, favourable base, driven by weddings and MICE activity, Puneet Chhatwal, MD and CEO, IHCL, told Business Standard recently.
With rising spends on hotel stays, Rajiv Mehra, general secretary, Federation of Associations in Indian Tourism and Hospitality (FAITH), said there is about a 10 to 15 per cent hike in room rates during the November-December period Y-o-Y (average room rates in India this time are around Rs 8,000 to Rs 10,000).
Occupancy levels, Mehra added, are expected to be around 70 to 80 per cent for the year-end.
p> Arjun Baljee, founder of ICONIQA Hotel and president, Royal Orchid Hotels, agreed with the others. He anticipates a healthy growth in ADR, in the range of three to five per cent Y-o-Y, this November-December.
Additionally, Royal Orchid Hotels recently signed a hotel in Bathinda.
Baljee added as Bathinda is a vibrant market for weddings he aims to position the hotel as the premier destination for social celebrations in the region.
On the other hand, Ventive Hospitality's recent acquisition of the Hilton Goa Resort is another example of hotels expanding into India's growing destination-wedding circuit.
Ranjit Batra, CEO, Ventive Hospitality, said it has observed a significant upswing in bookings, driven by nearly twice the number of auspicious 'saaya' dates compared to last year.
The company's hotel properties, such as The Ritz-Carlton, Pune, and JW Marriott, Pune, continue to anchor demand for marquee celebrations.
With sudden closures during the pandemic followed by fast-paced growth in the hospitality industry, every hotel is tapping into every possible opportunity to attract guests and close this year at a higher end, the executives added.
With inputs from Akshara Srivastava
Feature Presentation: Ashish Narsale/Rediff
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