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“India’s Got Room: Rise of a Phoenix”

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Devastated by the pandemic, it faced a seemingly impossible future. Yet, it mirrored the phoenix’s resilience, overcoming adversity to thrive once more. Today, it stands as a major contributor to the Indian economy, resilient and thriving. Well, we are speaking about the Indian hospitality industry. After a severe dry spell owing to COVID, the Indian hospitality industry is booming. Having navigated the turbulence of the pandemic, the sector is steadily rising, showcasing a remarkable appetite for growth. This trajectory is fueled by a confluence of factors, from a thriving domestic tourism market to evolving traveller preferences and the government’s proactive role in supporting industry development.


We will discuss the Indian Hospitality industry in this edition of “The People Weekly”. We’ll delve into the factors driving India’s hospitality boom, explore emerging trends shaping the industry, and offer insights into what the future holds for this dynamic sector.

Growth of the Indian Hospitality Industry 

The Indian hospitality industry witnessed double-digit growth during the year 2023.  The momentum will continue into 2024-25 with expected revenue growth of 7 to 9% in  FY25

Between January and September 2023, around 6.43 million foreign tourists visited India, translating into foreign exchange earnings amounting to 1,66,660 crores in the same period

As per the latest report around  8,166,000 foreign tourists visited India which reflects the rapid growth of the industry. This is apart from the domestic tourists who mostly consist of the burgeoning Indian middle class who not only travel abroad but also travel to destinations within the country.

Key drivers behind the phenomenal growth of the Indian Hospitality Sector

Image source: IBEF

Economic Development: India’s growing economy and burgeoning middle-class population translate to increased disposable income, allowing more people to spend on travel and leisure activities.

MICE (Meetings, Incentives,  Conferences and Events): The increase in MICE events has led to a surge in demand for hotel rooms. This boosts occupancy rates, especially during off-peak seasons, ensuring that hotels have a consistent business flow throughout the year.

G20 and World Cup: The G20 and World Cup boosted the hospitality industry and the sector witnessed a huge growth in Q3, 2023. While the G20 brought together leaders, ministers, officials, and business representatives from the world’s major economies, the World Cup drew enormous numbers of passionate fans from around the world.

Government Support: Campaigns like “Dekho Apna Desh”, “Incredible India” and government schemes like “Swadesh Darshan”, and “Prasad” and facilities like “e-visa”, and medical visas have given a further boost to the sector. 

Trends Shaping the Future of Indian Hospitality

The Indian hospitality sector is dynamic and rapidly evolving, influenced by a range of trends:

Technology Integration: Technology plays an increasingly crucial role in the hospitality sector. From online bookings and contactless check-ins to AI-powered chatbots and smart room controls, technology streamlines operations and enhances the guest experience. The travel tech industry has evolved from being a booking-based ecosystem to a customer experience-focused ecosystem with the help of AI, Big Data and Data Science.  

Experiential Travel: Travelers today seek more than just accommodation; they crave immersive experiences. Hotels are responding by offering curated local tours, cultural activities, and unique culinary adventures. Holistic and adventure tourism is also on the rise. This trend will only intensify as travellers seek a deeper understanding of India’s diverse offerings.

Staycations and workcation: Two travel trends that have gained popularity in recent years, especially as remote work options have become more widespread are staycation and workaction. Hotels are now providing customers with many options wherein they can combine work and leisure or just escape the mundane life at home for a stay in a local hotel.

Sustainability Focus: Sustainable hospitality practices are gaining traction as travellers grow more eco-conscious. Hotels are embracing green initiatives, reducing energy consumption, implementing waste management systems, and engaging with local communities.

Expanding into Tier 2 and 3 Cities: Growth in the hospitality sector is no longer confined to major metropolitan areas. Investments are pouring into Tier 2 and 3 cities, fueled by rising incomes and a desire to explore lesser-known destinations.

The Upsurge of Budget Hotels: Budget-friendly hotels are catering to the growing demand from price-sensitive travellers, both domestic and international. New budget hotel chains are rapidly expanding, offering essential amenities at competitive prices.

The Impact

The explosive growth of the Indian hospitality industry has catapulted the industry to a whole new level. It is now one of the major job creators in the nation.  As per a report by Indeed, there was a 50% jump in hiring in 2023 in the hospitality industry.  The HAI(Hotel’s Association of India) has reported that the tourism and hospitality industry will create 50 million direct jobs and indirect jobs in the next 5- 7 years.  As per G20 Sherpa Amit Kant, for every 1 direct job in the hospitality industry, 6 indirect jobs are created. 

The backbone of the industry – hotels and restaurants – are experiencing an upswing in hiring for positions ranging from front-desk staff and housekeeping to chefs, servers, and management. Tour operators, travel agencies, transportation providers, and event planners are seeing increased business and corresponding hiring needs. The booming culinary scene requires chefs, cooks, servers, managers, and other supporting positions.  Growing interest in wellness leads to increased hiring of therapists, fitness instructors, receptionists, and managers.

It’s noteworthy that the hospitality industry is not just filling vacancies left by the pandemic, but also creating new jobs in recently opened hotels and restaurants. Additionally, while higher-level positions may still favour candidates with bachelor’s or master’s degrees, hands-on experience often holds greater weight for many entry-level and middle-management roles.

PeopleLogic Opinion

The Indian hospitality industry is on a remarkable growth trajectory. Increased domestic and international travel, a burgeoning middle class, and supportive government initiatives all fuel this expansion. This creates both exciting opportunities and unique challenges for businesses within the sector.  As hotels, restaurants, and tourism companies scale, finding and retaining exceptional talent will be critical for continued success within this competitive landscape.

This is where PeopleLogic excels. Our advanced talent acquisition solutions, deep understanding of the hospitality industry, and commitment to uncovering hidden gems within the workforce are designed to meet these precise needs. We utilise data-driven insights and a human-centred approach to connect our hospitality clients with the top talent they need to not only survive but thrive in this dynamic market. Let PeopleLogic be your strategic partner in securing the skilled and passionate individuals who will drive the future of Indian hospitality.

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