Domestic travel, tourism sector ready to capitalise on upcycle: IHCL MD Puneet Chhatwal

New Delhi: The Indian travel and tourism sector is well-positioned to capitalise on an upcycle, driven by factors, including the demand-supply gap, penetration opportunities in Tier II and Tier III markets and rebound in foreign tourist arrivals, according to Indian Hotels Company Ltd Managing Director and CEO Puneet Chhatwal.

In his address to shareholders in the company's Annual Report for 2023-24, Chhatwal said the Tata group hospitality firm is uniquely placed to capitalise on the opportunities provided by a dynamically growing industry.

The company plans to make its 'Gateway' brand -- a full-service hotel offering in the upscale segment targeting emerging micro markets in metros, Tier II and Tier III cities -- 100 hotels portfolio by 2030, he added.

"In India's evolving economic landscape, tourism has emerged as a powerful force driving not only economic growth but also forging a path towards a brighter and more inclusive future. With its rich cultural heritage and warm traditions, hospitality in India has undoubtedly arrived on the world stage," he wrote.

He further said India's growth story is characterised by a dynamic interplay of economic expansion, changing consumer preferences, and evolving aspirations. Increasing affluence is leading to new trends like the rise of premiumisation, experiential travel and brand consciousness.

"The Indian travel and tourism industry is ranked among the fastest-growing economic sectors in the country, contributing to employment generation and regional development," Chhatwal said.

On the future prospect, he said, "The sector is well-positioned to capitalise on an upcycle, driven by the demand-supply gap, market penetration opportunities in Tier II and Tier III markets, strong demand drivers such as MICE, spiritual tourism, the rebound in foreign tourist arrivals and destination weddings." This evolving landscape is marked by a heightened consumer awareness and a stronger preference for brands.

"With our diverse portfolio, iconic properties, world-class service, and a brandscape defined to serve myriad travel and hospitality needs, we are uniquely placed to capitalise on the opportunities provided by a dynamically growing industry," Chhatwal told the shareholders.

In FY24, IHCL expanded its international footprint with signings in Frankfurt, Dhaka, Bhutan and Nepal, he said.

"With 34 openings during the year and 53 signings, which translated to a new contract each week, we are now present in 150 locations," he said, adding that the hospitality chain continues to expand and evolve its brandscape.

IHCL announced the re-imagined 'Gateway', a full-service hotel offering in the upscale segment, an ideal fit to capture growth opportunities in emerging micro markets in metros and Tier II and Tier III cities, he said.

"The brand roll-out starting with 15 hotels will commence with launches in Bekal and Nashik, followed by destinations like Bengaluru, Thane and Jaipur. The brand will scale to 100 hotels portfolio by 2030," Chhatwal said.

Moreover, he said, "We also entered into a strategic alliance with Tree of Life Resorts & Hotels, which will help to expand our brandscape further to newer formats that cater to changing travel trends."