India in holiday mood this May, despite inflation: Report
Even as cost of travel increases amid global inflation, travel demand in India remained strong in May, according to the latest edition of the ‘Pulse’ report by RateGain Travel Technologies.
The report analyses demand from over 1.91 lakh hotels and monitors travel demand in over 60 cities.
The report says travel demand is strong across the world despite high inflation and an anticipated slowdown due to lockdowns in China and the Russia-Ukraine war.
Rise in monthly bookings
Compared to May 2021, bookings in India have grown by 178 per cent in May 2022.
Tourist destinations in the north and south are attracting more bookings, as families plan their annual summer break after a two-year gap, as per the report.
Hill stations, which had witnessed a bookings spike of 100-150 per cent in April, have recorded an increase of 50-60 per cent in May, the report says.
This was in stark contrast to last year, when India was in the grip of the deadly second wave of coronavirus, it adds.
“With May witnessing record-breaking temperatures in India it was expected that it would also impact hotel bookings; however, except Bangalore and Chandigarh, which are known for cool temperatures, every other major Indian city including Goa saw either growth in bookings or the same number of bookings as in April,” the report said.
Delhi continued to record a month-on-month rise in hotel bookings for the last three months, despite the sweltering heat.
It recorded a 65 per cent increase in ADR — average daily rate or revenue per occupied room — in May 2022 compared to April 2022.
Other key trends
A 38 per cent growth in bookings across the 20 most popular destinations in May, despite high airfares and a looming recession, led by a massive surge of bookings in Turkey, Jordan and Malaysia followed by other countries in Asia such as Oman, Singapore and Indonesia.
“Thailand and Singapore had very strict Covid protocols and relied heavily on inbound arrivals,” the report said.
Even with 60-70 per cent price rise predicted over the next three months, Southeast Asian cities Bali and Kuala Lumpur recorded the fastest growth in bookings, followed by Koh Samui and Pattaya, as International travellers land in the Asia-Pacific region for the first time in two years.
“We are witnessing a similar trend in Central Europe, where Zurich, Munich and Berlin continue to see high interest as compared to April, even though prices continue to soar due to inflation,” the report added.
June 16, 2022