At CNBC-TV18’s event, The Titans, Puneet Chhatwal, Managing Director and CEO of Indian Hotels Company Ltd (IHCL), stated that this development could promote the “apna desh” narrative and inspire increased spending within India.
Chhatwal noted that this trend might also bolster initiatives such as “Make in India, Heal in India, and Wed in India,” catering not only to domestic tourists but also to international visitors.
Simultaneously, Chhatwal pointed out that the industry is still grasping the broader implications of the Prime Minister’s statements amid swiftly changing geopolitical circumstances.
“We are all somewhat speechless, pondering: is there more to it? Is there something we need to know?” he remarked, suggesting that further clarity could arise in the coming weeks.
Anuraag Bhatnagar, CEO and Whole-Time Director of The Leela Palaces, Hotels and Resorts, shared a similar perspective, noting that domestic travel demand was already robust during the summer vacation period.
“May, June, and July are holiday months, with school breaks, resulting in a strong domestic uptake as it is. This will likely be further amplified,” Bhatnagar stated.
He highlighted that affluent Indian travelers taking international trips greatly outnumber the inbound international tourists visiting India, presenting a long-term opportunity for the domestic hospitality industry.
“The number of wealthy Indians traveling abroad is nearly three times that of inbound tourists,” he remarked.
These insights arrive at a time when financial market fluctuations have raised alarms regarding the wealth effect on discretionary spending, particularly in the luxury market. Despite this, Chhatwal reported that business trends remain stable amid the uncertainty.
“Currently, things are looking good. May has started off very positively… and June’s bookings are promising,” he added.
He emphasized that safety and security are crucial factors driving hospitality demand, stating that IHCL’s operations, including those in the Middle East, have not experienced significant disruptions.
The conversation also underscored how companies are increasingly aligning themselves with India’s burgeoning experience economy.
Rahul Ganjoo, CEO of District by Zomato, indicated that the company recognizes significant opportunities in out-of-home consumption and urban experiences.
“The unifying theme across all our businesses is: how can we streamline urban living and minimize friction?” Ganjoo mentioned.
“We are fundamentally about reducing that friction to help more people enjoy experiences outside their homes. Directionally, this represents a larger total addressable market compared to at-home consumption,” he continued.
Bhatnagar stated that India’s luxury hospitality segment continues to thrive due to solid macroeconomic support and the rising demand for premium experiences. He noted that Brookfield Corporation’s acquisition of Leela in 2019 enabled the company to grow through enhanced access to capital and disciplined asset management, while still focusing on luxury.
Also Read | How demand, experience-led travel are shaping hospitality sector growth
In the meantime, Chhatwal remarked that IHCL has successfully expanded beyond the Taj brand to serve a wider consumer demographic across various segments, including upscale, mid-scale, and homestay options.
“We need a diverse product offering for every Indian,” Chhatwal expressed, referencing India’s large and evolving travel market.
He affirmed that the Taj brand continues to be central to the company’s identity and growth plan, with the luxury brand now nearing a portfolio of 150 hotels worldwide.
