How hospitality can cash in on India’s destination wedding boom [Infographic]
Umaid Bhawan Palace, Jodhpur, Rajasthan – one of India’s most stunning wedding venues
In the promising Indian hospitality market, wedding tourism and destination weddings can be a significant game-changer, according to HVS ANAROCK
India’s hospitality industry has seen a boom in recent years. However, the sector stands poised to further benefit from the ever-growing trend of destination weddings and wedding tourism being seen in hotspots across the country.
The very mention of India evokes colourful images of diverse, exotic lands. From the desert palaces of Rajasthan to the sandy beach resorts of Goa, the South Asian nation seems to offer something for every kind of traveller, domestic and international alike.
With its wide spectrum of romantic settings, exotic destination weddings have been redefining India’s wedding culture, with the Indian destination wedding industry expected to reach a market size of INR 45,000 Cr ($6.4 billion) by 2020, with a projected annual growth rate of 25-30%.
“While the trend of destination weddings is not exactly an Indian concept, its percolation into the globe-trotting Indian millennial milieu was inevitable. Wedding halls are passé – perfect, fairy-tale settings for one of life’s most momentous events are increasingly ‘in,’” said Mandeep Lamba, President – South Asia, HVS ANAROCK.
INDIA’S ALREADY BOOMING HOTEL SECTOR
What are the factors behind this rise? The country’s expanding middle class, a booming economy and celebrity endorsements – amply stirred by social media-induced aspiration – have contributed to this growth.
In other words, Indian millennials are the main target audience and the hospitality industry is the biggest beneficiary.
According to research from property consultants HVS ANAROCK data, the Indian hotel industry in 2018 saw country-wide revenue per available room (RevPAR) growth of 9.6% compared to a year earlier, to arrive at an absolute RevPAR of 3,927.
Furthermore, in 2019, RevPAR is expected to grow to an impressive 9.5%, with demand even outpacing supply.
Between 2014 and 2018, India witnessed an upsurge in transaction volumes of approximately $92 billion – the previous peak being in 2015 at about $28.3 billion.
TOP-NOTCH DESTINATION CITIES
With Indian millennials more than eager to choose the most exotic locales they can afford to celebrate their big day, which cities stand to cash in on the destination wedding boom?
Among the leading cities for personalized, theme-based destination weddings in India are Rajasthan, Goa, Kerala and Uttarakhand.
With its forts and palaces, Rajasthan provides the perfect setting for a royal wedding. In Jaipur, average daily rates (ADR) stand at between $485 to $556. The “Pink City”
continues to witness growth in room supply, with approximately 1,282 keys added in 2018 alone.
Kerala and Goa provide the ideal palette for beach weddings. Goa saw the largest signing of keys in 2018 at 2,209 keys with ADR between $228 and $270.
Many nature lovers choose resorts in Uttarakhand for their spectacular mountain backdrops. In destinations such as Mussoorie, ADR is between $170 and $256.
STRONG FUTURE PROSPECTS
Not only Indians but also couples from around the world are choosing the Asian country, for its romantic settings and affordable air travel and accommodation options.
The Indian hospitality sector has also grown due to the introduction of subsidies in construction and tourism, which is positively transforming the economy.
However, the last few years have also been unpredictable due to an oversupply of hotel rooms and competition from new brands and shared economy models such as Airbnb.
Going forward, growing demand for destination weddings will play a significant role in transforming the economy of host states, creating new avenues of growth for the Indian hospitality sector.
Here is a TOPHOTELCONSTRUCTION infographic detailing India’s global hotel pipeline.
Let’s take a look at a few other projects currently underway in India:
The Zephyr – MBD Steigenberger Hotel and Apartments
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