Quarterly COVID-19 impact on occupancy rate in hotels in India 2020

In 2020, the occupancy rate in hotels across India was 34.5 percent. The year started with an occupancy of 57 percent. That was significantly lower than in the first quarter of 2019, when nearly 70 percent of rooms were occupied. As a lockdown and travel restrictions were imposed in March that year due to the coronavirus (COVID-19) pandemic, the rates fell to 15 percent in the second quarter. Towards the end of that year, the occupancy slowly increased again. 

 Key indicators in hotel industry 

Besides the occupancy rate other key indicators for the hotel industry included the revenue per available room (RevPAR) and the average daily room rate (ADR). The RevPAR shrunk from 3,700 Indian rupees in the first quarter to 533 rupees in the second quarter of 2020. The ADR decreased, similarly, from 6,400 Indian rupees to 3,400 in the same time period.

 Consumer composition 

  The coronavirus (COVID-19) pandemic hit the hotel industry hard with estimated changes in customer structures. One such indication was the shift from business to leisure accounting for a larger share of travel, as well as an even stronger influence of domestic tourists. From the customers’ perspective, a demand for more sustainability as well as a preference for remote places was seen.