ICRA’s report on the Indian hospitality industry outlines key demand drivers for the next 9 to 12 months. The MICE segment is expected to thrive, fuelled by a shift of weddings to hotels from independent halls, the rising popularity of destination weddings, and sustained robust corporate MICE demand. Business travel also remains a crucial driver, having shown healthy demand in FY2024 and year-to-date FY2025, with only a temporary dip in Q1 FY2025 due to the General Elections. Notably, virtual meetings have had a limited impact on business travel, and average lengths of stay have increased compared to pre-COVID levels. These factors point towards a positive outlook for the Indian hospitality sector.
