By Aneesh Phadnis

Copyright thehindubusinessline

Hotels continue to see strong demand momentum led by festivals, events and weddings.

Bookings during Navratri-Dussehra period are up by upto 15 per cent with rates rising by around 30 per cent. Weddings and business events are shaping up demand for the third quarter of FY 2026.

“ The upcoming festive period around Navratri and Dussehra is sharing up to be a very strong travel season for Radisson Hotel group. We are already seeing a surge in demand across leisure destinations like Pondicherry, Mahabalipuram, Udaipur, Jaipur and Uttarakhand. Occupancy levels are climbing sharply and average room rates are trending nearly 30 per cent higher than regular periods,” said Nikhil Sharma, managing director & COO, Radisson Hotel Group (South Asia).

Destinations in drivable locations are also seeing traction with hotels witnessing last minute bookings during Navratri period.

Strong uptick

“Festive demand this season is seeing a strong uptick, with room bookings up by 12–15 per cent year-on-year in key drivable destinations like Agra and Jaipur, driven largely by the Dussehra long weekend. We expect that after this peak period, demand will shift more towards F&B experiences rather than room stays,” said a spokesperson of Sarovar Hotels.

Airlines have increased capacity to Kolkata to tap travel demand for Durga Puja in end-September. These include additional flights and a new route from Kochi.

“ Families and couples continue to lead bookings while groups of friends and extended families are adding to further momentum as we head to Diwali, Christmas and New Year,” Sharma said.

Hotels registered double digit growth in the first quarter of FY 26 but the performance was uneven. Occupancies were impacted in Delhi, Chandigarh and other cities in North India due to geopolitical tensions

Indian Hotels Company Ltd (IHCL) saw 19 per cent year on year revenue growth in Q1 FY 2026. The company said 2-2.5 per cent of revenue growth was compromised due to booking cancellations and flight disruptions following Operation Sindoor in May.

However IHCL remains confident of a double digit growth in FY 26 and is targeting opening of 30 new hotels this year. “ Despite the base effect of July with five wedding nights last year, overall outlook for Q2 remains robust,” IHCL said in an investor presentation last week.

Published on September 21, 2025