Hotels see surge in enquiries, bookings for leisure trips ahead of unlock

Travel firms remain cautiously optimistic, hope for recovery in second quarter

Hotels are seeing a spike in enquiries and bookings at their properties in leisure destinations, ahead of the unlocking that various state governments are expected to announce in the next few weeks. The real picture however, will emerge after the states reopen after almost two months of lockdown, say hotel executives. Owing to the magnitude of the crises unleashed by the pandemic's second wave and the psychological impact, the drive to a meaningful recovery this time around may take slightly longer.

“We do expect leisure travel to kick in from June and things to improve further from the second quarter,” said Manav Thadani, founder and chairman at Hotelivate—a hotel consulting firm.  But the trend will be visible only after four to six weeks. Thadani doesn’t expect a sharp V-shape recovery or the so-called revenge travel trend like the last time, owing to the severity of the second wave.

Parveen Chander, Senior Vice-President, Sales & Marketing, Indian Hotels (IHCL) concurs. "Though the booking and enquiry trend for June is encouraging, it is still lower year-on-year and not comparable to what one saw in February and March, when the bookings were strong," he says.

“We are seeing some pick-up in both enquiries and bookings. However, these are all for the short term as the booking window has reduced.  We expect the trend to increase once the lockdowns are lifted. We are seeing many enquiries for social events like weddings and celebrations for this winter. We are also seeing an interest from corporates for off-sites, though in smaller numbers,” said Chander.
 

• Ahead of unlocking hotels see an uptick in inquiries and bookings
• It includes inquiries for office off sites and weddings
• Hotels luring guests with long stay packages
• Recovery expected to gain traction in the second quarter

At its peak India registered over 400,000 Covid-19 on a single day in May resulting in more stringent lockdowns, travel restrictions and mandatory RT PCR tests. This led to a sharp drop in occupancies and booking cancellations for airlines and hotels. A decline in fresh cases and ramp up in vaccination are being seen as positive triggers for revival of travel sector

The penetration of the vaccine is helping bolster confidence in travel, and the sense we get is that there is a lot of interest in both resort and city destinations, said a spokesperson at ITC Hotels. “This year, starting Q2, there are a number of key wedding dates which are increasingly getting booked out. However, the scale of these weddings will depend on the mandates of the relevant authorities in each city,” the spokesperson added

But Kerrie Hannaford, Vice President Commercial- Accor India & South Asia that runs hotel chains under brands including Sofitel, Swissotel, Novotel and Ibis, among others, is not willing to read much into the initial trend just as yet.  “It’s slightly premature to comment on the winter bookings /inquiries at this stage, when recovery from the second wave of Covid is still underway.” She expects the pace of bookings to improve once when progressive unlock begins in the various states. “Currently guests prefer to book with shorter lead-time, given the uncertainty,” said Hannaford.

In a note to investors after its fourth quarter earnings, MakeMyTrip said it remains “cautiously optimistic of some domestic travel recovery starting from the second quarter of the fiscal year ending March 31, 2022.”

The extent of the effects of the Covid-19 pandemic on the business, results of operations, cash flows and growth prospects remain uncertain and would be dependent on future developments. While many countries have begun the process of vaccinating their residents against Covid-19, the large scale and challenging logistics of distributing the vaccines, efficacy of the vaccines against new variants of the virus, etc. may contribute to delays in economic recovery, it cautioned.

Meanwhile, in order to tide over the current lull, hotels are offering long stay packages at attractive rates. ITC for instance has recently launched the “Rejuvenate & Recharge” package which is a specially crafted long-stay package. It is meant for guests who may want to isolate themselves given the current situation or may just want to take a safe staycation break with their family and friends.

 It is an all-inclusive one which covers all major meals and the internet. Select hotels such as the ones in the hills, like Welcomhotel Chail, Welcomhotel Shimla, Welcomhotel The Savoy, Mussoorie & Welcomhotel Pahalgam, are also offering kids' activities and a few other amenities. “The hills and beaches are normally the quickest to recover, and this time again we are seeing a lot of interest being generated for these hotels,” said the spokesperson.

At Accor hotels, on opting for a minimum 14 nights one can save up to 40 per cent on stays, plus get an additional 20 per cent discount on dining and laundry services.

At IHCL’s Amã Stays & Trails, a branded homestay product, Guests can book an entire bungalow and enjoy their own private haven of tranquility under the “The Bungalow is Yours” scheme.  It even allows guests to take their pets along.  IHCL is also seeing good traction for its properties at drive-able distance from the cities.

• Ahead of unlocking hotels see an uptick in inquiries and bookings
• It includes inquiries for office off sites and weddings
• Hotels luring guests with long stay packages
• Recovery expected to gain traction in the second quarter