- विज्ञापन -
New Delhi: The Maha Kumbh Mela has significantly boosted profits in the hospitality and airline industries, reflected in rising share prices, particularly for Benares Hotels, a part of Tata Group’s Indian Hotels.
On Wednesday morning, Benares Hotels Ltd saw its share price rise to Rs 10,610.00 on the BSE, marking an 11.50% increase from Tuesday’s closing price of Rs 9,552.95. Despite a general decline in the BSE Sensex and smallcap indices, this smallcap hotel company has thrived.
Benares Hotels Ltd manages Taj Ganges and Taj Nadesar Palace in Varanasi, along with Ginger in Gondia, Maharashtra. Its parent company is Indian Hotels Company Limited (IHCL). For the October-December quarter, Benares Hotels reported a 20% year-on-year increase in net profit, totaling Rs 13.6 crore, with revenues jumping 16.2% to Rs 40.1 crore. The Kumbh Mela has spurred domestic travel, driving revenue growth.
Airlines have also benefited from the surge in demand, leading to sharp increases in airfare during the Maha Kumbh period. Tickets for flights from Delhi to Prayagraj have surged to ₹20,000 or more, up from ₹5,000, while fares from Mumbai to Prayagraj vary between ₹20,000 and ₹56,000. For example, a direct flight from Delhi to Prayagraj with Akasa Airlines costs ₹24,262, while Air India charges ₹28,739. Often, flights with layovers are even pricier, and direct flights from Hyderabad to Prayagraj are fully booked until late February, compelling travelers to book connecting flights with extended travel times.
An ICRA report anticipates a 7-9% revenue growth for the Indian hotel sector in FY2025, driven by robust domestic leisure travel, weddings, and business events. It predicts occupancy to reach decadal highs, with tier-II cities and spiritual tourism providing notable contributions.
While domestic tourism is flourishing, the recovery of foreign tourist arrivals remains slow post-Covid, dependent on the global economic situation. ICRA forecasts premium hotel occupancy rates to peak between 70-72% in FY2024 and FY2025, with average room rates rising to ₹7,800-8,000 in FY2025. Though some segments have surpassed pre-Covid numbers, the industry is expected to match its peak from 2008 by FY2025. The overall outlook remains promising, bolstered by infrastructure improvements, enhanced air connectivity, and the expansion of large-scale events and new convention centers.
