How have Budget Hotels Helped in the Revival of the Travel Industry in the Post-Pandemic Period?

Key takeaways:

• Introduction
• Services offered by low-cost hotels
• Rise of the industry in North America and India

One of the most affected industries during the COVID-19 pandemic was the tourism industry. Due to the travel restrictions and lockdowns imposed by almost all major countries across the globe, there was a drastic fall in the number of tourists and travelers visiting different countries. As the pandemic started to subside, many governments and private companies in the tourism sector started to take steps that would help the sector overcome the slump. According to many experts, reviving the demand was a critical step in helping the tourism sector bounce back from the pandemic-induced slowdown. This led to an increased emphasis on budget hotels as they primarily cater to middle-class tourists.

Why has the demand for budget hotels surged in the recent past?

The budget hotel industry has experienced huge growth in the past few years owing to the increase in the number of travelers. In the past few years, especially after the pandemic, the craze for traveling has increased which has led to many people opting to travel to different parts of the world. Among these travelers, a sizable chunk belongs to people who are looking for cheap accommodation prices. This has increased the popularity of budget or low-cost houses.

Apart from this, many budget or low-cost hotels have started offering quality services to fulfill the demands of travelers. For instance, most low-cost hotels offer certain basic amenities such as comfortable beds, sofas, tables and chairs, attached bathrooms, and a wardrobe. Depending on the tourist place, many low-cost hotels also offer ACs or room heaters. In-room service is also a common feature of tourist hotels wherein the hotel staff serves meals including breakfast, lunch, and dinner in the guests’ rooms. Also, other amenities such as beverages, bottled water, towels, laundry, etc., are offered in the rooms.

Housekeeping is also an essential service offered by low-cost hotels worldwide. Housekeeping services include sweeping, mopping, cleaning bedsheets, dusting, washroom cleaning, and maintaining the overall hygiene of the hotel room. Apart from these services, owing to the increasing importance of the Internet in today’s world, free Wi-Fi has also become a normal service that is offered by most low-cost hotels. Thus, low-cost hotels offer all those services that make accommodation comfortable; this has helped in the growth of this industry.

Analyzing the rise of the industry in India and North America

Of all the major regions across the globe, the hospitality sector has witnessed tremendous growth in the North American region and India. The North American budget hotel industry held the highest market share in 2022 and is expected to continue its dominance in the industry in the coming period. The low-cost hotels in this region, especially in the U.S., are increasingly adopting advanced technologies to improve visitor experiences and enhance the efficiency of their operations. Moreover, many such hotels have launched their websites and mobile apps to improve their networks and cater to a larger pool of customers. This has helped the industry in North America to strengthen its position.

Along with this, the industry has expanded massively in India owing to the increasing number of tourists opting to travel to India. Over the years, India has become a popular tourist attraction owing to its vibrant cultures, diverse food cuisines, and numerous historical monuments. As a result, people from all across the globe have started visiting India. Various companies operating in the hospitality sector have opened low-cost hotels to address these growing demands of tourists for cheap accommodation facilities.

For instance, Suba Hotels, a leading hotel chain in India, announced the launch of Click Hotel Yuvraj in Surat. Click Hotels is a mid-segment hotel brand of Suba Hotels Group and has gained widespread recognition from travelers across the country. Click Hotels in the last month had launched another such budget hotel in Mundra. These launches have helped Suba Hotels Group to increase its foothold in the industry tremendously. Due to these factors, the industry in India is anticipated to rise at a CAGR of 5.5% in the 2023-2032 period.

To conclude, low-cost hotels have witnessed tremendous growth in the past few years owing to the opening up of the economies in the post-pandemic period. Moreover, the amenities offered by low-cost hotels across the globe have increased their popularity, especially in the regions of North America and India.

To get an in-depth analysis on the growth drivers and investment opportunities in the industry, feel free to contact us.

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